DARD announces that all subsidy payments go electronic from March 2008

With effect from 1 March 2008, agriculture subsidy payments will only be paid electronically by the Bankers Automated Clearing System (BACS).

The European Commission requires all subsidy payments to be made electronically by BACS to a UK bank account from October 2008. The Department of Agriculture and Rural Development (DARD) are introducing this from 1 March 2008 to ensure a smooth transition.

From 1 January 2007 payable orders issued by DARD have been endorsed “Account Payee only” and can only be lodged into the payee(s) bank account.

DARD therefore encourages those farm businesses, who currently receive payment by payable order, to provide their bank details as soon as possible.

To assist in the process DARD has included a BACS 12 form with the 2007 IACS/Single Application packs. It is therefore imperative for farm businesses who have not already signed up for BACS, to complete this form and return it with their application.

Completed BACS forms should be returned to:

BACS forms are also available on the DARD website: http://www.dardni.gov.uk/index/publications/pubs-dard-grants-and-funding/bacs-12-revised-link.htm or alternatively by telephoning Orchard House on 028 7129 9074.

Notes to Editors:

1. All media enquires to DARD Press Office, Tel 028 9052 4619.
2. The Bankers Automated Clearing System (BACS) is an electronic system that provides a quick, secure and efficient method of making payments directly to a UK Bank or Building Society account.
3. Press Releases164/06 and 213/06 issued on 11 September and 24 November 2006 respectively have explained the move for farm subsidy payments to be made by BACS.
4. DARD has elected for a date of 1 March 2008 to help ensure that all farm businesses who will have applied for the 2008 Less Favoured Area Compensatory Allowances Scheme (LFACA) will be compliant with the new requirement in good time.