Basic Payment Scheme Update August 2014 August 2014 | Page 13

PAYMENT REGIONS & RATES The payment regions remain unchanged for BPS (Non SDA, SDA outside Moorland and Moorland SDA). The Uplands will see an increase in payment rates with the SDA rate being increased to the same amount as Non SDA. The Moorland rate will also increase. DEFRA has announced the indicative payment rates for BPS in 2015 are likely to be in the region of: Payment Region Moorland SDA Non SDA € per hectares € 70 € 244 € 244 (please note these rates are subject to change) DEGRESSIVITY The concept of capping payments has been dropped but degressivity remains. Degressivity relates to the reduction in larger BPS payments, with any monies recouped being channelled into the Rural Development Fund (Pillar 2). BPS payments exceeding €150,000 will be subject to a 5% reduction on the excess above this figure. This excludes ‘Greening’ and the ‘Young Farmer’ payments. It is worth noting there will be anti-avoidance rules to prevent claimants splitting their businesses to avoid degressivity. Please note that the information contained within this briefing is based on the current understanding of the CAP Reform and is subject to ongoing change. Before making any decisions that will affect your business you should seek further advice, or review DEFRAs latest guidance notes. 11