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Minister Creed Introduces Statement of Basic Payment Scheme Entitlements

The Minister for Agriculture, Food and the Marine, Michael Creed TD, today announced that farmers will shortly receive their Definitive Statement of Basic Payment Scheme (BPS) Entitlements which outlines the number and value of entitlements allocated to them under the Basic Payment Scheme from 2015 to 2019. Ireland receives an amount of EU funding of some €1.2bn annually for distribution under Direct Payment schemes for the period 2015 to 2019.

The Basic Payment Scheme and Greening Payment replaced the Single Payment Scheme at the end of 2014 and a new set of BPS entitlements has been allocated to all eligible applicants under the scheme. The number of BPS entitlements allocated was determined by the number of eligible hectares declared by a farmer in 2013 or 2015, whichever was the lesser, and the value of entitlements allocated was based on a fixed percentage of the value of Single Payment Scheme entitlements owned by the farmer in 2014 and any payment received under the 2014 Grassland Sheep Scheme.

All entitlements are subject to a process of internal convergence whereby all farmers whose entitlements are below the national average unit value will see their entitlements converge upwards on a phased basis to reach at least 60% of the national average unit value of entitlements by 2019. This increase is funded by a gradual reduction in the value of entitlements for those farmers whose entitlement unit value is in excess of the national average. The national average unit value of entitlements is €184.

The Definitive Statement of Entitlements that will issue to each farmer sets out the convergence path of their entitlement values over the course of the scheme from 2015 to 2019 and their estimated overall payment including the Greening payment. The Minister added, “this is important information which will allow farmers to be aware of the income support available to them and to be able to plan accordingly.”

The Minister concluded, “The Statement of Entitlements will provide clarity for farmers on the number and value of their Basic Payment Scheme entitlements from 2015 to 2019.  Where farmers may require further information on the basis for the calculation of their entitlements, I would encourage them to avail of the facility available on the CAP Direct Payments Information Centre on my Department’s website at www.agriculture.gov.ie

A helpline facility (0761064447) will also be made available by the Department to assist farmers with queries in relation to the Statement of Entitlements

Note for Editors

Convergence: All entitlements held under the Basic Payment Scheme are subject to convergence.  Entitlements with an initial unit value that is above the Basic Payment Scheme national average will decrease in value over the five years of the scheme.  Entitlements that have an initial unit value that is below 90% of the Basic Payment Scheme national average will gradually increase in value over the five years of the scheme.  All entitlements must reach a minimum value of 60% of the Basic Payment Scheme national average by 2019.  By 2019, no farmer will receive a payment per hectare of more than €700.

Greening: The Greening payment is based on a fixed percentage of an entitlement value calculated each year in accordance with the total value of entitlements activated by all farmers in that year.  In 2015 the percentage calculated is approximately 44%.

View Press Release as a PDF:  DAFMPR 56/2016 (pdf 412Kb) 

 

Date Released: 08 June 2016