Modulation deductions

Modulation deductions from single farm payments will hit the 10% threshold for most applicants this year.

The deduction has increased from 5% in 2006 to 7% in 2009, 8% in 2010, 9% in 2011, and 10% in 2012, applying to all amounts paid to each individual under the Single Payment Scheme in excess of €5,000.

An additional 4% modulation deduction applies to the applicants in Ireland whose payment exceeds €300,000 per year. Previously only four applicants were in this category, now there are five.

Payments less than €5,000 are exempt from the modulation deduction, as is the first €5,000 paid to all other farmers.

Direct payments to farmers have slimmed down significantly, with budgetary considerations in recent years necessitating two reductions in the annual budget for the Disadvantaged Areas Scheme.

The annual budget for 2009 was cut €220m, and another €220m cut will be made in 2012. There was a cut of 17% in REPS 4 payments for 12,031 farmers in 2009.


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