Growers’ leaders fear retailers will use new CAP payments to drive down the price they pay for fresh produce.
From next year, the horticulture sector will for the first time qualify for EU hand-outs. But there is concern that some producers may find it hard to keep hold of the money.
Phil Hudson, NFU chief horticultural advisor, said: “This could be a concern for some growers who supply retailers, particularly those employing an open-book accounting system.
“In an open system, you can see who gets what and what goes where. If there’s an extra couple of hundred quid available, then the retailers may want it, even though it’s meant to stay on the farm.” Hudson
admitted there would not be much growers, nor the NFU, could do if a retailer decided the payment should be used to reduce prices. “It will come down to commercial relationships,” he said. From January 1 almost all farmers and growers will receive a new single farm payment, which is not related to the amount of food produced but is based on how well producers look after the environment. Horticulture has not previously received any subsidies, but under CAP reform will receive around £21 a hectare rising to between £210 and £230 by 2012.
The conditions attached to the payment mean it is by no means certain that all growers will take up their entitlement.
One condition is that 8% of the land on a holding is used as set-aside, which may not appeal to all growers, said Hudson.
“Eight per cent set-aside is no small amount and it is land that a grower may well feel is much better used for growing high-value crops.”
There is controversy that top fruit growers will not receive the single farm payment because the government considers trees in commercial orchards to be permanent crops.
Richard Clarke
From next year, the horticulture sector will for the first time qualify for EU hand-outs. But there is concern that some producers may find it hard to keep hold of the money.
Phil Hudson, NFU chief horticultural advisor, said: “This could be a concern for some growers who supply retailers, particularly those employing an open-book accounting system.
“In an open system, you can see who gets what and what goes where. If there’s an extra couple of hundred quid available, then the retailers may want it, even though it’s meant to stay on the farm.” Hudson
admitted there would not be much growers, nor the NFU, could do if a retailer decided the payment should be used to reduce prices. “It will come down to commercial relationships,” he said. From January 1 almost all farmers and growers will receive a new single farm payment, which is not related to the amount of food produced but is based on how well producers look after the environment. Horticulture has not previously received any subsidies, but under CAP reform will receive around £21 a hectare rising to between £210 and £230 by 2012.
The conditions attached to the payment mean it is by no means certain that all growers will take up their entitlement.
One condition is that 8% of the land on a holding is used as set-aside, which may not appeal to all growers, said Hudson.
“Eight per cent set-aside is no small amount and it is land that a grower may well feel is much better used for growing high-value crops.”
There is controversy that top fruit growers will not receive the single farm payment because the government considers trees in commercial orchards to be permanent crops.
Richard Clarke
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