22 September 2006 - Ref 16/06
Single Payment Scheme 2005 Modulation Refund Payments
In accordance with EU rules, RPA is in the process of making modulation refund payments in respect of the 2005 Single Payment Scheme and associated schemes – Area Payment for Nuts, Protein Crop Premium and Aid for Energy Crops. Payments will start next week to customers whose claims have been fully validated.
Under EU rules 3% modulation 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 €5000 of direct payment made in the Scheme year.
EU rules 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 £6.74 million. Inevitably, given that a substantial number of SPS payments were for small amounts, the associated modulation refunds will be very small.
These refund payments have been calculated as follows:
1. If the total amount received under 2005 direct aid schemes is above €5,000 (£3,410), the refund is calculated on the €5000 figure and a 5.52% reduction has been applied. This means their refund at €5,000 X 3% = €150 less 5.52% scale back, resulting in a payment of €141.72 (£96.65)
2. If the total payment received is below €5,000 (£3,410) they will receive a refund comprising the gross value of their claim X 3% less 5.52% scale back.
Customers whose claims are not yet fully validated will receive their modulation refund at the same time as their full SPS payment.
Notes to Editors:
1. RPA is an executive agency of the Department for Environment, Food and Rural Affairs (Defra). As well as carrying out key services include rural inspections and livestock tracing, it is the single paying agency responsible for CAP schemes in England including the Single Payment Scheme (SPS).
2. The intention to make modulation refunds was outlined on Page 94 of the Single Payment Scheme Handbook and Guidance for England 2005
3. Most recent SPS payment figures released on Wednesday 13 September show 112,390 claimants (96.49%) have now received a total of £1.493 billion (98.57%) in full or partial payments.
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.
Page published: 22 September 2006