Minister of State for Agriculture and Food (James Paice)

In my statement of 1 December (Col 77WS), I promised to keep the House informed of the Rural Payments Agency (RPA)’s progress towards its 2010 Single Payment Scheme (SPS) payment targets.

As at Wednesday 15 December, RPA has made payments totalling some £1.16 billion to 85,060 farmers (80.6%). The Agency continues to strive to meet its target to pay 85% of eligible claimants by the end of December. RPA has also now issued letters to all those farmers who are unlikely to be paid this month.

Progress toward the December target will be reviewed again today (16 December) by the RPA Oversight Board, with a view to ensuring the money reaches farmers as early as possible while also protecting taxpayers’ interests. Joined by new permanent RPA Chief Executive (Mark Grimshaw) from 17 January, the Board will focus the Agency’s attention in the New Year on the still more challenging target of making 95% of the value of SPS payments by the end of March 2011.

It's worse than last year.

Despite these encouraging words from the Minister the RPA has in fact fallen below last years payment schedule. In 2009 they had paid out just over £1.4 billion by this time last year.  Over 89,700 customers had received a full SPS payment by 17 December 2009, 4,700 more than this year. But this was a vast improvement on the previous year when by 16 December 2008, just over £700 million had been paid to around 21,000 claimants.