The Basic Payment Scheme (BPS) will be replaced with a new direct payment scheme under the new Common Agricultural Policy (CAP), according to the European Council.
In the conclusion document arising from the marathon council talks that have taken place over the last few days in Brussels, the replacement scheme was referenced under the CAP section.
According to the council’s document, the payment will also feature a capping mechanism:
“Capping of the direct payments for large beneficiaries will be introduced on a voluntary basis at the level of €100,000.
“It will apply only to the BISS. When applying capping, member states may subtract from the amount of BISS per beneficiary for all labour-related costs.”
Direct payments
€258.6 billion – in what the council refers to as ‘2018 prices’ – of the “agreed” (CAP) budget will be allocated to direct payments and market-related expenditure.
This new capping measure will be delivered under Pillar I of the CAP Strategic Plan, which is the new delivery model bringing both Pillar I and Pillar II under a single programming instrument, while retaining their sub-headings under CAP.