Some €15.6m in Basic Payment Scheme (BPS) refunds are to be made to approximately 95,000 farmers.

Minister for Agriculture Charlie McConalogue announced that the payments, averaging out at €164 per farmer, will commence on Tuesday.

This money, deducted from BPS payments in line with European Union (EU) regulations under the ‘financial discipline mechanism’, is now being reimbursed.

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Mechanism

The financial discipline mechanism is part of the annual budgetary procedure of the European Union. It involves a monetary deduction (1.65% for the 2021 reduction) from some direct payments for the provision of a financial crisis reserve for the EU.

Minister for Agriculture Charlie McConalogue announced the payments on Tuesday. \ Philip Doyle

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.

This has been the case for 2021 BPS payments with Irish farmers now set to benefit from the reimbursement.

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