8.—(1) Subject to the following paragraphs of this regulation, the number of ewes for which a compensatory allowance may be paid to a claimant who has made a valid claim for compensatory allowances for ewes in respect of the Scheme Year shall be the least of—
(a)the number of ewes included in that claim;
(b)the number of ewes which were owned by the claimant, or leased by him under a formal leasing arrangement, throughout the retention period applicable to ewes;
(c)the number of ewes which would, in the opinion of the Department, be required in order to produce the number of lambs actually produced by the claimant’s qualified flock—
(i)in the twelve months preceding the date on which the claim is lodged, or
(ii)in the case of a claim accepted as valid pursuant to regulation 11(4), in the twelve months preceding the day on which the claim was received by the Department, or
(iii)in the case of a qualified flock newly established or re-established in the twelve months referred to in sub-paragraph (i) or (ii), in such other period as the Department may determine;
(d)a number calculated at the rate of—
(i)six ewes for each hectare of severely disadvantaged land, and
(ii)nine ewes for each hectare of disadvantaged land,
included in the claimant’s eligible land which is either forage area or relevant afforested land;
(e)the number of ewes which, when added to the number of breeding cows which are the subject of a claim for compensatory allowances made by the claimant in respect of the Scheme Year, is equivalent to 1.4 livestock units for each hectare of the claimant’s eligible land which is either forage area or relevant afforested land.
(2) A compensatory allowance shall not be paid for any ewe the use of which for breeding would not, in the opinion of the Department, be in accordance with sound husbandry practice.
(3) Where a claimant uses unsuitable supplementary feeding methods the Department may, in accordance with paragraph (4), reduce or withhold the compensatory allowances for ewes otherwise payable to him.
(4) Where the claimant was not penalised under regulation 5 of the 1996 Regulations in 1999 for using unsuitable supplementary feeding methods, the compensatory allowances for ewes otherwise payable to him may be reduced by 10%; where the claimant was so penalised in 1999, but not in 1998, the compensatory allowance for ewes otherwise payable to him may be reduced by 20%; and where the claimant was so penalised in 1999 and 1998, the compensatory allowances for ewes otherwise payable to him may be withheld.