Common Agricultural Policy: Single Payment Scheme

House of Lords written question – answered on 6th April 2010.

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Photo of Baroness Byford Baroness Byford Conservative

To ask Her Majesty's Government further to the Written Answer by Lord Davies of Oldham on 15 March (WA 118), what estimate the Rural Payments Agency has made of the cost to those farmers awaiting full payment of claims under the single payment scheme for 2007 and 2008 of the delay in making those payments; and whether the agency provides any funds towards those costs.

Photo of Lord Davies of Oldham Lord Davies of Oldham Deputy Chief Whip (House of Lords), HM Household, Parliamentary Under-Secretary, Department for Environment, Food and Rural Affairs, Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords) , Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs) (and Deputy Chief Whip)

The Rural Payments Agency (RPA) is not able to estimate costs incurred by individual farmers as they vary with each business.

Where a full payment under the single payment scheme cannot be made by the end of the payment window for a particular scheme year, a substantial interim payment is made in most cases. However, that is not always possible, particularly where the reasons for delay are outside of RPA's control such as probate.

The RPA makes interest payments, above a de minimis level of £50, for any sums paid after the end of the payment window. Interest is paid at the London Interbank Offered Rate (LIBOR) plus 1 per cent, calculated from 1 July.

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