Cautious welcome for SPS payment figures

Specialist agricultural accountants Moore Thompson has cautiously welcomed the Government’s announcement that the Rural Payments Agency (RPA) has released the highest proportion of Single Payment Scheme (SPS) payments last month.

According to the Agriculture Minister Jim Paice, since the RPA began making 2011 SPS payments on December 1, it has paid 87 per cent of farmers eligible under the scheme, against a target of 86 per cent.

This represented 81 per cent of the estimated value of total payments for 2011, against a target of 78 per cent.

This was the highest ever proportion of payments made in the whole of December ’ and was achieved two weeks ahead of schedule. It amounted to over ’1.4 billion, paid to over 91,400 farmers.

Andrew Heskin, a partner in Moore Thompson’s Farming Sector team said: ’SPS payments are crucial to thousands of farmers who rely on subsidies to supplement their income, which is why this announcement should be welcomed.

’SPS payments are not linked to production, thus giving producers flexibility in how they run their businesses.

’However, we are concerned that 13% of farmers who are eligible under the scheme have not received their payments on time, particularly at this uncertain economic period of rising input costs and volatile produce prices.’

Jim Paice, who is also Chair of the RPA Oversight Board, said:

’This is the best ever performance in December and a good example of the improvements being made at the RPA.

’But I’m determined to keep driving things forward so that the remaining payments are made as soon as it’s possible.’

Mr Heskin added that farmers who believe they are eligible for the fund should seek specialist help in applying to the RPA.

’Applying to the RPA is a complex process which is why it is important to seek the help of a financial expert who can guide you through the appropriate course of action,’ he said.

Being at the heart of the Fens, Moore Thompson has always provided specialist accountancy advice to agricultural and horticultural businesses with an agricultural team that knows the farming business inside and out.