Rural Payments Agency Issues

Watching the Rural Payments Agency (RPA) fail to get to grips with outstanding problems that exist from the introduction of the new Basic Payment Scheme (BPS) in 2015 is like watching a slow motion car crash.

The problem is that although the majority of farmers have received the correct payments for 2015, there are still a significant number of farmers who have not received the correct payments and in some instances this also means they have not been awarded the correct number of BPS entitlements which will impact on the 2016 claim and beyond.

The problem is that there appears to be no way of speaking to anyone at the RPA with whom one can actually discuss the problem.  All one can do is write in to the generic email address explaining the problem and then wait…and wait….

Eventually a letter will arrive re-assessing the claim and in most instances this is probably correct but I have personally experienced one situation where the re-assessment is still very wrong.  All I have been told is to email in again and explain the same situation yet again.

The problem is that there is no one to talk to who you can discuss the situation with and there appears to be no way of influencing the speed at which the claim will be processed.  This is an increasingly worrying situation because the 2016 payment window will open on December 1st and any problems from 2015 will be carried forward for a second year thereby making things worse.

If this is the case the consequence is that it will become increasingly difficult for farmers who have outstanding issues to get them resolved because understandably the RPA’s resources will become focussed on getting as many of the 2016 payments out as quickly as possible.

NFU vice-president Guy Smith has commented, “The problem is that, although we think they [the RPA] are about to draw a line under BPS 2015 payments, we are not convinced that everyone knows whether they have been paid correctly,” He went on to comment that it needs, “the skills of a forensic investigator and the time of a land agent” to work out whether or not one has been paid correctly.

But as a land agent myself I think the main problem is that even when one has established there is an error there is just no way of discussing the problem with anyone within the RPA who has the skills or knowledge to deal with this issues themselves.

If this results in last year’s errors being compounded in to 2016 and beyond it seems very likely to me that we will be arguing about missing Common Agricultural Policy support payments well beyond our eventual exit from the EU.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Basic Payment Scheme

West Country farmers and landowners are worried that the current level of cashflow coming from the Basic Payment Scheme will not be maintained after 2020.

They welcomed the announcement by Philip Hammond, the new Chancellor, that funding under the Common Agricultural Policy will stay - at least in the short term.

This appears to mean that the current level of payments being made under the BPS will be maintained until 2020, which coincides with the lifetime of this EU scheme. What is not clear is whether the domestic rules relating to this scheme will change following our departure from the EU.

Mr Hammond also confirmed that any structural and investment projects signed off before the Autumn Statement at the end of November, “even when these projects continue beyond the UK’s departure from the EU”, will continue to be funded. This should include all projects paid through the Rural Development Programme for England such as agri-environment schemes.

Again this is good news for farmers and landowners committed to long term agreements, many of which still have up to ten years to run. But what will replace these schemes? We need urgent clarity on the future of agri-environment schemes beyond November.

Unsurprisingly, Mr Hammond’s announcement was welcomed by leaders of farming and countryside organisations as good news for the short term.

A National Farmers Union statement said: “This should mean that farmers can count on receiving the Basic Payment Scheme through to 2020, and that agri-environment schemes already in place are guaranteed through to their conclusion,” while NFU president Meurig Raymond added: “I hope that this short-term certainty will help to deliver longer-term confidence. This is exactly what farm businesses need now.”

Similarly Ross Murray of the Country Land and Business Association (CLA) explained: “This will provide a significant degree of reassurance to farmers and other landowners across the country.

“We have been clear, since the start of the EU referendum campaign, that this is the first decision ministers had to make to reassure rural businesses in the event of a Brexit vote. It is therefore a strong signal that will give confidence to businesses considering their future in a difficult agricultural market.”

So, in the short term, this provides farmers and landowners some degree of certainty and gives government breathing space to develop UK agricultural policies which will be fit for purpose.

But it is a pity the government did not start planning for a post-Brexit vote until after the referendum.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Farmers, Basic Payment Scheme and fraudsters

Many farmers now receiving their Basic Payment Scheme money are being targeted by fraudsters.

Getting to know a few of the tricks the criminals use can make all the difference and I set out below a few useful tips to counter the threat.

Farmers are often targeted through phone calls or emails from individuals who claim to be from the customer’s bank, a business customer, or even someone in authority from within their business. The aim is to trick you into making payments, or for you to allow them to access your systems so they – the fraudsters – can collect your money.

Steps you can take to help protect yourself from the fraudsters include:

Validate requests: You should never receive a phone call from someone asking you to make a payment. If you do, independently source the contact details of the person they claim to be. Similarly, if you receive an email asking for payment or notifying you of a change in bank details, get in touch with a contact you know using independently sourced details and check the request was genuine. Email addresses can be impersonated and made to look like they’re from a genuine contact.

Watch out for impersonators: Sometimes a fraudster might attempt to impersonate someone within your business, or a trusted contact such as a bank. Take the time to make sure callers are who they say they are and be wary of caller displays on your phone. Fraudsters can and do use systems to display a number that may be known to you. 

Be wary of information seekers: If someone calls you asking for information that you’d expect them to already have, be on guard. For example, your bank will never phone or email asking for account details, passwords or online banking authorisation codes.

Look out for unusual transactions: If you receive a payment into your account that you aren’t expecting, check it out. If it’s not yours, make sure that the funds are cleared before returning them, and that they go back into the account they came from. Your bank should be able to help you with this.

Keep secrets: Never give out your online credentials, PINs, passwords or authorisation codes to anybody who calls, emails or texts you.

Don’t be rushed: Criminals will often express urgency and offer inducements to make you act quickly, so make sure you take the time to thoroughly check any requests to make payments or to amend payment details. Ignore any requests to move money to a new account to keep it safe, as your bank will never ask you to do this.

It is a sad state of affairs but it seems the answer is to never trust anyone who contacts you by phone or email unless you are absolutely certain you know who they are and why they need the information they are requesting.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

The Rural Payments Agency has fallen short of its pledge

Sadly it is no surprise that the Rural Payments Agency has fallen short of its pledge to make the new Basic Payment to the “vast majority of farmers by the end of January”.  

By January 27 approximately 70 per cent of claims had been made but this represents only about 60 per cent of the total payments, indicating that the majority of claims left to be paid are the larger ones.

The NFU said: “Our top priority is to get money owing paid out to farmers as soon as possible. We are also working with the RPA to try to ensure that lessons are learnt and 2016 sees a far smoother delivery. For the latest on BPS and our work on behalf of our members visit www.nfuonline.com/bps.”

My experience support sthe evidence above in that there was a flush of payments made very early in December to small or simple applications where no changes were made to the mapping information and since then the number of farmers being paid has dwindled with many of the bigger and so called more “complicated” claimants left waiting.

That is not to say the RPA staff are not working hard because I have had emails from them on Sundays, but they are only just starting to process some of the information which was submitted last June.  

One of my recent communications from the RPA was about a plan submitted with the application form which has obviously been lost. I was able to scan a copy of the plan I had retained on file and email it straight back to them, but the plan should not have been lost in the first place and it had taken seven months to discover it was lost.  

This of course will result in a delay in my client receiving his payment and he will not want to pay me for my time dealing with the RPA’s inefficiency.  So everyone seems to be losing out, which is a familiar tale for anyone involved in dealings with the RPA over the years.

NFU vice-president Guy Smith said it was impossible for farmers to run their businesses without knowing when they would be paid, adding: “Defra and its agencies must be more transparent and clear as to when they think this money will go out, rather than hiding behind a veil of confusion.”

In a recent press statement, the RPA chief executive, Mark Grimshaw said: “We understand the importance of BPS payments for farmers and our priority has always been to pay as many farmers as quickly as possible.”

Mr Grimshaw went on to say the RPA is working seven days a week to make payments and that a wide range of claims had been paid to small, medium and large enterprises. He also said claims would continue to be paid as they were checked and completed - let’s just hope those checks can be completed quickly because it will not be long before many will be starting to think about this year’s claim.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Basic Payment Scheme has slid into chaos

Giving credit to the Rural Payments Agency does not come easy as their administration of the Basic Payment Scheme has slid into chaos.

Last week the Western Daily Press reported the shock announcement by the RPA that, for this year at least, the new online computer system has been abandoned for making the claim.

However, I commend the RPA for facing up to the very real problems that farmers and their advisors were facing with the failings of the online process.

We are also grateful that the EU Commission has extended the deadline for submission of the BPS application from May 15 to June 15 because of problems being experienced with the introduction of the new scheme throughout Europe.

But the practical details about how the application process will now work are only just emerging and there are a number of important points to note.

First, you still need to ensure you are registered on the new RPA online system. This is usually reasonably straightforward and the easiest way to do this is to call the RPA on 03000 200 301.

Once registered you will need to check your business details, appoint any agent you may wish to deal with your claim and check the level of “permissions” you wish to give yourself or your agent.

Then, although the deadline for the submission of the BPS application itself has been extended to June 15, the deadline for submission of entitlement transfers remains May 15. This is important because in this first year of the BPS, any spare entitlements which are not claimed will be confiscated permanently and their value placed in the National Reserve.

This means claimants must make sure they have matched their eligible land with the equivalent number of entitlements and if any adjustment in their number is required, these need to be made by May 15 and not June 15. To transfer entitlements you need to complete a paper RLE1 form which can be downloaded from the RPA website.

To make a claim, the RPA have produced a blank claim form (BPS5) which can also be downloaded from the website. However, the RPA have said they will be emailing sometime in April pre-populated forms to people who claimed last year with a copy of their RLR maps. So it seems sensible to wait for these pre-populated forms and plans to arrive rather than trying to complete the blank form from scratch.

This is obviously a busy time in the farming calendar and so it is welcome that the application deadline has been pushed back to June 15 but this is no reason to be complacent because there are still tasks which need to be dealt with by May 15.

Farmers and their advisors need to keep their wits about them during this crucial period.  

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Farmers to be allocated entitlements

Farmers should be aware of one unexpected consequence of the introduction of the new Basic Payment Scheme (BPS) which seems inherently unfair and is as a consequence of a “one off” rule that will be implemented this year only.

Under the new scheme farmers will be allocated “entitlements” which they need to use to claim against their land. One entitlement will need to be matched against one hectare of qualifying land in order to make an effective claim. The new BPS entitlements will be derived from the old Single Payment Scheme (SPS) entitlements that a farmer already holds.

Under the old scheme, farmers were able to hold more entitlements than land; they could not claim on the spare entitlements but provided they used them every other year they could hold on to them. However in the first year of the BPS any “spare” entitlements will be confiscated without compensation which for most farmers will not have a significant impact.

For those farmers who take on extra land in 2016 this may be a problem if they are not able to acquire the matching number of entitlements from the outgoing farmer because the supply of spare entitlements will be restricted to those farmers who can no longer claim on all some of their own land next year. This may be because they have built a solar park on their land or sold land for development for example.

But, there is one group of farmers where the new rule will have an unexpected consequence and that is farmers whose land may be affected by an infrastructure project in 2015. Such projects are often temporary in nature and may involve a water company installing a new sewer or water pipe for example. Here land will be temporarily taken out of production along the route of the pipe and where contractor’s compounds or pipe stores are required.

In such instances farmers will generally not be allowed to claim on the affected land because it will not comply with the myriad of “cross compliance” rules which are a feature of the both the old SPS and BPS. However, if this land cannot be claimed on in 2015, the farmer will permanently lose the matching entitlements even though the loss of land has only been temporary and has been at the behest of a third party out of the farmer’s control.

I have enquired whether these circumstances could be considered as “force majeure” thereby exempting a farmer from losing entitlements but I am informed this is not permitted. Therefore farmers affected by schemes that will result in a temporary loss of land this year will incur a permanent loss of the equivalent number of entitlements. This will not happen in future years because the ongoing rules allow entitlements to be used every other year.

Therefore if any farmers are likely to be affected by such a scheme please do to contact me and for free advice on this subject.  

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

The Common Agricultural Policy has been reformed yet again

The Common Agricultural Policy (CAP) has been reformed yet again and at midnight on 31st December 2014 it was out with the old, as the Single Payment Scheme (SPS) ceased and in with the new, as the Basic Payment Scheme (BPS) was introduced. This is the mechanism through which farmers will receive support payments via the EU.

The new scheme is also meant to be at the forefront of the Government’s drive for “digital by default”; the idea being that in the first instance every farmer was meant to be able to verify their identity online. But in reality it appears the BPS has come too soon for this online verification process which is causing frustration to the farmers who have been invited to register so far.

This must be a big headache to the Rural Payments Agency (RPA) which is tasked with implementing the BPS. Therefore the RPA has decided to open up its helpline to allow farmers to verify their identity over the telephone which will then enable the RPA to allow farmers to access their online BPS system.

Having now done this with a few clients myself I am pleased to report that the telephone verification system appears to be working well and is reasonably easy although whether the RPA will be able to cope with the volume of calls that are now likely to flood in over the coming weeks remains to be seen.

Once farmers have then accessed the RPA’s online BPS system they need to check their business details are correct, that the appropriate people are registered against the business and that the plans of their land are up to date. At present there is not much else that can be done online but with only 4 months to go until the application deadline, there is clearly still a lot of work to be done to ensure the system becomes functional in time for farmers to be able to make their claim.

Memories of the disastrous implementation of the SPS back in 2005 are etched into the memory of many a farmer and thus there is nervousness that the faltering start to the online identity verification process may be a prelude of much worse to come. However, I do hope that this time the RPA will have learnt from the mistakes of the past.

The fact that they have organised a telephone identity verification system at relatively short notice is to be commended and I just hope the RPA’s new BPS software will be similarly user friendly.  

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk