The Farm and Conservation Grant Regulations 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations implement provisions in Title 1 of Council Regulation (EEC) No. 797/85 (OJ No. L93, 30.3.85, p. 1) on improving the efficiency of agricultural structures (as amended by Council Regulations (EEC) Nos. 1760/87 (OJ No. L167, 26.6.87, p. 1), 1137/88 (OJ No. L108, 29.4.88, p.1), 2156/89 (OJ No. L207, 19.7.89, p. 12) and 3808/89 (OJ No. L371,20.12.89, p. 1)), and Article 1 of Council Directive No. 75/268/EEC (OJ No. L128, 19.5.75, p. 1) on mountain and hill farming and farming in certain less-favoured areas, as amended by Council Regulation (EEC) No. 797/85.

The Regulations, which apply to Great Britain, make provision for aid for agricultural businesses, including aid for the diversification of such businesses by the establishment and carrying on of ancillary farm businesses, in the form of grants in respect of expenditure of a capital nature incurred in pursuance of approved improvement plans (regulation 9). The works, facilities and transactions eligible for grant and the rates of grant applicable to them are set out (regulation 10 and Schedules 1 to 3). Higher rates of grant may be payable for agricultural businesses in the Isles of Scilly (regulation 10(6) and (7) and Schedule 3) and in other less-favoured areas (regulation 10(2) and (3) and Schedule 1) and for businesses carried on by young farmers or by partnerships in which young farmers are partners (regulation 10(8) to (10)). Less-favoured areas are defined by reference to designated maps. These maps have been prepared by reference to the list of less-favoured farming areas contained in Council Directive 84/169/EEC (OJ No. L82, 26.3.84, p. 67) as amended by Commission Decision 91/25/EEC (OJ No. L16, 22.1.91, p. 25). The maps are available for inspection during normal office hours at the addresses specified in the definition of designated maps (regulation 2(1)). Copies of the maps may be inspected during normal office hours at any Regional or Divisional Office of the Ministry of Agriculture, Fisheries and Food, at any Divisional Office of the Welsh Office Agriculture Department or at any Area Office of the Scottish Office Agriculture and Fisheries Department.

Grant aid is payable to eligible persons in respect of eligible agricultural businesses (regulations 3 and 4), and in respect of specified ancillary farm businesses (regulation 2(1) and Schedule 2). To benefit from assistance an applicant must submit an improvement plan for approval by the appropriate Minister (regulation 5). The investments proposed under the plan must be justified from the point of view of the situation of the agricultural business and its economy and the applicant must show that completion of the plan will bring about a lasting improvement of that situation, especially the income per labour unit required in carrying on the business, or is necessary for maintaining the income per labour unit so required (regulation 6(1)).

The Regulations also—

(a) impose certain other restrictions on approval of improvement plans (regulations 6(2) to (10));

(b) provide for the variation and withdrawal of improvement plans (regulation 8);

(c) provide for the keeping of accounts for the duration of improvement plans (regulations 5(3) and 11);

(d) provide for standard costs (regulation 13);

(e) provide for the reduction or withholding of grant in certain circumstances where it would otherwise be payable (regulation 15) and for the revocation of approval of an improvement plan and recovery of grant paid (regulations 16 and 17(6) and (7));

(f) create an offence, punishable on summary conviction with a fine not exceeding level 5 on the standard scale (currently £2,000), of knowingly or recklessly making a false statement to obtain grant, impose liability for that offence additionally on officers of a body corporateand set an extended time limit within which proceedings for the offence may be commenced (regulation 17(1) to (5));

(g) confer powers of entry (regulation 18);

(h) set a closing date of 31st December 1994 for receipt of applications for improvement plans (regulation 7);

(j) set closing dates for incurring certain expenditure (regulation 12(2)) and receipt of claims for certain grants (regulation 12(3)).

Amendments are also made to the Agriculture Improvement Regulations 1985 and the Farm and Conservation Grant Regulations 1989, being earlier Regulations relating to improving agricultural structures, to extend the areas of land which may be treated under those Regulations as less-favoured areas in accordance with Commission Decision 91/25/EEC (regulations 19(1) and 20(1)(a)). The amendments do not apply to claims for grant received before 18th July 1991 or claims towards expenditure incurred under those Regulations before 18th December 1990, the date of notification of the Commission Decision (regulations 19(2) and 20(2)). In respect of the Farm and Conservation Grant Regulations 1989, amendments are also made to increase the maximum limits of expenditure which is eligible for grant aid (regulation 20(1)(b)) and to introduce an earlier closing date of 17th July 1991 for receipt of applications for approval of improvement plan under those Regulations (regulation 20(1)(c)).