The Direct Payments to Farmers (Simplifications) Regulations (Northern Ireland) 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers conferred by section 50(3) and schedule 6 paragraphs 2, 4 and 5 of the Agriculture Act 2020 (c. 21) in order to make provision in retained EU law governing the direct payment schemes.

Part 2 amends Regulation (EU) No 1307/2013 (the “Direct Payments Regulation”), Regulations (EU) 1306/2013, 639/2014, 640/2014, 641/2014, 809/2014 and the Common Agricultural Policy Basic Payment and Support Schemes Regulations (Northern Ireland) 2015 to remove the Greening requirements for the 2021 scheme year and incorporate the Greening Payment into Basic Payment Scheme (BPS) entitlement unit values. However the ban on ploughing or conversion of Environmentally Sensitive Permanent Grassland is retained as condition of receiving BPS.

Part 3 amends the Direct Payments Regulation to limit the number of entitlements that can be allocated or topped up from the Regional Reserve to 90 for each application, bringing it into line with the Young Farmers Payment. It also limits to 3, the number of times an applicant and the number of times a farm business can submit an application for the Young Farmers Payment and the Regional Reserve.

Part 4 amends Regulation No 640/2014 to remove offset penalties by limiting over declaration penalties to 100% of the amount due based on the area determined (prior to penalty).

Part 5 amends Regulation (EU) 1306/2013, the Direct Payments Regulation and the Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 to make changes to the definition of a farmer and holding so that it is confined to Northern Ireland. This means that in future farmers will make applications to DAERA in relation to land in Northern Ireland and to the relevant authority in relation to land located elsewhere. This change is necessary given that agricultural support policy will diverge in the UK in future. Farmers who have land in Northern Ireland and the Republic of Ireland will continue to make separate applications to the relevant authorities in respect of where land is located.

Part 6 amends the Direct Payments Regulation and the Common Agricultural Policy Basic Payment and Support Schemes Regulation (Northern Ireland) 2015 to make a technical adjustment to capping levels for the 2021 scheme year. This will ensure that the removal of the Greening Payment and the corresponding increase in the Basic Payment will have a largely neutral impact on the deductions made due to capping.

Part 7 amends Regulations (EU) 809/2014 and 908/2014 to set the minimum inspection rate for area related schemes at 1%.

Part 8 amends the Direct Payments Regulation, Commission Delegated Regulation (EU) No 640/2014 and Commission Delegated Regulation (EU) No 639/2014 in relation to coupled support so that it can be used in the future to introduce coupled support schemes in Northern Ireland. The changes include the replacement of the Defra Secretary of State with DAERA as regards regulation making power as future schemes will be the sole responsibility of DAERA.

Part 9 amends the Direct Payments Regulation to remove references to Article 47 of the Direct Payments Regulation as that article relates to the Greening Payment which is being incorporated into the Basic Payment Scheme by Part 2. It also removes the limit of 3% on the increase of the Basic Payment Scheme to provide more flexibility on maximising expenditure within the budget allocation.