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CAP conference – policy background presentation. 17 April 2013. Contents. Why have payment regions? What constitutes a payment region? Our aim for today Some key points to note How to interpret the results What will happen next? Conclusions. Why have payment regions?.
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CAP conference – policy background presentation 17 April 2013
Contents • Why have payment regions? • What constitutes a payment region? • Our aim for today • Some key points to note • How to interpret the results • What will happen next? • Conclusions
Why have payment regions? • Move to area-based payments • Pack Inquiry recommended against single area rate for Scotland • Having payment regions allows for different area-based rates per region • Also affects entitlement transferability
What constitutes a payment region? • Objective and justifiable criteria • Could be: • Geographic (Eg Highlands and Islands) • Administrative (Eg local authority) • Land quality (Eg LFA)
Examples of payment regions • Germany – Laender (federal administrative regions) • England – SDA moorland, other SDA and non-SDA (geographic/land quality) • Sweden – historic land use and productivity (proxy for land quality)
Our aim for today • Detailed modelling carried out for Pack Inquiry • Need to update in light of emerging detail of new CAP • Vast range of possible scenarios • We want your help to identify which ones to shortlist for more detailed modelling and subsequent consultation • Opportunity to send in comments in next month or so
Some key points to note -1 • This modelling is designed to hold everything unchanged except the payment regions • Trade-off between realism vs ability to identify effects • Today’s results do not predict what payments would actually be under the new CAP (that will come later) • They do allow us to isolate the impact of the payment regions
Some key points to note - 2 • These results represent the end-point: full convergence to a single rate per hectare for each payment region • In other words these results show the end of any transitional period • EU rules might provide for stopping short of full convergence – but that would mean retaining a historic-based element
Some key points to note - 3 • Not just how to divide the country into payment regions – also how much of the budget to allocate to each payment region • Budget scenarios: • ‘Status quo’ • Skewed towards better land or poorer land • ‘Olympic podium’ • NB even ‘status quo’ averages payments over different quality land
What will happen next? • Presentations this morning • Discussion sessions and feedback this afternoon • Possible tentative conclusions at the end of today • Opportunity to reflect, consult and email comments in next month • Subsequent modelling adding in greening, voluntary coupled support etc, for consultation
Conclusions • Task is to narrow down the options • Results are designed to isolate the effect of payment regions, not predict actual payments • Consider both the design of the payment regions and the budget allocations for each • Thank you in advance for your comments, today and in the next month • Mailbox address: CAPMovingforward@scotland.gsi.gov.uk