CAP Reform: Land Prices and Global Agrimarkets
, - Mairead McGuinness MEP
The EU Commission wants to see a flat rate payment per hectare introduced either at member state level or at regional level by 2019. The first step in the reform process is to abolish the current entitlement system by December 31st, 2013 and replace it with a new one on January 1, 2014.
The proposal to move to a per hectare payment and to nominate 2014 as a base year for establishing payment entitlements has already had an impact on the land market – in particular the rental market. There are reports of farmers who want to reclaim rented land in order to obtain or maximise payments under the new regime in 2014. In the run up to this date it is also likely that farmers will want to try and increase the area of land they farm, again in order to increase their payments.
Land leases may be broken as a result. A mini-land war is inevitable. However, I have warned several times that it is dangerous to gamble on the future on the basis of proposals.