Important information for sugar beet growers

Following the circulation of previous notices it is strongly recommended that you read the following information, which provides updated details of payments of restructuring aid.


1. Beet Growers’ Initiative Scheme (BGIS)

1.1 Following publication of the amendments to Regulation Nos 320/2006 and 968/2006 on 27 October 2007, a notice was sent out to all sugar beet growers (growers) that Rural Payments Agency (RPA) deemed eligible to apply to the BGIS.

1.2 The application window closed on 30 November 2007; over 1,000 applications were received.

1.3 RPA has been assessing applications for eligibility, whilst considering in parallel an application to the Restructuring Fund submitted by British Sugar (BS).


2. Application from British Sugar (BS)

2.1 BS submitted an application for restructuring aid in November 2007 and RPA began an immediate evaluation.

2.2 A decision has now been reached and BS’s application has been deemed successful.

2.3 As stated in paragraph 8.1 of the previous notice:

“If an application by BS is submitted and is deemed successful, this will supersede all growers’ applications and you will be notified, in writing, by 15 February 2008 that your BGIS application will not proceed”.

2.4 Therefore, if you have applied under the BGIS please note that we will not be proceeding with your application.


3. Payment of restructuring aid

3.1 BS has made a commitment to surrender 165,000 tonnes of quota sugar - white sugar equivalent (wse) - not beet tonnes. The total amount of aid available is €625 per tonne of quota sugar surrendered.

3.2 10% (€62.5 per tonne of quota sugar surrendered (wse)) of the aid referred to above will be reserved for growers and contractors, and the total available to be shared exclusively among eligible growers (see paras 3.4 and 3.6 below) will be increased by an additional amount of €237.5 per tonne of quota sugar surrendered (wse).

3.3 Article 3(6)(a) of Regulation No 320/2006 defines the criteria for growers eligible for compensation:

“growers of sugar beet having concluded a delivery contract with the undertaking concerned during a period preceding 2008/2009 marketing year for the production of sugar under the relevant quota renounced”.

3.4 Following consultations with BS and the NFU, Defra has decided that the growers' aid should be based on a 3 year reference period, such that growers who agreed a contract for the 2006, 2007 and 2008 crops will be eligible. This means that ex-York and Allscott growers will also be eligible for a proportion of the aid.

3.5 Under the terms of the EU regulations, payment of aid will be made in two instalments:

• the first instalment (and the earliest possible date for any payment) in June 2009
• the second instalment is February 2010