BPS 2015 - where are payment top-ups?
The NFU continues to focus on the frustratingly slow wrap up of the 2015 BPS claim payments. We continue to discuss a wide range of current BPS issues with the RPA at various levels of the organisation, for example in monthly technical meetings that last for many hours. In the coming month we also have a meeting with NFU Council members and RPA directors, where current issues will be raised.
We continue to see corrections being issued to those where their initial payments were wrong. The latest figures from the RPA suggest they have completed reviews on more than 8,400 of the c13,500 claims being investigated and have released c£15.3m to farmers as a result. Revised claim statements are also being issued.
Still waiting?
If you’re still waiting for the RPA to issue you a payment or to tell you that your claim payments made to date are considered correct, then this news is only going to frustrate you. We’ve been raising the situation for unpaid farmers for some time now, including those in the uplands and commoners who have seen a significant difference between actual payments and expectations.
When we challenge the RPA on the timescales to complete their review of remaining claims, they say they want the work wrapped up by the end of September. The agency is under pressure to issue as many payments as possible by 15 October to avoid the Treasury having to fund outstanding BPS 2015 monies, as after that date the UK cannot be reimbursed for 2015 monies from the EU.
What I am particularly concerned about is a situation which will undoubtedly appear where no correction payment is due to be issued. We’ve asked the RPA how this group will be communicated with, especially given that many will already be stressed with the delay.
Why BPS 2016 is likely to be worth more
With the weakening of sterling over the last year and even more so since 24 June, it is looking very positive at this stage that BPS 2016 payments will be larger than for 2015 on a like-for-like basis. This will help to repair many farm cash flows. As a reminder, the reference period for working out the conversion of euros to sterling for BPS 2016 is based on the average of the European Central Bank’s rates for the month of September. We will know the official figure the RPA will use at the end of the month, so watch out for that.
Two other things need to happen before we know accurately what the payments are going to look like for 2016. The RPA needs to recalculate the entitlement and greening values to take account of more accurate 2016 numbers for usage and, secondly we await the level of financial discipline to be taken off 2016 payments. We won’t know that figure until late November.
Additional payment in September - refund of SPS 2014 financial discipline
Talking of financial discipline, the RPA will issue a refund of the amount deducted from the last SPS payment to most farmers, starting this month. The rules state that this reimbursement will be paid to those that 1) continued to claim BPS in 2015 and 2) where the BPS 2015 claim value is €2,000 or above. This payment should not be confused with the payment correction monies also being issued at this time. More information can be found here.
BPS and Brexit
We’ve updated our Q&A document following the government’s funding announcement on 13 August. The latest version can be found here.
Need help?
Finally, if you need further assistance on BPS, greening or cross compliance, please call NFU Callfirst on 0370 845 8458.
