Basic payment system ‘unfit for purpose and risks our uplands’

THE head of the Rural Payments Agency has pledged to improve performance after being told Christmas was “looking increasingly bleak in the uplands” because of problems administering the Basic Payment Scheme (BPS).
Many farmers were hit by delayed subsidy payments this year. Those on common land complained that their applications were put on the bottom of the pile because they were so complicated.
Some uplands farmers in areas like Teesdale were among those affected.
The Rural Payments Agency (RPA) had to make emergency payments to common land farmers this spring because of “gremlins” in the system. The Cumbrian-based Foundation for Common Land this month sent a letter to Defra Secretary of State Andrea Leadsom.
Julia Aglionby, executive director of the foundation, said: “As most commoners are marginal hill farmers, BPS and agri-environment payments are critical to maintaining their viability – furthermore these delays are causing real hardship to a significant numbers of businesses.”
She said that the new system had only been operating for a year but it was clearly “inadequate”.
Ms Aglionby added: “The 2016 BPS payments are due to start within four weeks. We have grave concerns that the unresolved problems from 2015 will spill over to 2016, particularly when the RPA doesn’t even know there are errors and it has become our role to point them out.”
She complained about the RPA’s  “inability” to inform any claimant how payments have been calculated, saying there was a lack of transparency.
The foundation, which is based in Carlisle, also drew Ms Leadsom’s attention to suspected errors in calculating the eligible area of common land, mistakes in determining allocations of common right and incorrect allocation of common rights.
The call for the problem to be sorted was backed by the NFU among others organisations.
Robin Milton, NFU hill and uplands chairman, added: “It unacceptable that so many 2015 payments on common land are incorrect, unclear or outstanding.”
A further letter was sent to MP Neil Parish, the chairman of Environment, Food and Rural Affairs Select Committee.
Ms Aglionby wrote: “The management of some of our most precious natural and cultural heritage is at risk due to the failure of the RPA to make full and correct payments to the vulnerable businesses that steward this land on the nation’s behalf.
She added: “We consider it wholly unacceptable that the RPA propose to defer the work to properly pay commoners for 2015 until after 90 per cent of payments are made for 2016. Those who manage our most valued land are being asked to bear the cost of failure in government systems and can least afford to do so. Christmas is looking increasingly bleak in the uplands.”
There are only 4,500 BPS claims which include common land out of a total of 87,500 claimants.
“Resolving this should not be rocket science,” the select committee was told.
In Cumbria, the foundation said it calculated incorrect mapping on 13 commons. This meant that in 2015 the RPA proposed to reduce the payment area by 11,732ha compared with 2014.
This amounted to a shortfall of more than £558,000 for 2015 BPS payments affecting 180 businesses. In the Craven area of the Yorkshire Dales, local agents estimated a shortfall of more than £400,000 for 2015.
The Environment, Food and Rural Affairs Select Committee took oral evidence from Mark Grimshaw, RPA chief executive last week.
Mr Grimshaw said the final 1,000 of unsettled 2015 BPS claims would be “closed” by early January at the latest.
Mr Grimshaw also said the RPA was on track for meeting the target of paying 90 per cent of farmers by the end of December when the 2016 scheme opens for payments.
He said: “We are making good progress. We are pleased at where we have got to at this point in the year and we are looking good for 90 per cent at the end of December.”
He added: “We are going to be demonstrating far better performance levels for BPS 2016 and we expect 2017 to get off to a very good start.”
He said communication would be better in 2017 and those inspected will not be delayed again.