The Common Agricultural Policy Basic Payment and Support Schemes (Wales) Regulations 2015

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision, in relation to Wales, for the administration of Regulation (EU) No 1307/2013 of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy (OJ No. L 347, 20.12.2013, p. 608) (“the Direct Payments Regulation”) and the three other associated EU Regulations referred to in regulation 2(1).

Regulation 3 specifies the minimum eligible area of a holding in respect of which direct payments may be granted to a farmer.

Regulation 4 fixes the date on which parcels used as the basis for a claim under the basic payment scheme must be at the disposal of farmers.

Regulation 5 specifies the activities a farmer must carry out in order to maintain an agricultural area in a state suitable for grazing or cultivation.

Regulation 6 specifies the minimum agricultural activity required to be carried out on land that is naturally kept in a state suitable for grazing or cultivation.

Regulation 7 designates the short rotation coppice trees eligible under the basic payment scheme and sets the maximum harvest cycle.

Regulation 8 provides for the basis on which an increase in direct payments to qualifying farmers aged 40 or less and participating in the young farmers schemes must be calculated.

Regulation 9 fixes the threshold at which agricultural activities will not be considered to be insignificant, sets out how a farmer demonstrates that his or her principal business consists of exercising an agricultural activity and provides for an exemption from the exclusion from eligibility for direct payments of a farmer who received EUR 5,000 or less of direct payments in the previous year.

Regulation 10 sets out how payment entitlements under the basic payment scheme will be allocated and fixes the date on which the number of eligible hectares must be at the disposal of farmers.

Regulation 11 sets out how payment entitlements under the basic payment scheme may be transferred via sale or lease and makes provision for the period within which a transferor must notify the Welsh Ministers of a transfer of payment entitlements.

Regulation 12 provides that the period within which the transferee of a holding must inform the Welsh Ministers of the transfer and request payment is 30 days beginning with the first day after the date of the transfer.

Regulation 13 sets out those non-agricultural activities which are permitted on an agricultural area for a period of up to 28 days per calendar year and designates those areas which are classed as being predominantly used for non-agricultural activities and are therefore ineligible for the purposes of the basic payment scheme.

Regulations 14 to 16 make provision relating to the “greening” component of direct payments, linking payments to agricultural practices beneficial for the climate and environment. Regulation 14 sets out the period to be taken into account for the purposes of determining whether crop diversification requirements have been met. Regulation 15 provides for the designation of permanent grasslands which are environmentally sensitive. Regulation 16 sets out the five areas which are to be Ecological Focus Areas (“EFAs”) and details the scope of the EFAs relating to land lying fallow, landscape features, areas of short rotation coppice, afforested areas and areas with nitrogen fixing crops.

Regulation 17 revokes Regulations which make provision in relation to Wales for the administration of the European Single Payment and Support Scheme but with a saving provision for the continued application of the Common Agricultural Policy Single Payment and Support Schemes (Wales) Regulations 2010 (S.I. 2010/1892 (W. 185)) in respect of aid applications relating to claim years before 2015.

A Regulatory Impact Assessment of the effects of these Regulations on the costs of business, in relation to farm businesses in Wales, has been prepared in respect of these Regulations. Copies can be obtained from the Department of Natural Resources, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.