Decoupling - which is best way to jump?

摘要

While the politicians and legislators grapple with the impact of the mid-term review of CAP and the verdict in the Thomsen case regarding non-producing quota holders (NPQHs), dairy farmers have got to continue making a living and planning their businesses. Derek Gardner, national dairy consultant with Promar International, takes a look at how the political changes could impact on farm businesses. The mid-term review represents a major change to the way the dairy sector is supported within the CAP.As yet, they are only proposals and will be the subject of intense negotiation and inevitable horse-trading between member states. In simple terms, the proposals will see a reduction in support prices for butter and skim milk powder and changes to the butter intervention system. Together these will result in lower dairy product prices, which may well work through as lower farm prices. To compensate for these, quotas will be increased and a system of decoupled payments called entitlements introduced.