Farmers are coming to terms with the full implications of the Ciolos CAP reforms as statements detailing their new basic payment entitlements arrive on farms.

Since Monday, statements on the new direct payment system have been arriving to over 120,000 recipients, detailing the expected value of their basic payment and the associated greening payment for each year from 2015 to 2019.

For high-value entitlement holders, reduced payments will come as no surprise. The extent of cuts will still shock, however. A farmer who got €500/ha in 2014 will suffer a cut of over 20% by 2019, assuming he/she gets the greening payment.

The national average basic payment is currently assessed as being €171/ha. The minimum basic entitlement in 2019 will be 60% of this – worth over €150 with greening included. This means the big winners will be those farmers with a lot of declared land and low-value entitlements.

All figures are provisional at present and will remain so until the final position for 2015 has been determined.

On Wednesday, Minister for Agriculture Simon Coveney announced that the European Commission has accepted a facility to allow farmers who never held entitlements but actively farmed in 2013 into the new payments system. An estimated 6,000 farmers and potentially €20m in payments may be involved under this measure, known as the Scottish derogation.

IFA president Eddie Downey advised that all farmers should check their statements closely, and begin to prepare their 2015 applications with their advisers.