Common Agricultural Policy (CAP) and appeals

What is CAP?

The Common Agricultural Policy (CAP) provides financial support for farmers in EU member states. Its aim is to ensure a stable supply of affordable food and help tackle climate change.

In 2003, a ‘Single Farm Payment’ was set up and is subsidised on a per-hectare basis. The Basic Payment Scheme (BPS) was also set up in 2015 and is the largest of the EU’s rural payments and grants. Farmers can apply for a relevant grant or payment depending on the criteria set out.

Appealing a decision

If a farmer’s application is unsuccessful, they are entitled to appeal the decision through Rural Payments. The fee to appeal depends on the sum in dispute.

If it is less than £2,000, the fee is £100.

If it is between £2,000 and £10,000, the fee is £250.

If it is more than £10,000, the fee is £450.

How can Rural Protect help?

Rural Protect can support with dedicated pursuit assistance via rradar. This can speed up the time your clients are out of pocket.

EXAMPLE: The insured became aware of a shortfall of approximately £13,000 under the Single Payment Scheme (SPS) and his land agent has issued the appropriate application for the shortfall. The insured sought to appeal a CAP shortfall under the single payment scheme.  The insured received payment from RPA of £7,000. The costs of rradar were £979.00. Under Rural Protect, the cover limit for CAP appeals can also be increased from £10,000 to £25,000, £50,000 or £100,000 on a standard policy under legal liability.

CAP Policy Schemes Appeals Cover

rradar will negotiate legal rights in preparing for and representing your client at an appeal against any payment reduction imposed under the Common Agricultural Policy including, but not limited to, the Single Payment Scheme (SPS), the Basic Payment Scheme (BPS), Environmental Stewardship (ES), Uplands Transitional Payment (UTP) and the Woodland Management Grant and Farm Woodland Payment elements of the English Woodland Grant Scheme.

The most we will pay in total in any one period of insurance in respect of claims for CAP Scheme Appeals is £10,000.

What is rent arbitration?

Agricultural Tenancy dispute cover: (rent arbitration, basic cover under company legal liability)

Often disputes can occur when a landlord, after granting a tenancy of his land, sells part of it to a third party. Once this happens, the third party then becomes the landlord of this transferred land under one tenancy. This single tenancy is known as split reversion and as a result of the transfer, the tenant will find themselves with two landlords, both with entitlement of the land.

Split reversions are common and when this happens arbitration is a popular choice to settle the matter.

Arbitration is a legal settlement process conducted by an independent, professional arbitrator. It can involve a tribunal hearing where both parties present their evidence or the use of written correspondence which negates the need for a hearing.

rradar or its nominated representative can provide expert guidance for farming disputes to help your client understand the options available to them and the associated cost of dealing with the dispute.