National reserve scaleback confirmed at 4.2%

The scaleback rate of the Single Payment Scheme National Reserve for farmers in England is being set at 4.2 per cent for the 2005 Scheme year, Farming Minister Lord Bach announced today.

He said: "I am pleased that we will be able to meet all valid applications to the National Reserve with a scaleback figure of only 4.2 per cent, which is lower than some industry experts had expected. It has been arrived at after assessing the applications and has been agreed by all UK Governments as a vital way of ensuring the monies are distributed fairly across the industry.

"Setting the figure today allows us to stick to our timetable for beginning SPS payments in full by the end of February. It is a vital step in the process and one which I am sure the industry will see as a welcome reassurance that we remain firmly on track."

Following assessment, around 9,000 farmers in England are in line to receive the National Reserve funding.

Farmers were eligible to apply if they believed they qualified under one or more of eight specific categories and were required to supply documentary evidence in support of their application.