Hold-up in government payments stun farmers

May 6 2008 by Sam Wood, The Journal

NORTH EAST farmers awaiting single farm payments are again reporting delays in receiving their cheques.

The Country Land and Business Association has said it has received pleas for assistance from desperate members facing a cash flow crisis owing to delays in receiving their payments for work already completed.

After last year’s debacle, which left many farmers on the verge of bankruptcy, promises were made that the extent of last year’s late and incorrect payments would not be repeated but that is not what appears to be happening, despite a promising start to this year’s scheme.

Annabelle Morshead, who farms near Haydon Bridge, Hexham, Northumberland, is the CLA’s North East Chairman and is herself waiting for payment.

She said: “I find it completely unacceptable that we are going through this again. We are expected to complete our forms for next year’s Single Payment Scheme yet many farmers don’t know how much or when they will be receiving payment for the last year.

“The CLA has been involved in this throughout and I can say that we have delivered our end with prompt and accurate paperwork – and lots of it.

“Now , to add to their catalogue of excuses, the government body, the Rural Payments Agency, have told us that changes to the Moorland line are holding up 2007 payments.

“This is causing huge problems, coming on the back of an appalling spring, rising prices and the aftermath of draconian foot-and-mouth restrictions.

“The perception that all’s well in the farming world could not be more wrong. We will be meeting with Defra to hammer this message home, and to hopefully get some fast results.“

It is thought that at least 10% of farmers nationally have not yet received their payments, leaving thousands of farmers with added money worries on top of other financial pressures created by increased fuel and fertiliser prices.

It is unclear what has caused the delay, which has only become apparent in the last few weeks.

The National Farmers Union have also added their voice to those angry at the lack of payments.

A spokeswoman for the North East NFU said: “Thousands of farmers are still unpaid. Not only have they had to endure the RPA’s oft-repeated line that ‘we have until the June 30 to pay you’, but to add insult to injury some are now being told that they will get no payment until November.

“Payments have slowed down dramatically over the last month as the RPA’s failure to finalise corrections of 2005/2006 claims has blocked the rapid processing of 2007 payments.

“For the NFU, this is totally unacceptable. For those who have had no payment at all, it feels as though RPA ‘recovery’ has gone into reverse.

“The NFU President will be meeting Lord Rooker to stress the seriousness of the situation on Tuesday and demand an immediate improvement.”

A spokesman for the Rural Payments Agency told The Journal: “Settlement of Single Payment Scheme claims for 2007 is ongoing and every claim is subject to a series of validation checks in line with the detailed EU rules.

“An investigation of the claims yet to be paid shows that most of these have outstanding processing work to be completed and this is being done as part of the claim validation.

“We appreciate the difficulties of those who have yet to be paid but RPA is working to process and pay these claimants as quickly as possible.”

Yet again

THE current witheld payments are not the first time issues have occurred with SFPs.

In 2006 the system descended into chaos when the Rural Payments Agency (RPA) underestimated the size of the task of administering payments.

The problems were condemned by MPs as a “masterclass in bad decision making” and they said that the RPA failed to adhere to the basic principles of project implementation.

Millions of pounds had to be set aside to cover possible fines the agency could face for late payments.

RPA chief executive Johnston McNeill was sacked over the fiasco in March 2006.

In the wake of the problems MPs called for clearer lines of accountability.

They also demanded responsibility among senior managers, genuine and workable contingency arrangements, and better risk assessment.

It also recommended realistic timetables for implementation, more rigorous testing of IT systems, and an improved strategy for communicating with farmers.