Single welsh farmers
The intention is that choice of crop is based purely on market driven forces and not on production based grants.
Decoupling of payments has allowed them to be categorised under the so-called blue box for the purpose of WTO negotiations, ensuring the legality and compliance of international obligations.
Payments totaling £250m were paid to more than 98% of eligible farmers between 1 December 2005 and 30 June 2006, including £110m to about 75% of Welsh farmers on the first possible day, which made them amongst the first in Europe to receive the new payment.
The Single Payment Scheme (SPS) pays farmers for the land that they manage or own.
The total amount that can be paid for SPS is set at EU Member State level and is called the National Ceiling.
A percentage of the National Ceiling is removed to make up the National Reserve.
The Single Farm Payment is linked to meeting environmental, public, animal and plant health and animal welfare standards and the need to keep land in good agricultural and environmental condition.