Over-claimers could lose SPS payment
Farmers who over-claim on their Single Payment Scheme (SPS) application by more than 0.5% could lose their entire payment for the year.
The Rural Payments Agency (RPA) has said that harsher penalties will be applied if it finds that farmers have deliberately claimed for land that is clearly ineligible, or if it is judged that farmers should have foreseen that their application would result in an over-declaration.
These cases will be treated as “intentional over-declaration”.
Farmers will be judged to have intentionally over-claimed if they fail to reflect a reduction in the eligible area following an inspection, or if they do not make appropriate deductions for permanent features such as concrete pads and metalled roads
If a producer has intentionally over-declared by 0.5% of the area determined, or by more than 1ha, they will not be paid for the scheme year.
The normal graduated penalty system will apply for any over-declarations that are judged not to be intentional.
Tighter rules are also being introduced on “naked acres”.
The agency says it will not pay anyone who artificially creates the conditions required for claiming SPS payments with a view to obtaining an advantage that goes against the objectives of the SPS scheme.
Farmers who lease land to claim payment on surplus entitlements may face questions about the reasons they are leasing the land.
If the lease arrangement has no commercial purpose other than to activate the surplus entitlements, the RPA may judge it to be artificial.
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