
Farmers applying for their Single Payment Scheme (SPS) should ensure they do not fall foul of any registration requirements, says farm business consultancy Strutt & Parker.
Farmers applying for their Single Payment Scheme (SPS) should ensure they do not fall foul of any registration requirements, says farm business consultancy Strutt & Parker.
Farmers need to move quickly to make sure everything is in place before the first of the deadlines on April 2.
David Canty, farm business consultant in Strutt & Parker’s St Albans office, said: “Where any sales or purchases have been made, ensure entitlements have been transferred on RLE1 forms. Note that these must have reached the RPA (Rural Payments Agency) by April 2 although, in view of the Easter long weekend, this should realistically be by March 28.”
He said farmers should walk their fields and mark down any deductions, including temporary ones, so they can be removed from this year’s claim. “Make sure boundaries are correct and amend with an RLE1 form if necessary.”
He added: “If woodland is present, does it appear as a permanent ineligible feature on the Rural Land Register (RLR)? Any eligible areas, apart from that used for woodland grazing, must be recorded as 0.00; if not, this is a cross compliance breach.
“In some cases, where land has not been drilled, it might be difficult to work out whether to classify the land as OT1 or OT2. However, if every effort has been made to cultivate the land, the OT1 code is best used as it does not have the timing prescriptions which may prevent beneficial work being carried out to ensure a timely entry for next year’s crop.”
Mr Canty advised farmers to analyse the exchange rate with a weak pound; consideration as to whether it would be better to take payment in Euros or to hedge against the Euro would lead to a better return for some.
Mr Canty said: “It is essential to get the details right. There are many pitfalls and failure to overcome these could lead to farmer’s payments being threatened for all schemes that they are involved in which are administered by the RPA."
For further advice, please contact Mr Canty in Strutt & Parker’s St Albans office on 01727 840285.