This item was published during the term of a previous administration that ended in April 2007
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Single farm payment - additional aid
26/09/2006
The Environment and Rural Affairs Department has reached another phase of the implementation of the Single Farm Payment Scheme.
Payments have been initiated to refund producers the European modulation (3 per cent) on the first 5,000 euros of subsidy paid under any combination of Single Farm Payment Scheme, Scottish Beef Calf Scheme, Energy Crops Scheme, and / or Protein Crops Payment.
The sums of money are small and they are further reduced by the fact that we need to use a scaleback percentage ( minus 5.52 per cent) to stay within the UK budget for these payments. The maximum amount payable is £96.65 and we estimate that 13,760 producers, around 66 per cent, will be capped at this maximum amount.
Approximately 6 per cent of payments will be less than £10.00. The European Commission has set out the arrangements for these payments and we must administer them in accordance with these regulations. The cost of doing so, however, is borne by the Scottish Executive so there is no impact on the value of payments made to farmers and crofters.
The money should be with the producers around September 29, 2006. Producers will receive a payment advice alerting them to the payment and the background to it.
The calculation is as follows:
Maximum eligible aid 5,000.00
Modulation rate @ 3.00 per cent
Gross refund € 150.00
Scaleback - 5.52%
Net refund € 141.72
Exchange rate x 0.68195
Net refund in sterling £96.65
Additional Aid will be paid each year, but the rate of refund will change to reflect the level of modulation applied. In 2007, the rate will be 4 per cent and from 2008 until 2013, 5 per cent in each year.
This is governed by the European regulation governing SFPS - Council Regulation 1782/2003