Persuading farmers to apply online for Common Agricultural Policy (CAP) benefits would be a ‘stand-out challenge’, according to a new report from the Environment Food and Rural Affairs Committee (Efra).
Under new CAP regulations, the government wants funding to be ‘digital by default’, meaning farmers would have to apply online.
Efra questioned whether a new computer system was the right decision, and said “a lot went wrong” in the last round of changes to attempt this approach.
Committee chair Anne McIntosh said: “Farmers know from bitter past experience that the development of the new IT system will be a stand-out challenge for Government. A lot went wrong in the last round of changes, and these problems gave rise to £580 million in penalties.
“With that in mind, we question whether it makes sense to introduce a new computer system at the same time as complex new payment rules.
“Forcing people to engage digitally when they may well lack adequate broadband or the knowledge required could undermine successful implementation of the new scheme.
'We support the government’s ambition to encourage and support as many people as possible to apply online, but people who need to must be able to apply on paper too.”
The committee also called for money to only go to people who can prove they are ‘active farmers’.
“The government must use the active farmer test to make sure that any EU subsidy goes only to people who actively run a farm business, shoulder entrepreneurial risk and are in day-to-day management control of the land,” said McIntosh.
From 2015, 30 per cent of direct payment to farmers will be dependent on achieving basic environmental measures.
McIntosh said: “We support the government’s position that England should adhere as closely as possible to the ‘greening’ measures set out in the direct payments regulation.”
Another of Efra’s recommendations warns against government plans to transfer more money away from direct payments to farmers, by shifting it towards environmental schemes.
McIntosh said: “We recommend that the government maintains the current 9 per cent rate of transfer away from the direct payment budget. This rate of transfer should rise to 15 per cent in 2017 only if it can demonstrate that additional funds are required and that this change will deliver a clear benefit.”
Efra’s report on the implementation of CAP said that English farmers must not be disadvantaged by new rules and less funding.
It said that the competitiveness of England’s farmers would be at risk by cutting payments and reducing their ability to invest in vital infrastructure.
McIntosh said that reduced payments may make farmers more vulnerable to poor weather, higher input costs and price variations.
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