The Common Agricultural Policy Single Farm Payment and Support Schemes (Scotland) Regulations 2005

Prospective

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision in Scotland for the administration of Council Regulation (EC) No. 1782/2003 (O.J. No. L 270, 21.10.2003, p.1; “the Council Regulation”), Commission Regulation (EC) No. 795/2004 (O.J. No. L 141, 30.4.2004, p.1; “Regulation 795/2004”) and Commission Regulation (EC) No 796/2004 (O.J. No. L 141, 30.4.2004, p.18; “Regulation 796/2004”) in relation to establishing a new system of direct support schemes (including the Single Farm Payment Scheme) which came into force on 1st January 2005 under the Common Agricultural Policy.

They also make provision in Scotland for the administration of Commission Regulation (EC) No. 1973/2004 (O.J. No. L 345, 20.11.2004, p.1; “Regulation 1973/2004”) and implement Chapter 16 of that Regulation in relation to the obligation to set aside land under the new Single Farm Payment Scheme. These provisions also implement part of Regulation 795/2004.

In addition, the Regulations establish the Scottish Beef Calf Scheme (“the Beef Calf Scheme”), which is an additional payment under Article 69 of the Council Regulation and Article 48 of Regulation 795/2004 which is to be funded from a retention from the regional ceiling for Scotland in respect of the beef sector of the Single Farm Payment.

In relation to the Single Farm Payment Scheme these Regulations–

(a) define Scotland as a region for the purposes of Article 58 of the Council Regulation (regulation 3);

(b) designate the Scottish Ministers as the competent authority for the purposes of sending out in the first year of application of the single payment scheme an application form to farmers, and provide for deadlines in relation to hardship applications and the national reserve under Articles 40 and 42 of the Council Regulation respectively (regulation 4);

(c) prescribe the minimum size of a holding in respect of which the establishment of entitlements may be requested (regulation 5);

(d) fix the beginning and end of the period in which the parcels declared corresponding to the eligible hectares shall be at the farmers disposal for a period of at least 10 months (regulation 6);

(e) exercise the derogation in Article 62 of the Council Regulation to include the amounts resulting from the dairy premium and the additional premium at a regional level, in full, in the single payment scheme starting from 2005 (regulation 7);

(f) provide that secondary crops may be cultivated on eligible hectares during a maximum period of three months beginning each year on 15th August (regulation 8);

(g) provide that transfers of payment entitlements must be communicated to the transferor to the relevant competent authority no later than 6 weeks before the transfer is to take place and no later than 6 weeks before the last day for submission of the single application (regulation 9).

Regulation 10 enables the Scottish Ministers to deduct a sum equal to a specified proportion (3.5% in the year 2005, and 4.5% in the year 2006) from the total amount which would have been granted to the farmer under the income support schemes in Annex I to the Council Regulation, to implement Commission Regulation (EC) No 1655/2004(O.J. No. L 298, 23.9.2004, p.3). The amounts deducted are applied for the relevant purposes as additional support for rural development measures.

Part 4 (regulations 11 to 15) and Schedules 1 and 2 concern the obligation to set aside land under the new Single Farm Payment Scheme.

Regulation 11 derogates from the provisions of Article 54(4) of the Council Regulation that provide for set aside areas to be not less than 0.1 hectares in size and 10 metres wide. It adds a category which can be only 0.05 hectares in size and 6 metres wide provided certain conditions are met as stated in regulation 11.

Regulation 12, as read with Schedules 1 and 2, lays down the good agricultural and environmental conditions that apply to land set aside under the Scheme. These apply in addition to the good agricultural and environmental conditions that apply by virtue of the Common Agricultural Policy Single Payment and Support Schemes (Cross Compliance) (Scotland) Regulations 2004 (S.S.I. 2004/518; “the Cross-Compliance Regulations”).

Regulation 13 allows farmers to apply for land that cannot be set aside under the Single Farm Payment Scheme to be counted as land that can be set aside under that scheme. Article 33 of Regulation 795/2004 lays down the cases in which this may be permitted. In some cases, this may involve an exchange of land.

Regulation 14 lays down provisions relating to raw materials grown on land which is set aside for the provision of materials for the manufacture within the European Community of products not primarily intended for human or animal consumption (“raw materials produced for non-food purposes”)–

(a) it lays down provisions relating to the weighing of certain raw materials produced for non-food purposes where they are to be used as fuel for heating, or are to be used for producing power, biofuels or biogas, on the holding on which they are grown;

(b) it lays down the method of denaturing to be applied to cereals and oilseeds where they are to be used as fuel for heating, or are to be used for producing power or biofuels, on the holding on which they are grown;

(c) it lays down the last date for submission of the single application in the year of application as the last day by which contracts made between farmer and collectors or processors in respect of raw materials produced for non-food purposes must be deposited and the date of 31st January of the following year as the last day by which certain information relating to those materials must be supplied.

Regulation 15 lays down the records that must be kept by collectors and first processors in respect of any raw materials produced for non-food purposes purchased by them and the period during which such records should be kept.

Part 5 (regulations 16 to 18) applies where an applicant uses areas covered by the aid provided for in Article 88 of the Council Regulation (aid for energy crops) for the growing of agricultural raw materials under Article 24 of Regulation 1973/2004 and provide that–

(a) the Scottish Ministers are the competent authority for the purposes of Chapter 8 of Commission Regulation 1873/2004 (Aid for energy crops) (regulation 16(2));

(b) the minimum cultivated area for such raw material shall be 0.1 hectare (regulation 17(1));

(c) that the Scottish Ministers must notify the farmers concerned where they exclude any agricultural raw material from aid for energy crops (regulation 17(2)).

(d) for the requirements for the weighing of such raw materials to which Article 25(2)(b) of Regulation 1973/2004 applies (regulation 17(3));

(e) for the method of denaturing to be applied to cereals, oilseeds and oil produced by processing oilseeds where they are to be used for any of the purposes specified in Article 25(4) of Regulation 1973/2004 (regulation 17(4));

(f) for the last date on which a contract may be deposited, to be the last day for submitting the relevant single application and for 9th February of the following year to be the last day by which certain information may be provided (regulation 17(5) and (6)).

Regulation 18 lays down the records that must be kept by processors in respect of any such raw materials purchased by them and the period for which records should be kept.

Part 6 (regulations 19 to 25) and Schedules 3 and 4 establish the Scottish Beef Calf Scheme (“the Beef Calf Scheme”). They provide for the conditions for payment under, and for the administration of, the Beef Calf Scheme, including submission of applications for Beef Calf Scheme payments (regulation 20). The rules set out the conditions of eligibility for an animal which can be claimed under that scheme (regulation 21) and the basis on which the Scottish Ministers may determine payments under that scheme (regulation 22).

The Common Agricultural Policy Single Payment and Support Schemes (Integrated Administration and Control System) Regulations 2005 (S.I. 2005/218) do not apply to the Beef Calf Scheme. The Regulations accordingly provide, in relation the Beef Calf Scheme, for scheme penalties for claiming ineligible animals (regulation 23), exceptions from those penalties (regulation 24) and administration and enforcement provisions (Schedule 4). Those provision comprise powers of entry, inspection and collection of evidence conferred on authorised persons, the withholding or recovery of payments where there is a breach of scheme rules, including provision for setting off debts and interest on overpayments and recoveries, and for offences and penalties.

Regulation 26 amends the Cross-Compliance Regulations. The amendments clarify the enforcement powers under those Regulations in relation to land set aside from production. They insert provisions to give the Scottish Ministers the power to prohibit farmers from converting land under permanent pasture (and to oblige farmers to reconvert land to permanent pasture) where the exercise of powers these is necessary in order for the United Kingdom to meet the requirements of Article 5(2) of the Council Regulation and Articles 3 and 4 of the Commission Regulation. The amendments also correct a provision of the Schedule to those Regulations.

Regulation 27 revokes the provisions specified in Schedule 5, subject to the savings provisions set out in regulation 27(2) to (6).

Payments under all of the Schemes for which provision is made in these Regulations are subject to penalties for non-compliance with the requirements of good agricultural and environmental condition and the statutory management requirements set out in Annex III of the Council Regulation under the Cross Compliance Regulations, the Council Regulation and Regulation 796/2004 as direct subsidy payments under the Common Agricultural Policy listed in Annex I to the Council Regulation.

Regulatory Impact Assessments have been prepared and placed in the Scottish Parliament Information Centre. Copies can be obtained from the Scottish Executive Environment and Rural Affairs Department, Pentland House, 47 Robb’s Loan, Edinburgh EH14 1TY.