CALCULATING ENTITLEMENTS
A "Dear Producer" letter and Information Leaflet 1 (Version 2)* was issued on 18 June 2004 to the majority of IACS producers.
A copy of your letter can be viewed by logging on to our secure online service, SEERAD Online. For further guidance or information about this please contact the SEERAD Online Helpdesk on 0845 601 7597 or email seeradonline@scotland.gsi.gov.uk .
Our letter explains that we will calculate your entitlements in three stages. First, we calculate a reference amount then a reference area and finally the number and value of your entitlements.
• Reference amount - We have used the areas which led to payment and/or animals which met all scheme conditions during the reference period (2000 - 2002 schemes) to calculate this. If we reduced the area you claimed under AAPS because of the application of IACS penalties we have used the eligible area actually 'found' in our calculations. We have done the same on forage used to support livestock claims. If the application of IACS penalties resulted in you receiving no payment under any or all of the livestock schemes all animals that met individual scheme rules are used in our calculation.
• Reference area - We used the area claimed or eligible area actually 'found', whichever is the lesser, to calculate this. The reference areas for the various elements of claims under the AAPS are not the same as the eligible areas on which you were paid AAPS aid. This is because of the different methods of apportioning the base area overshoot penalties and calculating the SFPS reference areas. For example, your AAPS payment in 2002 was divided by 1.027 to reflect the 2.7% overshoot in the Scottish base area. The eligible areas attracting that reduced payment remained the same.
However, under the SFPS, the AAPS eligible areas used to determine your reference areas for 2002 are divided by 1.027 to reflect the 2.7% overshoot in the Scottish base area. The SFPS payment rate for those areas will not be affected.
• Number and value of entitlements - The number of entitlements you are given will equal the average hectares farmed by you during the reference period (2000 - 2002 scheme years). We calculate the value of your entitlements by dividing the reference amount by the reference area. All the entitlements allocated to you will have the same value. To arrive at your total estimate multiply the number of payment entitlements by the unit value of your entitlements.
If your business changed during or since the reference period - due to a merger or split or, changed its legal status - the general rule is that the entitlements established for the new business will be based on the relevant proportion of the original owner(s) entitlements. The proportion will be based on the number of hectares acquired as a result of the merger or split.
If this applies to you please contact your area office if you have not already done so.
* Please note that information leaflet 1 was updated August 2004 to make the following amendments:
- Section 10 - A reduction will be made to the component of entitlements derived from beef subsidies to finance the national envelope for the beef sector.
- Section 11 - The force majeure/exceptional circumstances provisions now apply to individual schemes.