In less than a week's time, the majority of farmers in Northern Ireland will begin receiving a 70 per cent advance payment of their Basic Farm Payment and Greening payment, the first in any region in the United Kingdom to do so.
The Agriculture, Environment and Rural Affairs Minister, Michelle McIlveen, confirmed this week that that advance payments will be issued to 80% of eligible farm businesses and that her Department remained on track to issue the payments from Monday, October 17.
She said: “I am pleased to announce this ambitious target for the delivery of advance payments to our farmers. We are breaking new ground as we are the first region of the United Kingdom to deliver advance payments.
“Growing our farming industry is a priority for me. However, I am aware of the challenges ahead and recognise the importance of scheme payments to farm incomes. That is why I am determined to make advance payments to 80% of eligible farmers with full payments being made to 95% of eligible applicants by the end of the year.”
The Minister also confirmed that the 2016 Young Farmers’ Payment will be paid at the rate of €60.53 per hectare up to a limit of 90 hectares per business. A scaleback of 0.40% will be applied to all Basic Payment Scheme entitlements in order to fund the Regional Reserve.
The Minister had already announced that the exchange rate to be used to calculate 2016 Direct Payments is £0.85228p.
On the basis of the new rate, it is estimated that the total net value of 2016 Direct Payment to local farmers will be boosted by £39million or around 16 per cent compared to 2015.
She said: “This exchange rate is an increase on last year’s rate and will be welcome news for local farm businesses as it will boost the amount of Direct Payment received in what has been a difficult year for our farmers.
The Ulster Farmers’ Union welcomed the increase in the sterling value of CAP payments, describing this as a welcome boost for farmers as feed and other winter bills start to rise on farms across Northern Ireland.
“The combination of a better conversion rate and early payments will be a welcome cash flow boost for farmers at the end of that has been a very difficult year across all commodities,” said UFU president, Barclay Bell.
The UFU says it recognises that when CAP funds go into bank account there will be many demands on them, but it has urged those owed money by farmers to remain patient and allow time for the recovery now emerging to take hold.
“We have secured assurances from banks that they will not grab CAP funds going into accounts to pay down debts more quickly. While we recognise that debt is a problem for everyone, we would urge other suppliers to the industry to remain patient. 
“Farmers have a track record as people who want to pay off debts. They will do so again, and this boost in CAP payments will certainly help ease some cash flow pressures,” said the UFU President.