Defra takes further action to ensure payments to farmers in February 2006
Further action to ensure that payments to farmers can begin next February under the new Single Payment Scheme in England, were announced today by Lord Bach, Minister for Food and Farming.
The Minister announced that:
* The Rural Payments Agency (RPA) remains committed and on target to commence payments in February 2006. To help ensure that happens and to allow for notification of final entitlements to be issued as soon as possible in the new year, farmers will not now be informed of their provisional entitlements in the autumn as was envisaged. Definitive entitlements will however now be notified to farmers as early as possible in the new year.
* At the EU level, changes in the rules governing the way in which a
payment is made are now under discussion. If implemented, they would require the RPA to make significant changes to its IT systems. If those rules are passed, there is a significant risk that the February payment may have to be an interim rather than full payment. Defra is engaged in urgent discussions with the European Commission to try to avoid this.
* Defra is also continuing to discuss with the European Commission the need for a legal provision to make interim payments to farmers should this be necessary.
Lord Bach said:
"We are continuing to put all our effort and resources into commencing payments in February. I am determined, however, to keep the farming community well informed as the processing of SPS claims proceeds.
"With that in mind, and because I am also aware that farmers want definitive entitlements to be made available as early as possible in the new year, we are announcing today that we have taken the decision after discussion with the NFU and others not to provide provisional entitlements to farmers in the autumn. I appreciate that this will disappoint some, but we need to focus our efforts on the critical issues.
"This week's news that changes may be made to EU rules governing the payment details is unwelcome at this late stage in the process, as it is likely to delay the main payment by at least a month. We are making very clear to the Commission the real risk that this poses to our starting to make full payments in February, should this element of their proposal go ahead. We should know next week if we have been successful.
"If it proves impossible to defer these changes I am determined that payments will start to be made in February, even if that involves an interim payment, with the balance following before June. We are also lobbying the Commission hard for the flexibility to do this. In line with best practice, we are developing contingency plans which could deliver interim payments to farmers if necessary.
"I am well aware that these developments will not please everyone but I want to thank the NFU and others for working so closely with us on this and to reassure them that Defra and the RPA are working hard for the benefit of farmers to ensure the successful and timely delivery of this scheme."
