The Less Favoured Area Support Scheme (Scotland) Regulations 2003

The Scottish Ministers in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and of all powers enabling them in that behalf, hereby make the following Regulations:

Citation, commencement and application

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• (1) These Regulations may be cited as the Less Favoured Area Support Scheme (Scotland) Regulations 2003 and shall come into force on 25th March 2003.

• (2) These Regulations apply to holdings in respect of which the Scottish Ministers are the competent authority, in accordance with the Integrated Administration and Control System Regulations 1993 .

Interpretation

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• (1) In these Regulations, unless the context otherwise requires–

• “agricultural” includes the use of land–for the purposes of horticulture, fruit growing, seed growing, dairy farming and livestock breeding and keeping;as grazing land, meadow land, osier land, market gardens and nursery grounds; andfor woodlands, where that use is ancillary to the use of land for other agricultural purposes;

• “agri-environment scheme” means an arrangement which is–regulated by statutory instrument providing for the payment of aid to persons who give an undertaking or enter into an agreement in relation to the use or management of land; andapproved by the Commission of the European Communities under either–Article 44 of Council Regulation 1257/1999 as part of a rural development plan drawn up pursuant to Article 41 of that Regulation and containing measures pursuant to articles 22 to 24 of that Regulation; orArticle 7 of Council Regulation (EEC) No. 2078/1992 on agricultural production methods compatible with the requirements of the protection of the environment and the maintenance of the countryside ;

• “alpaca” means any alpaca of any breed which are kept by way of business for the primary purpose of fibre production;

• “applicant” means a person who has made an application for less favoured area support under these Regulations in accordance with regulation 3;

• “area aid application” has the same meaning as in Article 6 of Council Regulation 3508/1992;

• “authorised person” means a person who is authorised by the Scottish Ministers, either generally or specifically, to act in relation to matters arising under these Regulations;

• “cattle” for the purposes of Regulation 11 (enterprise mix), means–suckler cows and heifers; andfor those applicants maintaining a dairy herd in the islands of Shetland, the islands of Orkney, the islands of Islay, Jura, Arran, Bute, Great Cumbrae, Little Cumbrae and the Kintyre Peninsula south of Tarbert, or any other islands in the Outer Hebrides and the Inner Hebrides, a livestock unit for each 5730 litres of milk quota held,which the Scottish Ministers determine are to be taken into account from time to time;

• “Commission Regulation 2419/2001” means Commission Regulation (EC) No. 2419/2001 laying down detailed rules for applying the integrated administration and control system for certain Community aid schemes ;

• “Commission Regulation 445/2002” means Commission Regulation (EC) No. 445/2002 laying down detailed rules for the application of Council Regulation (EC) No. 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) ;

• “common grazing” has the same meaning as it has for the purpose of Article 11 of Commission Regulation 445/2002;

• “competent authority” has the same meaning as in regulation 2A of the Integrated Administration and Control System Regulations 1993 ;

• “Council Regulation 3508/1992” means Council Regulation (EEC) No. 3508/1992 establishing an Integrated Administration and Control System for certain Community aid schemes ;

• “Council Regulation 1254/1999” means Council Regulation (EC) No. 1254/1999 on the common organisation of the market in beef and veal ;

• “Council Regulation 1257/1999” means Council Regulation (EC) No. 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations ;

• “Council Regulation 2529/2001” means Council Regulation (EC) 2529/2001 on the common organisation of the market in sheep meat and goat meat ;

• “cross-border holding” means a holding in the United Kingdom which is situated partly in Scotland;

• “designated maps” means the four maps numbered 1 to 4, each such map being marked “Map of less-favoured farming areas in Scotland”, dated 5th May 1991, signed by the Secretary of State for Scotland and deposited at the offices of the Scottish Executive Environment and Rural Affairs Department, Pentland House, 47 Robb’s Loan, Edinburgh EH14 1TY;

• “eligible agricultural activity” means one or more of the following activities which, in the opinion of the Scottish Ministers are undertaken on a continuous basis:–maintaining a herd of suckler cows;maintaining a flock of sheep comprising eligible ewes as defined by Council Regulation 2529/2001;maintaining a dairy herd in–the islands of Shetland;the islands of Orkney;the islands of Islay, Jura, Arran, Bute, Great Cumbrae, Little Cumbrae and the Kintyre Peninsula south of Tarbert; orany other islands in the Outer Hebrides and the Inner Hebrides;maintaining a breeding herd of farmed deer for meat production;maintaining a breeding herd of goats for fibre production; ormaintaining a breeding herd of alpaca for fibre production;

• “eligible land” has the same meaning as in regulation 6;

• “eligible livestock unit” means a livestock unit determined in accordance with regulation 9(9) and Part I of Schedule 1;

• “farmed deer” means any deer (of any species) which are managed on a holding enclosed by a deer-proof barrier and are kept on the holding by way of business for the primary purpose of the production of meat;

• “forage area” has the same meaning as in Article 12(2)(b) of Council Regulation 1254/1999;

• “goat” means any goat (of any species) which is kept by way of business for the primary purpose of fibre production;

• “holding” has the same meaning as in regulation 2 of the Integrated Administration and Control System Regulations 1993;

• “less favoured area” means the land shown coloured in blue or in pink on the designated maps–which is situated in an area included in the list of less favoured farming areas adopted by Council Directive 84/169/EEC concerning the Community list of less-favoured farming areas within the meaning of Directive 75/268/EEC (United Kingdom) ; andwhich is, in the opinion of the Scottish Ministers, inherently suitable for extensive livestock production but not for the production of crops in quantity materially greater than that necessary to feed such livestock as are capable of being maintained on such land, and whose agricultural production is, in the opinion of the Scottish Ministers, restricted in its range by, or any combination of, soil, relief, aspect or climate;

• “livestock” means suckler cow, dairy cow, beef heifer, dairy heifer, sheep, goat, farmed deer and alpaca;

• “livestock unit” means a unit of measurement of livestock numbers, and each of the following constitute one livestock unit:–one suckler cow;1.66 heifers 8 months and over;6.66 breeding ewes;6.66 breeding female goats;3.33 breeding female farmed deer 27 months and over;5 breeding farmed deer over 6 months but less than 27 months;3.33 breeding female alpaca;5730 litres of milk quota;

• “maximum stocking density” means 2.00 livestock units per hectare;

• “minimum stocking density” means 0.12 livestock units per hectare;

• “Payable Area” means the adjusted area of land on which less favoured area support is to be paid, calculated in accordance with regulations 9 to 11;

• “retirement pension” mean a category A or category B pension within the meaning of section 20(1)(f) of the Social Security Contributions and Benefits Act 1992 , a category C or category D pension within the meaning of section 63(f) of that Act, or graduated retirement benefit as referred to in section 62 of that Act;

• “Scheme Year” means a calendar year commencing on 1st January;

• “Scheme 2003 payment” means the sum to which the applicant is entitled in respect of the period from 1st January 2002 to 31st December 2002;

• “shared grazing” means land used for grazing within a field used by two or more producers;

• “suckler cow” means an adult female bovine animal kept in a regular breeding herd which is not maintained primarily for the production of milk;

• “the 1996 Regulations” means the Hill Livestock (Compensatory Allowances) Regulations 1996 ;

• “the 1999 Regulation payment” means the payment which an applicant under these Regulations was eligible for and paid under and in accordance with the 1999 Regulations or, as the case may be, the sum fixed in accordance with regulation 13(3) to (6);

• “the 1999 Regulations” means the Hill Livestock (Compensatory Allowances) (Scotland) Regulations 1999 ;

• “the 2001 Regulations” means the Less Favoured Area Support Scheme (Scotland) Regulations 2001 ;

• “the 2002 Regulations” means the Less Favoured Area Support Scheme (Scotland) Regulations 2002 ;

• “usual good farming practices” means those practices undertaken on a holding in compliance with–the provisions of environmental legislation set out in Part I of Schedule 2; andthe verifiable standards set out in Part II of Schedule 2.

• (2) Any reference in these Regulations to a Community instrument is a reference to that instrument as amended on the date on which these Regulations are made.

• (3) For the purposes of the saving provision at article 53.1 of Commission Regulation 2419/2001, references to articles of that Regulation shall so far as necessary be treated as references to the equivalent provision in Commission Regulation 3887/1992 laying down detailed rules for applying the integrated administration and control system for certain Community aid schemes .

• (4) Unless the context otherwise requires, any reference in these Regulations to a numbered regulation or paragraph or to a Schedule is a reference to the regulation or paragraph of the regulation or the Schedule so numbered in these Regulations.

• (5) Any reference in these Regulations to anything done in writing or produced in written form includes a reference to an electronic communication, as defined in the Electronic Communications Act 2000 , which has been recorded and is consequently capable of being reproduced.

Applications for payment of less favoured area support

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• (1) An application for less favoured area support shall be in such form and shall contain such particulars relating to that application as the Scottish Ministers may reasonably require.

• (2) An applicant shall submit the application for less favoured area support in respect of the Scheme Year in question to the Scottish Ministers on or before a date each year which the Scottish Ministers will determine from time to time.

• (3) Subject to paragraph (4), if an applicant submits an application for less favoured area support in respect of the relevant Scheme Year later than the date determined by the Scottish Ministers, the Scottish Ministers must reduce, or as the case may be exclude the applicant from, payment of less favoured area support in accordance with Article 13 of Commission Regulation 2419/2001.

• (4) Paragraph (3) shall not apply to an applicant who has not previously claimed any subsidy dependent upon an area aid application, who submits a claim form in accordance with regulation 6(1)(b).

Eligibility for payment of less favoured area support

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• (1) Payment of less favoured area support may be made to an applicant in respect of a Scheme Year only if–

• (a) subject to paragraphs (2) and (3), that applicant has given an undertaking, in such form as the Scottish Ministers may reasonably require, to continue to use eligible land for eligible agricultural activities for a period of not less than five years from the first payment made under–

• (i) these Regulations;

• (ii) the 2002 Regulations;

• (iii) the 2001 Regulations;

• (iv) the 1999 Regulations; or

• (v) the 1996 Regulations;

• (b) that applicant applies usual good farming practices on the eligible land of the applicant; and

• (c) that applicant does not use substances referred to in Article 14.2 of Council Regulation 1257/1999.

• (2) Paragraph (1)(a) does not apply to an applicant who is in receipt of a retirement pension at the time when that undertaking requires (or was required) to be given.

• (3) An applicant is released from the undertaking referred to in paragraph (1)(a)–

• (a) at the moment that such an applicant receives a retirement pension;

• (b) if that applicant is prevented from continuing to discharge that undertaking by reason of any material circumstances beyond the control of that person; or

• (c) if the applicant ceases farming and at least three hectares of the eligible land of the applicant continues to be used for carrying out an eligible agricultural activity.

Payment of less favoured area support

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The Scottish Ministers may pay, on such occasions as they consider fit, in respect of the Scheme Year in question to an applicant less favoured area support for carrying out eligible agricultural activity on eligible land which is not less than 3 hectares.

Eligible land

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• (1) Eligible land comprises the number of hectares of forage area in a less favoured area–

• (a) as declared in an area aid application submitted to the Scottish Ministers, on or before 15th May in the Scheme Year for which payment is to be made, by the applicant in accordance with Article 6 of Council Regulation 3508/1992; or

• (b) where the applicant has not previously claimed any subsidy dependent upon an area aid application, as declared by the applicant in a form which the Scottish Ministers shall from time to time specify.

• (2) Eligible land includes land in respect of which the applicant has a right of use pursuant to arrangements such as short term lets, seasonal grazing and common grazing.

• (3) If an application made in accordance with regulation 3 relates in part to land upon which an activity is carried out which is not an eligible agricultural activity for the purposes of these Regulations, the Scottish Ministers shall determine the area of land which is to be attributed to the eligible agricultural activity.

Transfer of a holding

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• (1) In determining eligible land under regulation 6(1), the decision of the Scottish Ministers shall be in accordance with Article 50 of Commission Regulation 2419/2001 as appropriate.

• (2) For the purpose of paragraph 6 of Article 50 of Commission Regulation 2419/2001, the Scottish Ministers shall grant less favoured area support to the transferor of a holding, if the transferor–

• (a) fulfils the conditions laid down by paragraphs 2 to 5 of Article 50 of Commission Regulation 2419/2001; and

• (b) has been in continuous occupation of the holding for a period of not less than 183 calendar days in the Scheme Year concerned.

Amount of less favoured area support

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Subject to regulations 13 (transitional payments) and 14 (minimum payments), the amount of less favoured area support shall be calculated in accordance with the following formula:–

Determination of Payable Area

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• (1) Subject to regulation 10, the payable area shall be the total of the areas of eligible land of the applicant, adjusted in accordance with the following formula:–

$$P=E×V$WhereP is the Payable Area;E is the area of eligible land in each field or shared grazing in calendar year 2002; andV is the hectare value for each field or shared grazing determined in accordance with paragraph (2).$

• (2) For the purpose of paragraph (1) the hectare value shall be the entry in the third column of Schedule 3 corresponding to the grazing category in the second column of that Schedule.

• (3) For the purposes of paragraph (2) the grazing category of the land of the applicant shall be the entry in the second column of Schedule 3 corresponding to the stocking density in the first column of that Schedule, and the stocking density for that land shall be calculated in accordance with paragraphs (4) to (12).

• (4) Subject to paragraph (12), the stocking density for each field which is not a shared grazing shall be calculated according to the following formula:–

$$L÷H$WhereS is the stocking density expressed in livestock units per hectare (LU/Ha);L is the total number of eligible livestock units based on eligible agricultural activity undertaken in calendar year 2001; andH is the total number of eligible hectares at 15th May 2001 determined in accordance with regulation 6 of the 2002 Regulations.$

• (5) Subject to paragraph (12), the stocking density for a shared grazing shall be calculated according to the provisions of paragraphs (6) to (8).

• (6) The stocking density for a shared grazing shall be calculated according to the following formula:–