5.—(1) Subject to paragraph (2) and to regulation 16, a compensatory allowance may be paid to a person only if he has given a undertaking, in such form as the appropriate authority may reasonably require, that he will, for a period of five years from the first payment of a compensatory allowance under these Regulations, the 1996 Regulations or the 1994 Regulations, continue to use eligible land for agricultural purposes.
(2) Paragraph 1 does not apply to a person who is in receipt of a retirement pension at the time when that undertaking requires to be given.