The Rural Payments Agency has announced it has paid out some £7.5 million to producer organisations.

It started making payments to suspended producer organisations two weeks ago, and all claims that can be settled have now been paid, a spokeswoman for the organisation said.

So far, 16 of the 17 suspended POs have received a share of just over £4m, representing all, or at least some, of the outstanding claims for 2010. Recently submitted information for the remaining claims is being assessed and the aim is to pay these final amounts as soon as satisfactory checks have been made.

The RPA has come in for much criticism over the suspension of POs and as a result several of them are in talks with the NFU with a view to setting up a working group on the issue next year.

Meanwhile, the RPA has paid just over £3.5m to 22 compliant POs by the regulatory deadline of mid-October. This sum includes all 2010 payments and some 2011 arrears payments.

RPA operations director Paul Caldwell said: “These payments are being made outside the normal scheme rules and suspended POs should not therefore take payment of their 2010 claims to mean that the RPA considers they were compliant with the recognition criteria in that period.

“Because of this, 2010 payments are being made under an exceptional arrangement which involves extra controls and takes longer than usual to process.

“Despite this, RPA has done everything possible to expedite these payments including making payments to suspended POs in instalments based on the verified amount of aid claimed rather than waiting for the entire claim to be processed.”

He also reiterated that, during suspension, POs may continue to operate an existing programme and may accrue the right to aid but will only be paid if, and when, suspension is lifted. Suspension can only be lifted when RPA has evidence that POs meet the revised criteria and must happen on or before 9 August 2012 if POs are to come back into the scheme.

Meetings between the RPA and suspended POs have produced a large amount of evidence that needs to be assessed and the RPA said it will update affected POs in the next few weeks.

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