Agrimoney cash to lift payments 16%

5 November 1999

Agrimoney cash to lift payments 16%

AGRIMONEY compensation for 1999 arable area aid payments has been confirmed by MAFF after European Commission approval.

The money makes up the difference between the exchange rate used to calculate the 1998 rate and that used this year, and boosts initial payments by about 16%.

After the small penalty incurred by excess plantings is taken into account, cereal growers in England now receive an extra £33.34/ha (£13.50/acre). Payments for other crops also go up (see table).

The aid will be paid in England from February, says the ministry. Other regions will also receive the extra payments, though exact values have yet to be confirmed.

Allowing for different yield and scaleback calculations, growers in the lowlands of Scotland can expect to be paid about 9% less than their counterparts south of the border. However, cheques may be posted in time for Christmas.

Growers in Wales and Northern Ireland will receive about 11.4% and 10.5% less than growers in England, respectively.

The figures are in line with recent forecasts reported by farmers weekly.

"They are a bit higher than we were predicting, by a few pence," says Richard King of farm business consultants Andersons. &#42

Area aid compensation

for England (£/ha)

Cereals 33.34

Oilseeds 58.94*

Proteins 48.16

Linseed 64.50

Set-aside 42.24

Additional voluntary set-aside 29.64

* Assumes EU plantings are within maximum guaranteed area (as suggested by latest commission forecast) and no penalties apply.

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