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Land Acquisition and Compensation (Northern Ireland) Order 1973

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Farm loss paymentsN.I.

Right to farm loss payment where person displaced from agricultural unitN.I.

34.—(1) Where land constituting or included in an agricultural unit is land in respect of which the person in occupation of the unit has an owner's interest, then if—

(a)in consequence of the compulsory acquisition of his interest in the whole of that land ( “the land acquired”) he is displaced from the whole of that land; and

(b)not more than three years after the date of displacement he begins to farm another agricultural unit ( “the new unit”) elsewhere in the United Kingdom,

he shall, subject to the provisions of this Article and Article 36, be entitled to receive a payment (in this Order referred to as a “farm loss payment”) from the acquiring authority.

(2) In paragraph (1) “owner's interest” means a freehold interest (whether legal or equitable) or a tenancy granted or extended for a term of years certain of which not less than three years remain unexpired on the date of displacement.

(3) For the purposes of this Article a person is displaced from land in consequence of the compulsory acquisition of his interest therein if, and only if, he gives up possession thereof—

(a)on completion of the acquisition;

(b)on being required to do so by the acquiring authority; or

(c)where the acquiring authority permit him to remain in possession of the land under a tenancy or licence, on the expiration or termination of that tenancy or licence;

and references in this Article and Article 35 to the date of displacement are references to the date on which the person gives up possession as aforesaid.

(4) No farm loss payment shall be made to any person unless on the date on which he begins to farm the new unit he is in occupation of the whole of that unit in right of a freehold interest therein or a tenancy thereof, not having been entitled to any such interest or tenancy before the date on which the notice of application for, or the notice of intention to make, the vesting order in respect of his interest in the land was first published.

(5) No farm loss payment shall be made to any person displaced from land in consequence of the compulsory acquisition of his interest therein if the acquisition of his interest in the whole or any part of that land is in pursuance of the service by him of a blight notice under[F1 Article 5 of the Planning Blight (Compensation) (Northern Ireland) Order 1981].

(6) This Article applies if the displacement is on or after 17th October 1972.

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Amount of farm loss paymentN.I.

35.—(1) Subject to the provisions of this Article, the amount of any farm loss payment shall be equal to the average annual profit derived from the use for agricultural purposes of the agricultural land comprised in the land acquired; and that profit shall be computed by reference to the profits for the three years ending with the date of displacement or, if the person concerned has then been in occupation for a shorter period, that period.

(2) Where accounts have been made up in respect of the profits of the person concerned for a period or consecutive periods of twelve months and that period or the last of them ends not more than one year before the date of displacement, paragraph (1) shall have effect as if the date on which that period or the last of those periods ends were the date of the displacement.

(3) Where the date of displacement is determined in accordance with Article 34(3)( c) and the person concerned has on that date been in occupation for more than three years, he may elect that the average annual profit shall, instead of being computed by reference to the profits for the years mentioned in paragraph (1), be computed by reference to the profits for—

(a)any three consecutive periods of twelve months for which accounts in respect of his profits have been made up, being periods for which he has been in occupation and the last of which ends on or after the date of completion of the acquisition; or

(b)if there are no such periods as aforesaid, any three consecutive years for which he has been in occupation and the last of which ends on or after the date mentioned in sub-paragraph ( a).

(4) In calculating the profits mentioned in paragraph (1) there shall be deducted a sum equal to the rent that might reasonably be expected to be payable in respect of the agricultural land comprised in the land acquired if it were let for agricultural purposes to a tenant responsible for rates, repairs and other outgoings; and that deduction shall be made whether or not the land is in fact let and, if it is, shall be made to the exclusion of any deduction for the rent actually payable.

(5) In calculating the profits mentioned in paragraph (1) there shall be left out of account profits from any activity if a sum in respect of loss of profits from that activity would fall to be included in the compensation, so far as attributable to disturbance, for the acquisition of the interest in the land acquired.

(6) Where the value of the agricultural land comprised in the land acquired exceeds the value of the agricultural land comprised in the new unit the amount of the farm loss payment shall be proportionately reduced.

(7) For the purposes of paragraph (6) the value of any land shall be assessed—

(a)on the basis of its value as land used solely for agriculture and as for a freehold interest therein with vacant possession;

(b)by reference to the condition of the land and its surroundings and to prices current—

(i)in the case of the land comprised in the land acquired, on the date of displacement;

(ii)in the case of land comprised in the new unit, on the date on which the person concerned begins to farm the new unit;

(c)in accordance with rules (2) to (4) in[F2 Article 6(1) of the Land Compensation (Northern Ireland) Order 1982];

(d)without regard to the principal dwelling (if any) comprised in the same agricultural unit as that land.

(8) The amount of a farm loss payment shall not be greater than the amount (if any) by which—

(a)that payment, calculated apart from this paragraph, together with compensation for the acquisition of the interest in the land acquired assessed on the assumptions mentioned in Article 8(2), (3) and (4) (including any sum included as compensation for disturbance), exceeds

(b)the compensation actually payable for the acquisition of that interest.

(9) Any dispute as to the amount of a farm loss payment shall be referred to and determined by the Lands Tribunal.

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Supplementary provisions about farm loss paymentsN.I.

36.—(1) Subject to paragraph (7), no farm loss payment shall be made except on a claim in that behalf made by the person entitled thereto before the expiration of the period of one year beginning with the date on which the requirement in Article 34(1)( b) is complied with, and any such claim shall be in writing and shall be accompanied or supplemented by such particulars as the acquiring authority may reasonably require to enable them to determine whether that person is entitled to a payment and, if so, its amount.

(2) Where the agricultural unit containing the land acquired is occupied for the purposes of a partnership firm Articles 34 and 35 shall have effect in relation to the firm and not the partners individually (any interest of a partner in the land acquired being treated as an interest of the firm) except that the requirements in Article 34 as to the new unit shall be treated as complied with in relation to the firm as soon as they are complied with by any one of the persons who were members of the firm.

(3) Where a person dies before the expiration of the period for making a claim to a farm loss payment and would have been entitled to such a payment if he had made a claim within that period, a claim to that payment may be made, before the expiration of that period, by his personal representative.

(4) Where an interest in land is acquired by agreement by an authority possessing compulsory acquisition powers, the authority may, in connection with the acquisition, make to the person from whom the interest is acquired a payment corresponding to any farm loss payment which they would be required to make to him if the acquisition were compulsory and the authority (if not authorised to acquire the interest compulsorily) had been so authorised on the date of the agreement.

(5) Where a farm loss payment is made to any person the authority making the payment shall also pay any reasonable valuation or legal expenses incurred by that person for the purposes of the preparation and prosecution of his claim to the payment; but this paragraph is without prejudice to the powers of the Lands Tribunal in respect of the costs of proceedings before the Tribunal by virtue of Article 35(8).

(6) A farm loss payment shall carry interest, at such rate as may for the time being be determined by the Ministry of Finance by order under paragraph 18 of Schedule 6 to the Local Government Act (Northern Ireland) 1972 [1972 c.9] from the date mentioned in paragraph (1) until payment.

(7) Where the date mentioned in paragraph (1) is before the coming into operation of this Part the period within which a claim to a farm loss payment can be made shall be the period of one year beginning with the date of the coming into operation of this Part.

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