10 January 2007 - Ref 01/07
SPS Entitlements revalued for 2006 scheme year
RPA has now revalued entitlements under the 2006 Single Payment Scheme (SPS). The new flat rate element values, in Euros, for entitlements for the three English regions are:
- €45.92 for Non-SDA (Severely Disadvantaged Areas);
- €38.02 for upland SDA other than moorland;
- €6.48 for upland SDA moorland.
The Euro/Sterling conversion rate to be applied is 0.67770 (the value of the Euro as at 30 September 2006).
RPA will be writing to SPS customers over the next two weeks confirming the number and value of their 2006 SPS entitlements, including any historic element, and enclosing guidance notes designed to explain the detail within the Statement. A simple calculator contained within the notes explains how the value of their entitlements has been arrived at.
The revalued figures are part of the calculation required to determine farmers' 2006 SPS payments.
For farmers who activated their entitlements in 2006, and whose claim has been fully validated, full SPS payments will be made as soon as possible. Where validation has not been completed, partial payments for eligible claims valued above €1,000 will commence in mid-February.
Farmers will receive either a definitive or an ‘indicative’ Entitlements Statement depending on whether there are any outstanding issues with their claim. The accompanying letter will make clear what action, if any, they need to take. The letter accompanying the ‘indicative’ Entitlements Statements highlights that one or more of the following categories may apply:
- Entitlements have been transferred in the last 12 months (the transfer will not yet be reflected in the Statement);
- Application has been made for separate Sugar Support (details from their Sugar Information Statement will not appear on the Statement);
- National Reserve entitlements have been altered as a result of a change in European Commission Regulations in August 2006 (this can be checked by comparing the number of Eng Res entitlements on their definitive 2005 Entitlements Statements with the 2006 Statement);
- There are outstanding 2005 entitlement processing issues (these will include those identified by RPA as well as those arising from outstanding representations and appeals).
Copies of the letters and guidance (attached) are available on the RPA website at
www.rpa.gov.uk and a more detailed calculator will be available there from 12 January.
Farmers’ final SPS payment may be different from the values shown on their Entitlements Statement. The entitlement values are established before final validation of a claim, deductions for modulation or any penalties are applied.
RPA Chief Executive Tony Cooper said: “I appreciate that issuing ‘indicative’ Entitlements Statements is far from satisfactory and I’m sorry that we’ve had to do so, but we concluded that it is better to issue all customers with an Entitlements Statement at this stage and identify where they are not completely correct.
“In most of these cases farmers need take no further action and do not need to call RPA. If further information is needed, we will contact them.
“Revaluing the three regional flat rates is a vital part of the preparatory work we have to do to enable us to make SPS payments ”
Notes to Editors:
1. RPA is an Executive Agency of the Department for Environment, Food and Rural Affairs (Defra), providing a range of key services in support of the department’s objectives, including making rural payments, carrying out rural inspections, and livestock tracing.
2. The SPS 2006 Scheme year has a regulatory payment window from 1 December 2006 to 30 June 2007, by which time RPA has a performance target of having paid 96.14% of the total claim value.
3. The value of entitlements established in 2005 changes each year until 2012 in the move towards a 100% flat rate payment per hectare, with the flat rate part of payments increasing each year while the historic element reduces. A reduction factor is applied to the historic element of the 2005 entitlement to enable the 2006 historic element to be calculated. For 2006, these flat rates and reduction factors per region are:
| 2006 figures |  | | |
| Region | Flat Rate (15% figure) | (Approx Sterling value) | Reduction factor for historic entitlement |
| Non-SDA | €45.92 | £31.11 | 0.9362356601 |
| SDA | €38.02 | £25.76 | 0.9372378661 |
| SDA Moorland | €6.48 | £4.39 | 0.9217465831 |
| Euro / Sterling exchange rate for 2006 SPS is 0.67770 | | |
| 2005 Figures | |
| Region | Flat Rate (10% figure) |
| Non-SDA | €28.2 |
| SDA | €23.59 |
| SDA Moorland | €3.36 |
| Euro/Sterling exchange rate for 2005 SPS was 0.68195 | |
4. Media only contact: RPA Strategic Communications Manager Alan Wheeler on 0118 953 1516.
Customers can contact: RPA Customer Service Centre on 0845 603 7777. Opening hours 8.30am - 5pm, Monday to Friday. To have their calls answered quickly, customers are recommended to avoid calling on the busiest day which is usually a Monday and have their Single Business Identifier (SBI) numbers to hand.
Page published: 11 January 2007