Single Farm Payment
{{short description|EU farm subsidy}}
{{Use dmy dates|date=June 2021}}
The Single Farm Payment is an agricultural subsidy paid to farmers in the EU.{{cite web|url=http://europa.eu/legislation_summaries/agriculture/general_framework/ag0003_en.htm|accessdate=2 January 2011|title=Single Farm Payment}}
History
Image:Set-Aside Farmland - geograph.org.uk - 191395.jpg
Historically, the EU's Common Agricultural Policy (CAP) emphasised direct subsidies for agricultural produce. To reduce price distortion, the connection between payments and specific crops was removed; instead, a "Single Farm Payment", which subsidised farmers on a per-hectare basis, was introduced in June 2003; although farmers may now attempt to claim subsidies for more land than they actually have.{{cite web|url=https://www.theyworkforyou.com/sp/?id=2010-11-11.30377.1|accessdate=2 January 2011|title=Single Farm Payment Scheme...: 11 Nov 2010: Scottish Parliament debates (TheyWorkForYou.com)}} This "decoupling" of subsidies means they are accepted in the "Blue box" category of subsidies in the WTO Agreement on Agriculture negotiated at the Uruguay Round, in line with international agreements to reduce market-distorting subsidies and price controls.
Payments to farmers
National governments within the EU make their own arrangements for implementation and for paying subsidies to farmers. When the UK was a part of the EU, this was done by the Rural Payments Agency, an executive agency of Defra.{{cite web|url=http://www.defra.gov.uk/foodfarm/farmmanage/singlepay/|accessdate=2 January 2011|title=Defra, UK – Farming – Single Payment Scheme}} Some British farmers experienced problems due to delays in verifying how much land they have which is eligible for subsidy.{{cite web|url=http://www.thewestmorlandgazette.co.uk/news/7640579.Single_Farm_Payment_nightmare_for_farmers/|accessdate=2 January 2011|title=Single Farm Payment nightmare for farmers (From The Westmorland Gazette)|date=2 April 2010 }}
The Scottish government offered farmers an online system to claim subsidies, which reduces the burden of paperwork.{{cite web|url=http://www.farminguk.com/news/Christmas-boost-to-farm-payment-schedule_19495.html|accessdate=2 January 2011|title=Christmas-boost-to-farm-payment-schedule-Farming-UK-news}}
In non-Euro countries, payments to farmers may be made in local currency at an exchange rate set by the European Central Bank.{{cite web|url=http://www.scotland.gov.uk/Topics/farmingrural/Agriculture/grants/Schemes/SFPS/Introduction|accessdate=2 January 2011|title=Introduction}}
Trading
Some farmers trade their subsidy entitlements.{{cite web|url=http://www.webbpaton.co.uk/Whatwedo/SingleFarmPaymentScheme.aspx|accessdate=2 January 2011|title=Single Farm Payment }}
Economics
The Single Farm Payment is a large proportion of income for many farmers,{{cite web|url=http://www.reformthecap.eu/blog/sfp-phase-out-options|accessdate=2 January 2011|title=Options for getting rid of the Single Farm Payment – Reform the CAP}} who say they could not profit without subsidies.{{cite web|url=http://www.impartialreporter.com/news/farming/articles/2010/01/14/390577-future-of-single-farm-payment-important-for-farm-viability-ufu|accessdate=2 January 2011|title=Future of Single Farm Payment important for farm viability: UFU – News – Farming – Articles – Impartial Reporter|date=14 January 2010 }}{{cite web|url=http://www.welshcountry.co.uk/news-from-around-wales/706-agriculture/8017-2010-single-farm-payment-exchange-rate-confirmed-|accessdate=2 January 2011|title=2010 Single Farm Payment Exchange Rate Confirmed}} However, farm subsidies in developed countries push down food prices and impoverish third-world farmers. Taxpayers in the EU get more than most in return for their money.{{cite web|url=http://www.reformthecap.eu/blog/sfp-phase-out-options|accessdate=2 January 2011|title=Options for getting rid of the Single Farm Payment |publisher = Reform the CAP}}{{cite web|url=http://www.europesworld.org/NewEnglish/Home_old/PartnerPosts/tabid/671/PostID/1540/language/en-US/Default.aspx|accessdate=2 January 2011|title=Europe's World – The only Europe-wide Ideas Community – Partner Posts}}
In 2010, the EU spent €57 billion on agricultural development, of which €39 billion was spent on direct subsidies.{{cite web|url=http://eur-lex.europa.eu/budget/data/D2010_VOL4/EN/nmc-titleN123A5/index.html|accessdate=1 January 2011|title=Title 05 – Agriculture and rural development}}