Payments to farmers account for over 50 per cent of European grants for agriculture. Farmers also benefit indirectly from the other principal market supports e.g. export refunds and intervention for which the Exchequer carries the cost of prefinancing.
All grants under the various EU supported farm schemes are paid directly to farmers by my Department and the expenditure involved is subsequently recouped from the EU at varying recoupment rates. The rate of recoupment from the EU ranges from 65 per cent for compensatory headage allowances to 75 per cent for on-farm investment and CAP reform accompanying measures and to 100 per cent for EU direct payments such as livestock premia.
All administration costs are borne entirely by the Exchequer.