BPS decision announced

Deputy Minister for Farming and Food, Rebecca Evans today announced her decision on the method of payment to be implemented for the Basic Payment Scheme (BPS) in Wales.

The Deputy Minister’s original plans for a new CAP direct payment system, based on land classification, were challenged in the courts last year. The legal challenge demonstrated we could not introduce those arrangements without risking inequitable treatment of farmers with similar types of land parcels spread across different payment regions. The result was that the associated regulations were quashed.

A 12- week consultation on alternative options for a BPS was launched in March and closed on 23 June. More than 230 responses were received from a range of stakeholders and today the Deputy Minister announced her decision on which options were to be pursued.

She said:

“In reaching my decision I have had to balance the weight of stakeholder feedback with our policy goals as set out in the consultation. Within those goals, which were generally supported by the consultation responses, my stated top priorities were to ensure Wales meets the requirements of the EU Regulations and to be able to make payments as soon as possible in the 2015 payment window. Those remain my key objectives.

“Option C – a flat rate by 2019 – is my favoured option for the following reasons:

• it treats all farmers equally in moving payments to the same value per hectare by 2019 in five annual steps;
• it meets most of our policy goals, including providing opportunities for new entrants; and
• it gives a clear basis on which our farmers can plan for the future.

“I have decided that we will apply the redistributive payments option alongside Option C. This will provide a softer transition for many.

“Throughout the review of CAP we have worked side-by-side with farmers and their representatives to find the best possible way forward for Welsh agriculture. Their valuable feedback provided through the consultation has assisted me in reaching my decision and I am grateful to them for that.”

Implementing a flat rate payment by 2019, coupled with a redistributive payment covering the first 54 hectares of each claim, offers the best balance of meeting policy and operational requirements on the one hand, and addressing feedback from the stakeholders on the other.

Welsh Government will now seek the necessary approval from the European Commission, and move swiftly to implement this model so that part-payments can be made as early as possible within the EU payments window.