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

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Welsh Statutory Instruments

2004 No. 1218 (W.133)

LANDLORD AND TENANT, WALES

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

Made

27th April 2004

Coming into force

30th April 2004

In exercise of the powers conferred by paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986(1), which are now vested in it(2), the National Assembly for Wales hereby makes the following Order:—

Title, commencement and interpretation

1.—(1) This Order is called the Agricultural Holdings (Units of Production) (Wales) Order 2004 and comes into force on 30th April 2004.

(2) Any reference in this Order to “the Schedule” is a reference to the Schedule to this Order.

(3) 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.

(4) In this Order:

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

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

“Council Regulation 1254/99” (“Rheoliad 1254/99 y Cyngor”) 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 Wales, 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, then —

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

(b)the amount determined, for the period of 12 months beginning with 12th September 2003, as the net annual income from that unit of production in that period shall be the amount specified in column 3 of the Schedule opposite that unit of production.

(3) Where land capable, when farmed under competent management, of producing a net annual income is the subject of Tir Mynydd payments or is designated as set aside land, as is mentioned in entries 7 and 8 in column 1 of the Schedule, then —

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

(b)the amount determined, for the period of 12 months beginning with 12th September 2003, as the net annual income from that unit of production in that period shall be the amount in the entry in column 3 of the Schedule opposite to that entry.

(4) The Schedule has effect subject to the Notes to the Schedule.

Revocation

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

Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998(7).

John Marek

The Deputy Presiding Officer of the National Assembly

27th April 2004

Articles 1(2) and 2

THE SCHEDULEPRESCRIBED UNITS OF PRODUCTION AND DETERMINATION OF NET ANNUAL INCOME

Column 1Column 2Column 3
Farming useUnit of productionNet annual income from unit of production
£

NOTES TO THE SCHEDULE

(1)

Deduct £124 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 £25 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 £50 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 are kept for 12 months.

Deduct £105 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 £25 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 £50 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 £105 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 £105 from the figure in column 3, then making a pro rata adjustment of the resulting figure, then adding to that figure the sum of £105 and (when the net annual income includes a sum in respect of extensification premium) the sum of £25 (when the extensification premium is paid at the lower rate) or £50 (when the extensification premium is paid at the higher rate).

(3)

This indicates the figure for animals (irrespective of age) which are 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 £18 from this figure 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 £14 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 £249 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 £288 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 £249 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 £250 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 £291 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 £250 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:
Channel Islands breedscow373
Other breedscow460
Beef breeding cows:
On eligible land under the Tir Mynydd (Wales) Regulations 2001(8)cow43(1)
On other landcow73(1)
Beef fattening cattle (semi-intensive)head75(2)
Dairy replacementshead35(3)
Ewes:
On eligible land under the Tir Mynydd Regulations (Wales) 2001.ewe11(4)
On other landewe19(5)
Store lambs (including ewe lambs sold as shearlings)head1.00
Pigs:
Sows and gilts in pigsow or gilt85
Porkerhead1.75
Cutterhead3.25
Baconhead5.00
Poultry:
Laying hensbird1.00
Broilersbird0.12
Point-of-lay pulletsbird0.25
Christmas turkeysbird2.00
2. Farm arable crops
Barleyhectare186(6)
Beanshectare169(7)
Herbage seedhectare100
Oatshectare190(8)
Oilseed rapehectare171(9)
Peas:
Driedhectare194(10)
Vininghectare175
Potatoes:
First earlyhectare800
Maincrop (including seed)hectare750
Sugar Beethectare240
Wheathectare223(11)
3. Outdoor horticultural crops
Broad beanshectare500
Brussels sproutshectare1400
Cabbage, savoys and sprouting broccolihectare1800
Carrotshectare2700
Cauliflower and winter broccolihectare975
Celeryhectare8000
Leekshectare3200
Lettucehectare4150
Onions:
Dry bulbhectare1305
Saladhectare3800
Parsnipshectare2850
Rhubarb (natural)hectare6000
Turnips and swedeshectare1300
4. Orchard fruit
Apples:
Ciderhectare380
Cookinghectare1150
Desserthectare1250
Cherrieshectare800
Pearshectare900
Plumshectare1150
5. Soft fruit
Blackcurrantshectare800
Raspberrieshectare3000
Strawberrieshectare4000
6. Miscellaneous
Hopshectare1700
7. Forage Land
Eligible land as described in regulation 2A of the Tir Mynydd (Wales) Regulations 2001hectarethe amount of the Tir Mynydd payment required to be paid under the Tir Mynydd (Wales) Regulations 2001
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 consumptionhectare51

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 Wales and sets out the amount which is to be regarded as the net annual income from each such unit for the year 12th September 2003 to 11th September 2004 inclusive.

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 Agricultural Holdings Act 1986: 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 that 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 specify 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.

(2)

By virtue of the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672), the functions of the Minister (defined in section 96(1) of the Act as the Secretary of State in relation to Wales) under paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986, were, so far as they were exercisable in relation to Wales, transferred to the National Assembly for Wales.

(3)

OJ No. L341, 22.12.01, p.3.

(4)

OJ No. L10, 26.6.99, p.1, as last amended by Council Regulation (EC) No. 1038/01 (OJ No. L145, 31.5.01, p.16).

(5)

OJ No. L160, 26.6.99, p.21, as last amended by Council Regulation (EC) No. 806/03 (OJ No. L122, 16.05.03, p.1).

(6)

S.I. 2003/4 (W.2).

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