RPA begins modulation refund payments

As in previous years, the RPA has started to make modulation refund payments to farmers for SPS 2007. Full details can be found on the RPA website here. The way SPS works is that the EU modulation of 5% is automatically deducted from all EU direct payments made to farmers. The RPA is then required to refund this money to farmers in respect of the first €5,000 of direct payment made in the scheme year. These have to be made to validated claims by the end of September.

This exercise will generate small payments to farmers, with the maximum payment being £161.41. A letter will be sent out to explain this payment and the money will be paid via BACS or cheque. It is important to note that after 15 October 2008 the RPA will not be able to pay farmers by cheque and if they do not hold an SPS claimant's bank account details they will not be able to pay out any monies due after that date. Therefore, if farmers receive their modulation payments by cheque and they have not yet sent the RPA their bank details, they should do so without further delay.

Farmers will need to complete their bank details on the SP12 registration form that was posted to them with their SPS 2008 application pack, or on the CReg17 form mailed out, sign the form and return it to the RPA. If farmers do not have a form they can request one by:

• Phoning the RPA Customer Service Centre (CSC) on 0845 603 7777 and selecting customer registration

• E-mailing csc@rpa.gsi.gov.uk