Single Area Payment 2008.

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A decision made (20/08/2008) regarding: Single Area Payment 2008 - Growers and Dairy Farmers.

Decision Reference: MD-E-2008-0166
Decision Summary Title :	Single Area Payment 2008			Date of Decision Summary:	20 August 2008
Decision Summary Author:	Julia Elvidge Senior Administrator			Decision Summary: Public or Exempt? (If Exempt state clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written			Person Giving Oral Report:
Written Report Title:	Interim payment of Single Area Payment			Date of Written Report:	12 August 2008
Written Report Author:	Julia Elvidge Senior Administrator			Written Report : Public or Exempt? (If Exempt State clauses from Code of Practice booklet)	Public

Subject: Single Area Payment 2008 - to make an interim payment of 50% of the claimed total with immediate effect to growers and dairy farmers.
Decision(s): The Assistant Minister agreed that this payment should be made with immediate effect
Reason(s) for decision: To assist growers and dairy farmers cash flow in the light of current economic pressures.
Resource Implications: None, money already in 2008 budget for this payment.
Action required: Director of Environment to instruct the payment to be made.
Signature: Deputy A.J.H.Maclean		Position: Assistant Minister
Date Signed:			Date of Decision:

Single Area Payment 2008.

Economic Development Assistant Minister

19 August 2008

Single Area Payment (SAP) 2008

Purpose

Authorise an interim payment to all claimants prior to final verification of claims

Background

Single Area Payment budget 2008 – 1,056,830 (linked with conditionality)

Growers and producers have experienced unprecedented economic pressures during 2008 with increases in energy costs, fertilisers, feedstuffs, etc, coupled with continuing price constraints from the supermarkets. Growers and dairy farmer’s cash flows are under considerable strain.

Discussion

Single Area Payments are area based subsidy that is paid annually in November. Claims are received by July but there is a process of checking and verifying claims that follows. Revisions to claims are marginal, usually just a few percent variance on the total claimed and so it would be possible to make an interim payment of 50% prior to completing the verification process.

Before receiving interim payments growers and producers will be required to complete the normal declaration confirming that they want to receive the SAP and that they accept the terms and conditions of the payment. This is normally due in by the 26 September but claims can be processed for interim payment if the declaration is received earlier than this date.

Payment of the remaining 50% of the claim will be made in November following full verification. The total amount of grant aid will be unchanged.

Recommendation

It is recommended that an interim payment of 50% of the claim should be made to all those entitled to receive the SAP with immediate effect prior to the final verification of all details relating to each individual claim.

Author: Julia Elvidge

Senior Administrator

Approved: Chris Newton

Director Environment