This money, deducted from 2021 Basic Payment Scheme (BPS) payments in line with EU regulations under the Financial Discipline mechanism, is now being reimbursed to farmers.
Minister McConalogue stated:
I am pleased to confirm that these payments are now being reimbursed to eligible farmers. These payments will bring the total paid to Irish farmers under the 2021 Basic Payment Scheme to over €1.18 billion.
The financial discipline mechanism is part of the annual budgetary procedure of the European Union.
The financial discipline mechanism involves a monetary deduction (1.65% for the 2021 reduction) from some direct payments for the provision of a financial Crisis Reserve for the European Union.
The Crisis Reserve is intended to provide additional support for the agricultural sector in the case of major crises affecting agricultural production or distribution.
If the Crisis Reserve is not activated in the financial year, or it is not fully utilised, the unused balance is refunded to farmers in the subsequent financial year.