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IACS AND THE SINGLE PAYMENT SCHEME

ROD PLINSTONRPA/Defra Policy Directorate

11th February 2009

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Direct Payments to farmers : general features

Single Payment Scheme triggered by holding entitlements and land New IACS – Rural Land Register (LPIS), entitlements registers,

single business identifier registers. Inspection regime : land eligibility. Cross Compliance – SPS and Rural Development Schemes. Supplementary Aid schemes – decoupling 2010+

Energy Crops, Protein Crops, Nuts. Financial Discipline mechanism. National Envelope Schemes. Mandatory Modulation – cross-funding of Rural Development

schemes. Member States choices – Entitlements model, when to implement,

when to decouple existing schemes.

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SPS : English Option Implemented in 2005 Full Decoupling

All arable, beef and sheep Dairy Premium Seeds, Hops No National Envelope

Compulsory Modulation / Voluntary Modulation Progressive Flat Rate Option 2005 - 2012 English Regional Model

Severely Disadvantaged Area of the Less Favoured Area Moorland within SDA Other English Land

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IACS : Key Controls New IACS

Cross-checks with internal databases (Customer, Land, Entitlements, applications).

Cross-checks with external databases (Devolved Administrations, English Rural Development Programme).

Cross-checks with other schemes (Dried Fodder, Fibre Flax Processing etc).

On-the-spot controls for land eligibility including remote sensing and physical inspection.

Cross-compliance Adequacy of physical inspection process and application of sanctions – meet ‘SMR’ and ‘GAEC’ conditions.

Accuracy of entitlement calculation and distribution in entitlements registers (database in SPS).

Achievement of deadlines – claim submission, corrections submission, annual payments window.

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IACS Challenges : LPIS Mapping of rural land in high volume by a deadline –

RPA working with industry. 120,000 applicants with 8.7 M hectares Mapping requests following farmer claims, farmer

mapping requests, other schemes. Resolving mapping problems. Maintenance of the LPIS against independent reference

data over time. Amending the LPIS with photographic data / remote

sensing.

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IACS challenges : entitlements Controls on farmers’ access to the aid regime. 1 Entitlement = 1 Hectare to ‘establish’ in Year 1 and ‘activate’. 1 Entitlement valued per farmer on historic or other data. Historic data – assembly of reliable payments data under past IACS

schemes. Notified existing farmers. Historic + Flat rate and National Reserve allocations. Hardship cases. Transfers of entitlements. New Businesses / changing Businesses. Future : end of set-aside, re-labelling of entitlements. Future : decoupling of protein, nuts, dried fodder, fibre flax –

complexities of transfer of funds to existing SPS entitlements, targeting farmers, or creating new entitlements (historic or flat rate).

Future : Review of Regional Model in England ?

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IACS challenges : customer registration

Single Business Identifier (SBI) numbering, rationalisation of several earlier identifiers.

New farmer types registered _ e.g. horses, orchards – link to entitlements allocation.

New, continuing, or separate businesses. Health Check : ‘genuine farmer’ test.

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Further changes to IACS / SPS 2009 onward:

Operational changes for RPA: LPIS (RLR) Data Refresh 2009. Electronic Channel for customer claims and LPIS. Customer registers linked to land.Main policy changes: Funding of National Envelope schemes from SPS (all

‘Pillar 1’ funding)? Net budget ceiling monitoring for Pillar 1 schemes and

scale-back. Cross Compliance – environmental set-aside, water

management. ‘Non-agricultural land’ and ‘genuine farmer’ checks.

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Entitlements : English ‘Regional Model’

English Ministers chose a “transitional Area based” model All entitlements have a flat rate Some have a top-up according to their reference amount Over 8 years flat rate increases and historic decreases England split into 3 regions Aim was to stop funds going to lower producing, high land Most funds to Non-Seriously Disadvantaged Area (‘n-SDA’) Medium funds to ‘SDA’ area Low funds to Moorland SDA area

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Entitlements System :1

Base Data needed for Entitlements Calculation

CeilingsDairy Premium Increases

Average Regional Entitlement ValuesAdjustment Facility

CalculationScale back

Re-calculationTransition calcs

ValidationsCross-checks

AllocationsHardship Claims

AppealsReversionsSurrenders

TransfersMergers/Splits

InheritanceStatements

Reports

Interim Historic Receipts Data Extraction

Ref

eren

ce A

mou

nts

(XA

NSA

)

RITAData Capture

VerificationValidation

Cross-checksInspections

PaymentsAccounting

Matrixetc

SPSApplications

Arable

Livestock

AssociatedSchemes

Normal andSet-Aside

EntitlementsCalculator

Re-calculator EntitlementsRegister

NationalReserve

DairyRef Amount

Milk Quota System31/03/05 Ref Data

New Claimant 2005 Data

Known Claimant 2005 Data

2000-2002Average Set-Aside Rate(% Arable Land)

AnnualTransition Rate

Calculator

Controls

2005 Severely Disadvantaged Parcelsand Non SDA Land Parcels

2005 Hectares (inc Set-Aside, Arable, NFSA and Organic Land, Fruit and Veg Land)

2005Hectare

Data

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Entitlements System 2 : English Regions example: SDA land

SDA land is in pink

Non-SDA land covers the remainder plus

DA land

DA land is in blue

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Entitlements System 3 : Transition to Flat Rate with SDA and non-SDA land

37 55 100 147 194 241 287 319325 267 210 153

38 0

208278

243191

350

344

139

0

100

200

300

400

500

600

700

1 2 3 4 5 6 7 8

Scheme Years

Euro

s Dairy Base Element Progression

Historic Base Element Progression

Flat Rate Base Element Progression

11 16 29 42 56 69 83 9294 77 61 44

11 0

6080

7055

10 0

99

40

020406080

100120140160180200

1 2 3 4 5 6 7 8

Scheme Years

Euro

s Dairy Base Element Progression

Historic Base Element Progression

Flat Rate Base Element Progression

Non-SDA

SDA

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Entitlements System 4 : Entitlements register entries for ‘F. Giles’

Type Source Issued Use By Held Value Y1 Value Y2 Claimed Y1 Claimed Y2Non-SDA ER 16/08/2005 31/12/2007 19.86 € 589 € 665.00 € 11,697.54 € 13,206.90

Non-SDA S-A ER 16/08/2005 31/12/2007 2.00 € 37 € 56.00 € 74.00 € 112.00SDA ER 16/08/2005 31/12/2007 8.00 € 170 € 190.00 € 1,360.00 € 1,520.00

SDA S-A ER 16/08/2005 31/12/2007 1.34 € 11 € 16.00 € 14.74 € 21.44Non-SDA NR 30/06/2006 31/12/2007 3.00 € 483.00 € 1,449.00

Non-SDA S-A NR 30/06/2006 31/12/2007 0.27 € 37.00 € 9.99Non-SDA ER 30/06/2006 31/12/2007 1.00 € 248.00 € 248.00

Number 35.47Claimed € 13,146.28 € 16,567.33