BLOG: 11 MAY 2016
LATE PAYMENTS TO UK FARMERS STILL HAVING IMPACT 5 MONTHS ON
In December 2015, there was uproar within the agricultural and farming community when The Rural Payment Agency (RPA) paid just 51% of farmers their lifeblood Basic Payment Scheme monies in December, compared to 97% in December 2014 – a devastating decrease and well below its expected standards. The Basic Payment Scheme was put into place for farmers and crofters who actively farm their land, and acts as a safety net by supplementing their main business income, often aiding in keeping a farm financially stable.
Due to issues with administration within the RPA’s IT system, some farmers across the UK have waited for a frustrating 16 months between payments that should in fact be yearly – a potentially financially crippling wait for some. A new IT interface was implemented in reaction to the European Union’s revised Common Agricultural Policy (CAP), which prompted a U-turn into paper-assisted applications from thousands of farmers. These changes resulting in the delay were made even worse for many farmers after enduring devastating winter floods and a major downturn in farm-gate prices for produce.
Just this month, the House of Commons’ Environment, Food and Rural Affairs Select Committee has stated that rural payments chief Mark Grimshaw must ensure the RPA delivers on a promise to pay 90% payments this December after massively failing to meet targets in the 2015 round, with 10% of eligible farmers still not having received their payments 5 months into 2016.
The Conservative MP for Tiverton and Honiton and chairman of the EFRA Committee, Neil Parish, has said that he wants the RPA to communicate better with farmers who have been confused about the progress of their claims, the length of delays and what they are entitled to claim for under the new CAP, stating:
“Many producers rely on CAP payments to pay their bills so it is unacceptable that farmers are left uncertain over when their payments will arrive.”
With delays still continuing well into 2015, the RPA have promised to endeavour to ‘ensure 2016 payments are made as promptly as possible within the payment window’ – a promise many farmers throughout the UK will be hoping they keep, we will just have to watch this space.
At Davenham Asset Finance, we may be able to help farmers get back on their feet after this set back through agricultural finance, providing flexible solutions to put you back in control of your cash flow, whilst funding your farm assets and freeing up your capital. Get in touch and speak to a member of our friendly and experienced team to learn more about how we can help you.
Are you a farmer who was affected by the late payments in December? If so, let us know and join in the conversation @DavAssetFinance.
Due to issues with administration within the RPA’s IT system, some farmers across the UK have waited for a frustrating 16 months between payments that should in fact be yearly – a potentially financially crippling wait for some. A new IT interface was implemented in reaction to the European Union’s revised Common Agricultural Policy (CAP), which prompted a U-turn into paper-assisted applications from thousands of farmers. These changes resulting in the delay were made even worse for many farmers after enduring devastating winter floods and a major downturn in farm-gate prices for produce.
Just this month, the House of Commons’ Environment, Food and Rural Affairs Select Committee has stated that rural payments chief Mark Grimshaw must ensure the RPA delivers on a promise to pay 90% payments this December after massively failing to meet targets in the 2015 round, with 10% of eligible farmers still not having received their payments 5 months into 2016.
The Conservative MP for Tiverton and Honiton and chairman of the EFRA Committee, Neil Parish, has said that he wants the RPA to communicate better with farmers who have been confused about the progress of their claims, the length of delays and what they are entitled to claim for under the new CAP, stating:
“Many producers rely on CAP payments to pay their bills so it is unacceptable that farmers are left uncertain over when their payments will arrive.”
With delays still continuing well into 2015, the RPA have promised to endeavour to ‘ensure 2016 payments are made as promptly as possible within the payment window’ – a promise many farmers throughout the UK will be hoping they keep, we will just have to watch this space.
At Davenham Asset Finance, we may be able to help farmers get back on their feet after this set back through agricultural finance, providing flexible solutions to put you back in control of your cash flow, whilst funding your farm assets and freeing up your capital. Get in touch and speak to a member of our friendly and experienced team to learn more about how we can help you.
Are you a farmer who was affected by the late payments in December? If so, let us know and join in the conversation @DavAssetFinance.
