BPS - Financial Discipline Mechanism (FDM) Reimbursement

1st October 2018

Farmers who had a valid 2017 Basic Payment Scheme (BPS) claim worth more than €2,000 will shortly receive a reimbursement from the 2016 FDM fund.

Each year the European Commission uses some of the BPS budget to create a ‘crisis reserve’ using a mechanism called ‘financial discipline’. This is used to support the farming industry in times of crisis, such as disease outbreaks.

If the FDM funds have not been used they are reimbursed to eligible farmers in the subsequent scheme year.

The rate to use to calculate the reimbursement for 2017 is 1.31 % with payments starting from early October 2018. The payments will show as ‘FDM reimbursement’ on the remittance advice which is being sent after a payment is made.

To calculate a farmer’s FDM value the RPA removes the first €2,000 and any reductions if they apply (but not cross compliance penalties), then multiplies this by 1.31 %. They then take the resulting amount and remove any cross compliance penalties from it.