Subject to paragraph (3), where in the year preceding the opening date for lodging applications for compensatory allowances for breeding cows in respect of any given Scheme year the Department forms the opinion that any parcel of land is being overgrazed the Department may notify the occupier of the maximum number of breeding cows which may be grazed and maintained on that parcel in that Scheme year, which number shall be determined by taking account of the number of other animals likely to be grazed and maintained on the parcel concerned in the Scheme year in question and having regard to such conditions as may be specified in the notification.

Subject to paragraph (3), where in the year preceding the opening date for lodging applications for compensatory allowances for ewes in respect of any given Scheme year the Department forms the opinion that any parcel of land is being overgrazed the Department may notify the occupier of the maximum number of ewes which may be grazed and maintained on that parcel in that Scheme year, which number shall be determined by taking account of the number of other animals likely to be grazed and maintained on the parcel concerned in the Scheme year in question and having regard to such conditions as may be specified in the notification.

The Department may in the year preceding the opening date for lodging applications for compensatory allowances in respect of any given Scheme year issue a notification under paragraph (1) or (2) even where there is no evidence that the parcel of land to which it relates is being overgrazed if the Department has previously made such a notification in respect to that parcel having formed the opinion that it was being overgrazed.

Where the Department has made a notification under paragraph (1) or (2) no compensatory allowance shall be paid in respect of the Scheme year for which it was issued for any breeding cows or as the case may be ewes grazed and maintained in that Scheme year on the land to which it relates in excess of the maximum number of such animals specified in it.