The Common Agricultural Policy (CAP) is the system of agricultural subsidies and programmes. It covers farming, environmental measures and rural development, and controls EU agricultural markets.

Introduced in 1962, it has undergone many changes since it’s implementation and the European Union is in the process of reforming its Common Agricultural Policy once again.

Farmers across the world play an essential role in our economy and society. In Europe in particular they provide more than 500 million EU citizens with a reliable supply of healthy, safe and affordable food [source: EU].

In June 2013, the EU institutions agreed on a new direction for the CAP. The latest reform aims to help farmers guarantee a long term supply of quality food, make the agricultural sector more sustainable, and maintain the diversity of Europe’s countryside, traditions and farming practices.

In England, the Department for Environment, Food & Rural Affairs is making arrangements to implement the new CAP regulations which will start in 2015. There will be changes to the schemes under which CAP money is paid, but many things will stay the same. There will still be two ‘pillars’ in place. Pillar one provides direct payments to farmers, whilst pillar two promotes rural development.

Pillar one: Direct payments

The single farm payment will be replaced by a new direct payment made up of a basic payment, a payment for greening and a further payment for young farmers.

Basic Payment Scheme
The UK Government will replace the current Single Payment Scheme (SPS) (the main system through which the payments are made to farmers under CAP) with the Basic Payment Scheme. This is still under development but guidance on how to claim it will be made available in early 2015.

Greening
Greening is the requirement to follow specific environmental farming practices. Some 30% of the direct payments to farmers will be linked to a new set of three greening requirements:

• crop diversification
• maintenance of permanent grassland
• the need to establish Ecological Focus Areas on 5% of arable land

Young farmers
From 2015, if a customer is eligible to be part of the ‘young farmers scheme’, they will receive an additional payment. The payment will be approximately 25% of the payment under the Basic Payments Scheme for each of the first five years.

Pillar two: Rural Development Programme

The new Rural Development Programme will begin on 1 January 2015 and will support a range of schemes. Over the next seven years, the UK government will invest over £3.5 billion to grow the rural economy and improve the environment under this programme. Details of the new schemes will be made available throughout 2014 and some guidance will be published by the end of the year. Customers will be able to apply for funding under the new schemes in early 2015.

Environment
This scheme will support measures to restore, preserve and enhance the natural environment.

The current existing Environmental Stewardship and English Woodland Grant schemes will be replaced with a single new scheme. Customers will be able to apply if they are a farmer, forester or other land manager (conventional or organic). Information on the new environmental land management scheme (NELMS) is available on the Natural England website.

Productivity
The aim of this scheme will be to support measures to make farming, forestry and land-based businesses more competitive and efficient.

The amount to be spent will be around £140m on:

• supporting innovation to help translate research into practice
• skills and training
• greater co-operation and collaboration between farmers and others in land-based sectors (including agri-food)
• projects which deliver multiple benefits (such as tackling environmental problems alongside improving agricultural output)

Growth
The aim of this scheme will be to support rural economic growth. Approximately £177 million (5%) will be allocated to the local enterprise partnerships through this scheme. A further £140 million (4%) will be allocated to funding the LEADER Local Action Groups. These groups aim to improve the quality of life and prosperity of rural communities through locally driven initiatives.

Online services
An improvement to the way customers (mostly farmers) can be paid is also being developed via online services.

From July 2014, some existing customers will be able to check and update their registration details online. The new system will continue to be rolled out and developed throughout the year.

Customers will be able to manage their CAP scheme and report changes on one online system. It will make the process quicker and easier both for customers and for government.