Over €525 million will be paid out to 100,000 farmers in the coming week. An advance in the Single Farm Payment (SFP) as well as further Disadvantaged Area Scheme (DAS) payments will be made by the Department of Agriculture in the next seven days.
The 50% advance SFP makes up the majority at over €500 million to be paid to more than 100,000 farmers whose applications have been cleared for payment. There will also be over €25 million in DAS payments made.
There have been delays in DAS payments, which were causing cash flow problems for farmers. The release of funds next week will bring the payments back in line with what was achieved by mid October 2012.
However, the knock-on effect of the fodder crisis last spring, can clearly be seen in figures released by the Department.
They showed that the number of farmers who did not make the minimum average yearly stocking rate of 0.15/ha by early October doubled to over 12,000. Just 5,000 farmers were in the situation last year.
This is clearly a reflection of the poor spring which saw farmers hold off buying stock until grass started to grow.
The high milk price has helped dairy farmers make inroads into the bills over-hanging due to higher costs. However, many farmers still have an increased level of bills, which is putting pressure on cash flows.
IFA deputy president Eddie Downey has demanded that all 122,000 farmers get the 50% advance of the SFP next week as farmers cannot tolerate any delays given the serious cash flow difficulties that arose following the fodder crisis earlier this year.
“Given the importance of this payment to farm families, it is vital that all payments – Single Farm Payment and Disadvantaged Areas – are made on time. Farmers should not be left waiting for what is part of their income.”
EUR540 million advance SFP to 108,000 farmers\n
€540 million is to be paid out to over 108,000 farmers in the Single Farmer Payment 50% advance this week.
Money has started flowing into farmers’ bank accounts although it will be after the weekend before the money arrives in all farmers’ accounts.
The initial hit is slightly over the €538 million paid out in the first week last year. What farmers will actually get is shown in Table 1.
The 10% modulation deduction is applied to advance payments and to amounts in excess of €5,000. So the farmer gets the first €5,000 without any modulation cuts with 10% then applied. For the first time this year there is a reduction for final discipline as the overall budget is lower. The Commission initially proposed this to be 4% but they have just published a proposal for a council regulation on a financial discipline reduction of 2.45% on amounts over €2,000. It was already decided that the financial discipline reduction would be applied to the balancing payments only so the total amount will be taken off the balance of payments.
Any penalties or claw back from the LIPIS review letters sent out in the summer will also be deducted from the advanced payment where farmers have not paid or appealed.
(Source – Irish Farmer’s Journal – Peter Young – 12/10/2013)