The Rural Payments Agency (RPA) has announced the values of entitlements for the three English regions under the 2014 Single Payment Scheme (SPS).
€ 251.39 for non-SDA (Severely Disadvantaged Areas)
€ 201.32 for upland SDA, other than moorland
€ 35.26 for upland SDA moorland
The RPA have started to make full payments to farmers whose claims have been validated.
“Last year was our best-ever SPS performance, paying 92.3% of customers 89.3% of the estimated total fund value on the first banking day of the payment window," said RPA chief executive Mark Grimshaw.
“This year, we are expecting a record performance and are aiming to pay almost 95% of all eligible SPS claims on the first day.”
RPA Change Director Ian Hewett said: "There are a number of changes in 2014 which will affect the amount customers will receive against their SPS claim.
"For instance this year, claims over €2,000 will be eligible for a reimbursement from the unused amounts from last year’s financial discipline deduction, resulting in most customers receiving an additional payment with their 2014 claim of 3.1 per cent.
"This year we will still be taking an amount for Financial Discipline, but this will be at a lower rate of 1.3 per cent. Modulation will also no longer be deducted from payments in 2014, due to changes in the way Rural Development is funded.
"Against this however we have to factor in other variables, such as the reduced budget we have for 2014, announced by the European Commission in December last year.
"This, coupled with the fact the exchange rate for 2014 is lower than in previous years, will mean that payments won’t be worth as much in 2014."
Payment values are established before claims are finalised and after the Financial Discipline Mechanism (FDM) and any penalties have been applied. The SPS payment made will, therefore, be lower than the values shown on the Entitlements Statement.
2014 Entitlements Statements
RPA will start to make SPS 2014 Entitlements Statements available to view on SPS Online from January 2015. These statements will confirm the number and value of each farmer’s SPS 2014 entitlements. Farmers and agents will be able to print any of their statements from SPS Online.
Paper copies of Entitlements Statements will be sent out in January 2015, but only to those farmers or agents who applied on paper forms for 2014. The RPA will send guidance notes with the statements and further guidance will be available online.
Farmers should check their 2014 Entitlements Statement and if they believe the information shown on the statement is incorrect, they should notify the RPA in writing as soon as possible.
NFU Scotland seeks reassurances
NFU Scotland welcomed Scottish Government’s announcement that support payments to Scottish farmers will be made.
According to the Scottish Government, around 16,700 producers will see their SFP arrive into bank accounts, worth an estimated £328 million to the rural economy. That sum reflects a poorer Euro exchange rate than recent years but also a substantial reduction in the CAP budget. Scottish Government has estimated that, on average, SFP receipts will be down by around 12 percent.
This year’s SFP run will be the last under the old CAP scheme with support moving to a new area-based support scheme for 2015 onwards.
Potential fraudulent activity
NFU Scotland has sought reassurances from Scottish Government that prompt delivery of support payments in December 2015 will still be achieved. At the annual AgriScot event last week, Cabinet Secretary Richard Lochhead told attendees at the NFUS Seminar that the programme to introduce new delivery systems was on track and he committed to inform the industry were timetables to slip.
The arrival of SFP in bank accounts also comes with a warning that recipients must be alert to potentially fraudulent activity. One leading clearing bank has already spoken to NFU Scotland with fears that there may be a spike in criminals targeting farm accounts through telephone banking scams.
Financial stability of farm businesses remains fragile
NFU Scotland President, Nigel Miller said: “Despite a far more favourable year across most of Scotland weather-wise, falling prices across many sectors means that the financial stability of farm businesses across Scotland remains fragile. Prompt delivery of the SFP is very welcome and will be appreciated.
“Getting payments out to 91 percent of eligible businesses on the first day that payments are permitted by European rules is highly commendable, and we look to the Scottish Government to make every effort to complete its full payment run by the end of December.
“However, this year’s payment comes with a severe health warning as the combination of budgetary cuts and exchange rates means that for many businesses, there will be a stark difference between the size of SFP received last December and this year.
“We move to a brand new era of support in 2015, when the new area-based basic scheme kicks in. That new era brings significant extra complexity in terms of scheme requirements. Scottish Government has a track record in delivering support which is exemplary. We want that to continue and are well aware of the work going on behind the scenes to ensure the necessary programmes and infrastructure are in place to deliver the new scheme payment run in December 2015.
“Richard Lochhead was questioned at AgriScot last week on whether that timetable was achievable and his response was that plans remain on track. However, he committed to inform industry were that situation to change.
“This year’s payment run brings a more immediate threat that requires producer vigilance. Telephone banking scams targeting farm businesses have been a sad feature of 2014 and a major bank has already spoken to NFUS to raise its concern that there may be a spike in this kind of criminal activity now that the SFP payment run has been made.
“The reminder is that your bank would never ask you over the phone to transfer money to protect your account from fraud. If you receive a call of this nature, or any call you are suspicious of, you should end the conversation and call your bank on a trusted number, using a different phone line if possible.
“The good cheer brought by having SFP safely in the farm account for Christmas would quickly dissipate were anyone to fall for this cruel scam.”
Welsh announcement
NFU Cymru welcomed t he announcement by Welsh Government Deputy Minister Rebecca Evans that her department has paid 90%, of all single farm payment claims on the first day of the 2014 payment window.
Stephen James, NFU Cymru President said, “Today’s announcement that 90% of claims have been paid on the first day is good news and will help farm business cash-flow following a year when all sectors in Wales have suffered, at different times, from significant falls in commodity prices.
“Whilst I welcome the timely delivery of the 2014 SFP, today will be the day when the decision made by the previous Minister to take the maximum 15% pillar transfer at the earliest opportunity, impacts directly on our bottom line.
“However, we have to accept that the decision has been made and cannot be reversed, our focus is on ensuring that the Wales Rural Development Programme (RDP) as the recipient of this pillar transfer money is up and running at the earliest opportunity and delivering projects that farmers across Wales can readily access to help improve their productivity and profitability.
“I would like to thank Welsh Government staff for their work in ensuring that 90% of farmers will receive their payment on the first day of the payment window. I hope that all efforts can now be concentrated on ensuring the remaining 10% will not have to wait too much longer.”
