The Farm and Conservation Grant Regulations 1991

Restrictions on approval of improvement plans

6.—(1) The appropriate Minister shall not approve an improvement plan under these Regulations unless he is satisfied that the investments to be made under the plan are justified from the point of view of the situation of the agricultural business and its economy and that implementation of the plan—

(a) will bring about a lasting improvement of that situation and in particular of the income per labour unit reasonably required in the carrying on of the business, or

(b) is necessary for maintaining the present level of income per labour unit so required.

(2) The appropriate Minister shall not approve an improvement plan under these Regulations unless he is satisfied that if it is completed—

(a) the agricultural business to which it relates may reasonably be expected to achieve an earned income per labour unit which amounts to not more than 120 per cent. of the aggregate of—

(i) the reference income determined in accordance with regulation 14(a) in respect of the calendar year in which the plan is submitted for approval or such other year as that Minister may for that purpose allow, and

(ii) annual increases at least equal to the annual percentage increases determined in accordance with regulation 14(b) in respect of each of the remaining calendar years in the period during which the plan is to be carried out (if any); and

(b) not less than half a labour unit may reasonably be expected to be required in the carrying on of the agricultural business to which the plan relates.

(3) The appropriate Minister shall not approve for the purposes of grant an improvement plan in so far as it includes—

(a) proposed expenditure in connection with the breeding or keeping of pigs unless that Minister is satisfied—

(i) that the plan provides that on its completion not less than 35 per cent. of the feeding stuffs required for the pigs kept on that land can be produced therefrom, and

(ii) that such expenditure will not entail an increase in production;

(b) proposed expenditure in connection with the breeding or keeping of poultry or the production of eggs;

(c) proposed expenditure in connection with the breeding or keeping of dairy cows unless that Minister is satisfied that the effect of such expenditure will not be to exceed the quota, as defined in the Dairy Produce Quotas Regulations 1989(1), of the person carrying on the agricultural business to which the plan relates, and—

(i) that such expenditure will not make possible an increase in the number of dairy cows kept on the land occupied for the purposes of the agricultural business to which the plan relates on completion of the plan to more than 40 dairy cows per labour unit reasonably required for that business under the system of production then existing up to a maximum of 1.5 labour units, or

(ii) in the case of an agricultural business which in the opinion of that Minister reasonably requires more than 1.5 labour units under the existing system of production and in the carrying on of which dairy cows were kept at the date of submission of the plan for approval, or of a request for variation of such an approval, that such expenditure will not make possible an increase of more than 15 per cent. in the number of dairy cows so kept at that date;

(d) proposed expenditure in connection with the breeding or keeping of beef livestock, unless that Minister is satisfied—

(i) that after completion of the work, facility or transaction to which the expenditure relates, the number of such livestock kept on the land occupied for the purposes of the agricultural business to which the plan relates will not exceed the equivalent of three livestock units for every hectare of that land comprising forage area, or

(ii) that such expenditure is in respect of any work, facility or transaction which has the effect of safeguarding the environment, or

(iii) that, where a plan submitted for approval is received before 1st January 1992 such expenditure will not entail an increase in production;

(e) proposed expenditure in relation to the provision of horses and ponies for hir outside a less-favoured area;

(f) proposed expenditure in relation to the purchase of land;

(g) proposed expenditure in connection with any work, facility or transaction—

(i) which is of a kind specified in item 7(a) to (d) in column 2 of Schedule 2 in respect of an ancillary farm business of a kind specified in paragraph 5 of column 1 thereof (provision of facilities for sports and recreation); or

(ii) which is of a kind specified in item 6(b) or (c) in column 2 of Schedule 2 in respect of an ancillary farm business of a kind specified in paragraph 6 of column 1 thereof (provision of educational facilities relating to farming and the countryside and to farm-based industry); or

(iii) which is necessary or incidental to the carrying out of any work, facility or transaction of a kind mentioned in (i) and (ii) above for any of the purposes there mentioned,

where that work, facility or transaction is to be carried out on any set-aside land within the meaning of the Set-Aside Regulations 1988(2).

(4) For the purposes of paragraph (3) above—

“beef livestock” means bovine animals which by reason of their breed or suitability are exclusively or principally kept for the production of meat either for human consumption or for processing into meat products;

“dairy cows” means cows which have calved and which by reason of their breed or suitability are exclusively or principally kept for the production of milk either for human consumption or for processing into milk products;

“forage area” means, in relation to land occupied for the purposes of the agricultural business to which the plan relates, so much of that land as is used for grazing by, or producing the feeding stuffs for, the beef livestock; and

“livestock unit” means one bovine animal over two years old, and a bovine animal under two years old but over six months old shall be taken to be 0.6 of a livestock unit.

(5) The appropriate Minister shall not approve for the purposes of grant an improvement plan in so far as it includes—

(a) proposed expenditure amounting in aggregate to less than £1,500;

(b) proposed expenditure to be incurred more than six years from the date of approval of the plan;

(c) proposed expenditure amounting in aggregate to more than £85,000 unless the excess expenditure is in respect of any work, facility or transaction of a kind specified in paragraph 5 in column 1 of Schedule 3;

(d) proposed expenditure which, in the opinion of the appropriate Minister, would in any six-year period exceed the amount permitted in accordance with sub-paragraph (c) above when added to other expenditure—

(i) which has been incurred in the six-year period in question, and

(ii) which is included in any previous improvement plan, relating to the same agricultural business, approved under these Regulations or the 1985 Regulations or the 1989 Regulations or towards which grant is payable or has been paid under the 1985 Scheme or the 1989 Scheme;

(e) proposed expenditure amounting in aggregate to more than £42,500 for each labour unit which, in the opinion of the appropriate Minister, can reasonably be expected to be required at the completion of the plan unless the excess expenditure is in respect of any work, facility or transaction of a kind specified in paragraph 5 in column 1 of Schedule 3;

(f) proposed expenditure which, in the opinion of the appropriate Minister, would in any six-year period exceed the amount permitted per labour unit in accordance with sub-paragraph (e) above when added to other expenditure—

(i) which has been incurred in the six-year period in question, and

(ii) which is included in any previous improvement plan, relating to the same agricultural business, approved under these Regulations or the 1985 Regulations or the 1989 Regulations or towards which grant is payable or has been paid under the 1985 Scheme or the 1989 Scheme;

(g) proposed expenditure in connection with any work, facility or transaction of a kind specified in column 2 of Schedule 2 amounting in aggregate to more than £40,000;

(h) proposed expenditure in connection with any work, facility or transaction of a kind specified in column 2 of Schedule 2 which, in the opinion of the appropriate Minister, would in any six-year period exceed the amount permitted in accordance with sub-paragraph (g) above when added—

(i) to other such expenditure which has been incurred in the six-year period in question, and which is included in any previous improvement plan relating to the same agricultural business approved under these Regulations, and

(ii) to other expenditure which has been incurred in the six-year period in question, and which is included in any Farm Diversification Plan relating to that business approved under the 1987 Scheme.

(6) For the purposes of paragraph (5)(d) and (f) above “other expenditure” does not include expenditure incurred in respect of any work, facility or transaction (relating to flood protection works in Scotland and shelter hedges in the Isles of Scilly)—

(a) of a kind specified in paragraph 9 in column 1 of Schedule 1 or paragraph 5 in column 1 of Schedule 1A to the 1985 Scheme;

(b) of a kind specified in paragraph 9 in column 1 of Schedule 1 or paragraph 5 in column 1 of Schedule 2 to the 1989 Scheme;

(c) of a kind specified in paragraph 5 in column 1 of Schedule 3 to these Regulations;

(d) of a kind specified in paragraph 5 in column 1 of Schedule 2 to the 1985 Regulations;

(e) of a kind specified in paragraph 5 in column I of Schedule 2 to the 1989 Regulations.

(7) Where the agricultural business to which the improvement plan relates includes the breeding or keeping of poultry or the production of eggs, or the processing or treatment of poultry meat or of eggs, work done in carrying on that part of the agricultural business shall be disregarded for the purposes of calculating the number of labour units under paragraph (5)(e) or (f) above.

(8) Paragraph (5)(g) and (h) above shall not apply in relation to any eligible expenditure incurred in connection with the preparation of improvement plans where such plans include works, facilities or transactions specified in both Schedule 1 and Schedule 2, or Schedule 2 and Schedule 3 as the case may be.

(9) The appropriate Minister shall not approve an improvement plan under these Regulations if the agricultural business to which the plan relates—

(a) has been the subject of two previous improvement plans received within the preceding six years and approved under these Regulations or the 1985 Regulations or the 1989 Regulations, or

(b) is the subject of a current development plan approved under the 1980 Regulations or the 1981 Regulations or a current improvement plan approved under these Regulations or the 1985 Regulations or the 1989 Regulations.

(10) The appropriate Minister may make the approval of an improvement plan under these Regulations subject to such conditions as he thinks fit.

(1)

S.I. 1989/380, amended by S.I. 1990/132, 664, 784.

(2)

S.I. 1988/1352, amended by S.I. 1989/1042, 1990/1716.