The effectiveness of the Single Area Payment Scheme as a transitional system for supporting farmers in the new Member States : Special Report No 16, 2012

The Single Area Payment Scheme is a simplified transitional income support scheme for farmers in the new Member States. The Court observes that payments were also made to beneficiaries not or only marginally involved in farming or in relation to unutilised or non-agricultural land. Since the distribution of aid is based on the area at the disposal of the farmer, the support is concentrated on a small number of large farms and SAPS aid may lead to an increase in land and lease prices. Persisting structural weaknesses and increasing land prices may adversely affect the effectiveness and efficiency of the support. The Court recommends that the support be directed to the active farmer who conducts concrete and regular agricultural activities as well as a more balance distribution of aid between farmers taking into account the specific circumstances of the farms in the different regions.