NFU Cymru, alongside the other UK NFUs, has joined a coalition of farmers’ organisations from Germany, France, the Netherlands, Belgium, Finland and Denmark to fight against CAP proposals that could result in significant reductions to farmers’ direct payments.
Negotiators from the European Commission, European Parliament and Agriculture Council are currently discussing proposals to allow member states to transfer up to 15 per cent from their pillar 1 fund, which is used for direct payments, into pillar 2 which funds rural development projects.
The coalition of farming unions has sent a joint declaration to all negotiators from the three EU institutions urging against giving member states unilateral freedom to move money away from direct payments.
NFU Cymru President Ed Bailey said, “The free transfer of money from pillar 1 to pillar 2, which would be at the member state’s discretion, would result in grossly unfair competition between farmers across Europe.
“We could see the UK moving 15 per cent of its pillar 1 envelope into pillar 2 while at the same time other member states will be moving money in the other direction. Our farmers cannot be asked to compete with produce from farmers on the continent who will have retained that money. We need our Government to commit to giving us a level playing field so that we can compete fairly on the single market.”
Mr Bailey added, “Co-financing is a fundamental part of existing rural development policy. Pillar 2 has always been accompanied by national co-financing. This ensures that only projects that national governments themselves view as important enough to co-finance will be introduced. To stop this we have joined this coalition to ask for any money transferred from pillar 1 to pillar 2 be match-funded by national co-financing. Only then will governments really be forced to weigh up the value of moving money into pillar 2.”
The flexibility to move money between pillars is one of several divisive issues being discussed as the European Commission, European Parliament and Agriculture Council continue with their CAP trilogue meetings. The Irish presidency still hopes to have finalised an agreed CAP text before the end of June.
