The SFGS Farmland Premium Scheme 2003

Explanatory Note

(This note is not part of the Scheme)

This Scheme extends to Scotland only. It provides for the payment of annual grants to abate financial losses incurred in consequence of the conversion of agricultural land (including common grazings) to use for woodlands. The Scheme complies with Council Regulation (EC) No. 1257/99 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAAGF).

This Scheme supersedes the Farm Woodland Premium Scheme 1997 (S.I. 1997/829) under which no further new applications may be accepted after the coming into force of this Scheme (paragraph 16 and Schedule 3, paragraph 2).

This Scheme provides for applications for grants in respect of eligible land (as defined in paragraph 2) to be made by occupiers of agricultural land carrying on agricultural businesses, and by grazings constables and grazings committees in respect of common grazings. An initial entrant must submit with the application a plan for the conversion of eligible land to woodlands, which must be consistent with proposals for conversion agreed by the applicant with the Forestry Commissioners for the purposes of the Scottish Forestry Grants Scheme (paragraph 3(1)). Where payment of grant is due under the Scheme in respect of converted land, or where the planned conversion has not yet been completed, a successor may apply for grant (paragraph 3(2)). An initial entrant must run an agricultural business, but is not required to maintain that agricultural business once the application has been approved, nor is a successor required to run an agricultural business. Every applicant is required to give undertakings with respect to the planned conversion, the management and use of the land to which the application relates and related matters (paragraph 8).

The Scheme also–

(a) excludes certain categories of land (paragraphs 5 and 6);

(b) imposes on Scheme participants maximum and minimum limits in relation to the amount of land which may be converted to woodlands. In establishing whether maximum limits are exceeded, the Scheme provides for consideration to be given to conversions anywhere in Scotland which can reasonably be regarded as falling within the same “holding”, a term which except in one respect, has the same meaning as in Council Regulation (EEC) 3508/92 (O.J. L 355, 5.12.92, p.1) which establishes an integrated administration and control system for certain Community aid schemes. In that Regulation, a holding means all production units managed by a farmer. However, in this Scheme, where an applicant lets land on a grazing or seasonal let and retains significant management functions, that land will be deemed to form part of the applicant’s holding, whether or not it would for the purposes of Council Regulation 3508/92 (paragraphs 2);

(c) classifies eligible land types into: arable land, improved land, and unimproved land (paragraphs 2, 9 and 10 and Schedules 1 and 2). Rates of grant depend on whether the eligible land is disadvantaged or severely disadvantaged land. Those categories of land are defined in paragraph 2 by reference to designated maps. The maps are available for inspection during normal office hours at the address specified in the definition;

(d) specifies the duration of payments and rates of grant according to the category of woodlands and the type of land from which they were converted. The rate of payment is capped where an applicant counts converted land as being set aside for the purposes of the set aside requirement of Article 6(1) of Council Regulation (EEC) 1251/99 as amended. In such cases the rate payable under this Scheme cannot exceed the compensatory payment provided for in relation to that land by Article 4(3) of that Regulation (paragraph 9);

(e) provides for the imposition, where certain financial conditions apply, of limits on the number of applications or approvals during any specified period of the Scheme (paragraph 12);

(f) permits participants to vary their plans with the consent of the Scottish Ministers (paragraph 13);

(g) provides for the withholding or recovery of grants and termination of participation in cases of false statements, failure to observe requirements or excess of area limits (paragraph 14); and

(h) requires participants to allow entry onto and inspection of their land by persons duly appointed by the Scottish Ministers, for the purposes of verifying accuracy of particulars and ensuring compliance with requirements (paragraph 15).

The scheme also amends the Farm Woodland Premium Scheme 1992 (S.I. 1992/905) and the Farm Woodland Premium Scheme 1997 (S.I. 1997/829) by amending the rates of payment under those Schemes.