The Agricultural Holdings (Units of Production) Order 1998

Made: 8th August 1998

Laid before Parliament: 21st August 1998

Coming into force: 12th September 1998

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 1986¹, 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 1998 and shall come into force on 12th September 1998.

• (2) Any reference in this Order to “the Schedule” is a reference to the Schedule to this Order.

• (3) Any reference in this Order to a Community instrument is a reference to that instrument and any amendment of such instrument in force on the date this Order is made.

• (4) In this Order:

• “Council Regulation 805/68” means Council Regulation (EEC) No. 805/68 on the common organisation of the market in beef and veal²;

• “Council Regulation 3013/89” means Council Regulation (EEC) No. 3013/89 on the common organisation of the market in sheepmeat and goatmeat³;

• “Council Regulation 1765/92” means Council Regulation (EEC) No. 1765/92 establishing a support system for producers of certain arable crops⁴.

Assessment of productive capacity of land

2

• (1) Paragraphs (2) and (3) of this article have 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 is capable, when farmed under competent management, of being used to produce any livestock, crop, fruit, etc., as is mentioned in any of the entries 1 to 7 in column 1 of the Schedule, then—

• (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 1998, as the net annual income from that unit of production in that period shall be the amount specified in column 3 of the Schedule opposite that unit of production.

• (3) Where land capable, when farmed under competent management, of producing a net annual income is designated as set aside land, as is mentioned in entry 8 in column 1 of the Schedule, then—

• (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 1998, as the net annual income from that unit of production in that period shall be the amount specified in column 3 of the Schedule opposite that unit of production.

• (4) The Schedule has effect subject to the Notes to the Schedule.

Revocation

3

The Agricultural Holdings (Units of Production) Order 1997⁵ is revoked.

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

Signed

Elliot Morley — Parliamentary Secretary, Ministry of Agriculture, Fisheries and Food — 8th August 1998

Signed by authority of the Secretary of State for Wales

Jon Owen Jones — Parliamentary Under Secretary of State, Welsh Office — 6th August 1998

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 1998 to 11th September 1999 inclusive. This Order supersedes the Agricultural Holdings (Units of Production) Order 1997 (S.I. 1997/1962).

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(3) and 50(2). 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