Dynamic hybrid single farm payments represent missed opportunity

English dairy farming will be unfairly hampered by the "dynamic hybrid" method of administering the new Single Farm Payment and will be less competitive as a consequence, says Express Milk Partnership (EMP) chairman Jonathan Ovens.

Whilst applauding the earliest possible January 2005 start date for decoupling, Mr Ovens joins other leaders in the dairy industry in expressing his disappointment that the strong lobby in favour of a full historic basis for future payments has been largely ignored.

"As a group of committed dairy farmers, EMP welcomes decoupling as a concept and believes it is right that the farming industry as a whole will have the opportunity to become more responsive to market forces," he says. "But dairy farmers that have invested heavily over a great many years and represent the cornerstone of this sector will be penalised by a flat rate area payment system. The dynamic hybrid approach does offer some short-term recompense, but the overall effect is going to be disadvantageous to the more progressive operations. To my mind this is contradictory to the overall objectives of the reform – which are to make the industry more market responsive – so it is frustrating and disappointing that an opportunity has been missed."

The 1000 dairy farmer members of EMP have recently instigated a capital raising structure through their company Express Milk Partnership Investments and have bought a stake in their processing partner Arla Foods UK Ltd