Basic Payment Scheme (Scotland)

Subsidy payment to farmers in Scotland introduced as a result of the European Union 2003 Common Agricultural Policy (CAP) reforms. It replaced the former CAP production subsidy payments to farmers by a single payment system. Payments are linked to compliance with specified environmental and farm management conditions.

The actual amount to be paid is dependent on three factors:

  • Reference Amount – areas and/or animals which met all scheme conditions and were used for payments during the 2000 to 2002 reference period.
  • Reference Area Amount the area (number of hectares) claimed by the applicant (or the correct determined area-whichever is the lesser).
  • Number and Value of Payment Entitlements Amount – the value ("unit value") of entitlements is given as the reference amount divided by the reference area. The number of payment entitlements is equal to the average number of hectares farmed during the 2000 to 2002 reference period.

The actual amount paid is calculated by multiplying the number of payment entitlements by the unit value.

From 2014 the exchange rate for Single Farm Payments has been set as €1 = £0.7773.