2.—(1) The Common Agricultural Policy Basic Payment and Support Schemes (Wales) Regulations 2015(1) are amended as follows.
(2) In regulation 16(3)(a) after “hedges” insert “and wooded strips”.
(3) Regulation 17 is revoked.
(4) After regulation 16 insert—
18.—(1) The Welsh Ministers will establish a national reserve, in accordance with Article 30(1) of the Direct Payments Regulation.
(2) The Welsh Ministers will use the national reserve, in the following priority order, to—
(a)allocate payment entitlements to young farmers and to farmers commencing their agricultural activity, in accordance with Article 30(6) of the Direct Payments Regulation;
(b)allocate payment entitlements to farmers who were prevented from being allocated payment entitlements under the basic payment scheme as a result of force majeure or exceptional circumstances, in accordance with Article 30(7)(c) of the Direct Payments Regulation;
(c)cover the yearly needs for payments to young farmers, in accordance with Article 30(7)(f) of the Direct Payments Regulation; and
(d)permanently linearly increase the value of all payment entitlements under the basic payment scheme if the national reserve exceeds 0.5% of the annual national ceiling for the basic payment scheme, in accordance with Article 30(7)(e) of the Direct Payments Regulation.
19.—(1) The Welsh Ministers will grant the payment for agricultural practices beneficial for the climate and the environment as a percentage of the total value of the payment entitlements that the farmer has activated in accordance with article 33(1) of the Direct Payments Regulation for each relevant year, in accordance with the third sub-paragraph of article 43(9) of the Direct Payments Regulation.
(2) The percentage referred to in paragraph (1) will be calculated in accordance with the fourth sub-paragraph of article 43(9) of the Direct Payments Regulation.”
(5) Part 2 of the Schedule is revoked.