Commentary

54 Capping and financial discipline

AGRICULTURE vol 2(2)
| Commentary

54 Capping and financial discipline

| Commentary

54 Capping and financial discipline

In England, where a Basic Payment Scheme payment to be granted to a farmer exceeds EUR 150,000, the sum in excess of that amount is reduced by 5%1. This does not apply to the Greening payment or the Young Farmer Payment.

Reductions for cross border holdings are applied by reference to the number of entitlements activated in each country.

Each year the EU Commission uses some of the direct payments budget to create a reserve fund. To achieve this, a mechanism called ‘financial discipline’ is applied, which is the reduction of payments across

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