Payment rates

Date published: 16 December, 2016

Introduction

The 2014-2019 CAP system is designed to be simpler and fairer. By 2019, farmers and crofters with similar quality land will all receive the same payment per hectare if they carry out a minimum level of activity.

This will be done using regionalisation and convergence.

Regionilisation

Under the new CAP, all farming land in Scotland has been categorised into three regions:

Payment Region 1

This includes better quality agricultural land that has been used for arable cropping, temporary grass and permanent grass.

Payment Region 2

This includes rough grazing with a Less Favoured Areas (LFA) grazing category of B, C, D or non-LFA.

Payment Region 3

This includes rough grazing with an LFA grazing category A.

You can find out more about regionalisation on the following page.

Regionalisation

Convergance

Because of the way entitlements were calculated in the past, their value in 2015 will have differed from business to business.

Convergence is being introduced to make this fairer, with the aim of paying everyone the same entitlement value per Payment Region by 2019.

We will carry out a convergence calculation, comparing the 2015 entitlement values with the 2019 target, and adjust the value of your entitlements from 2015 to 2019 in equal percentage steps.

This means the value will change, upwards or downwards, 20 per cent at a time towards the target until 2019. The following diagram shows how this will work.

Convergence table

2019 target rates per region

The value of each entitlement will be calculated once the payment rates for each region are finalised.

However, it is not possible to know what the final payment rates for each entitlement in each region will be at the end of convergence at this time.

Payment rates

The below rates show the difference between 2015 and 2019. Your payments will gradually move from the 2015 rate to the 2019 rates as per the above diagram.

2015 fixed percentage: 62.03%

2015 flat payment rate
Region oneRegion twoRegion three
€141.29€51.24€13.89

2015 budget adjustment
Region oneRegion twoRegion three
1.038411191.047886941.02239903

2019 flat payment rate
Region oneRegion twoRegion three
€161.14€26.90€8.69

2015 Greening rate
Region oneRegion twoRegion three
€82.94€13.84€4.47

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