No early BPS as UK crisis aid set

UK farmers will not receive an early payment of 2015 BPS.  As part of EU moves to address the price slump in the dairy and other sectors, the option of paying a 70% advance after the 16^th October was offered.  However, none of the UK administrations is going to take up this mechanism, meaning that the earliest funds will be received will be the 1^st December.  Of course, there is considerable uncertainty about this date, as all the UK paying agencies struggle to implement the new BPS and verify claims.  It remains prudent to budget for BPS monies to arrive in 2016 rather than 2015. The reason behind this stance is likely to be the fear of ‘disallowance’ – EU fines, if it is subsequently found that money was paid out to those whose claims were invalid.

Another main plank of the EU aid package was an emergency fund of money to be directed to farmers facing cash-flow difficulties.  Agriculture Commissioner, Phil Hogan, has now announced how the €420 million set aside for this element is to split among Member States.  Germany will receive €69.23 million, France €62.90 million whilst the UK will receive €36.07 million.  80% of the allocation was based on the Member States’ milk quotas in 2014/15 to reflect the drop in milk prices faced over the past year. The remaining 20% was allocated in recognition of the fall in pigmeat price, drought faced in a number of areas and the impact of the Russian import ban. The four UK administrations will now need to decide on how the money is to be spent.