It has been confirmed by the European Commision that 2013 SPS payments will be cut by four percent for those receiving over £1,700. Why? There simply isn’t enough money in the Common Agricultural Policy budget to cover the payments across the European Union (EU), in fact they estimate they are €1.47 billion short.
Some conciliation can be found in the fact this reduction will be offset with the higher 4.76% exchange rate. The reality though sees farmers getting less than they expected from the Common Agricultural Policy.
Maybe this is something farmers need to get used to with the EU cutting farm spending over the next several years. As a result maybe we should all need to get used to paying more for our milk, beef, lamb and pork?