The Agricultural Holdings (Units of Production) Order 1994

Made: 5th August 1994

Laid before Parliament: 22nd August 1994

Coming into force: 12th September 1994

The Minister of Agriculture, Fisheries and Food in relation to England and the Secretary of State in relation to Wales, in exercise of the powers conferred on them by paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986[^f00001], and of all other powers enabling them in that behalf, hereby make the following Order:—

Title, commencement and interpretation

1

• (1) This Order may be cited as the Agricultural Holdings (Units of Production) Order 1994 and shall come into force on 12th September 1994.

• (2) Any reference in this Order to “the Schedule” shall be construed as a reference to the Schedule to this Order, and references to column 1 or 3 of the Schedule shall be construed as including a reference to the note or, as the case may be, notes to the column in question.

Assessment of productive capacity of land

2

• (1) Paragraph (2) of this article has effect for the purpose of the assessment of the productive capacity of a unit of agricultural land, in order to determine whether that unit is a commercial unit of agricultural land within the meaning of subparagraph (1) of paragraph 3 of Schedule 6 to the Agricultural Holdings Act 1986.

• (2) Where the land in question would be capable, when farmed under competent management, of carrying or producing any such livestock, crop, etc, as is mentioned in any entry in column 1 of the Schedule—

• (a) the unit of production prescribed in relation to that use of the land shall be the unit specified in column 2 of the Schedule opposite to that entry, and

• (b) the amount determined, for the period of 12 months beginning with 12th September 1994, as the net annual income from that unit of production in that period shall be the amount specified in column 3 of the Schedule.

Revocation

3

The Agricultural Holdings (Units of Production) Order 1993[^f00002]is hereby revoked.

SCHEDULE — PRESCRIBED UNITS OF PRODUCTION AND DETERMINATION OF NET ANNUAL INCOME

Signed

In witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 3rd August 1994.

William Waldegrave — Minister of Agriculture, Fisheries and Food

Signed by authority of the Secretary of State for Wales

Gwilym Jones — Parliamentary Under Secretary of State for Wales — 5th August 1994

Explanatory note

(This note is not part of the Order)

This Order prescribes units of production for the assessment of the productive capacity of agricultural land and sets out the amount which is to be regarded as the net annual income from each such unit for the year 12th September 1994 to 11th September 1995 inclusive. This Order supersedes the Agricultural Holdings (Units of Production) Order 1993 (S.I. 1993/2037).

An assessment of the productive capacity of agricultural land is required in determining whether or not the land in question is a “commercial unit of agricultural land” for the purposes of the succession provisions in the Agricultural Holdings Act 1986 (“the 1986 Act”): see in particular sections 36(1) and 50(1). A “commercial unit of agricultural land” is land which, when farmed under competent management, is capable of producing a net annual income which is not less than the aggregate of the average annual earnings of two full-time male agricultural workers aged 20 years or over (paragraph 3 of Schedule 6 to the 1986 Act). In determining this annual income figure, neither the system of farming carried out on a particular holding nor historical data from that holding will necessarily be used. Instead, whenever a particular farming use mentioned in column 1 of the Schedule to this Order is relevant to this determination, the units of production and the net annual income specified in columns 2 and 3 respectively will form the basis of the assessment of the productive capacity of the land in question.

The net annual income figures in column 3 of the Schedule specify the net annual income from one unit of production. In some cases the net annual income is derived from a unit which will be on the land for the full twelve-month period. In other cases the net annual income is derived

from a unit which will be on the land for only part of the year, and there may be more than one production cycle in the twelve-month period. The assessment of the productive capacity of the land will take account of the total production in the course of a year.

Footnotes

[^f00001]: 1986 c. 5; section 96(1) of the Act defines “the Minister”.

[^f00002]: S.I. 1993/2037.

[^f00003]: S.I. 1993/2631, as amended by the Hill Livestock (Compensatory Allowances) (Amendment) (No. 2) Regulations 1993 (S.I. 1993/2924) and further amended by the Hill Livestock (Compensatory Allowances) (Amendment) Regulations 1994 (S.I. 1994/94).