The Common Agricultural Policy (Simplifications and Improvements) (Miscellaneous Amendments) (Scotland) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make simplifications and improvements to the retained EU law relating to the operation of Common Agricultural Policy (CAP) schemes in Scotland from 2021 onwards.

EU legislation governing the 2020 CAP direct payment schemes became part of domestic law in the UK on exit day (31 January 2020) under section 1 of the Direct Payments to Farmers (Legislative Continuity) Act 2020 (c.2) (“the 2020 Act”).

All other EU legislation governing CAP schemes will become domestic law on IP completion day under the European Union (Withdrawal) Act 2018 (c.16) (“the 2018 Act”). “IP completion day” means 31 December 2020 at 11.00pm (see section 1A(6) of the 2018 Act and section 39(1) to (5) of the European Union (Withdrawal Agreement) Act 2020 (c.1)).

The law that became domestic law on exit day included EU ‘horizontal’ rules that apply to a range of CAP schemes, so far as those rules related to that domestic law. EU rules require to be modified, or deficiency fixed, in order to be effective as domestic law. Direct payment rules have been modified under the 2020 Act, and all other CAP rules are prospectively modified with effect from IP completion day under the 2018 Act.

It follows that there will be two versions of (for example) Commission Implementing Regulation (EU) No 809/2014: a ‘direct payments’ version as currently in force, and a ‘rural development’ version that will have effect from IP completion day. The changes in this instrument from IP completion day will affect both versions.

Regulation 2(2) amends the definition of “farmer” and “holding” under Regulation (EU) No 1307/2013 (the “Direct Payments Regulation”) so that the definitions extend only to those operating in Scotland, rather than the United Kingdom. This simplifies CAP schemes by removing the concept of cross border applications within the United Kingdom after EU Exit such that the Scottish Government’s Rural Payments and Inspections Division will only be responsible for processing applications related to agricultural activities taking place in Scotland. Reglation 3(4) amends the definition of “holding” in Regulation (EU) No 1306/2013 (the “Horizontal Regulation”) for the same purpose. Regulation 6 amends the Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 to remove related domestic provisions that enable cross border applications.

Regulations 2(3) and (4) simplify and improve the Direct Payments Regulation by removing crop diversification as one of the agricultural practices deemed as beneficial for the climate and the environment (known as “greening”) under the Basic Payment Scheme, the main system of direct payments operating in Scotland. Regulation 4 amends Commission Delegated Regulation (EU) No 639/2014, regulation 5 amends the Common Agricultural Policy (Direct Payments etc.) (Scotland) Regulations 2015, regulations 7(4)(b), (10) and (11) amend Regulation (EU) No 809/2014, and regulations 9(2), (4) to (6) amend Regulation (EU) No 640/2014 to remove related provisions that flow from the crop diversification requirement.

Regulations 3(2) and (3) amend the Horizontal Regulation, regulations 7(2) to (4)(a), (5) to (9), (12) and (13) amend Regulation (EU) No 809/2014, and regulation 8 amends Regulation (EU) No 2020/532, to simplify and improve the operation of on-the-spot checks that are undertaken as part of CAP schemes.

Regulation 9(3) makes minor amendments to Regulation (EU) No 640/2014 with regard to quality assessment of the land parcel identification system.

No business and regulatory impact assessment has been prepared in relation to these Regulations as no impact upon business, charities or voluntary bodies is foreseen.

The removal of the crop diversification requirement was subject to a Strategic Environmental Assessment pre-screening report. These Regulations will have no significant impact on the environment.