Proposed reforms for the fruit and vegetable sector, to which the EU Commission has now agreed, will mainly affect the UK’s SPS and POs.
To bring the fruit and vegetable sector in line with the rest of the improved Common Agricultural Policy (CAP), EU agricultural ministers have agreed to a number of wide-ranging reforms.
The primary objective of these changes is to improve the sector’s competitiveness and market orientation for sustainable production. The reforms should herald positive change for most UK growers affected by the rules, specifically in terms of the Single Payment Scheme (SPS) and Producer Organisations (POs).
The fruit and vegetable sector is already covered by the national Single Payment, but because this hasn’t been a compulsory inclusion for all Member States, the land has had to be matched against special soft fruit, vegetables and potatoes (fvp) authorised entitlements.
The reforms do away with this rule, as fvp production will be eligible in all SPS models and current fvp-authorised entitlements will be converted into normal ones.
Orchard eligibility
Under the reforms, land covered by orchards – which was previously outside the SPS – will now qualify for the Single Payment.
However, with the UK not expected to receive additional funding for this, any new entitlements will need to be financed from existing funds. According to the June Agricultural Census, England has approximately 21,000 hectares of land under orchard, so there is unlikely to be enough money in the National Reserve to fully fund regional payments on this. Therefore, entitlements in England lowland could face a downwards adjustment.
Issues such as when orchard land will be eligible and reference periods are still subject to English ministerial decisions. Although it is likely that this rule change will be introduced for the 2008 SPS, we are still awaiting confirmation and expect the Department for Environment, Food and Rural Affairs to make an announcement shortly.
More flexibility for POs
Other than Single Payment adjustments, the main effect of the reforms in the UK will be on the way POs operate. The aim is to strengthen POs in order to give producers more power in the marketplace.
Rules will be simplified and POs will be given more flexibility on how operation programmes are run. These programmes will now have to include some environmental measures comprising at least 10% of the budget.
Growers will be able to be members of more than one PO and cross-border POs will be allowed. Funding will be fixed at 4.1% of the value of marked produce, but this will increase to 4.6% if a PO operates a crisis management or prevention system.
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