News Q&A: Guide to convergence in entitlements statements

News Q&A: Entitlements 2015-2019

The Department of Agriculture’s CAP Direct Payments Information Centre has issued the following guide to the Statement of 2015-2019 Basic Payment Scheme and Greening Payment Entitlements, which was recently issued to all eligible farmers.

This is Part 2 of the information; we carried Part 1 last week.

All queries relating to Statements of Entitlements should be directed to (by email to [e-mail] or by telephone to 0761 064447).

The Centre opening hours are 9.15am-12.30pm, and 2-5pm.

I received an allocation of entitlements from the National Reserve, why did I not receive a statement of entitlements?

Successful applicants under the 2015 National Reserve may view their entitlement position online. You can log in to your online account on www.agfood.ie to view your entitlement position.

I had multiple sets of entitlements in 2014 with different values, now I have only one set established, why?

The total value of all entitlements owned by you was used in the calculation to establish a single set of new BPS entitlements with its own convergence path from 2015 to 2019.

I was allocated entitlements from the National Reserve in 2015, why is there a small reduction of the value of these entitlements each year?

Entitlements allocated from the National Reserve are subject to annual modifications. They are valued at €184.94 in 2015 ; €184.70 in 2016; €184.46 in 2017; €184.39 in 2018; and €184.32 in 2019.

What is the National Reserve National Average?

The National Reserve National Average is €184.94 in 2015.

Entitlements allocated from the National Reserve are subject to annual modifications in subsequent years.

I have an appeal on 2015 land, but it is not reflected on my statement?

Based on the outcome of your appeal, it will be then be determined, if your entitlement calculation needs to be reviewed.

My entitlements are calculated based on incorrect 2013 land, or incorrect 2014 entitlement value, or incorrect 2015 land data?

Please refer to the online CAP Direct Payments calculator available on the Department’s website.

This calculator will assist you with your entitlement calculations.

Should you believe the calculation is incorrect, you may submit a request for a review of entitlements.

This application may be submitted online by logging into your account on www.agfood.ie

The application form is also available for download on the Department’s website.

My provisional statement does not reflect that I was successful under the Young Farmers Scheme?

The Young Farmers scheme is a flat payment of €68.58 per activated entitlement (payable on a maximum of 50 entitlements).

The payment under the Young Farmers Scheme is linked to the herd owner and is not part of the entitlement value.

How is convergence calculated?

Unlike SPS Entitlements, BPS Entitlements do not remain at a static value, but instead are subject to convergence.

How entitlements are affected by convergence depends on how the 2015 Base Unit Value (Initial Unit Value) compares to the BPS National Average.

There are four categories that entitlements may fall into with respect to convergence.

(1)

Above BPS National Average (€184.34): if the 2015 Base Unit Value is above the BPS National Average value of €184.34, then the value in excess of the BPS National Average is subject to annual reductions.

For example, if the 2015 Base Unit Value of the entitlement is calculated at €200, then it is only the value in excess of the €184.34 that will be subject to annual reductions.

In this example, €15.66 (€200 minus €184.34) will be subject to reductions.

(2)

Between 90% and 100% of BPS National Average (€165.90 to €184.34): if the 2015 Base Unit Value is between 90% and 100% of the BPS National Average (€165.90 to €184.34), the entitlement values will remain unchanged across 2015 to 2019.

(3)

90% BPS National Average (€165.90): if the 2015 Base Unit Value is below €165.90, then the entitlements value will be increased by one third of the difference between the 2015 Base Unit Value and this value, in five equal steps, unless such increases fail to reach 60% of the BPS National Average by 2019.

One third of the difference is €25.30, or €5.06 in five equal steps. By 2019, the entitlement will have a value of €90 plus €25.30, which is €115.30.

(4)

60% BPS National Average (€110.60): all entitlements must have a value of at least 60% of the BPS National Average by 2019.

If convergence increases do not result in the entitlement reaching €110.60 by 2019, then the entitlement value will be increased in five equal steps by the difference between the 2015 Base Unit Value and this value.