In today's economic downturn, it's not often that organisations hit near perfect payment targets on time.

This is especially so when there are more than 100,000 customers involved.

But that's exactly what the Government's Rural Payments Agency (RPA) has achieved with its Single Payment Scheme (SPS) settlements.

By the end of last month it paid 99.3% of customers applying for SPS, which is an EU direct subsidy to landowners.

The Agency, which had already achieved its end of March targets more than five weeks ahead of schedule, has now paid over 103,000 customers.

The latest statistics also reveal that 99.5% of the calculated fund value has now been paid.

The RPA is not resting on its laurels, however, instead concentrating on the small number of applications where payment has not been made.

It is working with these customers to garner necessary additional information from them, or other third parties, as soon as possible.

RPA met its end of December SPS target on the first banking day of this year's payment window.

Robert Gazely, farming consultant in Strutt & Parker's Chelmsford office, said: "We have seen significant improvements in the Rural Payments Agency's ability to make payments promptly at the outset of the annual payment window.

"This was particularly welcome news for many farming communities in 2012 and will be so again in 2013 as some businesses will be operating tight cash flows after a challenging 2012 harvest and equally difficult start to the 2013 harvest year. Those most likely to encounter delays are businesses going through entitlement correction but the SPS Online facility now offers the chance for claimants to track their application throughout the process.

"Applications for the 2013 scheme year are now being made but the next big test for the Rural Payments Agency will arguably come after the completion of CAP reform in the implementation and operation of the Basic Payment Scheme."

RPA paid more than £1.38 billion to more than 95,000 farm management staff.

It met its end of March target on February 15, paying 98.4% of SPS customers and 97.2% of the estimated fund value.

The Agency was working to a Government target, outlined in its Business Plan for 2012-13.

This was to settle 84% of payments by value and 91% of customers by number by December 31, 2012, and 97% of payments and 97% of customers by the end of this March.

The EU standard is to pay more than 95.2% of the scheme fund value by the end of June.

The estimated total SPS fund value this year is about £1.63 billion.

This value varies from year to year depending on Euro exchange levels.

The exchange rate used to estimate SPS payments is always September's final level agreed by the European Central Bank. This year that level was €1 equals £0.79805.

The RPA makes Common Agricultural support payments, managing over 40 schemes and paying farmers and traders more than £2 billion each year.