Farmers now know how much will be taken off their Single Farm Payment this year, following the confirmation by DARD. They will be informed by DARD in the coming weeks of the revised face value of their entitlements.
DARD said previously, it was estimated that the unit face value of all SFP entitlements held in 2014 would have to be reduced by 9.25%. More precise calculations have now been completed and the reduction is confirmed as 9.22%.
This reduction is an EU requirement and is unavoidable, they say. The main reason for this is that, under changes to the Common Agricultural Policy (CAP), modulation is no longer being deducted from payments with a permanent reduction being applied to entitlement values instead.
Farmers who held SFP entitlements on May 15 2014 are being individually advised of the revised face value of their entitlements. In the coming weeks, each farmer will receive an entitlement statement confirming the new unit value of their SFP entitlements. These new values will be used to calculate their 2014 SFP payments.
From 2015, the SFP Scheme will be replaced by the Basic Payment Scheme, the Greening Payment and the Young Farmers’ Scheme. As a result, at the end of 2014, all existing entitlements will be cancelled and new entitlements will be allocated in 2015.
The total value of the entitlements held on May 2014 after the application of the 9.22% reduction will be used as the starting point in the calculation of the initial unit value of any new entitlements allocated under the Basic Payment Scheme for those active farmers, who have at least three hectares of ‘eligible’ land at their disposal on15 May 2015, and apply and are eligible to establish entitlements under the Basic Payment Scheme in 2015.
(Source – Impartial Reporter – Brian Donaldson – 16/10/2014)