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Single Farm Payment Latest News - 2009 Euro Rate
6Oct2009
2009 single farm payments (SFP), anticipated to be made from 1st December, are set for a 14% increase on the previous year as Sterling took a slide on the international currency markets. The EU Commission has fixed the rate for converting 2009 payments from Euro to Sterling on 30th September at €1 = £0.9093, by comparison the 2008 SFP was set at 79.03p/Euro and the 2007 SFP at 69.68p/Euro.
This increase is good news for those who did not opt to claim their payment in Euro as the pound has weakened further over the last 12 months. Interestingly and despite being well broadcast, only around 4,000 claimants opted to take their SFP in Euro, from a total number of about 29,000 claimants.
Modulation
The attached table illustrates how modulation has been applied for 2009 payments; the first €5,000 of direct payments is exempt from European (compulsory) modulation, this reduction in modulation however, is offset because the Additional Aid payment (previously paid around August and being the refund of European modulation on the first €5,000 of direct payments) has been abolished in favour of this revised approach to modulation. In terms of the effect on the SFP receipt, SGRIPD’s message is that the amount of modulation being deducted under these revised arrangements will be no higher than would have been the case under the rates previously planned for 2009.
The rates of modulation for 2009 are:Total Amount of Direct Payments
Modulation €00.01 to €5,000 €5,000.01 to €300,000 €300,000.01 and above European (Compulsory) 0.0% 7.0% 11.0% Member State (Voluntary) 8.5% 6.5% 2.5%
2010 Naked Acres
We understand from discussions with SGRIPD that there should be no significant rule changes in 2010. The Brian Pack Inquiry into SFP is likely to be published around Easter 2010, although it is anticipated that a summary may be released earlier than this. As Scottish Ministers are unlikely to act until the full report is published and Easter 2010 is too close to the 15th May deadline for IACS returns, I believe it is unlikely that we will see any amendments to the SFP “naked acre” rules for 2010.