Payments to Farmers: Single Payment Scheme - Interim Payment

CAP reform has meant that the range of subsidy payments to farmers in the UK has been replaced by the Single Payment Scheme (SPS) from 2005.   While the UK as a whole has adopted the Single Payment, the four regions have adopted different approaches. In Wales, the new payment will be based on the average of payments made to farmers between 2000 and 2002.

Because there is a need to manage some aspects of the Single Payment across the UK, for example the National Reserve, it is not going to be possible to make a full payment in Wales from December as we had hoped.  We have however, been in negotiations with the European Commission to allow the single payment to be made in two parts, with the first part payment made early in the European payment window that runs from 1 December 2005 to 30 June 2006.

I am pleased to announce that the European Commission has now made provision for farmers applying for the Single Payment Scheme (SPS) to receive their 2005 payments in two instalments.  However, the first instalment may only be paid up to an amount for which eligibility has already been established on the basis of checks carried out (validation) in accordance with Commission Regulation (EC) No 796/2004 and where there is no risk that the amount of the total payment yet to be established is lower than that of the first instalment.

I have agreed that farmers in Wales can receive an interim payment of 80% of their provisional Single Payment . (The 80% interim payment will be subject to other deductions such as modulation and any other penalties that may be applicable.)

I am pleased that a significant proportion of farmers’ in Wales applications have passed the relevant validation checks and these farmers will be eligible to receive their SPS interim payments to the level of 80% of the provisional gross total payment before Christmas.