Overshoot cuts English IACS aid
Overshoot cuts English IACS aid
ENGLISH arable farmers have overshot their base area for the first time since IACS was introduced in 1992, leading to cuts in their area aid cheques.
With payments due to go out next week, the good news is that the scale-back is minute. Indeed, the overshoot came to less than 0.1%, resulting in just 20p/ha (8p/acre) knocked off area aid, taking the cereal rate down to £257.03/ha (£104.02/acre). Oilseeds, pulses and set-aside will be similarly reduced.
The consequences for livestock farmers growing forage maize and claiming aid against it are more serious. Those producers over-claimed by 66% and as such will only be paid on 34% of their claimed area. The effect is to take the overall maize payment down to just £87.82/ha (£35.54/acre).
Last year maize growers were scaled back by 24% to £202.29/ha (£81.87/acre). Under "normal" circumstances, they would have had to put an equivalent area (24%) into uncompensated penalty set-aside in 1997, but that was waived, leading to this years rise in claims. *