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Arable Area Payments Scheme

29/09/2004

Scottish farmers can expect payments of £122 million under the 2004 Arable Area Payments Scheme, it was confirmed today.

Despite an overshoot in Scottish claims estimated at 1.7 per cent, payments to farmers will amount to approximately £122 million between now and March next year.

Some claims have yet to be fully analysed, however it is already clear that the overshoot will be below the 2003 figure of 2.24 per cent.

The 1993 non-LFA overshoot was 5.4 per cent. Penalties were reduced to 0.54 per cent (10 per cent of the original penalty) following an agreement reached at the EC Agriculture Council in December 1993. There was an overshoot of 3.5 per cent in the non-LFA in 1994; penalties were reduced to 0.7 per cent (20 per cent of the original penalty) under the December 1993 agreement. There was an overshoot of 3.7 per cent in the non-LFA in 1995; penalties were reduced to 1.85 per cent (50 per cent of the original penalty) under the December 1993 agreement.

There were overshoots of 4.4 per cent, 7.1 per cent, 7.6 per cent and 6.75 per cent respectively in the non-LFA in 1996, 1997, 1998 and 1999; penalties were applied in full. In 2000, there was a 2.25% overshoot against the Scottish base area, i.e. the first year when the LFA and non-LFA base areas were combined to establish a single overshoot percentage for Scotland as a whole; and in 2001, 2002 and 2003 there were overshoots of 4.44%, 2.7% and 2.24% respectively.

AAPS payments to Scottish farmers totalled £93m in 1993, £115m in 1994, £150m in 1995, £148m in 1996, £142m in 1997, £138m in 1998, £136m in 1999, £122m in 2000, £119 m in 2001 and 2002, and £129 million in 2003. The figure for 2004 is expected to be in the region of £122m, due to the less favourable £/euro exchange rate.

The Scottish Executive Environment and Rural Affairs Department will issue the vast majority of payments for cereals, linseed, oilseeds, protein crops, flax and hemp, and set-aside in the period 16 November-31 January.

The payment rates for 2003, excluding the base area penalty and modulation, (to the nearest penny) are set out below. Final payment rates will be set when the precise scale of the overshoot has been determined.

Cereals - 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)
Linseed - 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)
Oilseeds - 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)
Flax- 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)
Hemp- 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)
Protein Crops - 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)
Set-aside - 217.72 (LFA - £/ha); 236.95 (Non-LFA - £/ha)

This release was published on Friday, October 1.

Page updated: Friday, October 1, 2004