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Sheep Annual Premium Scheme Quotas - Explanatory Guide
SECTION FIVE: THE NATIONAL RESERVE
Introduction
60 Producers who meet certain strictly defined criteria may apply to the appropriate category of the sheep quota national reserve for an allocation of free quota. The categories and the criteria which must be met are listed at paragraph 65. However, since supplies of quota in the reserve are very limited there is often insufficient quota to make allocations to all eligible applicants. Producers are reminded that, particularly when entering into sheep production, they should not assume that they will receive a full or partial allocation of quota from the reserve. Many unsuccessful applicants will have to meet their quota requirements from the market by transferring in or leasing in quota. The sheep quota reserve is divided into separate reserves for each ring-fence area (see Section Three).
61 The amount of quota in the reserve in any one year is derived from:
- any surplus carried forward from the previous year's reserve:
- amounts 'siphoned' from transfers (see Section Four, Part 3): and
- amounts withdrawn from producers who under-use their quota (see Section Two).
As mentioned above, supplies of quota in the reserve are very limited and eligible producers should not assume that their applications to the reserve will be met in full, or in some cases at all. Applications will be dealt with category by category in priority order, i.e. applications to Category 1 will be met before applications to Category 2 are considered and so on. If there is not enough quota to meet demand in any given category, all producers in that category will share the available quota in proportion to their maximum theoretical entitlement, i.e. their allocations will be scaled back pro rata.
| When calculating the financial viability of your sheep business you should not rely on an allocation of quota from the reserve. You may therefore have to acquire quota on the open market. |
Applying to the reserve
62Applications to the reserve are processed and allocations made before the opening of the transfer and lease notification period. In this way, applicants to the reserve know their quota position and whether they need to obtain any quota from the market before they submit a claim for premium. The opening of the reserve application period is announced each year in the farming press and application forms with explanatory leaflets will be available from local area offices. Generally, the sheep quota national reserve will be open for applications for about four weeks in the late spring of each year. It is the responsibility of producers to ensure that they obtain and return correctly completed application forms to the Department by the stated deadline. Please note that your application to the national reserve must also state the ring-fence area of your holding as it is, or will be, in the relevant year (see Section Three).
| Remember to include all the required documentation with your application. |
Effect of transfers and leases on allocations from the reserve
63 Where quota has been acquired before a national reserve allocation is made, quota leased-in will be ignored when calculating the allocation from the reserve. Any quota you acquired by transfer will however be deducted from any quota allocation made.
64 Please note that restrictions apply to the subsequent disposal of quota by successful national reserve recipients (see paragraphs 57 and 58).
National reserve categories
65 You may apply to the reserve if you fall within one or more of the categories shown below. More detailed descriptions can be found in the explanatory leaflets issued each year with the reserve application forms. In most cases you will be eligible to apply to a particular category either if you have already taken the action described, or if you are irrevocably committed to doing so before you put in your sheep annual premium claim for the relevant scheme year. The following categories of producer are eligible to apply to the national reserve.
Category 1
Producers who, at the time of the 1991 Sheep Annual Premium Scheme, were participating in a qualifying national environmental or extensification scheme which required a reduction in sheep numbers, and whose participation has ended.
Category 2
Producers who take over land from which quota has been removed by a departing tenant whose tenancy agreement was drawn up before 1 January 1993.
Category 3a
Producers who enter sheep production or increase the number of eligible sheep in an existing flock because they are converting from arable to livestock farming under the terms of an approved environmental scheme.
Category 3b
Individual producers under the age of 40 who are newcomers to farming (companies and partnerships are not eligible to apply to this category).
Category 4
Individual producers aged 40 and over who are newcomers to farming (companies and partnerships are not eligible to apply to this category).
Category 5
Producers who enter sheep production, or increase the number of eligible sheep in an existing flock, because they are converting to organic production under the Organic Aid Scheme.
This category is also open to producers who converted to organic production prior to the introduction of the Organic Aid Scheme, and who are increasing the number of eligible suckler cows in their herd.
Category 6a
Producers (individuals, partnerships or companies) who are making their first claim for Sheep Annual Premium.
Category 6b
Producers who take over part of an area of land which was formerly used for sheep production by other producers and then temporarily taken out of agricultural use for industrial, military, commercial or construction purposes.
| See the current national reserve explanatory leaflet for more information regarding eligibility. |
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