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Decisions on Single Payment Scheme aspects of EU fruit vegetable and wine reforms

NEWS RELEASE

Ref: 264/08
Date: 8 August 2008

Jeff Rooker, Minister for Food and Farming, today announced arrangements that will apply under the Single Payment Scheme (SPS). This follows the closure of the consultation exercise covering SPS aspects of the reform of the EU fruit and vegetable regime and wine regime.

After detailed consideration of consultee responses, it has been decided that:

  • growers will be eligible to apply to be allocated new SPS entitlements for permanent fruit and vegetable crops, nursery crops and vines in time for payment applications under the 2010 SPS scheme year
  • these entitlements will be valued at the flat rate applicable for the 2010 SPS scheme year

Jeff  Rooker said:

"With the implementation of these decisions, growers of the crops concerned will be put on an equal footing with others who already benefit under the Scheme.  I appreciate growers would have preferred the allocation of new entitlements for the 2009 scheme year, however, we need to ensure that this work does not present risks to the  Rural Payments Agency reaching its targets for 2008 payments and the implementation of CAP Heath Check changes which are scheduled to apply from 1 January 2009.   Allocation of the new entitlements for the 2010 scheme represents, therefore, the best balance of benefits and risks for all SPS applicants.“

An information note is provided on the RPA website as guidance for growers of permanent fruit and vegetable crops, nursery crops and vines in England.

Notes to editors

  1. The Single Payment Scheme was introduced in England in 2005 under the 2003 CAP reforms. Around £1.5 billion is expected to be paid out annually under the scheme to English farmers by the Rural Payments Agency (RPA), an Executive Agency of Defra.
  2. Agreement was reached on reform of the Common Agricultural Policy (CAP) covering the fruit and vegetable sector by the EU Agricultural Council on 12 June 2007.
  3. Each of the regions of the UK has the flexibility under the agreement to  take its own decision on the options available under these reforms relating to the SPS.
  4. The abolition of the system of fruit, vegetable and potato authorisations in England was announced via  a New Release on 29 August 2007. The decision that land under orchards and nursery crops will become eligible under the SPS from the 2009 scheme year was announced via News Release on 20 December 2007. Land under vines also became eligible under the scheme from the 2009 scheme year following agreement on reform of the CAP wine regime in December 2007.
  5. Further details of how and when affected growers can apply to register themselves and their land with the RPA and apply for the allocation of new entitlements will be announced separately by the Agency in due course.

End

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Page published: 8 August 2008