These Regulations amend Regulation (EU) No 1307/2013 (“the Direct Payments Regulation”) to insert a new Article 11A into the Direct Payments Regulation to introduce percentage reductions that must be applied to payments to be granted to a farmer under the direct payment schemes for the 2021 claim year (regulation 3(3)). Commission Implementing Regulation (EU) No 809/2014 and the Common Agricultural Policy Basic Payment and Support Schemes (England) Regulations 2014 (S.I. 2014/3259) are amended as a consequence of this amendment.

Regulations 2(2), 5(3) and 6(2) amend Regulation (EU) No 1306/2013, Commission Implementing Regulation (EU) No 809/2014 and Commission Implementing Regulation 908/2014 respectively to remove the monetary thresholds, below which the Secretary of State may decide not to recover overpayments, undue payment entitlements or interest on undue payments made to farmers.

These Regulations also amend Regulation (EU) No 1306/2013, the Direct Payments Regulation, Commission Implementing Regulation (EU) No 809/2014, Commission Implementing Regulation (EU) No 908/2014 and the Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 (S.I. 2014/3263) as a consequence of direct payments to farmers in England being calculated in sterling instead of Euros from the 2021 claim year.

Regulation 4(2) amends Article 2(1)(22) of Commission Delegated Regulation (EU) No 640/2014 in order to omit a cross reference to Article 45(2)(a) of the Direct Payments Regulation which is omitted by regulation 5(6) of the Direct Payments to Farmers and Cross-Compliance (Simplifications) (England) (Amendment) Regulations 2020 (S.I. 2020/1387).

Regulation 7(3) amends regulation 9(1) of S.I. 2014/3259 in order to amend the percentage figure used in the calculation of the young farmer payments from 25% to 17.5% as a consequence of the amendment of Article 50(6)(a) of the Direct Payments Regulation by S.I. 2020/1387. These amendments should have been made by S.I. 2020/1387 and therefore these Regulations are being issued free of charge to all known recipients of S.I. 2020/1387.

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