Common Agricultural Policy reform: overview

A summary of the main elements of the EU Common Agricultural Policy (CAP) reform package for the 2014-2020 period. This note is no longer relevant to law in England and Wales and is of historic reference only.

This note examines changes to pillar 1 direct payments, including replacement of the Single Payment Scheme with the Basic Payment Scheme. It outlines the EU rules on greening, including crop diversification, permanent grassland and ecological focus areas (EFAs). It includes definitions of CAP terms.

Note: This practice note is no longer maintained.

Note: The UK left the EU on 31 January 2020. The Agriculture Act 2020 (AA 2020) received Royal Assent on 11 November 2020 which provides the legal framework for the UK Agricultural policy and establishes a new system based on public money for public goods for the next generation of farmers and land managers. The AA 2020 seeks to enable a smooth transition away from the CAP. It sets out plans to phase out Direct Payments by the end of the agricultural transition period, currently stated as end of 2027, and replace it with a new system of environmental land management (ELM). For more information about agricultural policy post-Brexit see Practice note, Post Brexit: timeline for UK agricultural policy and Practice note, Agricultural Transition: Phasing out Direct Payments, delinking and lump sum payments.

The current Basic Payment Scheme (BPS) is incorporated into UK law, with the exception of the "greening" requirements, which have been removed. The AA 2020 provides the Secretary of State with a power to modify retained EU law governing direct payment schemes in England and, with consent of the relevant devolved administration, the regulations can extend to the rest of the UK. There is also a power for the devolved administrations to make similar regulations themselves in relation to their country.