The Agricultural Holdings (Units of Production) (England) Order 2004

Statutory Instruments

2004 No. 1811

LANDLORD AND TENANT, ENGLAND

The Agricultural Holdings (Units of Production) (England) Order 2004

Made

13th July 2004

Laid before Parliament

14th July 2004

Coming into force

12th September 2004

The Secretary of State for Environment, Food and Rural Affairs, in exercise of the powers conferred by paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986(1), and now vested in her(2), makes the following Order:

Title, commencement and interpretation

1.—(1) This Order may be cited as the Agricultural Holdings (Units of Production) (England) Order 2004 and shall come into force on 12th September 2004.

(2) Any reference in this Order to a Community instrument is a reference to that instrument and any amendment of such instrument in force on the date this Order is made.

(3) In this Order—

“Council Regulation 2529/01” means Council Regulation (EC) No. 2529/01 on the common organisation of the market in sheepmeat and goatmeat(3);

“Council Regulation 1251/99” means Council Regulation (EC) No. 1251/99 establishing a support system for producers of certain arable crops(4);

“Council Regulation 1254/99” means Council Regulation (EC) No. 1254/99 on the common organisation of the market in beef and veal(5).

Assessment of productive capacity of land

2.—(1) Paragraphs (2) and (3) of this article have effect for the purpose of the assessment of the productive capacity of a unit of agricultural land situated in England, in order to determine whether that unit is a commercial unit of agricultural land within the meaning of sub-paragraph (1) of paragraph 3 of Schedule 6 to the Agricultural Holdings Act 1986.

(2) Where the land in question is capable, when farmed under competent management, of being used to produce any livestock, crop, fruit or miscellaneous product as is mentioned in any of the entries 1 to 6 in column 1 of the Schedule to this Order, then—

(a) the unit of production prescribed in relation to that use of the land shall be the unit in the entry in column 2 of that Schedule opposite to that entry, and

(b) the amount determined, for the period of 12 months beginning with 12th September 2004, as the net annual income from that unit of production in that period shall be the amount in the entry in column 3 of that Schedule opposite to that entry as read with any relevant note to that Schedule.

(3) Where land capable, when farmed under competent management, of producing a net annual income is in receipt of hill farm allowance or is designated as set aside land, as is mentioned in entries 7 and 8 in column 1 of the Schedule to this Order, then—

(a) the unit of production prescribed in relation to that use of the land shall be the unit in the entry in column 2 of that Schedule opposite to that entry, and

(b) the amount determined, for the period of 12 months beginning with 12th September 2004, as the net annual income from that unit of production in that period shall be the amount in the entry in column 3 of that Schedule opposite to that entry.

Revocation

3.  The Agricultural Holdings (Units of Production) (England) Order 2003(6)is revoked.

Whitty

Parliamentary Under Secretary of State,

Department for Environment, Food and Rural Affairs

13th July 2004

Article 2

SCHEDULE PRESCRIBED UNITS OF PRODUCTION AND DETERMINATION OF NET ANNUAL INCOME

Column 1			Column 2	Column 3
Farming use			Unit of production	Net annual income from unit of production
NOTES TO THE SCHEDULE
(1) Deduct £135 from the figure in column 3 in the case of animals for which the net annual income does not include a sum in respect of the premium for maintaining suckler cows (suckler cow premium) provided for in Article 6 of Council Regulation 1254/99 on the common organisation of the market in beef and veal. Add £27 to the figure in column 3 in the case of animals for which the net annual income includes a sum in respect of the lower rate of extensification premium provided for in Article 13 of Council Regulation 1254/99. Add £54 to the figure in column 3 in the case of animals for which the net annual income includes a sum in respect of the higher rate of extensification premium provided for in Article 13 of Council Regulation 1254/99.
(2) This is the figure for animals which would be kept for 12 months. Deduct £115 in the case of animals which are kept for 12 months and for which the net annual income does not include a sum in respect of the special premium for holding male bovine animals (beef special premium) provided for in Article 4 of Council Regulation 1254/99. Add £27 to the figure in column 3 in the case of animals which are kept for 12 months and for which the net annual income includes a sum in respect of the lower rate of extensification premium. Add £54 to the figure in column 3 in the case of animals which would be kept for that period and for which the net annual income includes a sum in respect of the higher rate of extensification premium. In the case of animals which are kept for less than 12 months and for which the net annual income does not include a sum in respect of beef special premium, the net annual income is to be calculated by deducting £115 from the figure in column 3 and then making a pro rata adjustment of the resulting figure. In the case of animals which are kept for less than 12 months and for which the net annual income includes a sum in respect of beef special premium, the net annual income is to be calculated by first deducting £115 from the figure in column 3, then making a pro rata adjustment of the resulting figure, then adding to that figure the sum of £115 and (where the net annual income includes a sum in respect of extensification premium) the sum of £27 (where the extensification premium is paid at the lower rate) or £54 (where the extensification premium is paid at the higher rate).
(3) This indicates the figure for animals (irrespective of age) which would be kept for 12 months. In the case of animals which are kept for less than 12 months a pro rata adjustment of this figure is to be made.
(4) Deduct £19 from the figure in column 3 in the case of animals for which the net annual income does not include a sum in respect of the premium for offsetting income loss sustained by sheep meat producers (sheep annual premium) provided for in Articles 4 and 5 of Council Regulation 2529/01 on the common organisation of the market in sheepmeat and goatmeat.
(5) Deduct £15 from the figure in column 3 in the case of animals for which the net annual income does not include a sum in respect of sheep annual premium.
(6) Deduct £ 238 from the figure in column 3 in the case of land for which the net annual income does not include a sum in respect of the compensatory payment for which producers of arable crops may apply (area payment) provided for in Article 2 of Council Regulation 1251/99.
(7) Deduct £ 274 from the figure in column 3 in the case of land for which the net annual income does not include a sum in respect of area payment
(8) Deduct £ 238 from the figure in column 3 in the case of land for which the net annual income does not include a sum in respect of area payment.
(9) Deduct £ 238 from the figure in column 3 in the case of land for which the net annual income does not include a sum in respect of area payment.
(10) Deduct £ 274 from the figure in column 3 in the case of land for which the net annual income does not include a sum in respect of area payment.
(11) Deduct £ 238 from the figure in column 3 in the case of land for which the net annual income does not include a sum in respect of area payment.
				£
1.	Livestock
	Dairy cows (other than Channel Islands breeds)		cow	260
	Beef breeding cows:
		On less favoured area land under the Hill Farm Allowance Regulations 2004(7)	cow	31(1)
		On other land	cow	80(1)
	Beef fattening cattle (semi-intensive)		head	63(2)
	Dairy replacements		head	45(3)
	Ewes:
		On less favoured area land under the Hill Farm Allowance Regulations 2004	ewe	14(4)
		On other land	ewe	21(5)
	Store lambs (including ewe lambs sold as shearlings)		head	1.05
	Pigs:
		Sows and gilts in pig	sow or gilt	95
		Porker	head	1.90
		Cutter	head	3.50
		Bacon	head	5.50
	Poultry:
		Laying hens	bird	1.25
		Broilers	bird	0.15
		Point-of-lay pullets	bird	0.30
	Christmas Turkeys		bird	3.00
2.	Farm arable crops
	Barley		hectare	199(6)
	Beans		hectare	175(7)
	Herbage seed		hectare	120
	Oats		hectare	131(8)
	Oilseed rape		hectare	188(9)
	Peas:
		Dried	hectare	201(10)
		Vining	hectare	175
	Potatoes:
		First early	hectare	900
		Maincrop (including seed)	hectare	780
	Sugar Beet		hectare	270
	Wheat		hectare	266(11)
3.	Outdoor horticultural crops
	Broad beans		hectare	575
	Brussel sprouts		hectare	1600
	Cabbage, savoys and sprouting broccoli		hectare	2000
	Carrots		hectare	3100
	Cauliflower and winter broccoli		hectare	1000
	Celery		hectare	8000
	Leeks		hectare	3600
	Lettuce		hectare	4150
	Onions:
		Dry bulb	hectare	1305
		Salad	hectare	3800
	Parsnips		hectare	3250
	Rhubarb (natural)		hectare	6900
	Turnips and swedes		hectare	1500
4.	Orchard fruit
	Apples:
		Cider	hectare	380
		Cooking	hectare	1250
		Dessert	hectare	1400
	Cherries		hectare	900
	Pears		hectare	1000
	Plums		hectare	1250
5.	Soft fruit
	Blackcurrants		hectare	850
	Raspberries		hectare	3100
	Strawberries		hectare	4200
6.	Miscellaneous
	Hops		hectare	1700
7.	Forage Land
	Eligible forage area as described in regulation 7 of the Hill Farm Allowance Regulations 2004		hectare	The amount of hill farm allowance required to be paid under the Hill Farm Allowance Regulations 2004
8.	Set-aside
	Land which is set-aside under Article 2(3) of Council Regulation 1251/99, except where such land is used (in accordance with Article 6(3) of Council Regulation 1251/99) for the provision of materials for the manufacture within the Community of products not primarily intended for human or animal consumption		hectare	37

Explanatory Note

(This note is not part of the Order)

This Order prescribes units of production for the assessment of the productive capacity of agricultural land situated in England and sets out the amount which is to be regarded as the net annual income from each such unit for the year 12th September 2004 to 11th September 2005 inclusive. This Order revokes the Agricultural Holdings (Units of Production) (England) Order 2003.

An assessment of the productive capacity of agricultural land is required in determining whether or not the land in question is a “commercial unit of agricultural land” for the purposes of the succession provisions in the 1986 Act: see in particular sections 36(3) and 50(2). A “commercial unit of agricultural land” is land which, when farmed under competent management, is capable of producing a net annual income which is not less than the aggregate of the average annual earnings of two full-time male agricultural workers aged 20 years or over (paragraph 3 of Schedule 6 to the 1986 Act). In determining this annual income figure, neither the system of farming carried out on a particular holding nor historical data from that holding will necessarily be used. Instead, whenever a particular farming use mentioned in column 1 of the Schedule to this Order is relevant to this determination, the units of production and the net annual income specified in columns 2 and 3 respectively will form the basis of the assessment of the productive capacity of the land in question.

The net annual income figures in column 3 of the Schedule describe the net annual income from one unit of production. In some cases the net annual income is derived from a unit which will be on the land for the full twelve-month period. In other cases the net annual income is derived from a unit which will be on the land for only part of the year, and there may be more than one production cycle in the twelve-month period. The assessment of the productive capacity of the land will take account of the total production in the course of a year.

(1)

1986 c. 5; section 96(1) of the Act defines “the Minister”.

(2)

In relation to England, the functions previously vested in the Minister of Agriculture, Fisheries and Food are vested in the Secretary of State - see article 5(1) of, and paragraph 27 of Schedule 1 to, the Ministry of Agriculture, Fisheries and Food (Dissolution) Order 2002 (S.I. 2002/794).

(3)

OJ No. L341, 22.12.01, p.3, as amended by Council Regulation (EC) No. 1782/03 (OJ No. L270, 21.10.03, p.1).

(4)

OJ No. L160, 26.6.99, p.1, as last amended by Council Regulation (EC) No. 1782/03 (OJ No. L270, 21.10.03, p.1).

(5)

OJ No. L160, 26.6.99, p.21, as last amended by Council Regulation (EC) No. 1782/03 (OJ No. L270, 21.10.03, p.1).

(6)

S.I. 2003/2151.

(7)

S.I. 2004/145