21/08/2009 ~ Single Payment Scheme 2008 Modulation Refund Payments
In accordance with EU regulations, RPA is in the process of making modulation refund payments in respect of the 2008 Single Payment Scheme and associated schemes – Area Payment for Nuts, Protein Crop Premium and Aid for Energy Crops (EU direct payments).
EU modulation of 5% is automatically deducted from all EU direct payments made to farmers. Member States are then required to refund this money to farmers in respect of the first €5,000 of direct payment made in the Scheme year.
EU regulations also stipulate the total value of these refunds must be made within a national ceiling. When the national ceiling is breached (as is the case with UK) a reduction must be applied to all refunds. Once this reduction is taken into account, the total amount to be refunded in England is £13.7 million. Inevitably, given that a substantial number of SPS payments were for small amounts, as last year the associated modulation refunds will be very small.
These refund payments have been calculated as follows:
- If the total amount received under 2008 direct aid schemes was over €5,000 (£3,951.50) a 8.98% scale back will be applied. This means that the refund will be €5,000 x 5% = €250, less 8.98% scale back, and results in a repayment of €227.55 (£179.83).
- If the total payment received is below €5,000 (£3,951.50), the refund will be the value of the claim x 5%, less 8.98% scale back.
The amount of modulation refund will be shown on the remittance advice sent separately at the time of the refund. The first refunds have already been made with the other refunds being made in the next few weeks.
Page published: 21 August 2009
You may also be interested in: