ENTITLEMENT AND MILK QUOTA REPORT

LATEST NEWS

CAP HEALTH CHECK NEWS – 20^th NOVEMBER 2008

Late last night the Council of Agricultural Minister agreed the CAP Health Check details. These agreed the following basic elements:

1. Compulsory EU Modulation will rise from 5% to 10% by 2012.

2. Farmers receiving over 300,000 euros will be subject to a 4% further cut.

3. Member States can claw back up to 10% from direct payments under Article 68 and use the money to set up certain schemes, eg animal disease funds, supporting beef and sheep farmers in disadvantaged areas, crop insurance schemes, upgrading slurry system schemes.

4. Energy Aid payments will end.

5. Their will be full decoupling throughout Europe, so no member states can continue with direct payments such as Suckler Cow and Sheep subsidies.

6. Set aside is to go. Watch this space as to what happens to Set-aside entitlements and the potential 5% compulsory fallow in the United Kingdom.

7. Milk Quota will be increased by 1% per year. Milk Quotas are to end in 1^st April 2015.

8. Italy will get a one off increase of 5% in their milk quota

The full EU text is yet to be published. The interesting matter will be how DEFRA translate it.

EXCHANGE RATE FOR 2008 FIXED

GOOD NEWS…..EURO TO POUND EXCHANGE RATE HAS BEEN SET AT 0.7903. THIS IS AN IMPROVEMENT TO LAST YEARS EXCHANGE RATE OF 0.6968 EUROS TO THE POUND. THE EXCHANGE RATE IS DUE TO BE SET FOR 2008 PAYMENTS ON 30^th SEPTEMBER 2008. ALL UK FARMERS WILL POTENTIALLY RECEIVE 9.35 PENCE MORE IN EVERY EURO COMPARED TO 2007 DUE TO THE EXCHANGE RATE CHANGES DUE TO THE WEAK POUND.

MARK WEBB BECOMES VICE PRESIDENT OF THE CENTRAL ASSOCIATION OF AGRICULTURAL VALUERS

WebbPaton’s founding Partner Mark Webb was elected Vice President of the Central Association of Agricultural Valuers at their national AGM in June 2008. Mark will be President in the CAAV’s Centenary Year 2009/2010. He will be the youngest President that the CAAV has ever had in its entire history.

The CAAV represents agricultural and rural valuers and provides advice on matters affecting the membership to Government in Westminster, Whitehall and Brussels, recent matters include the Mid Term Review of the Common Agricultural Policy and the Tenancy Reform Industry Group report. It maintains close contact with organisations representing rural interests, as well as other professional bodies, and works jointly with these organisations providing particularly valuation input on the many issues raised for the countryside in these rapidly changing times.

If you are organising a seminar / meeting. George Paton and Mark Webb are happy to speak on any agricultural topic. Please telephone 01793 842055 to discuss further.