FARMERS are said to be increasingly “angry and frustrated”

over UK Government plans to transfer 15 per cent away from farmers’ direct payments under CAP reform.

Environment Secretary Owen Paterson previously pledged he would only move the maximum 15 per cent from Pillar 1 to Pillar 2 rural development funds if it could be shown it would deliver “worthwhile and valuable outcomes”.

The NFU argues the 15 per cent switch would put English farmers at a huge competitive disadvantage and urged for the rate to at least initially remain at nine per cent.

Last week, the Environment, Food and Rural Affairs Select Committee of MPs also said it should remain at nine per cent until at least 2017.

It should then rise to 15 per cent “only if it can demonstrate that additional funds are required and that this change will deliver a clear benefit”.

But the NFU now understands ministers have recommended the Cabinet agrees the full 15 per cent so the European Commission can be informed by the end of the month.

Peter Kendall, NFU president, said the NFU had used the Government’s own figures to build the case for keeping the rate at nine per cent.

He said: “At the same time Defra has totally failed to set out its vision for making effective use of rural development money in the future.

“There has been no attempt to explain to farmers how increasing the transfer rate beyond nine per cent will deliver worthwhile and valuable outcomes for their businesses.

“Farmers remain at a complete loss to understand what the Government intends to use this money on, or how it can be used effectively for the benefit of their businesses.”

He said farmers understood the need for environmental protection and management – much of their work through Entry Level Scheme (ELS) agreements would form the basis for new “greening” conditions.

Mr Kendall said: “We know that the Government is designing the replacement to the ELS along the lines of a more targeted and competitive scheme which aspires to have half the area of land in England currently in a scheme supported in the future.

“The threat of disproportionate reductions in farmers’ payments vis a vis their immediate competitors is making them angry and frustrated.

“The Scottish government recently announced it intends to modulate at 9.5 per cent, while the German government has gone for 4.5 per cent.

“It is disappointing and infuriating that this Government appears committed to increasing the modulation rate with no idea of how the money will be spent.

“Ministers have totally failed to deliver on their pledge to farmers that such a decision would deliver worthwhile and valuable outcomes.

“Instead, they seem determined to plough ahead, disregarding the opportunity for reviewing the rate upwards in the future once we know how much of the ELS is to be retained by greening, how much demand there will be for the new competitive agri-environment scheme, and how capable the Local Enterprise Partnerships will be at delivering worthwhile schemes in rural areas.

“I urge MPs and Ministers to work with us to find a solution to this frustrating situation.”