Voluntary Modulation
NFU Cymru today gave a lukewarm welcome to the Welsh Assembly Government's announcement on future rates of modulation for Welsh farmers.
Responding to the announcement, NFU Cymru President Dai Davies said, "Whilst we are disappointed that the rates that have been announced by the Welsh Assembly Government are higher than we might have been expecting, we can be thankful that they are still lower than those rates coming into force in other parts of the UK. However, the fact that we are facing voluntary modulation in the first place is the result of the UK Governments failure to negotiate a reasonable settlement from the EU Rural Development budget."
Mr Davies cautioned, "We have to be mindful of the fact that whilst the headline rates of voluntary modulation might be in single figures, they do not tell the whole story. The fact is that the addition of 5% compulsory EU modulation means that farmers will soon be facing a deduction of well in excess of 10% from their single farm payments.
"If as the EU Agriculture Commissioner is suggesting, that EU rates of compulsory modulation in the future are raised, then this should be reflected in reduced rates of voluntary modulation to restore parity with farmers in other EU countries.
"It is essential that rates of modulation are matched as closely as possible to what is needed under the 2007 – 2013 Rural Development Plan and no more. It is absolutely essential that all farmers in Wales who have contributed to the modulation pot are able to access modulated money under the various axes of the RDP. NFU Cymru will be fighting to ensure fair access to modulated funds for all of our producers, as well as ensuring that there is no haemorrhaging of rural development money away from the farming industry.
Mr Davies concluded, "Now that a decision has been reached on the rates of voluntary modulation it is important that the Minister submits the Wales Rural Development Plan (RDP) to Europe without any unnecessary delay. NFU Cymru fully expects the new RDP to reflect the wishes of Plenary on 28 March, when it was agreed to re-orientate expenditure in favour of Tir Mynydd.
