06/12/07 - SPS entitlements revalued for 2007 scheme year
The new flat rate values for the three English regions under the 2007 Single Payment Scheme are:
- €95.13 for non-SDA (Severely Disadvantaged Areas)
- €76.98 for upland SDA, other than moorland
- €13.40 for upland SDA moorland
The conversion rate to be applied is €1 = £0.69680 (based on the value of the Euro as at 30 September 2007).
RPA intends to send out 2007 Entitlements Statements in January 2008. These statements, which have been redesigned to improve the clarity of the information, will confirm the number and value of each farmer’s 2007 SPS entitlements. Guidance notes to explain the detail, including how the value of entitlements has been worked out, will be enclosed.
The revalued figures are used to calculate each individual SPS 2007 payment due. Full SPS payments will be made as soon as possible to farmers who activated their entitlements in 2007, and whose claim has been processed.
The entitlement values are established before final validation of a claim, and before deductions for European and National modulation or any penalties are applied. The SPS payment made will, therefore, be different from the values shown on the Entitlements Statement.
1. Some farmers who had the historic reference element of their entitlements made up from payments under the Extensification Payment Scheme (EPS), received a slight overpayment in 2005 and 2006 because a scaleback of 4% on livestock numbers was incorrectly applied. The correct 5.92% scaleback has now been applied to the reference amount. The values have been corrected on the 2007 Entitlements Statements for those farmers affected and no action is being taken by RPA to recover the small sums involved.
2. From SPS 2007 onwards, sugar funding is included in the entitlement value shown on the statement and, where activated, will be included within the SPS payment. (Last year the additions to the entitlement values for sugar reference amounts were calculated using a claimant’s contracted sugar tonnage and paid separately.)
3. The value of entitlements established in 2005 changes each year until 2012, when the 100% flat rate payment per hectare will be achieved. The flat rate figure has increased from 15% to 30% for 2007, while the historic element has reduced from 85% to 70%.
This revised historic element is achieved by applying a reduction factor to the 2006 element, as shown:
|Region||Flat Rate (30% figure)||(Rounded Sterling value)||Reduction factor for historic entitlement|
| The conversion rate applied is €1 = £0.69680|
|The 2007 Sugar Tonnage rate is €9.50331|
Comparable figures for 2006 were:
|Region||Flat Rate (15% figure)||(Rounded Sterling value)|
| The conversion rate applied is €1 = £0.67770|
|The 2006 Sugar Tonnage rate was €9.710|
4. For further information on entitlements and an electronic entitlements calculator
please click here.
Page published: 11 December 2007