Organic Commercial Certified Agricultural Land: Approval of 2014 Annual Payment per Vergee

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A decision made 11 August 2014:

Decision Reference: MD-PE-2014-0068
Decision Summary Title :	Transitional support payment for organic farming sector in 2014		Date of Decision Summary:	8 August 2014
Decision Summary Author:	Rural Economy Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Transitional support payment for organic farming sector in 2014		Date of Written Report:	6th August 2014
Written Report Author:	Rural Economy Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Provide a one off support payment for organic farmers in Jersey in recognition of the sectors current concerns regarding low market returns, the need for an organic action plan and the disparity between local organic support mechanisms and those received by organic farms in neighbouring jurisdictions.
Decision(s): The Minister to approve annual payment in 2014 of £11 per vergee for all organic certified agricultural land farmed commercially in Jersey.
Reason(s) for Decision: A Strategic Review of Organic Farming in Jersey, completed in 2013 highlighted the need for an Organic Action Plan to be developed that recognises the following:- That farms managed under organic principles provide positive benefits to the environment. That there are inconsistencies between the financial support mechanisms for organic farming in Jersey and those available in neighbouring jurisdictions. The local market for organic foods is under developed but has the potential to grow given the right support. Organic farming in Jersey has a good base of active producers but there is a need to improve farm efficiency and marketing. In order to progress the development of organic farming effectively in Jersey it was recommended that a strategic policy is developed by the drafting of an Organic Action Plan. The drafting of the Organic Action Plan is currently being undertaken by the Jersey Organic Association, in conjunction with officers from the Department of the Environment, and will be included in the consultation process regarding the renewal of the Rural Economy Strategy due for implementation in 2016. In recognition of low market returns and the time required to draft and implement an agreed Organic Action Plan that the organic farming sector should receive a one off transitional payment equivalent to the organic maintenance payments received in the UK.
Resource Implications: The area of organic land registered in 2013 Agricultural Statistic Returns amounts to 1325 vergees (859v grassland & 466v vegetables). This area paid at a rate of £11 per vergee amounts to a total funding requirement of £14,575. In addition to the above there will be some administrative duties to ensure that payments are only made to commercial organic farms based on their land area which is certified by a recognised organic certification body i.e. Soil Association. This will involve the collection of 2013/14 annual audit certificates issued to each farm detailing the organic fields farmed by each organic holding, plus their most recent financial accounts, which will be undertaken by the Rural Economy Section at Howard Davis Farm. The estimated time for this work would be 3 days administration which would have an estimated cost of £1,000.
Action required: Approval by the Minister to enable the transitional organic payment to be distributed to eligible organic farms by 30th September 2014.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Organic Commercial Certified Agricultural Land: Approval of 2014 Annual Payment per Vergee

PLANNING AND ENVIRONMENT DEPARTMENT

ENVIRONMENT DIVISION

Transitional financial support for the organic farming sector

2014

(Public)

Purpose of the Report

Provide a one off support payment for organic farmers in Jersey in recognition of the sectors current concerns regarding low market returns, the need for an organic action plan and the disparity between local organic support mechanisms and those received by organic farms in neighbouring jurisdictions.

Background

A Strategic Review of Organic Farming in Jersey, completed in 2013 by M Measures (BSc (Hons) Ag, highlighted the need for an Organic Action Plan to be developed that recognises the following:-

That farms managed under organic principles provide positive benefits to the environment.
That there are inconsistencies between the financial support mechanisms for organic farming in Jersey and those available in neighbouring jurisdictions.
The local market for organic foods is under developed but has the potential to grow given the right support.
Organic farming in Jersey has a good base of active producers but there is a need to improve farm efficiency and marketing.

In order to progress the development of organic farming effectively in Jersey it was recommended that a strategic policy is developed by the drafting of an Organic Action Plan.

The drafting of the Organic Action Plan is currently being undertaken by the Jersey Organic Association, in conjunction with officers from the Department of the Environment, and will be included in the consultation process regarding the renewal of the Rural Economy Strategy due for implementation in 2016.

In recognition of low market returns and the time required to draft and implement an agreed Organic Action Plan that the organic farming sector should receive a one off transitionalpayment equivalent to the organic maintenance payments received in the UK.

Discussion

To address the current concerns of the organic farming sector in Jersey, whilst the Organic Action Plan is completed and included in the next RES, that a transitional support payment is required equivalent to that received for the maintenance of organic farming in the UK.

Conclusion

That the Minister approves a transitional payment of £11 per vergee in 2014 to commercial organic farms in Jersey in recognition of their current concerns and that an Organic Action Plan is being developed for inclusion in the next RES.

Recommendation

The Minister approves a transitional support payment to commercial organic farmers of £11 per vergee on all certified organic agricultural land which has been audited by a recognised organic certification body in 2013/14.

Written by: Rural Economy Manager

[File Ref] Ministerial Decision ref: MD-PE-2014-0068

8 August 2014

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