Dairy prices

    Subsidies: Stock Arrangements, Computerisation and Changes to Drop-In Centres

    Practical Subsidy Issues

    Stock Arrangements
    In contrast to cropping arrangements, where grassland is occupied on a grazing licence the cross-compliance responsibility can be divided between the two parties.  The grazier is responsible for the livestock related measures and the land supplier those relating to the grass and land management. 

    It remains important for the land supplier to have input into the management of the grass and field boundaries and not just to leave it to the grazier. It is also important that the land supplier does not take on responsibility for the management of the stock if the responsibility for the livestock cross-compliance is to be avoided.

    Computerisation
    This is likely to be the last year when a paper submission of the subsidy application is possible.  There are changes to the location of drop-in centres now. Application packs should be available from 1 March.  In all probability, changes submitted from now on will not be shown on the paper or electronic application for this year.

    SPS Payments Reminder
    View the SPS Payments Reminder chart

    €/ha £/ha Modulation up to €5,000 Modulation over €5,000
    Moorland 323.91 258.50 14% 19%
    Other SDA 260.29 207.72 14% 19%
    Non SDA 207.72 36.29 14% 19%

    After a long period in which sterling has strengthened against the euro, sterling is now weakening and with luck 2013 subsidy payments should rise when the exchange rate is finally fixed in September.

    Drop-in Centres changed
    Drop-in centres for submitting applications are now in Exeter, Northallerton, Carlisle, Kings Lynn and Worcester thus providing a round trip of 200 miles for many farmers.

    CAP Reform Snippets
    In England, at least, it is looking increasingly likely that entitlements will not be reissued post reform and current entitlements will be carried forward.  Elsewhere, new entitlements may be issued but those failing to receive entitlements as a result of for example, not making a claim in the reference year would probably qualify from the national reserve.  Most at risk would be landowners taking land back in hand who had not previously farmed.

     
     

    Key contacts

    Andrew Wraith

    Andrew Wraith

    Director
    Food & Farming

    Savills Lincoln

    +44 (0) 1522 508 973

    +44 (0) 1522 508 973

     

    Steve Hollis

    Steve Hollis

    Director
    Food & Farming

    Savills Salisbury

    +44 (0) 1722 426 853

    +44 (0) 1722 426 853

     

    Ashley Lilley

    Ashley Lilley

    Director
    Food & Farming

    Savills Cheltenham

    +44 (0) 1242 548 012

    +44 (0) 1242 548 012

     

    Giles Hanglin

    Giles Hanglin

    Director
    Rural Research

    Savills Margaret Street

    +44 (0) 207 016 3786

    +44 (0) 207 016 3786