Successful appeals over deductions made to subsidy cheques put spotlight on Rural Payments Agency

THE effectiveness of an under-fire Government department is being further called into question after a number of deductions made to farmers’ subsidy checks were successfully overturned on appeal.

The Rural Payments Agency, which handles the Single Farm Payments of every farmer in the country, has been shown to have incorrectly subtracted funds from cheques for Single Farm Payments made to farmers to prevent unsustainable quota-linked incomes and to reward environmental activity on farms.

The amount of each farmer’s cheque is determined by factors such as the size and nature of their farm. The agency is under a legal obligation to monitor a percentage of these claims to make sure they are accurate.

Farmers deemed to have inaccurately claimed can then have their payments reduced.

Yorkshire-based rural property advisor Jame Alderson said, however, the law was complex and could be misapplied. He urged farmers facing reductions to appeal.

His firm, George F White, has already won a number of appeals in recent months and is warning all farmers to carefully check any decisions regarding deductions as they can badly hit cash flow.

The Yorkshire Post revealed in December how the legal basis by which the agency claims back overpayments in the Single Farm Payment cheques may be unsafe.

Mr Alderson said: “This is a very complex area which can have significant impact on farm revenue. By looking into and researching the finer detail of the deductions and the cross compliance rules and regulations, we have been able to win appeals made on behalf of clients.

“It is clear that most people accept these penalties without appealing them, however given the considerable amount of money at stake, we would advise people to look further into any decision that the RPA has made to check that it has been correctly applied.

“You have nothing to lose and perhaps a significant rebate to gain.”

Payment reductions and exclusions can only be applied in cases where the farmer has acted negligently and so inspectors also assess whether or not reasonable care, skill and foresight have been used.

For example livestock farmers who are found to have animals with missing ear-tags, incorrect passport details or incorrect recording of movement details could have their claim docked.

An initial breach of the rules warrants a one per cent reduction but subsequent errors can see reductions rising as high as 81 per cent. Average first-time errors result in deductions of around 2,000 according to Mr Alderson.

The news comes as the RPA confirmed it was to close its Newcastle offices. Some staff will be redeployed to sites in Northallerton , Carlisle and Workington.

An RPA spokeswoman told the Yorkshire Post: “Farmers and authorised agents wishing to appeal against reductions applied to their single payment scheme payment as a result of cross compliance breaches are able to follow RPA’s established appeal process. All appeals are given equal consideration and where any decision is subsequently found to be incorrect, RPA will act so that farmers are not disadvantaged.”