Most farmers in England will receive 2015 Basic Payments, including greening, worth in the region of £180/hectare, the Rural Payments Agency (RPA) has confirmed.
However, farmers in the moorland area will receive payments of less than £50/ha.
The RPA has announced the entitlement values, including the greening element, which will now be used to calculate farmers’ 2015 Basic Payment Scheme (BPS) payments.
The distribution of payments under BPS follows moves by Ministers to ’move money uphill’ in the form of uplifts for SDA payments, now in line with lowland payments, and moorland payments.
It also, for the first time, highlights the value of the new greening payment.
Farmers need to hold an entitlement for every hectare of eligible land they are claiming on. The size of farmers’ payments will depend on how many entitlements they use, supported by eligible land, plus the following values.
With an exchange rate of €1 = £0.73129 to be applied, the entitlement rates are:
The greening part of payments will be calculated by taking the number of entitlements used with eligible land to claim payment and multiplying it by the greening value.
The greening rates are:
This means lowland, or non-SDA farmers, will receive combined payments of just over £181/ha, while SDA farmers will receive just over £180/ha.
Farmers in the moorland area will receive payments of just under £48/ha.
This compares with entitlement values under SPS 2014 of:
Farmers across the UK will lose an estimated £90 million in BPS payments this year due to shifts in the exchange rate alone - last year’s SPS entitlements were based on an exchange rate of €1 = £0.77730.
The scheme’s National Reserve - used to fund additional entitlements for the Young and New Farmers - has been set at 0.75 percent.
The RPA will soon be contacting anyone who has applied for entitlements from the National Reserve to confirm if their application has been successful.
Eligible Young Farmers, who applied, will receive an additional payment equivalent to a quarter of their entitlement value.
The final payment value will be subject to a number of potential deductions, including:
The BPS payment window opens on December 1 and closes in June 2016.
The RPA said it remained on track to make full BPS payments as early as possible in the payment window with the majority paid before the end of December and the vast majority by the end of January 2016.
In a statement last week, the agency said a series of transfers and checks still needed to be made before payments can be made.
But it confirmed it had completed land and entitlement transfer processing and would be writing to farmers and agents to confirm their transfers had been made in the coming weeks.
"With less than a month to go before Basic Payment Scheme (BPS) payments to farmers in England are due to start, good progress is being made," it said.
The scheme guidance can be found here
NFU senior BPS advisor Richard Wordsworth said: "After exchange rate was set for the average of September, now we have the gross entitlement and greening values which can be used to give a guide to the level of payments when multiplied against the number of entitlements activated for BPS 2015.
"Also, these entitlement figures help us to understand the level of any young farmer top up that may be due.
"What is now needed to pinpoint the actual level of payment due which is dependent on any adjustment for financial discipline which is levied and which should be known by the end of the month.
"Finally further adjustments may be made for any reductions to individual claims as a result of claim validation by the RPA, for example cross compliance penalty or late application.
"As with all things BPS, nothing is simple and we are looking to the RPA to explain via the issuing of claim and entitlement statements, letters providing decisions on national reserve and Young Farmer Scheme more details to help farmers understand the new payments.
"The announcement of this information today helps to add to the certainty the industry desperately needs around the delivery of BPS payments."