In accordance with EU regulations, RPA is in the process of making modulation refund payments in respect of the 2006 Single Payment Scheme and associated schemes – Area Payment for Nuts, Protein Crop Premium and Aid for Energy Crops (EU direct payments).
EU modulation of 4% 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 regulations 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 £8.89 million. Inevitably, given that a substantial number of SPS payments were for small amounts, as last year the associated modulation refunds will be very small.
These refund payments have been calculated as follows:
1. If the total amount received under 2006 direct aid schemes was over €5,000 (£3,388.50) a 5.16% scale back will be applied. This means that the refund will be €5,000 x 4% = €200, less 5.16% scale back, and results in a repayment of €189.68 (£128.55).
2. If the total payment received is below €5,000 (£3,388.50), the refund will be the value of the claim x 4%, less 5.16% scale back.
The amount of modulation refund will be shown on the remittance advice sent separately at the time of the refund.
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 73 of the Single Payment Scheme Handbook and Guidance for England 2006.
3. Media only contact: Media Manager Bob Johnston on 0118 953 1516.
Customers can contact: RPA Customer Service Centre on 0845 603 7777.
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