The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers conferred by section 3(1), (7) and (9) of the Direct Payments to Farmers (Legislative Continuity) Act (“the Act”) in order to enable retained EU law governing the CAP direct payment schemes for claim year 2020 to operate effectively and to address other deficiencies arising from the UK's withdrawal from the European Union.

Regulations 2 to 11 make amendments to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy (“the Horizontal Regulation”), in so far as that Regulation relates to the CAP direct payment schemes for claim year 2020.

Regulation 12 makes amendments to Commission Delegated Regulation (EU) No 907/2014 of 11 March 2014 supplementing the Horizontal Regulation with regard to paying agencies and other bodies, financial management, clearance of accounts, securities and use of euro, in so far as that Regulation relates to the CAP direct payment schemes for claim year 2020.

Regulation 13 makes amendments to Commission Implementing Regulation (EU) No 908/2014 of 6 August 2014 laying down rules for the application of the Horizontal Regulation with regard to paying agencies and rules on checks, securities and transparency, in so far as that Regulation relates to the CAP direct payment schemes for claim year 2020.

Regulation 14 makes amendments to Commission Implementing Regulation (EU) No 809/2014 of 17 July 2014 laying down rules for the application of the administration and control system, rural development measures and cross compliance, in so far as that Regulation relates to the CAP direct payment schemes for claim year 2020.

Regulation 15 makes amendments to Commission Delegated Regulation (EU) No 640/2014 of 11 March 2014 supplementing the Horizontal Regulation with regard to the integrated administration and control system and conditions for refusal or withdrawal of payments and administrative penalties applicable to direct payments, rural development support and cross compliance, in so far as that Regulation relates to the CAP direct payment schemes for claim year 2020.

Regulation 16 makes amendments to The Common Agricultural Policy (Control and Enforcement, Cross Compliance, Scrutiny of Transactions and Appeals) Regulations S.I. 2014/3263, which implements EU obligations in relation to the common agricultural policy under the powers in section 2(2) of the European Community Act. These amendments only apply to England.

Section 3(7) of the Act clarifies that provisions made by regulations under the powers in the Act may apply in relation to matters arising in relation to the CAP direct payment schemes for the whole of the 2020 claim year.

Regulation 1(2) disapplies paragraph 1(1) of Schedule 5 to the European Union (Withdrawal Agreement) Act. This ensures that the regulations come into force on exit day.

An impact assessment has not been produced for this instrument as no, or no significant, impact on the private or voluntary sector is foreseen.