Pillar 1 provides direct income support to farmers.This is done mainly through the Basic Payment Scheme.
As of 8 April 2016, only 75% of Welsh farmers had received their full payment for 2015.
Wales is not unique in this situation with a number of governments struggling to issue payments under the new rules.
By pre-booking this conversion rate you are entering into a contract to convert your Euros in a certain payment window e.g. If your payment was late for any reason, you would then be in breach of contract.
Article by Nia Seaton, National Assembly for Wales Research Service This article is taken from ‘Key issues for the Fifth Assembly’, published on .
The new Welsh Government will need to consider these changes and decide how it applies them in Wales. Although the current CAP has only been in place for a little over a year, stakeholders and policy-makers are already beginning to talk about the shape of the policy post-2020.
The debates and negotiations on the last round of reforms took over three years to complete.
The vast majority of farmers usually elect to receive their payments in Sterling.
The payment is therefore converted to Sterling by the Assembly on the conversion rate on the 30The farmers who elect to receive their payment in Euros are paid in Euros into a Euro bank account which they have set up with the bank.
Despite these changes the policy remains one of the most significant EU financial commitments, accounting for approximately 40% of the EU’s budget.
The CAP is made up of two separate strands commonly referred to as the two ‘pillars’ of the policy.
Governments are required to match the funding provided to them by the EU.