CAP Health Check proposals unlikely to change dramatically

WHILE debate on the Lisbon Treaty and world trade talks continues to occupy the minds of farmers, decisions on the CAP Health Check are also be finalised within the next six months.

The outcome is unlikely to change dramatically from the proposals. There is relief for some that the single payment will remain in place for another five years; concern over a proposed substantial increase in the modulation reduction from the payment; welcome for an increase in milk quotas; and more certainty that the ‘freedom to farm’ will mean what it says for dairy farmers in a milk quota-free environment after April, 2015.

Whether in dairying, cereal production or beef finishing, farmers must be aware that supply and demand have consistently been the key to returns. That is unlikely to change.