4.3% increase to BPS entitlements
The Minister said: “Over time, the difference between the value of direct payments made to farmers and the budget allocation has increased due to a number of issues such as not all BPS entitlements being activated for payment.
“Therefore I have decided to apply an increase of 4.3% to the unit value of all BPS entitlements in 2020 scheme year.”
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He continued:“This increase will be worth approximately £8 million in total or £330 on average per farmer. It will ensure that our expenditure on direct payments will match our budget allocation of £293m which under Treasury rules is ring fenced and can only be used for these payments.”
Edwin Poots concluded: “I continue to be committed to supporting our agricultural sector as this increase to BPS entitlements demonstrates.
“I can confirm that the Department remains on track to commence full payments to farmers for the 2020 scheme year from 16 October 2020 which has become possible as a result of EU Exit.”
Commenting on these developments, Ulster Farmers’ Union (UFU) president Victor Chestnutt said: “We welcome DAERA’s announcement regarding a 4.3% increase to BPS entitlements in the 2020 scheme year. This is a benefit of devolution allowing a good initiative to be taken by our local agriculture minister to ensure that all of the available funding is utilised. “Our ability to get the payments out at the earliest opportunity in what has obviously been a challenging year, supports the decision taken earlier in the year to maintain the original 15 May application deadline despite COVID-19 restrictions at that time.”
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Stormont Agriculture Committee Chairman Declan McAleer MLA has welcomed both the increase in the BPS budget and the fact that the monies outstanding to farmers will be made available as a single payment from the middle of October onwards.
“But it’s not all good news,” he stressed. “The 4.3% increase in this year’s budget will not fully compensate those farmers who lost out courtesy of the farm minister’s previous decision to halt the transition to a flat rate BPS payment.
“When that decision was taken we were in year five of a seven-year conversion process. The figures clearly show that farmers who lost out then are by, no means, fully compensated by the 4.3% in the overall BPS budget announced for the 2020 year.”