7.—(1) Subject to paragraph (2) and to regulations 8 and 9, payments of less favoured area compensatory allowance in respect of the descriptions of eligible forage area specified in column 1 of the Schedule shall be made –
(a)in relation to the first 350 hectares of eligible forage area in respect of which the claim is made, at the rates specified in column 2 of the Schedule;
(b)in relation to the next 150 hectares of eligible forage area in respect of which the claim is made, at one half of the rates specified in column 2 of the Schedule;
(c)in relation to further hectares of eligible forage area in excess of 500 hectares in respect of which the claim is made, at one quarter of the rates specified in column 2 of the Schedule.
(2) After calculating the amount payable to a claimant in accordance with paragraph (1), the Department may, if it thinks fit, increase that amount by a percentage not exceeding 20% of that amount, provided that the same percentage is applied in relation to each claimant.