Single Farm Payment Disallowance and Farm Maps FAQ
The Single Farm Payment (SFP) disallowance is a result of European Commission audits identifying weaknesses in DARD administration of EU funded schemes such as SFP. Weaknesses were particularly identified in DARD’s farm mapping system. The Commission applied a disallowance of 5% for the 2005 and 2006 scheme years (amounting to € 33.7 million) in July 2010.
As a result DARD has developed a project to improve its farm mapping system which is known as the Land Parcel Identification System.
For more information read the,
Single Farm Payment Disallowance FAQ
What is Single Farm Payment?
The Single Farm Payment (SFP) Scheme came into force on 1 January 2005. It is the main agricultural support scheme in the European Union and it replaced most of the individual subsidy schemes available to farmers under the Common Agricultural Policy (CAP).
SFP contributes around £270 m to the agricultural economy in Northern Ireland each year,
What is the Disallowance?
The Disallowance is a financial correction imposed by the European Commission. In 2006, the Commission visited NI to undertake an audit on the land eligibility aspects SFP scheme. The European Commission (EC) auditors identified weaknesses in the way DARD administered EU funded schemes. The Commission formally announced its decision to apply a disallowance of 5% for the 2005 and 2006 scheme years (amounting to € 33.7 million) in July 2010.
In addition, following audits in 2008 and 2009, the Commission have advised that further disallowance for the scheme years 2007, 2008 and 2009 is likely.
What issues did the Commission raise?
Following the 2006 audit, the Commission advised that 3 areas of control were causing them concern. These related to:
- the farm mapping system
- the on-the-spot checks carried out by DARD and
- the application of SFP penalties.
In later audits they also raised concerns about 2 farmers using the same field to support claims for different schemes, for example SFP and LFACA.
What are the problems with the farm mapping system?
The main concerns were that DARD's mapping system did not contain accurate information on areas of land eligible for Single Farm Payment and other direct aid schemes and that farm maps were not being kept up-to-date.
What were the problems with on-farm inspections?
The EC auditors noted that DARD was not using appropriate tools to determine eligible areas and land was being included which was not eligible for Single Farm Payment and other schemes.
What was the problem with DARD's application of penalties?
The Commission were not happy with the method DARD used to calculate penalties and adjust SFP entitlements to take account of reduced eligible areas found at inspection. In addition they raised concerns that, in some cases, DARD did not regard the over declaration of land as intentional which would have resulted in more severe penalties. In later audits they also questioned DARD's policy on dual occupancy claims where 2 farmers claim SFP and, for example, LFACA on the same field.
What is DARD doing about the issues raised by the Commission?
We have taken a number of actions, these include:
- To improve the farm mapping system we initiated a Land Parcel Identification System (LPIS) Improvement Project. The project will systematically review and, where necessary amend, every field within the DARD LPIS system. This will use recent ortho-images (aerial photographs) to identify areas which are ineligible to receive area based payments. These areas will then be removed from the maximum eligible area of the field.
- To improve on-the-spot checks ortho-photography has been available to inspectors since 2008 and by 2009 all inspections were supported by ortho-photography to ensure that the standard required by the Regulations is observed.
- Seeking clarification from the Commission on a number of issues including the correct method for applying penalties and on land eligibility issues.
- To raise awareness of the need for accurate maps we have actively encouraged farmers to notify DARD of map changes through a Press campaign, map clinics and provided additional guidance for farmers to help update the records. We have also raised this issue with the farming unions stressing how important it is that maps are accurate.
- This year, as part of the 2012 application process we are supplying farmers with aerial photographs and an update to the booklet "Guide to Land Eligibility". The booklet provides more detail on eligibility issues and the photographs will help farmers identify the areas of eligible land. We are advising all 2012 SAF applicants to make sure that they have deducted all ineligible land from their claim.
The Land Parcel Identification System (LPIS) and Farm Maps FAQ
You may have heard about the LPIS recently or about DARD being fined because of the farms maps and wondered what it is all about. The following provides a quick overview.
What is the LPIS?
LPIS is the new name for DARD's computerised farm map system. LPIS stands for Land Parcel Identification System. A land parcel is simply another name for a field and there are almost 750,000 fields recorded on the current LPIS.
Why are the maps being updated?
The LPIS was created in 2004 by comparing 62,000 hand drawn farm maps to Ordnance Survey maps. This was the most up to date information available at the time but there have been many changes to fields since then and we have not been told about all of them.
To check that Member States are correctly managing area based schemes, such as the Single Farm Payment Scheme, the EU Commission send auditors out onto farms. They have carried out a number of audits in Northern Ireland over recent years and are not happy with the accuracy of the DARD mapping system (LPIS). They have therefore imposed a significant fine (disallowance) for 2004-2006 with the potential for further fines to follow, until the LPIS is improved.
How will the maps be updated?
Using the LPIS every field will be examined, compared to a recent ortho photograph (a specialised aerial photograph) and where necessary corrected. To do this, we are working with Land and Property Services (previously known as Ordnance Survey).
How long will to take to fix the maps?
To reduce the risk of further fines as soon as possible, the project will be carried out in two phases and deal with issues of which the EU Auditors were most critical. Phase 1 will correct field boundaries and ensure that all ineligible features such as building sites, laneways and scrub are removed from fields. It will be substantially complete during 2012 with farmers receiving their new maps showing a maximum eligible area for each field for the 2013 claim period.
Phase 2 will correct other more minor issues within the Ordnance Survey and DARD maps (you may hear this referred to as Positional Improvement). These changes are necessary to bring the maps in line with modern survey (Global Positioning System) technologies. This means that some field boundaries will move slightly. However it is believed that the net result at farm level will be minimal for most farmers.
Is there anything that farmers should do now?
Farmers should closely examine their current farm map and make sure that all of the ineligible features such as buildings, lanes, tanks, and scrub have been removed. They can use the aerial photographs to help them do this. If they find any errors, farmers should make sure that they adjust their 2012 SFP claim accordingly. To allow DARD to focus on the remapping exercise, whilst farmers can still tell us about changes to their maps, DARD may not give them a revised map until we issue the new maps later in the year. In the interim it is most important that farmers get their 2012 claim right.
When will farmers receive a new farm map?
New maps will begin to be issued from autumn 2012.
What should farmers do when they receive their new map?
Farmers will be asked to verify their new map. They should therefore check their new maps very carefully and tell DARD about any changes that are necessary. If the map is incorrect or farmers do not tell us about changes in the future and continue to claim on an incorrect area, they risk being penalised. Farmers can use the ortho photograph that they received in spring 2012 to help them check their map.
Will farmers be penalised if their map is found to be wrong
If in the future, DARD finds that farmers have not told us about changes to their fields and that they have claimed for areas that are not eligible, then they may be penalised. It is therefore in their interest to make sure their map is right.
Whose responsibility is it to fix the maps?
DARD shares this responsibility with farmers. Once we provide a map, it is the farmer's responsibility to check it carefully and tell us about any errors. Farmers must also keep it up-to-date by telling DARD of any changes and, importantly, making sure that they do not claim on ineligible land. If they do not, they may face penalties and delays in getting their payments. The EU auditors were critical that very few farmers tell DARD about changes to the eligible area within their maps.
How will maps be kept up-to-date in the future?
Farmers need to tell us whenever their map changes in the future. The Department will continue to work to improve the maps and to this end are developing long term linkages with Land and Property Services (LPS). This will include provisions for LPS and DARD to share information on mapping changes. This will help to synchronise both sets of maps and improve currency, so far as is practicable.
