The UK’s farming community has been urged to be vigilant when checking payments received under the Common Agricultural Policy (CAP) regime.
The reform process of the CAP, in light of an in/out referendum of Britain’s membership of the European Union being held by the end 2017 at the latest, was one of the main topics discussed at an agricultural conference organised by law firm Wright Hassall.
Paul Rice, who heads up Leamington Spa-based Wright Hassall’s agricultural team, gave a comprehensive overview of the reform of the CAP over the years and stressed the growing importance of the farming industry on the economy.
Rice, quoting from a speech given by the Commissioner for Agriculture and Rural Development Phil Hogan in December, said: “The agriculture industry employs more than 22 million people in the EU directly, and as many as 44 million indirectly, so its importance on our economy cannot be underestimated.
“The EU is also the world’s biggest agri-food exporter, accounting for €122 bn per annum.
“Reports published recently revealed 94 per cent of people believe agriculture and rural areas are either fairly or very important, so public perception of the importance of the industry is certainly increasing.
“The reform of the CAP, and the promise to simplify it, is a massive issue for the industry, and will continue to be for the years ahead.
Rice added: “The farming community has relied on direct payments as part of the CAP for a long time, and by 2020 in my opinion direct payments are going to be substantially less than they are now. They may disappear completely - a move advocated by some commentators and politicians.
“In business planning terms, 2020 is not that far away, so there is a lot for the farming community to do over the next few years.”
Talking about the Basic Payment Scheme introduced in 2015 and administered by Defra, Rice said: “It is vital that rural businesses inspect their payments received, as there are reports of land transfers in and entitlement being processed but not paid. So the key message for farmers is to be extremely vigilant on this and speak to an expert if any doubt.”
Speakers at the conference held at Stoneleigh Park also included Harry Cotterell, chairman of rural estate agents and chartered surveyors Fisher German, David Gardner, chief executive of the Royal Agricultural Society of England (RASE) and John Giles from agricultural consultancy Promar International.
