Basic Payment Scheme

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Basic Payment Scheme

The Basic Payment Scheme (BPS), introduced in 2015, as part of the Common Agricultural Policy (CAP) replaces the Single Payment System (SPS).


From 2015, the direct payment under Pillar 1 of CAP is no longer a single payment but may be a combination of four separate payments including the Basic Payment, outlined below. You must apply for payment each year, usually by May 15th.

Eligibility 

In order to qualify under the Basic Payment Scheme, you must have at least one entitlement linked to one hectare of eligible land.

Any farmer who was entitled to receive a basic payment in 2013 is automatically eligible to receive an allocation of entitlements in 2015, provided they satisfy the other conditions of allocation.

Farmers who never held entitlements but actively farmed or grew fruit and vegetables in 2013 may also be eligible under the Scottish Derogation.

Number and value of entitlements

Number
The number of entitlements allocated to a farmer in 2015 will be based on the number of eligible hecatres declared in either 2013 or 2015, whichever is lesser.

Value
The value of entitlements owned (held or leased out) under the SPS in 2014 and, if relevant, the value of payment under the Sheep Grassland Scheme, forms the basis for calculating the value of entitlements in 2015 under the BPS.

You must have an eligible hectare to accompany each entitlement. Click here for information on land eligibility.

National Reserve

Under the National Reserve, applicants who meet the criteria of ‘Young Farmer’ or ‘New Entrant’ and who have a gross off-farm income of less than €40,000 in the tax years either 2013 or 2014 are eligible for an additional allocation of entitlements on eligible land for which they hold entitlements and/or a top to the value of existing entitlements held by them where those entitlements are below the national average.

The National Reserve operated for 2015 but did not operate in 2016. A decision has yet to be made on funding for future National Reserve. More on the National Reserve

Convergence – how your entitlement value may change

Entitlements may be subject to convergence, which will either increase or decrease their value over the five years of the Scheme.

Entitlements worth less than 90% of average
Farmers who hold entitlements with an initial value below 90% of the national average entitlement value will have the value of their entitlements increase by one-third of the difference between their initial value and the 90% national average value. This increase will take place in five equal steps over the five years of the scheme.

Entitlements worth more than 100% of average
Farmers who hold entitlements with an initial value over 100% of the national average will see their value decrease over the period of the scheme. The reduction will be determined by the amount needed to fund the increase for those whose entitlements are being increased.

Entitlements worth 90-100% of average
Farmers who hold entitlements with an initial value of between 90% and 100% of the national average value will see no change in their entitlement value over the five years of the scheme.

By 2019…
By 2019 all entitlements will have a minimum value of 60% of the national average entitlement value.
By 2019 no farmer will receive a payment per hectare greater than €700.

Transfer of entitlements

All entitlements are subject to a 2-year usage rule. Entitlements can be transferred or sold including leased with or without land from 2016.
Entitlements sold in 2016 are subject to a 50% clawback.

The transfer of land and corresponding Entitlement Allocation Right by sale and lease during the transition period was catered for through the use of Private Contract Clause.

Payment dates

EU regulations provide that payments under the BPS will be made within the period 1 December to 30 June of the following calendar year. Payments will be made in a maximum of two instalments within that period.

Department of Agriculture commitment
Under the Charter of Farmers Rights, the Department of Agriculture has committed that:

  • 50% advance payments of Basic Payment and Greening Payment will commence on October 16 each year with a target of paying 100% of cleared cases and 90% of all applicants in the first week. In 2016 a 70% advance will be paid in October.
  • Balancing Basic Payment and Greening payments will commence on December 1 each year with a target of paying 100% of all applicants on that date
  • For 2015 these payments will be based on provision entitlements with any balances due to be paid on March 16.
  • National reserve –  a target payment date of 1 December for all applications to be paid as a complete payment will apply

Inspections

By submitting a BPS application, applicants agree to permit officials or agents of the Department to carry out on-farm inspections.

These include land eligibility and cross-compliance inspections.

Land eligibility

5% of applicants will be inspected on land eligibility (1% on farm, the remainder by remote sensing). Up to 14 days notice may be given.

Cross compliance

1% of applicants will be subject to Food, Feed Hygiene, TSE & Animal Welfare inspections. No notice will be given in advance of these inspections.

3% of applicants will be subject to Pig/Cattle/Sheep/Goat ID and Registration inspections. Up to 48 hours notice may be given in advance.

1% of applicants will be subject to SMRs and GAEC inspections. Up to 14 days notice may be given.

Full information on inspections, including the procedure for conducting an inspection

Resolving queries

Where a problem is identified in the course of administration checks a letter is sent to the applicant by September 15th at the latest setting out the nature of the query and likely consequences if not resolved. The farmer must respond within 14 days to provide an explanation or clarification. Where a farmer does not respond within 14 days, a reminder letter will be sent seeking an immediate response.

Penalties

Land declared
If the claimed areas is over declared or under declared reductions/penalties may be applied. Full details are available here

Cross compliance
If an applicant is found to be in breach of cross compliance, penalities may apply –  Full details are available here

Appeals

A farmer who has had a penalty imposed may appeal that decision to the Agriculture Appeals Office. Appeals must be lodged within 3 months of the date of the Department’s decision letter.

Full details of appeals and tolerances

Frequently Asked Questions

When will I get my Basic Payment?

The Department of Agriculture has committed to paying 50% advance payments of BPS and Greening commencing from October 16th each year, with a target of paying 100% of cleared cases and 90% of all applicants in the first week. In 2016, a 70% advance will be paid in October.
Balancing payments will commence on December 1st each year with a target of paying 100% of all applicants on that date.
In 2015 these payments will be based on provisional entitlements with any balances due to be paid on March 16th.

What land is deemed eligible for scheme applications?

There are two key principles that apply: availability and suitability. For most schemes, you must have the parcel of land available to you from 1 January until after May 31 or from before May 31 until the end of the year. For ANC or GLAS payments you must farm the land for the full year.

To be eligible, land must be agricultural and maintained in a state suitable for grazing or cultivation. In addition, there must be suitable access to the land, defined boundaries and appropriate fencing. The Department of Agriculture has issued a guide to determining if land is eligible, which gives specific information and examples – Read here

How do I determine what deduction to make for ineligible land?

It is very difficult to put an exact percentage on scattered ineligible areas in a particular land parcel. That is why a new pro-rata deduction system has been developed to allow flexibility.

Under the new system, if there is less than 10% of ineligible land in a parcel you can still claim the full area. If 10%-30% of the parcel is ineligible, a deduction of 20% applies. Between 30%-50%, a 40% deduction applies and between 50%-70% a 60% deduction applies. Land parcels with more than 70% ineligible the parcel must be excluded entirely.

You will still have to mark all of the the ineligible areas on your application, but the deductions outlined above will apply.

Get full details. 

What are the most common application errors?

The most common application errors are late applications, over-claims and dual claims on land, missing correspondence, and missing herd numbers and signatures.

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