SPS Payment Rates 2013

Most support claimants may be thinking that payment rates will drop in 2015 when the new BPS replaces the SPS.  In fact, the current 2013 year could see sizeable drops in per hectare support rates.

The issue arises because direct support under the SPS/BPS is paid out of the succeeding year’s EU Budget year.  Thus, the SPS 2013 is paid from the 2014 EU Budget.  The 2014 year is the first of the new Multi-annual Financial Framework (MFF) with its lower funding for the CAP.

It seems likely that some sort of financial discipline mechanism will have to be invoked.  This simply makes an across-the-board cut in all payments across Europe to bring support spending below the set limits.  Whether this cut will actually be introduced for the 2013 scheme year is not yet clear – it is possible that funds could be ‘massaged’ between the years of the MFF to put off the pain until later.  However, there does seem a good chance of some cuts.  What this might mean for payment levels in the UK is equally unclear.  We are suggesting that farmers may want to budget a 10% cut in the level of payments in Euro terms to be on the safe side. This may prove to be too great but at least there would be no nasty surprises in December.   

This will also be an issue for those looking to fix some of their Single Payment for 2013.  This requires a certain number of Euros to be ‘purchased’.  Bearing in mind that the level of Euro payments may be lower claimants should be wary of buying too many.