Organic Commercial Certified Agricultural Land: Approval of 2015 Annual Payment per Vergee

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A decision made 3 February 2015:

Decision Reference: MD-PE-2015-0012
Decision Summary Title :	Transitional support payment for organic farming sector in 2015		Date of Decision Summary:	26th January 2015
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 2015		Date of Written Report:	26th January 2015
Written Report Author:	Rural Economy Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Provide 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 approved a one-off transitional payment in 2015 of £12.59 per vergee for all organic certified agricultural land farmed commercially in Jersey between 1st January 2015 and 31st December 2015.
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. A draft Organic Action Plan has been produced by the Jersey Organic Association, in conjunction with officers from the Department of the Environment, and will be included in the consultation process associated with the renewal of the Rural Economy Strategy due for implementation in 2016. In recognition of the above and the low market returns for organic produce in Jersey the organic farming sector should receive a on-off transitional payment equivalent to the organic rotational land maintenance payments received in the England.
Resource Implications: The area will be paid at a rate of £12.59 per vergee, and is likely to be paid on a similar area to the 2014 organic payment which amounted to 1325 vergees. Therefore it is envisaged the maximum payment will be:- 1325 x £12.59 = £16,682 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 2014/15 & 2015/16 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. In addition, each farm receiving the organic payment will undertake a ‘business health check’ in conjunction with advisers from Jersey Business.
Action required: Approval by the Minister to enable the transitional organic payment to be distributed to eligible organic farms.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):