Agriculture Act 1967

PART II Farm Structure and Farm Improvements, and Promotion of Agricultural Investment

Farm Structure

26 Grants for amalgamations and boundary adjustments.

(1) The appropriate Minister may in accordance with a scheme make grants out of money provided by Parliament towards expenditure incurred in connection with the carrying out—

(a) of transactions for securing that agricultural land which is an uncommercial unit, but which together with some other agricultural land could form an intermediate unit or commercial unit, shall be owned and occupied with that other land, and

(b) of transactions for securing that, where an intermediate unit or a commercial unit is not all in the same ownership, any part of it comes to be in the same ownership as the rest of that unit, or in the same ownership as some other part of that unit, but excluding transactions which bring into the same ownership and occupation two or more parts of the unit each of which could by itself form a commercial unit, and

(c) of transfers or exchanges of agricultural land (or estates or interests in agricultural land) for the purpose of giving more satisfactory boundaries to one or more agricultural units;

and for the purposes of paragraph (a) above, such assumptions as the appropriate Minister may consider reasonable may be made as to the improvements and works which will be carried out for the benefit of the unit to be formed.

Transactions within paragraphs (a) and (b) above are in this Part of this Act referred to as " amalgamations ", and transactions within paragraph (c) are in this Part of this Act referred to as " boundary adjustments ".

(2) A scheme under this section may restrict the amalgamations and boundary adjustments to which it applies in any way, and may in particular exclude amalgamations of land which has reverted from being in single ownership or occupation.

(3) The expenditure towards which a grant may be made under this section in connection with an amalgamation or boundary adjustment shall be—

(a) the costs of the amalgamation or boundary adjustment consisting of surveyor's fees and legal costs, stamp duty on any conveyance, lease, tenancy agreement or mortgage or heritable security, any compensation for disturbance, and the cost of obtaining any requisite consent of the Ministry of Finance for Northern Ireland;

(b) in the case of an amalgamation—

(i) the cost of such work of prescribed kinds as in the opinion of the appropriate Minister becomes necessary or expedient as a direct consequence of throwing together the units of land which, prior to the amalgamation, were in separate ownership or occupation, and separating them from land which is not to form part of the resulting unit,

(ii) the cost of such improvements of prescribed kinds as in the opinion of the appropriate Minister are for the benefit of the resulting unit as a whole ;

(c) in the case of a boundary adjustment, the cost of such work of prescribed kinds as in the opinion of the appropriate Minister becomes necessary or expedient as a direct consequence of the alterations of boundaries.

In this subsection " compensation for disturbance " means compensation for disturbance under—

(a) section 34 of the [1948 c. 63.] Agricultural Holdings Act 1948,

(b) section 35 of the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949, or

(c) section 3 of the [1870 c. 46.] Landlord and Tenant (Ireland) Act 1870.

(4) A scheme under this section may make different provision for amalgamations resulting in an intermediate unit and those resulting in a commercial unit; and in particular may restrict grant under subsection (3)(b)(ii) above where the amalgamation results in an intermediate unit to grant in respect of improvements which in the opinion of the appropriate Minister would continue to be of benefit to the land if the intermediate unit subsequently becomes a part of a commercial unit.

(5) The amount of any grant payable under this section towards expenditure shall be one-half of that expenditure so far as approved by the appropriate Minister.

(6) A scheme under this section shall provide for grant in respect of any expenditure being payable by reference to proposals which have been submitted to and approved by the appropriate Minister, and the approval—

(a) may be given before or, in such classes of cases as the appropriate Minister may direct, after the carrying out of the proposals,

(b) may be made subject to such conditions as the appropriate Minister may specify, and in particular subject to any condition as to the time within which the proposals are to be carried out,

(c) may be varied or withdrawn by the appropriate Minister with the applicant's written consent.

(7) After the payment of any grant under this section or subsection (1)(a) of the next following section in connection with an amalgamation the relevant unit shall be subject to the provisions of Schedule 3 to this Act and—

(a) the appropriate Minister shall not approve the proposals for the amalgamation unless satisfied that all persons having an estate or interest in the relevant unit have given their written consent to the application of that Schedule to the relevant unit,

(b) the relevant unit shall be, or be the part of, the agricultural unit or units specified for the purposes of this subsection by the appropriate Minister in the document giving his approval to the proposals, and

(c) in the said Schedule 3 as applied by this subsection " relevant Exchequer payments " shall mean—

(i) the grant in respect of such expenditure as is specified for the purposes of this subsection in that document as being expenditure related to the relevant unit, and

(ii) such sum as the appropriate Minister may certify as the sum representing his administrative expenses (including an appropriate proportion of overhead expenses and other fixed or general expenses) incurred in connection with making the grant,

and " the relevant date " shall, for any grant and the related administrative expenses, be the date when the grant was paid.

(8) In the case of the payment of any grant under this section in connection with a boundary adjustment the appropriate Minister may, if he thinks fit, designate in the document giving his approval to the proposals any land appearing to him to benefit from the boundary adjustment as land which, after the payment of that grant, is to be a relevant unit subject to the provisions of Schedule 3 to this Act, and paragraphs (a) and (c) of the last foregoing subsection shall apply in relation to the boundary adjustment as they apply in relation to an amalgamation.

(9) The duration of a scheme under this section shall be a period not exceeding seven years, but that period may from time to time be extended by further schemes under this section for periods not exceeding seven years.

(10) A grant shall not be made under section 16 of the [1957 c. 57.] Agriculture Act 1957 (which relates to grants towards costs of amalgamation and is superseded by this section) in respect of a transaction proposed in an application made under that section after the coming into force of the first scheme made under this section, and so much of subsection (2) of the said section 16 as limits the time within which applications may be made under that section shall cease to have effect.

(11) The following enactments—

(a) section 6(c) of the [1946 c. 73.] Hill Farming Act 1946,

(b) section 5(3) of the [1959 c. 12.] Agriculture (Small Farmers) Act 1959, or

(c) section 2(3) of the [1964 c. 28.] Agriculture and Horticulture Act 1964,

(under which grant under those Acts may be recovered by the appropriate Minister if there is a failure to carry out proposals), and any provision to the like effect in regulations made under section 77(3) of the [1948 c. 45.] Agriculture (Scotland) Act 1948 or section 22(4) of the [1955 c. 21.] Crofters (Scotland) Act 1955, shall not apply where in the opinion of the appropriate Minister the carrying out of the proposals is, in consequence of the carrying out of proposals approved under this section, impracticable or to no purpose or unduly expensive.

27 Grants for individuals relinquishing occupation of uncommercial units.

(1) The appropriate Minister may in accordance with a scheme make a grant by way of a lump sum payment or an annuity to or for the benefit of an individual who in prescribed circumstances relinquishes his occupation of an uncommercial unit of agricultural land—

(a) where the relinquishment of all or any part of that uncommercial unit is effected as part of an amalgamation to which a scheme under section 26 of this Act for the time being applies, or

(b) in accordance with arrangements which the appropriate Minister or, subject to the provisions of Part III of this Act, a Rural Development Board makes with him (whether or not his landlord or any other person is a third party) to enable the appropriate Minister or the Board to dispose of the unit so that it is owned or occupied with other land, or so as to improve the shape of any agricultural units, or

(c) subject to the provisions of Part III of this Act, in accordance with arrangements approved by a Rural Development Board as being for the purpose of facilitating the afforestation of land in the area of the Board.

(2) A scheme under this section—

(a) may, subject to any prescribed exceptions, require the individual to have been in occupation of the whole of the uncommercial unit for a prescribed period,

(b) may exclude an individual who occupied the uncommercial unit under a short-term letting as defined in the scheme,

(c) may apply to the individual a test by reference to the income (calculated in a prescribed way) derived from the land the occupation of which he relinquishes including, if the scheme so provides, income so derived by the individual's wife or husband or partner or by any other person jointly occupying the land.

(3) A scheme under this section may authorise the making of grant subject to such conditions as the appropriate Minister may specify.

(4) Grants shall not be payable under this section to any one individual in respect of more than one uncommercial unit, and a scheme under this section shall contain provisions for securing that the amount of the grant payable in respect of an uncommercial unit occupied by more than one individual is an amount which is not more than approximately equivalent to the amount which would be payable if it had been occupied by a single individual.

(5) A scheme under this section may provide that, after the death of a person in receipt of a grant by way of annuity, grant under this section of an amount specified in the scheme may be payable to a surviving widow or widower.

(6) The duration of a scheme under this section shall be a period not exceeding seven years, but that period may be extended from time to time by subsequent schemes under this section for periods not exceeding seven years.

(7) Any grant under this section shall be paid out of money provided by Parliament.

28 Loans to assist amalgamations and boundary adjustments.

(1) The appropriate Minister may with the approval of the Treasury make or guarantee loans to meet expenditure incurred in connection with the carrying out, in accordance with proposals approved by the appropriate Minister, of any amalgamation or boundary adjustment to which a scheme under section 26 of this Act for the time being applies, being—

(a) expenditure within subsection (3) of that section, or

(b) any part of the purchase price of any land acquired as part of the amalgamation or as the case may be any part of the purchase price of land acquired, or of money given by way of equality of exchange, as part of the boundary adjustment,

or expenditure under both paragraphs (a) and (b) above.

(2) A loan made by the appropriate Minister—

(a) may be effected through the agency of such body or bodies as the appropriate Minister may select,

(b) must have been approved by the appropriate Minister on an application made in the manner directed by him and within the period of duration of schemes under section 26 of this Act, or within such longer period as the appropriate Minister may determine.

(3) A loan guaranteed by the appropriate Minister shall be a loan made by such body or bodies as the appropriate Minister may select.

(4) A loan made or guaranteed by the appropriate Minister must be one repayable as to both capital and interest within a period of sixty years from the making of the loan.

(5) The appropriate Minister may in making a loan or guarantee under this section impose such conditions as he thinks fit.

(6) After the giving of a loan or guarantee under this section in connection with an amalgamation the relevant unit shall be subject to the provisions of Schedule 3 to this Act and—

(a) the appropriate Minister shall not approve the proposals for the amalgamation unless satisfied that all persons having an estate or interest in the relevant unit have given their written consent to the application of that Schedule to the relevant unit,

(b) the relevant unit shall be, or be the part of, the agricultural unit or units specified for the purposes of this subsection by the appropriate Minister in the document giving his approval to the proposals, and

(c) in the said Schedule 3 as applied by this subsection " relevant Exchequer payments " shall mean—

(i) in the case of a loan, the amount of the loan and interest outstanding and, so far as the lender has been required to accept repayment at a time earlier than that agreed in making the loan, the cost, or so much thereof as the appropriate Minister may determine, of reinvestment and, if the rate of interest on the loan is higher than can reasonably be expected to be obtained on reinvestment (regard being had to the current rate of interest) compensation in respect of the loss thereby sustained or such part thereof as the appropriate Minister may determine,

(ii) in the case of a guarantee, any amount paid by the appropriate Minister in fulfilment of the guarantee,

(iii) in either case, such sum as the appropriate Minister may certify as the sum representing his administrative expenses (including an appropriate proportion of overhead expenses and other fixed or general expenses) incurred in connection with making the loan or guarantee and, in the case of a guarantee, in fulfilling the guarantee,

(d) in the said Schedule 3 as applied by this section " relevant date " shall mean—

(i) for any administrative expenses related to a loan within subsection (6)(c)(i) above, the date when the loan is made,

(ii) for sums within subsection (6)(c)(ii) above, and any related administrative expenses, the date when the guarantee is fulfilled.

(7) In the case of a loan or guarantee made under this section in connection with a boundary adjustment the appropriate Minister may, if he thinks fit, designate in the document giving his approval to the proposals any land appearing to him to benefit from the boundary adjustment as land which, after the making of the loan or guarantee, is to be a relevant unit subject to the provisions of Schedule 3 to this Act, and paragraphs (a), (c) and (d) of the last foregoing subsection shall apply in relation to the boundary adjustment as they apply in relation to an amalgamation.

(8) A mortgage, heritable security or charge securing a loan made or guaranteed by the appropriate Minister under this section may, notwithstanding any rule of law or equity to the contrary, contain a provision that the mortgage, heritable security or charge shall not be redeemable except in the manner specified in the mortgage, heritable security or charge.

(9) Any sums required by the appropriate Minister for making a loan under this section or fulfilling a guarantee made under this section shall be paid out of money provided by Parliament.

(10) References in this section to the guarantee of a loan include references to the guarantee of part of a loan, including a guarantee restricted to interest payable on a loan.

29 Promotion of amalgamations and boundary adjustments by Minister.

(1) It is hereby declared that the appropriate Minister has power under sections 82 and 90 of the [1947 c. 48.] Agriculture Act 1947 and sections 55 and 61 of the [1948 c. 45.] Agriculture (Scotland) Act 1948 (powers of acquiring land by agreement and managing land) to acquire, hold and dispose of land for the purposes of effecting amalgamations of agricultural land and reshaping agricultural units.

(2) That power shall include in particular power for the said purposes to enter into transactions involving loss, including—

(a) amalgamating holdings of land in a way which renders less valuable, or useless, any buildings or equipment on any of the land,

(b) allowing the occupier of an uncommercial unit to retain occupation of a dwelling-house on the land when the remainder of the unit is acquired by the appropriate Minister for the purposes of amalgamation,

(c) selling land resulting from an amalgamation effected by the appropriate Minister subject to depreciatory conditions imposed for the purpose of ensuring that the land continues to be held in single ownership and single occupation for agricultural purposes.

(3) A deed by which the appropriate Minister conveys land, or an estate or interest in land, may apply Schedule 3 to this Act to any of that land, and to any other land, but only if all the persons who will have an estate or interest in the land to which Schedule 3 is so applied are parties to the deed; and in that Schedule as so applied " relevant Exchequer payments " shall mean such amounts as are specified in the deed for the purposes of this subsection under the heads of—

(a) the incidental costs incurred by the appropriate Minister in acquiring and disposing of the land, estate or interest conveyed by the deed, being costs consisting of surveyor's fees and legal costs, stamp duty on any conveyance, lease, tenancy agreement or mortgage or heritable security, and any compensation for disturbance under section 34 of the [1948 c. 63.] Agricultural Holdings Act 1948 or section 35 of the [1949 c. 75.] Agricultural Holdings (Scotland) Act 1949,

(b) any such loss as is described in subsection (2) of this section incurred by the appropriate Minister in dealing with the land, estate or interest so conveyed, including any reduction in the purchase price obtained by him on the transaction effected by the deed in consequence of the depreciatory conditions contained in the deed,

(c) such sum as the appropriate Minister may certify as the sum representing his administrative expenses (including an appropriate proportion of overhead expenses and other fixed or general expenses) incurred in connection with the transaction to which the deed gives effect,

and " relevant date " means the date on which the transaction to which the deed relates takes effect.

(4) Section 24(1) of the Agricultural Holdings Act 1948 and section 25(1) of the Agricultural Holdings (Scotland) Act 1949 (which restrict the operation of a notice to quit an agricultural holding) shall not apply to a notice to quit given by the appropriate Minister where;—

(a) the appropriate Minister certifies in writing that the notice to quit is given in order to enable him to use or dispose of the land for the purpose of effecting any amalgamation or the reshaping of any agricultural unit, and

(b) the instrument under which the tenancy was granted contains an acknowledgment signed by the tenant that the tenancy is subject to the provisions of this section.

(5) Where an instrument bearing to grant a tenancy contains such an acknowledgment as is mentioned in paragraph (b) of the last foregoing subsection, the grant of the tenancy shall have effect notwithstanding section 16 of the [1955 c. 21.] Crofters (Scotland) Act 1955 (vacant crofts), and during the subsistence of the tenancy the provisions of the Crofters (Scotland) Acts 1955 and 1961 and of the Small Landholders (Scotland) Acts 1886 to 1931 shall not apply to any land subject to the tenancy.

Farm improvements

30 Grants for long term improvements for the benefit of agricultural land.

(1) With a view to assisting in the making of long term improvements for the benefit of agricultural land the appropriate Minister may make out of money provided by Parliament grants towards the cost of such improvements of a kind described in Schedule 4 to this Act as he may approve for that purpose.

(2) The applicant for the grant may be a person having an interest in the land (being in Scotland an interest as proprietor or as tenant) for the benefit of which the improvement is proposed, or a person intending to acquire such an interest if the improvement is approved, and the applicant may propose more than one improvement in his application.

(3) The appropriate Minister may, as he thinks fit, either refuse to approve a proposed improvement or approve it in whole or in part, and the approval—

(a) may be given before or, in such classes of cases as the appropriate Minister may direct, after the carrying out of the proposals,

(b) may be made subject to such conditions as the appropriate Minister may specify, and in particular subject to any condition as to the time within which the proposals are to be carried out,

(c) may be varied or withdrawn by the appropriate Minister with the applicant's written consent.

(4) The appropriate Minister shall not approve any improvement unless he is satisfied—

(a) that all the land for the benefit of which the improvement is proposed is agricultural land occupied together with buildings and is capable of yielding a sufficient livelihood to an occupier reasonably skilled in husbandry, or will be capable of doing so as a result of the improvement, and

(b) that the cost of the improvement will not be unreason ably high in relation to the benefit in the farming of the agricultural land derived from the improvement, and

(c) that the improvement is such as a prudent owner-occupier would be willing to make, having regard to its cost and to all other circumstances, but disregarding benefits derived from the imprpvement other than the benefit in the farming of the agricultural land.

(5) The amount of any grant payable under this section towards the cost of an improvement shall be one quarter of that cost so far as approved by the appropriate Minister as having been reasonably incurred.

(6) The appropriate Minister may reduce or withhold a grant under this section in any case where—

(a) assistance in respect of the improvement is given under any other enactment in this or any other Act, or

(b) the carrying out of the improvement appears to him to frustrate the purposes served by any expenditure incurred in respect of any other improvement, or incurred on any other occasion, being expenditure in respect of which a grant has been paid out of money provided by Parliament under this section or any other enactment in this or any other Act.

(7) A grant under this section shall be payable to the person or persons by whom or on whose behalf the work required for making the improvement is done, and may be paid on the completion of that work or by instalments on the completion of parts of that work.

(8) A grant shall not be made under section 12 of the [1957 c. 57.] Agriculture Act 1957 (which is superseded by the provisions of this section)—

(a) in respect of an improvement proposed in an application made under that section after 17th November 1965, or

(b) where none of the work, or only a negligible part of the work, required for making the relevant improvement has been done before the passing of this Act, or before the end of the period of two years beginning with the date on which the proposal for the relevant improvement was approved, whichever is the later,

but, if the appropriate Minister so directs, paragraph (a) above shall not apply in relation to an application which in the opinion of the appropriate Minister is in substitution for an application made on or before the said 17th November 1965 and is in respect of an improvement which serves the same purposes as well as or better than, and not at substantially greater cost than, the improvement to which the earlier application related.

(9) The grants made under this section, with the grants made under the said section 12 and under section 16 of the Agriculture Act 1957 (grants for amalgamations) and any grants made in respect of improvements of a kind to which this section applies out of money provided by Parliament by any Act passed after 27th April 1966 and before the passing of this Act, shall not altogether exceed the sum of one hundred and seventy million pounds.

(10) The Minister of Agriculture, Fisheries and Food and the Secretary of State may from time to time, by order made by them jointly by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament, vary Schedule 4 to this Act, but without prejudice to the payment of any grant towards the cost of an improvement approved before the coming into operation of the order.

Promotion of agricultural investment

31 Grants towards expenditure on fixed equipment, etc., and improvements, for purposes of agricultural businesses.

(1) The appropriate Minister may, out of money provided by Parliament, make to any person a grant towards expenditure incurred by that person on or after 17th January 1966 in or towards—

(a) providing or installing fixed equipment, fixed plant or fixed machinery for use wholly or partly for the purposes of an agricultural business, or

(b) replacing, improving or adapting any fixed equipment, fixed plant or fixed machinery used or to be used wholly or partly for the purposes of such a business, or

(c) doing any other thing which appears to the appropriate Minister to constitute a long term improvement to land comprised in such a business,

being expenditure approved by the appropriate Minister for the purposes of the grant.

(2) Subject to any order under section 34 of this Act, the amount of any grant under this section shall be ten per cent. of the expenditure in respect of which it is made.

(3) A grant may be made under this section subject to such conditions as the appropriate Minister may think fit to impose.

(4) In this section—

• " fixed equipment " does not include a dwelling-house but, subject to that, has the same meaning as in the [1947 c. 48.] Agriculture Act 1947 or, in Scotland, the [1948 c. 45.] Agriculture (Scotland) Act 1948, and

• " agricultural business " means a trade or business consisting in, or such part of any trade or business as consists in, the pursuit of agriculture ;

and, for the purposes of this section, contributions by a person towards the costs incurred by any authority in providing a cattle-grid under Part V of the [1959 c. 25.] Highways Act 1959, or the [1950 c. 24.] Highways (Provision of Cattle-Grids) Act 1950, shall be treated as expenditure by him in the provision of that cattle-grid.

(5) For the purposes of this section, expenditure shall be treated as incurred by a person on or after 17th January 1966 if or so far as it consists of a payment or payments made by him on or after that date, notwithstanding that the obligation to make that payment or those payments was incurred, or fell to be discharged, before that date.

32 Grants towards expenditure on agricultural tractors and harvesters.

(1) The appropriate Minister may, out of money provided by Parliament, make to any person a grant towards expenditure incurred by that person on or after 17th January 1966 in providing a new tractor or harvester in respect of which there is in force, at the time the grant is made, a licence under the [1962 c. 13.] Vehicles (Excise) Act 1962 upon which duty has been paid at the rate applicable under that Act to agricultural machines, being expenditure approved by the appropriate Minister for the purposes of the grant.

(2) Subject to any order under section 34 of this Act, the amount of any grant under this section shall be ten per cent. of the expenditure in respect of which it is made.

(3) A grant under this section shall, as the appropriate Minister may determine, be payable either as a lump sum or in two or more instalments.

(4) A grant may be made under this section subject to such conditions as the appropriate Minister may think fit to impose.

(5) In this section " new " means unused and not second-hand.

(6) Subsection (5) of the last foregoing section shall apply for the purposes of this section as it applies for the purposes of that section.

(7) In the application of this section to Northern Ireland, for the words in subsection (1) from " a licence under " to " agricultural machines" there shall be substituted the words " a licence under the [1954 c. 17 (N.I.).] Vehicles (Excise) Act (Northern Ireland) 1954 upon which duty has been paid at the rate applicable to the machines mentioned in section 4(2)(a) of that Act " ; and this section shall apply in relation to tractors and harvesters provided for use in the Isles of Stilly with the omission from the said subsection (1) of all reference to their being licensed as therein mentioned.

33 Supplements to improvement and water supply grants.

(1) Subject to subsections (2) and (3) below, the appropriate Minister may, out of money provided by Parliament, make in respect of any grant to which this section applies a supplementary grant, payable in such manner as the appropriate Minister may determine, of an amount equal (subject to any order under section 34 of this Act) to five per cent. of the cost or expenditure by reference to which the amount of the first-mentioned grant (hereafter referred to as " the basic grant") was calculated.

(2) No grant shall be made under this section unless application for payment of the basic grant, or of the first instalment of the basic grant, was first made on or after 17th January 1966; and no grant shall be so made in any case where the amount of the basic grant exceeds or exceeded forty-five per cent. of the cost or expenditure by reference to which it was calculated.

(3) Where any grant to which this section applies is payable by instalments on the completion of parts of the work in respect of which it is made, each instalment thereof shall be treated for the purposes of subsections (1) and (2) above as if it were a separate grant.

(4) Subject to any order under section 34 of this Act, the following are the grants to which this section applies—

(a) grants made under section 30 of this Act, or under section 12 of the [1957 c. 57.] Agriculture Act 1957 (which relates to long-term improvements of agricultural land, and is superseded by the said section 30);

(b) grants made in respect of improvements of a kind to which the said section 30 applies out of money provided by Parliament by any Act passed after 27th April 1966 but before the passing of this Act;

(c) grants made under section 1(1) of the [1960 c. 22.] Horticulture Act 1960 (horticultural improvements); and

(d) in England and Wales, grants made in respect of works for the supply of water under section 15 of the [1940 c. 14.] Agriculture (Miscellaneous War Provisions) Act 1940 or section 5 of the [1944 c. 28.] Agriculture (Miscellaneous Provisions) Act 1944.

(5) A grant may be made under this section subject to such conditions as the appropriate Minister may think fit to impose.

34 Power to vary rates, and extend scope, of grants for agricultural investment.

(1) Orders may from time to time be made under this section—

(a) varying, either generally or as respects expenditure or, as the case may be, basic grants of a description therein specified, the rate at which grant is payable under section 31, section 32 or section 33 of this Act;

(b) providing for the making of grants under the said section 32, at such rate as may be so specified, in respect of expenditure incurred on or after a date not earlier than 17th January 1966 in the provision of any description of self-propelled machines other than tractors and harvesters;

(c) providing for the making of supplementary grants under the said section 33, at such rate as may be so specified, in respect of grants under any enactment other than one specified in subsection (4) of that section, being grants for the payment of which, or of the first instalment of which, application was first made on or after a date not earlier than 17th January 1966.

(2) An order under this section—

(a) may be made for England and Wales, for Scotland, for Northern Ireland, or for any two or all of those parts of the United Kingdom jointly,

(b) shall be made with the consent of the Treasury, and by the Minister of Agriculture, Fisheries and Food and the Secretary of State jointly if it is made for Great Britain or the United Kingdom, and the appropriate Minister in any other case,

(c) may contain such incidental and supplemental provisions as appear appropriate to the Minister of Agriculture, Fisheries and Food and the Secretary of State or, as the case may be, to the appropriate Minister,

(d) may be varied or revoked by a subsequent order,

(e) shall be made by statutory instrument.

(3) A statutory instrument containing an order under subsection (1)(a) above, or an order under subsection (1)(b) or (1)(c) above providing for the payment of grants at a rate other than that specified in section 32(2) or, as the case may be, 33(1) of this Act, shall be laid before the House of Commons after being made, and the order shall cease to have effect at the end of twenty-eight days after that on which it is made (but without prejudice to anything previously done under the order or to the making of a new order) unless before the end of that period the order is approved by resolution of that House.

In reckoning any period of twenty-eight days for the purposes of this subsection, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.

(4) A statutory instrument containing any other order under subsection (1) above shall be subject to annulment in pursuance of a resolution of the House of Commons.

Supplemental

35 General provisions for schemes under Part II.

A scheme under section 26 or section 27 of this Act—

(a) shall be made by the appropriate Minister with the approval of the Treasury,

(b) may authorise the making of different grant in different circumstances,

(c) may authorise the reduction or withholding of grant where assistance in respect of expenditure for which the grant is made is or may be given otherwise than under the scheme, but so that where expenditure, or part of expenditure, is eligible for grant at different rates, grant at the higher rate shall be allowed,

(d) may authorise the reduction or withholding of grant in respect of land for the benefit of which any other prescribed grant or contribution has been made out of money provided by Parliament or has been so made within a prescribed period,

(e) may be made for England and Wales, for Scotland, for Northern Ireland, or for any two or all of those parts of the United Kingdom jointly,

(f) may contain such incidental and supplemental provisions as appear to the appropriate Minister expedient for the purposes of the scheme,

(g) may be varied or revoked by a subsequent scheme,

(h) shall be made by statutory instrument of which a draft has been laid before and approved by resolution of each House of Parliament.

36 Supplemental provisions as to grants under Part II and application of capital on works thereunder.

(1) Regulations under this section may confer on a person eligible for grant under section 26 or section 30 of this Act the amount of which depends on the cost of carrying out works of some kind, or on some other cost, the right to elect to take that cost for the purposes of the grant as being of such standard amount as may be determined by or under the regulations.

(2) Regulations under this section or a scheme under section 26 of this Act may prescribe tests by which expenditure or cost not otherwise qualifying for grant may be regarded, for the purposes of section 26 or section 30 of this Act, and of subsection (1) above, as being partly expenditure qualifying for grant, and partly not, and authorise the making of grant in accordance with the regulations or scheme in respect of the part to be so regarded as qualifying for grant.

(3) Regulations under this section may provide that where grant is payable under section 26 or section 30 of this Act in respect of a cattle-grid to be provided in pursuance of Part V of the [1959 c. 25.] Highways Act 1959 or the [1950 c. 24.] Highways (Provision of Cattle-Grids) Act 1950, grant shall be payable to a person making a contribution to the cost of providing the cattle-grid, instead of the authority providing the cattle-grid, and the regulations may provide for adjustment of the amount so paid where any part of the contribution becomes repayable.

(4) Regulations under this section may also provide for the adjustment, where any contribution in respect of the provision of a cattle-grid becomes repayable in whole or in part, of any amount paid in respect of the contribution by way of grant under section 31 of this Act.

(5) The provisions of the [1925 c. 18.] Settled Land Act 1925 relating to improvements authorised by that Act (including those provisions as extended to trusts for sale by section 28 of the [1925 c. 20.] Law of Property Act 1925) shall, if it is so provided by regulations under this section, have effect as if works of any description specified in the regulations, being works of a kind mentioned in Schedule 4 to this Act or prescribed by a scheme under section 26 above, were included in Schedule 3 to that Act (which sets out the improvements so authorised, distinguishing in Parts I, II and III between improvements the costs of which are not liable to be replaced, may be required to be replaced, and must be required to be replaced) and were contained in the Part thereof specified in the regulations.

(6) In the application of subsection (5) above to Northern Ireland—

(a) for any reference to the Settled Land Act 1925 and to Schedule 3 to that Act there shall be substituted references to the [1882 c. 38.] Settled Land Act 1882 and to section 25 of that Act, respectively;

(b) the words from " (including those provisions " to " Law of Property Act 1925) " and from " distinguishing in " onwards shall be omitted.

(7) Regulations under this section—

(a) shall be made by the appropriate Minister, and may be made for England and Wales, for Scotland, for Northern Ireland, or for any two or all of those parts of the United Kingdom jointly, and

(b) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

37 Recovery of grant and revocation of approval.

(1) If at any time after the approval of proposals under section 26, section 27 or section 30 of this Act, and whether before or after the proposals have been fully carried out, it appears to the appropriate Minister—

(a) that any condition imposed by the appropriate Minister in giving his approval has not been complied with, or

(b) in the case of proposals for the carrying out of work, that the work has been badly done, or has been or is being unreasonably delayed, or is unlikely to be completed, or

(c) that in connection with the submission of the proposals the person submitting them gave information on any matter which was false or misleading in a material respect,

the appropriate Minister may, on demand made after compliance with subsection (4) below, recover any grant or any part of a grant paid by him by reference to the proposals and revoke the approval in whole or in part.

(2) In the case of a grant under section 27 of this Act which is a lump sum payable by instalments or a grant by way of annuity the appropriate Minister may, in a case within paragraph (a) or paragraph (c) of subsection (1) above, after compliance with subsection (4) below direct that future instalments of the grant or annuity shall not be payable.

(3) If it appears to the appropriate Minister—

(a) that any condition imposed by him on the making of a grant under section 31 or section 32 of this Act has not been complied with, or

(b) that, in connection with his application for a grant under either of those sections, the person by whom the application was made gave information on any matter which was false or misleading in a material respect,

the appropriate Minister may, on demand made after compliance with subsection (4) below, recover the grant or any part thereof.

(4) Before making a demand, revoking an approval or giving a direction under the preceding provisions of this section the appropriate Minister—

(a) shall give to any person to whom any payment by way of grant would be payable by reference to the proposals, or from whom any such payment would be recoverable, a written notification of the reasons for the action proposed to be taken by the appropriate Minister, and

(b) shall accord to each such person an opportunity of appearing before and being heard by a person appointed for the purpose by the appropriate Minister, and

(c) shall consider the report by a person so appointed and supply a copy of the report to each person who is entitled to appear before the person submitting it.

(5) If it appears to the appropriate Minister that the circumstances specified in paragraph (a) or (b) of subsection (3) above obtain in the case of a grant under section 32 of this Act payable by instalments, he may direct that future instalments of the grant shall not be payable.

(6) Where a grant by reference to which a supplementary grant has been made under section 33 of this Act becomes recoverable in whole or in part, the supplementary grant shall also become recoverable on demand.

38 Recovery of possession of farmhouses made redundant by amalgamation.

(1) This section shall have effect where, after the carrying out of any proposals for amalgamation approved for the purposes of a scheme under section 26 of this Act, a dwelling-house which, at the time when the proposals were submitted, was occupied by a person responsible (whether as owner, tenant, or servant or agent of another) for the control of the farming of any of the land comprised in the amalgamation is let on a regulated tenancy otherwise than to—

(a) a person who ceased to be so responsible as part of the amalgamation, or

(b) a person who is, or at any time was, employed by the landlord in agriculture, or

(c) the widow of any such person as is mentioned in either of the preceding paragraphs.

(2) If—

(a) not later than the commencement of the regulated tenancy, the tenant has been given notice in writing that possession may be recovered under this section, and

(b) apart from the Rent Acts, the landlord would be entitled to recover possession of the dwelling-house, and

(c) the court is satisfied that the dwelling-house is required for occupation by a person employed or to be employed by the landlord in agriculture,

the court shall, in proceedings commenced by the landlord during the period specified in subsection (3) below, make an order for the possession of the dwelling-house, whether or not it would have power to do so under section 3 of the Act of 1933, and section 5(2) of the Act of 1920 shall not apply in relation to the order.

(3) The period referred to in subsection (2) above is one of five years beginning with the date on which the proposals for the amalgamation were approved or, if occupation of the dwelling-house after the amalgamation continued in, or was first taken by, a person falling within subsection (1)(a) above or his widow, a period expiring three years after the date on which the dwelling-house next became unoccupied.

(4) In this section—

• " the Rent Acts " means the Rent and Mortgage Interest Restrictions Acts 1920 to 1939, or any of those Acts, and " the Act of 1920 " and " the Act of 1933 " mean respectively the [1920 c. 17.] Increase of Rent and Mortgage Interest (Restrictions) Act 1920 and the [1933 c. 32.] Rent and Mortgage Interest Restrictions (Amendment) Act 1933 ;

• " employed " and " agriculture " have the same meanings as in the [1948 c. 47.] Agricultural Wages Act 1948 or, in Scotland, the [1949 c. 30.] Agricultural Wages (Scotland) Act 1949 ;

• " landlord ", " tenant " and " tenancy " have the same meanings as in the Act of 1920;

• " regulated tenancy " means a tenancy to which the Rent Acts apply by virtue of section 1 of the [1965 c. 75.] Rent Act 1965 ; and

• " order for possession ", in relation to Scotland, means decree of removing or warrant of ejection or other like order.

39 Provisions relating to Northern Ireland.

(1) Subject to this section, this Part of this Act shall extend to Northern Ireland with the exception of section 28 and section 38 and, subject to the following provisions of this section, of section 29.

(2) The Ministry of Agriculture for Northern Ireland may acquire by agreement any estate or interest in—

(a) any land used for agriculture,

(b) any other agricultural land,

(c) where any such land as is mentioned in paragraph (a) or (b) above is offered to the said Ministry for acquisition by it on the condition that it also acquires other land not falling within either of those paragraphs, that other land,

for the purpose of effecting amalgamations of agricultural land and reshaping agricultural units.

(3) The said Ministry may manage, farm or dispose of land acquired by it under subsection (2) above—

(a) in such manner as appears to the said Ministry expedient for the purpose for which the land was acquired,

(b) if the said Ministry is satisfied that the land ought to be devoted to some other purpose, in such manner as appears to the said Ministry expedient therefor,

and in section 27(1)(W of this Act as it applies in Northern Ireland the reference to the appropriate Minister shall include a reference to the said Ministry.

Section 45(3) of the [1954 c. 33 (N.I.).] Interpretation Act (Northern Ireland) 1954 shall have effect for the purposes of this subsection as it has effect for the purposes of an enactment of the Parliament of Northern Ireland passed after the commencement of that Act.

(4) Sections 4 and 5 of the [1881 c. 49.] Land Law (Ireland) Act 1881 shall not have effect in relation to any tenancy granted by the said Ministry under subsection (3) above.

(5) Subsections (2) and (3) above shall in particular confer power to enter into transactions involving loss, including transactions corresponding to those into which the appropriate Minister may enter under section 29(2) of this Act.

(6) Section 29(3) of this Act, and Schedule 3 to this Act when read with the said section 29(3), shall apply in Northern Ireland as if—

(a) the said Ministry were substituted for the appropriate Minister,

(b) the reference to legal costs in the said section 29(3)(a) included a reference to the costs of obtaining any requisite consent of the Ministry of Finance for Northern Ireland,

(c) the said section 29(3)(a) included a reference to compensation for disturbance under section 3 of the [1870 c. 46.] Landlord and Tenant (Ireland) Act 1870.

(7) The functions conferred by this section on the said Ministry shall be exercised in accordance with arrangements made between the Ministry and the Minister of Agriculture, Fisheries and Food with the approval of the Treasury, and the Minister of Agriculture, Fisheries and Food shall pay out of money provided by Parliament any expenses incurred by the said Ministry in exercising those functions, and any sums received by that Ministry in exercising those functions (including any sums so received or recovered under Schedule 3 to this Act) shall be paid over to the said Minister.

40 Interpretation of Part II.

(1) In this Part of this Act, except where the context otherwise requires—

• " amalgamation " and " boundary adjustment " have the meanings given by section 26 of this Act;

• " exchange " in relation to land in Scotland means excambion;

• " prescribed ", in relation to the contents of a scheme, means prescribed by the scheme.

(2) In this Part of this Act—

(a) " commercial unit " means an agricultural unit which in the opinion of the appropriate Minister is capable, when farmed under reasonably skilled management, of providing full-time employment for an individual occupying it and for at least one other man (or full-time employment for an individual occupying it and employment for members of his family or other persons equivalent to full-time employment for one man);

(b) " intermediate unit " means an agricultural unit which, in the opinion of the appropriate Minister, is capable, when farmed under reasonably skilled management, of providing full-time employment for an individual occupying it.

In this subsection " full-time employment " shall be construed in accordance with any provisions defining that expression in any scheme made under section 26 of this Act.

(3) In this Part of this Act " uncommercial unit " shall be construed by reference to the definition of commercial unit, except that, where the appropriate Minister so directs, it may be treated as referring to the relevant agricultural unit exclusive of any one dwelling house of the unit and, if the Minister so directs, exclusive of any small portion of land to be occupied with that dwelling house.

(4) Where any agricultural land in Scotland consists of or includes a croft or holding, for the purposes—

(a) of determining under the preceding provisions of this section whether an agricultural unit formed by that land is commercial, intermediate or uncommercial, and

(b) of calculating under section 27(2)(c) of this Act the income derived from the land,

the land shall be taken to include any right in pasture or grazing land held by the tenant or landholder whether alone or in common with others and deemed to form part of the croft or holding.

In this subsection " croft " and " holding " have the meanings ascribed to them by the [1955 c. 21.] Crofters (Scotland) Act 1955 and the Small Landholders (Scotland) Acts 1886 to 1931 respectively.