Financial Discipline Reimbursement

The RPA has announced details of a Financial Discipline refund relating to the 2014 scheme year.  Those with a 2015 BPS claim worth more than €2,000 will receive a reimbursement of 1.3% of their 2015 payment value.  Payments will start in September and claimants will receive a remittance advice, with ‘FDM reimbursement’ on it shortly afterwards.  The Financial Discipline Mechanism (FDM) cuts all direct payments pro-rata if it is looking likely that the CAP budget is going to be exceeded in a year and helps fund a ‘Crisis Reserve’.  But if it is not used, all or part of it can be refunded to claimants’ with the following year’s BPS payments.  Financial Discipline was applied at 1.3% to 2014 payments and not all of it was used.  It seems a bit harsh on farmers who may have claimed in 2014 but not 2015, but a bonus for those that didn’t claim in 2014 but did in 2015!