BPS Penalties

We reported back in January about proposals to make the CAP penalty system more tolerant with regards to over-declarations.  These have now been agreed and will be effective from the 2016 BPS claim.  Where an over-declaration is more than 2 hectares or 3%, the area paid on will be reduced to that found and a further area (penalty area) will be taken off equal to the over-declared area multiplied by 1.5.  Previously the multiplier was two.  For example if the area declared is 100 Ha and the area found is 97 Ha, the area paid on will now be 92.5 Ha (97 – (3 x1.5))

In addition, there will be a new ‘yellow card’ system.  Once again this is effective from the 2016 claim.  This system will apply where a claimant over declares for thefirst time and it is of a minor nature, i.e. by less than 10%.  In this case the over-declared area is multiplied by 0.75% (i.e. half of the normal penalty).  The yellow card system can only be used once and if the over-declaration is repeated in the following scheme year the reduction applied under the yellow card system will have to be repaid.