The NFU's Richard Wordsworth looks at the state of play on 2016 payments. He writes:
After another tough year for the industry and poor 2015 BPS payment performance, 2016 BPS payments due to be received from 1 December are needed by many more farmers than at any time in the recent past.
The bright note is that payments are going to be higher than in recent years - like for like they could be over 16% higher than for BPS 2015. We will know in the coming weeks what the final entitlement / greening rates will be and also adjustments for Financial Discipline.
We will publish a briefing for members on payments in due course, so keep an eye on NFUonline's BPS section. The key issue for me, however, is cash flow, which is so critical for many businesses.
Although the RPA has an encouraging target to pay 90% of farmers by 31 December, we are alarmed at the disappointing second target to pay only seemingly a further three per centage points more farmers by 31 March 2017. The NFU has questioned the ambition of the RPA and called on it to make bridging payments to those at the end of the payment queue.
What members want is certainty around the timing of payment, but no one at this time can say for certain when they will get paid. One in 10 will not see the payment until 2017 and seemingly 7% not a payment until April at the earliest next year. As a result of this continuing uncertainty the NFU is also lobbying the RPA to ensure that communications for those not paid in December are more realistic and explain what is holding up payments, so to avoid false dawns and failed promises and that such messages are issued in good time to allow farmers to plan ahead with banks and other creditors.
What concerns me at this time are those with outstanding 2015 issues being pushed to the back of the 2016 payment queue, or RPA driving for 90% payments and not delivering correct payments in farmers' eyes – based on RPA data, not farmer approved data.
I fear both of these scenarios will emerge in the coming months, this is totally unacceptable as it creates more work for the RPA at a time when it can ill afford it and adds more uncertainty and stress for farmers ahead of the 2017 application window opening next spring.
What you can do to help:
While the timing of payments is largely in the hands of the RPA, to help avoiding any delays in payment, you should reflect on the following things:
Has the RPA got your correct bank account details?
- Respond quickly to any RPA enquiries, if unsure what the issue is refer to the BPS Handbook of give NFU Callfirst a call.
- Does the RPA have your current email and phone contact details – have a look on Rural Payments online.
- Also worth checking online if the list of people linked to your business is correct and their permissions are up-to-date.
Improving communications
An area the NFU has been lobbying hard on is for the RPA to improve its communications, let's be frank - they have been non-existent to date. Areas that you should see improvements in going forward are:
- Issuing of land-based inspection reports, so that those inspected can see any issues.
- Reintroduction of whole case workers, where RPA staff for BPS 2016 and future claim years are allocated claims to manage.
- Finally, improved online view of entitlement information – show opening and closing entitlement positions per scheme year (2015 and 2016) as well as details on entitlement transfers, leased entitlements and expired entitlements. This information should be available online very soon. Keep checking the Rural Payments online for updates.
Finally, watch out for...
RPA will send you later this month an update document covering a number of 2016 and 2017 updates and reminders, including your ability to track your 2016 payment.
Need help?
Finally, if you need further assistance on BPS, greening or cross compliance, please call NFU Callfirst on 0370 845 8458.