Everything rural businesses need to know about the Basic Payment Scheme (BPS) in 2019
The Financial Discipline Mechanism (FDM) reimbursement
Farmers with a 2019 BPS claim worth more than €2,000 will receive a reimbursement from the 2018 FDM fund. Read the Financial Discipline Mechanism reimbursement section below for more information about the reimbursement. The information on this page relates to the BPS 2019 scheme year.
When you receive a payment from RPA, we’ll send you a remittance advice that gives details about your payment. You can read more information about this in the RPA remittance advice guidance.
BPS 2019 payment rates have been announced
See the How BPS 2019 payments are calculated section below.
Rural payments: land guidance
The Rural payments: land guidance gives information about the land used for rural payment schemes.
How BPS 2019 payments are calculated
To find out how payments are calculated, read the ‘Payments, Reductions and Penalties’ section of the Basic Payment Scheme: rules for 2019. Page 95 explains how RPA calculates payments.
You may also need to read information about greening administrative penalties.
You can also read the example of how the value of the common land part of the BPS payment is calculated.
The BPS 2019 exchange rate is: €1 = £0.89092.
The Financial Discipline Mechanism (FDM) reduction rate for payments over €2,000 is 1.432635%.
Entitlement values for 2019
|Payment region||Entitlement value|
|Non-SDA (Severely Disadvantaged area)||€182.70|
Greening payment rates for 2019
|Payment region||Greening payment rate|
|Non-SDA (Severely Disadvantaged area)||€78.69|
If you have a query about a BPS payment that you’ve received, please fill in a BPS payment query form and send it to RPA.
Scheme rules and guidance
- find out how the scheme works
- BPS Key dates 2019 shows important dates in the BPS 2019 scheme year
Other guidance and forms
Financial Discipline Mechanism (FDM) reimbursement
Each year the European Commission uses some of the BPS budget to create a ‘crisis reserve’. This can be used to support the farming industry in times of crisis, such as disease outbreak. To do this - and to make sure that the overall European budget for BPS is not exceeded - a mechanism called ‘financial discipline’ is used. ‘Financial discipline’ means BPS payments worth more than €2,000 across all Member States are reduced by an agreed percentage.
If the FDM funds have not been used to relieve a crisis, they are reimbursed to eligible farmers in the following scheme year. Farmers with a 2019 BPS claim worth more than €2,000 will receive a reimbursement from the 2018 FDM fund.
Payments will start from 1 July 2020. The payment is called ‘FDM reimbursement’ on the remittance advice, which is being sent after a payment is made.
The rate to use to calculate the reimbursement for 2019 is 1.371%. RPA takes a farmer’s claim value, removes the first €2,000 and any reductions if they apply (but not cross compliance penalties), then multiplies this by 1.371%. They take the resulting amount and remove any cross compliance penalties from it.
Here’s an example:
A farmer has a claim value of €10,000
The reimbursement does not apply to the first €2,000:
€10,000 - €2,000 = €8,000
The reductions (not including any cross compliance penalties, for example, a late claim penalty) that apply to the 2019 claim = €200
€8,000 - €200 = €7,800
FDM reimbursement is €7800 x 1.371% = €106.94
A 5% cross compliance penalty applies:
€106.94 - 5% = €101.59
The FDM reimbursement is €101.59
Some farmers may receive a further payment under FDM for previous years.
Commons eligibility checks
We’ve published updated guidance about land cover eligibility checks on common land.
How the value of the common land part of the BPS payment is calculated.
The common has:
- an eligible area of 300ha; and
- grazing rights being claimed under BPS for 200 sheep and 70 cattle.
RPA must calculate the livestock unit (LU) value of all the rights being claimed for the common:
- each sheep is equivalent to 0.15 LU, so the calculation for the sheep grazing rights being claimed is: 200 sheep x 0.15 LU = 30 LU
- each adult cow is 1 LU, so the calculation for the cattle grazing rights being claimed is: 70 cattle x 1 LU = 70 LU
- the total LU being claimed for the common is therefore: 30 LU + 70 LU = 100 LU
- the area to be allocated for each LU claimed for the common is calculated as: 300ha / 100 LU = 3.0ha/LU
- if the farmer declared 40 LU of rights to activate entitlements on their BPS 2018 application they would be allocated 3.0ha/LU x 40 LU = 120ha of the total eligible area of the common
- this area will be used to activate entitlements in the same way as any other land declared by the farmer on their application. The examples shown above under ‘Main BPS payment’ and ‘Average entitlement value’ show how this is done
The above examples are based on a single common and do not take account of any split rights.
Planned maintenance of the Rural Payments service
There are times when the Rural Payments service is unavailable because of essential planned maintenance and updates. Check Rural Payments: registering and updating your details to keep up to date about availability of the Rural Payments service.
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