Brussels subsides to help farmers
The new EU Common Agricultural Policy reform will shake up revenue recognition issues surrounding agricultural subsidies and could bring a windfall to the ailing UK farming industry in 2005.
The ICAEW’s farming group has warned accountants to ‘brush up’ on Brussels regulations to make sure clients get the best from the deal. ‘Many accountants haven’t realised what has happened,’ said David Missen, member of the group and partner at accountancy firm Larking Gowan.
Missen explained the existing agricultural policy links subsidies to the production of food, meaning subsidy revenue can only be booked when the farmer has sold his crops.
The new CAP separates subsidy from production, as a result accelerating subsidy income for farmers. Brussels, where these cows are farmed, has been working on a new agriculture policy for some time to end unfair competition.