UPDATED:
Following consultation with members the NFU submitted this Consultation Response to Defra.
As part of the announcement of a new set of support measures for the EU dairy industry at the July Agriculture Council, Commissioner Hogan unveiled a €350m ‘Exceptional Adjustment Scheme’ in addition to the €150m Milk Production Reduction Scheme. From the former, allocated mainly on milk production levels but also with some account taken of milk price changes and the proportion of small scale farmers, the UK will receive €30m for economic sustainability, market stabilisation and improvement of longer-term structural problems.
Member States have a certain amount of flexibility to define the measure or mix of measures they will make available to farmers. England will receive €18.7m as a share of this allocation and Defra is currently consulting with stakeholders on proposals on the best ways to use these funds to support farmers. The Devolved Administrations will develop their own approach for their allocation of funding.
Defra is currently consulting on the measures, of which direct support is not an option for this funding package. Defra has suggested three schemes with focus on environment, training for farmers in risk management methods, and encouraging small-scale pasture-based farming businesses.
Defra proposals:
1. Slurry Cover Grant Scheme Proposal
This scheme would be similar to the existing scheme for funding slurry covers in Catchment Sensitive Farming (CSF) areas under the Countryside Stewardship scheme but would apply in all regions and fund 100% of the costs to encourage take up.
2. Risk Management Proposal
Proposal to deliver with partner bodies training for risk management and financial instruments to farmers, being made available principally to those livestock producers in markets affected by unpredictability, notably dairy.
3. Proposal for a scheme to encourage the smaller ‘family-farm’ pasture-based farm businesses
Seeking to develop schemes specifically targeted to encouraging smaller ‘family-farm’ pasture-based extensive farm businesses. These could be based around brand development, marketing of products from grass-fed systems, provision of technical support and knowledge transfer to help farmers continue to become more efficient in utilising grass or care for soils on their farms, or through collaborative projects which enable small farmers to work together to create opportunities for themselves.
The NFU has presented other ideas to Defra including using the funding for better producer representation and to benefit all dairy farmers through animal health schemes (such as bovine TB or BVD) and will respond to the consultation in due course. We are currently asking for any other suggestions from our members, as well as feedback on the proposals put forward by Defra.
Any suggestions would need to meet the following basic principles:
- Dairy farmers as the main beneficiaries;
- Payments and related expenditure must be made by 30 September 2017;
- Emphasis should be on fostering long-term economic sustainability and market stabilisation rather than crisis management or hardship payments, so schemes should be demonstrably capable of delivering a lasting positive impact for the dairy and/or livestock sectors.
Please send any feedback to the Dairy Team by Thursday 6 October.