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ARABLE AREA PAYMENTS SCHEME 2003

C. SET-ASIDE

YOUR SET-ASIDE REQUIREMENT

46. For main producers, the minimum set-aside rate for the year 2003 is 10%. This is known as obligatory set-aside. Any set-aside above that 10% is known as voluntary set-aside. There is no obligation on small producers to set aside land but they may do so on a voluntary basis. Set-aside means taking AAPS eligible land out of agricultural production from
15 January in the scheme year concerned until at least 31 August of that year. However, there are also restrictions on what can be done on set-aside land during the period 1 September to the following 14 January.

47. Appendix 1 shows you how to calculate your set-aside requirement. If you farm land in more than one yield region, e.g. the Scottish LFA and non-LFA, you must normally meet your set-aside commitment in each region (see Appendix 5).

48. If a claim does not meet the obligatory set-aside requirement, it will be scaled back either to the cropped area supported by the eligible set-aside area in the claim, or to the maximum area that can be claimed by a small producer, whichever is the greater. Please note that even a small shortfall in your set-aside area may involve a substantial reduction in the cropped area eligible for payment. It is thus in your best interest to ensure that you have calculated your requirement correctly. Remember to round up your set-aside requirement - e.g. if you calculate that you require 4.011 hectares you should set aside at least 4.02 hectares.

49. Where sufficient set-aside has been included in a claim to support the cropped area, but that set-aside is found not to be in accordance with the AAPS rules (other than the management rules), the whole claim will not be eligible for payment.

50. The minimum set-aside claim is 0.3 ha. This can be:

- single blocks not less than 20 metres wide; or

- 10 metre strips next to permanent watercourses (where the minimum plot size is 0.1 ha).

You can set aside land in a single block or in a number of smaller blocks. (Set-aside land can only count as a single block if it is all within one field.) Smaller areas will be acceptable only if they are completely bounded by permanent fixed boundaries such as walls, hedges or watercourses. Provided that they meet these area and width requirements, field margins may be set aside. These requirements also apply to eligible land entered into the former Habitats Scheme and forestry schemes (FWPS/WGS) and claimed as set-aside.

51. Set-aside must be a minimum of 20 metres wide at all points with the exception of whole fields that are completely bounded by permanent, fixed, boundaries and strips alongside permanent watercourses or lochs, which must be at least 10 metres wide at all points.

52. These 10 metre strips can be separated from the watercourse by a fence, wall, hedge (including vegetation that has grown up from inside the watercourse), banks or belts of single trees. However, 10 metres wide strips will not be allowed where they are separated from the watercourse. You can make your set-aside plot up to 0.3 ha by joining such strips to other areas of set-aside, e.g. a strip of 20 metres wide in the same field. For the purposes of this paragraph 'permanent watercourses' includes lochs, ponds, rivers, streams, canals, estuaries and field ditches. If the watercourse runs through a culvert, then the culvert should be no more than 6 metres long.

ELIGIBILITY OF LAND FOR SET-ASIDE

53. Any AAPS-eligible land can now be entered into set-aside irrespective of its use in the preceding year. Appendix 6 gives advice on the selection of your set-aside.

TYPES OF SET-ASIDE

Normal Set-aside

• Obligatory/Voluntary Set-aside
• Multi-annual Set-aside
• Additional Voluntary Set-aside
• Guaranteed Set-aside (no longer an option to new entrants)

Non-food Set-aside

• Obligatory/Voluntary Set-aside
• Additional Voluntary Set-aside
• Guaranteed Set-aside (no longer available to new entrants)

Structural Set-aside

• Land in WGS or FWPS
• Land in eligible Habitats option
• Ex-5 year set-aside still in FWS

Land in Structural set-aside does not attract AAPS aid, but will be paid under the relevant structural scheme at a rate equivalent to the current set-aside rate if this is lower.

54. All AAPS claimants, including small producers, may set aside AAPS eligible land. However, if you choose to set aside land in addition to the basic obligation, you must ensure that your total set-aside area does not exceed the total cropped area for which you are claiming AAPS aid ( i.e. maximum 50% set-aside, 50% crops).

55. There are three exceptions to this rule, where up to 100% of your claim can be set aside. These are where the entire set-aside area is:

• used for the production of multi-annual crops for biomass production, e.g. short rotation coppice;
• ex-Five-Year Set-Aside Scheme land which has been in continuous set-aside under AAPS since leaving that Scheme; or
• AAPS eligible land that has been taken out of arable production under an agri-environmental scheme, and has now left that scheme.

MULTI-ANNUAL SET-ASIDE

56. Multi-annual set-aside is an option similar to the former guaranteed set-aside under which producers undertake to set aside the same plots of land for periods of 3, 4 or 5 years, depending on their status, in return for a guaranteed payment rate. Full details of this option are given at Appendix 8.

ADDITIONAL VOLUNTARY SET-ASIDE

57. Additional Voluntary Set-Aside was land that had been in the 5-Year Set-Aside Scheme and then set aside continuously under AAPS since leaving that Scheme. Such land that has continuously been in set-aside, will be allowed to continue in set-aside even where this exceeds 50% of the claimed area, i.e. up to 100% as indicated at paragraph 55. You cannot combine this set-aside type with any other set-aside type. (You should note that if any additional voluntary set-aside land is cropped it cannot be returned to additional voluntary set-aside).

STRUCTURAL SET-ASIDE

Woodland Schemes

58. You may count land entered into the Woodland Grant Scheme (WGS)/Farm Woodland Premium Scheme (FWPS) towards your set-aside provided that:-

- the land is AAPS-eligible; and

- the WGS/FWPS application was made after 1 July 1995.

This land must, however, meet the normal rules and conditions of both those Schemes.

Any WGS/FWPS land that is counted towards your AAPS set-aside requirement is eligible for:-

- the normal rates of establishment grants under the WGS; and

- an annual FWPS payment not exceeding the relevant set-aside payment for the yield region concerned.

Please note that no AAPS aid is paid on structural set-aside.

59. The main contact point for the WGS/FWPS Scheme literature (including application forms) is your local Forestry Commission Conservancy Office. However, copies of the FWPS Rules and Procedure booklet are also available from your local SEERAD Area Office.

60. You can set aside land which was originally entered into the former Farm Woodland Scheme (FWS) through the old 5-Year Set-Aside Scheme. The set-aside management conditions will not apply to such land. You will not be able to receive AAPS set-aside payments while the land remains in the FWS. Participants who did not enter the FWS through the 5-Year Set-Aside Scheme cannot claim their FWS land as set-aside under the AAPS.

Habitats Scheme

61. If an application to enter eligible arable land into the Waterside Habitats, Damp Lowland Grassland and Marsh Communities, or Dry Lowland Grassland 20 year options of the former Habitats Scheme was made on or after 1 July 1995, this land can count against your set-aside obligation in 2003. If you are in any doubt about your eligibility to claim AAPS cropping or set-aside aid, please contact your local Area Office.

62. You must have conformed to the rules and conditions of the Habitats Scheme for any land that you wish to count as set-aside, and you will receive the normal annual Habitats Scheme payments. Payment rates for loss of income on land entered into the eligible options of the Habitats Scheme, and claimed as set-aside under AAPS, cannot exceed the AAPS set-aside payment rate in the yield region concerned.

GROWING ORGANIC FODDER LEGUMES ON SET-ASIDE LAND

63. Producers on holdings managed wholly in compliance with the organic Regulations may grow organic fodder crops on their set-aside land. Producers wishing to take advantage of this measure must:-

(a) be registered as organic producers with an approved organic sector body; and

(b) farm the entire production of their holding in compliance with the obligations of the Organic Regulation (EU Council Regulation No 2092/91).

64. For the purposes of this measure 'holding' is as defined in the IACS Regulations as all the production units (i.e. all the farms managed by a farmer in a Member State). This means that to be eligible to grow organic fodder legumes on set-aside, all the farms comprising the IACS business (i.e. holding) must be wholly managed in compliance with the requirements of the Organic Regulation or be in the process of conversion to organic production.

65. Holdings comprising a mixture of organic and non-organic farms are not eligible for this concession.

66. Organic fodder legume crops on set-aside may be grazed by, or fed to, your own or a third person's animals throughout the Scheme year. However, if the crop is grazed by, or fed to, a third party's animals, there must be no lucrative return in cash or kind either to you or to a third party.

67. The following organic fodder crops may be grown on set-aside land:

68. Mixtures of these crops with cereals or grasses are also permitted, provided that the fodder legume is the predominant element in the mixture.

SHORT ROTATION COPPICE AND OTHER BIOMASS CROPS ON SET-ASIDE

69. Producers may set aside an area greater than 50% of the total area on which they are claiming aid provided that all of their set-aside is used for the production of multi-annual biomass crops, e.g. SRC. The payment will be the same rate as that for obligatory and voluntary set-aside. No other Community-financed aid is payable on non-food crops grown on set-aside land. Grants from the Forestry Commission are available in Scotland to help cover the costs of establishing short rotation coppice on set-aside. For further details of these grants please contact the Forestry Commission.

USE OF SET ASIDE LAND DURING THE SET ASIDE PERIOD

NOTE: Under the EU Regulations, land set aside must so remain for at least the period 15 January to 31 August.

Agricultural Use

70. During the set-aside period the land may not be used for any form of agricultural production (including horticulture and grazing), with the following exceptions:

• the production of non-food crops; and
• after 15 July, the preparation for sowing or the sowing of an arable crop for harvest/use after 15 January 2004. This includes ornamental bulbs, field-grown trees and shrubs, cane fruit and strawberries. You must not prepare the ground for or sow any agricultural crop which you intend to harvest or graze before 15 January 2004, e.g. stubble turnips, kale or any other fodder or vegetable crop.

71. Sowing any agricultural crop (other than an acceptable green cover) counts as agricultural production, even if the crop is not taken through to harvest. This includes land sown with a crop that is subsequently destroyed.

72. Set-aside land must not be used for any purpose that would bring a return in cash or kind (lucrative use), to the farmer or to anyone else, unless that use is compatible with the presence of a standing crop. Thus, if a game cover is sown, it would normally be acceptable to encourage wild game or to shoot over the land in the way you might shoot over arable land. The land must not be used to rear birds for a commercial shoot or to establish new commercial shooting facilities that would not normally take place on arable land. Please note that the placing of feed hoppers on set-aside land is not permissible during the set-aside period as it constitutes agricultural production (but see paragraph 130 about uses of set-aside after 1 September).

Non-agricultural uses

73. During the set-aside period, the land cannot be put to any non-agricultural use that brings a return in cash or kind, to you or anyone else, with the exception of certain local small-scale charitable fund-raising events. You must always seek written permission from your local Area Office before allowing anyone to use your set-aside for any charitable event. The only exceptions are those activities which could be carried out equally well if you were growing a standing crop on the land, e.g. occasional game shooting of a strictly non-commercial nature - see paragraph 74.

74. Under the strict EU rules, there is a presumption against the use of set-aside land for any non-agricultural purpose other than for approved non-food uses. These rules prohibit all uses of set-aside which are either commercial or from which any organisation derives any income or other direct benefits. Even if the proposed use is non-commercial and non-lucrative, prior written approval must always be obtained from your local Area Office before any non-agricultural activity is carried out on set-aside land. You must apply in writing for such approval, giving full details, preferably 15 working days in advance of the proposed activity and in good time to allow changes to arrangements should the planned activity be inadmissible. The only activity for which you do not need prior written approval is grazing your own non-agricultural animal(s), e.g. a pony kept for riding by you or your family, provided that you do not receive any return in cash or kind. Proceeding without written approval will attract penalties.

75. The land must not be used for any activity that is incompatible with the set-aside management rules. In particular, you must not use the land for anything that would damage the green cover. Infringements of the set-aside management rules will also be penalised.

Research

76. Research cannot be carried out on set-aside land unless the research itself is into the management of set-aside. Research into growing non-food crops on set-aside may be possible. However, all the rules concerning non-food crops have to be complied with, including the restrictions on the end use.

MANAGEMENT OF SET-ASIDE LAND

77. The rules in this section apply to all set-aside land (other than land being used for growing non-food crops or land under the structural set-aside option).

78. During the set-aside period, you must not damage, destroy or remove any of the following features which are sited on or immediately next to land which is set-aside; vernacular (traditional) buildings, stone walls, hedges, trees including hedgerow trees, watercourses, ditches, ponds, pools, lochs, lakes and archaeological remains.

79. There are several options to managing your set-aside land:-

• Leave existing cover in place;
• Natural regeneration;
• Sown green cover;
• Sown wild bird cover; and
• Bare fallow (but not for 2 consecutive years).

80. Wherever practicable, you must establish a cover by 15 January, i.e. the start of the set-aside season. This cover is required to minimise nitrate leaching, and may be established through any of the options listed at paragraph 79.

81. If neither undersowing nor natural regeneration is an option, and weather and soil conditions after harvest made it impracticable to establish a sown cover, then you may leave the land alone until the following spring. However, light tillage - no deeper than 7 cms - after harvest would aid the development of cover to avoid nitrate leaching. In the spring, you could sow a green cover. Once you have established a cover, you will need to manage it according to scheme rules.

82. If crops were still in the ground on 1 October 2002, you need not establish a green cover once they are harvested (which must be before 14 January). If you choose not to establish a set-aside cover, you may leave land as bare fallow or allow the natural vegetation to develop to provide cover. You may disc or cultivate lightly to 6-7 cms where necessary to aid germination. You should not disturb the ground further over the winter.

83. Please note, however, that root or vegetable crops still in the ground on 1 October are not acceptable for natural regeneration the following year. Such land will require to have an eligible cover sown as soon as is practicable after harvest.

84. Set-aside can be cut as often as you wish. The only requirement is that you must cut the cover short between 15 July and 15 August and leave the cuttings on the ground to rot. Alternatively (except in the case of multi-annual set-aside), you must destroy it by
31 August.

85. If you intend to leave the set-aside in place for a further year, you should cut the cover rather than destroy it:

• You must not destroy the cover at all (unless replacing it) on multi-annual set-aside.
• If the cover has been destroyed or has not established, you must establish a new cover before the start of the next set-aside period in accordance with the rules.
• The cover on the land may be replaced if necessary.
• There are other important constraints on managing your set-aside land including restrictions on the application of fertilisers, manure, wastes and lime.
• There are restrictions on the use of the cover after the end of the set-aside period, between 1 September and 14 January.

Existing Cover

86. If an adequate cover already exists on your set-aside land you may leave that in place and manage it according to the scheme rules.

Natural Regeneration

87. Natural regeneration may be used to establish a cover after a combinable crop including herbage seed. If you use natural regeneration after herbage seed, you must not take a further herbage seed crop off that grass crop. You will need a written exemption if you wish to use natural regeneration after other crops.

88. After harvest, you must leave land to develop a cover from the seed bank and volunteers. Using a straw chopper when combining can encourage the establishment of cover. After harvest, you must not plough, deep cultivate or treat with non-selective herbicides as this would prevent natural regeneration. However, in the first year, the land may be disced or shallow cultivated to a depth of no more than 6-7 cms to encourage germination. Any such discing/cultivation should be done early before any significant growth of vegetation has taken place.

Sown Green Cover

89. A sown green cover can be established either by under-sowing the previous crop or by sowing a low-density sward as soon as possible after harvest of the previous crop. You may also establish a sown green cover in the spring.

90. Seed mixtures may include broad-leafed plants and wild flowers (including legumes).

91. To ensure that the cover is not subsequently used for herbage seed, grass covers must be sown with home-saved or certified seed. You must not sow breeders' pre-basic or basic seed.

Wild Bird Cover

92. Wild bird cover can provide valuable feeding grounds for both seed-eating and insect-eating birds. Where the land remains set aside for more than one year, this cover must be replaced during the second calendar year after it was sown.

93. For example, if the cover was sown in the spring of 2001, it must be replaced by the set-aside year commencing on 15 January 2003. It must be replaced if one crop group comes to dominate so that the cover is no longer a mixture where the components could not be harvested separately. It may be destroyed after one year only if you need to do so, e.g. because you wish to rotate your set-aside.

Type of Wild Bird Cover to Sow

94. Wild bird cover must be a mixture of at least two crop types which would not normally be grown as a mixture for agricultural production and it is not practicable to harvest the components separately. Whether or not you intend to harvest or graze it is irrelevant. What matters is whether the mixture is capable of being harvested or grazed . The mixture must be sown on the same land; you cannot sow alternate rows, or blocks, of each seed.

95. You must ensure that the mixture remains an unharvestable mix. This is particularly important if the land is to remain in set-aside. If one component of the mix deteriorates, you must write to your local Area Office immediately and reinstate the mixture by replacing either the lost components or the whole mixture as soon as possible. It will sometimes be noticed too late to take corrective action immediately, in which case it is acceptable to retain the existing cover, but you must destroy it before the plant cover becomes harvestable (normally mid to late July). Again, you must inform your local Area Office in writing if you intend to do this.

Examples of Acceptable Wild Bird Cover

• A mixture of cereals and brassicas
• Other acceptable covers, e.g. mustard and phacelia.

In other cases contact your local Area Office.

Examples of Unacceptable Wild Bird Cover

• A mixture of cereals and grass
• A mixture of rape, kale and turnips.

Management of Wild Bird Cover

96. Wild bird cover is generally best established in the spring following natural regeneration over winter, although you may also sow a cover in the autumn. Up to 30 kg of nitrogen per hectare may be applied to help establishment. You are not required to cut the cover, provided that you follow in full all the rules in paragraph 102, but if you do take advantage of this derogation, you must not graze, or allow the cover to be grazed, or use it for any agricultural purpose, until after 15 January 2004.

Bare Fallow

97. If you choose not to establish a sown green cover you may leave your land as bare fallow.

Compulsory Cut or Destruction

98. The EU rules require that the growth from the green cover is not put to any commercial use. The green cover should be cut short or destroyed at the end of the set-aside period unless covered by the exemptions below. You must either:

• cut the green cover short (to approximately 10 cms or less) between 15 July and 15 August. The cuttings must not be removed or used but must be left on the ground to rot; or
• destroy the green cover by 31 August (this option does not apply to multi-annual set-aside).

99. The cuttings will cause fewer problems to the sward if chopped and scattered. If leaving the cuttings on the ground would cause environmental problems, you must ask your local Area Office for a specific exemption to remove the cuttings; you will need to explain in writing why you need to remove the cuttings and what you propose to do with them. The cuttings may not be used for any agricultural purpose.

100. You should try to avoid cutting your set-aside land between 1 April and 14 July as this may disturb or destroy nesting birds and prevent flowers from seeding. At other times you should take measures to minimise the damage to wildlife, by commencing regular mowing early in the year; by setting the mower at the maximum safe height; and by mowing from the centre of the field outwards or from one end of the field to the other to leave an escape route for wildlife.

101. Avoid cutting on or near visible archaeological features. Where cutting is unavoidable, take extra care to avoid damage to such features.

Exemptions from the Compulsory Cutting Requirement

102. Exemptions are as follows:

• You are setting aside field margins or headlands and do not graze the land or take any hay or silage from it after the end of the set-aside period. In such cases, the cover must still be cut at least once a year, but the cut may take place at any time of the year.
• Up to 25% of each set-aside field/parcel may be left uncut for up to 3 years to encourage a range of habitats. No specific exemption is required. However, if there is likely to be a problem of scrub encroachment you should cut the area more frequently than every 3 years.
• You may leave up to 2 metres adjacent to a hedge or wood permanently uncut to encourage broadening of the hedge or natural regeneration of the woodland. No specific exemption is required.
• You have sown a wild bird cover and there is no requirement for any cut. If, however, you wish to graze the cover after the end of the set-aside period, then you are not exempted from the cutting requirements.
• You may, however, apply to your local Area Office, (in writing, preferably at least 15 working days in advance) for an exemption to cut at a different time, to leave the grass longer or to allow regeneration, provided that you do not intend to use the cover, e.g. for hay, silage or grazing, at the end of the set-aside period; or
• If the green cover is left uncut the land may not be grazed or cut for hay or silage between 1 September and 14 January.

Other Exemptions

103. You may apply for exemptions from any of these rules, or to follow your own management plan, on one or more of the following grounds:

• environmental or archaeological reasons, e.g. to benefit or avoid damaging wildlife, to manage the land to encourage ground nesting birds or to conduct an archaeological excavation. Applications for exemption on archaeological grounds must be supported by Historic Scotland or by the appropriate Local Authority Archaeologist (LAA). Farmers should approach their LAA in the first instance unless the set-aside area in question is known to be a "Scheduled Ancient Monument (SAM)". In such cases the first contact should be Historic Scotland. If, after initial contact, the LAA finds that the site is a SAM then he would be expected to refer the applicant to Historic Scotland. However, if there is no LAA, or in the case of other difficulties, farmers should seek advice from Historic Scotland;
• for research into different ways of managing set-aside and/or the effects of set-aside. Such exemptions will normally only be given to recognised research organisations or on land being managed as part of an experiment by such an organisation;
• as an educational institution wishing to train students in agricultural techniques, e.g. ploughing, provided that such training does not include the sowing or growth of any agricultural crop;
• if a public utility or other body with compulsory purchase powers is installing a pipeline or cable on your land you may apply to be exempted from the green cover requirements; and
• for reasons of human or animal health or safety or of plant health.

How to Apply for an Exemption

104. If you wish to apply for an exemption on one of these grounds, you must write to your local Area Office setting out why you need an exemption. Please attach any supporting documentation, e.g. copies of letters from public utilities, to your letter. You must receive written agreement from your local Area Office before you depart from any of the standard management rules for set-aside.

Tenants

105. Tenants are strongly advised to consult their landlords before seeking an exemption for any management practice which might affect the nature or value of their land, e.g. to allow regeneration, to ensure that they would not be in breach of an actual or implied term in their tenancy agreement.

Weed and Volunteer Control

106. You may need to take action to control aggressive weeds, crop volunteers or vigorous growth. This may be done using herbicides, cutting or cultivation. You are reminded that cultivation before mid to late-July is still potentially one of the most damaging agricultural operations for wildlife and could destroy a wide range of species. You are thus strongly advised to consider alternatives such as the timeous use of herbicides to control weeds and to always take the precautions set out in paragraph 108.

107. You should pay particular attention to controlling those weeds specified in the Weeds Act 1959: common ragwort, broad-leafed dock, curled dock, spear thistle and creeping or field thistle. The Act empowers Agriculture Ministers to take action against anyone who occupies and manages land from which these weeds are spreading.

108. Agricultural operations can harm wildlife sheltering in the cover, nesting birds (particularly between April and mid-July), over-wintering insects (up to mid-May) and wild flowers which have not yet set seed. You must:

• avoid operations such as non-selective herbicide treatment, cultivation or cutting unless strictly necessary; the use of appropriate selective herbicides can be beneficial;
• where feasible, delay these operations until as late as possible (certainly until after mid-July);
• only treat the area where the problem weed is present;
• consider controlling problem weeds by herbicides - preferably selective ones - rather than cutting or cultivation;
• if using a non-selective herbicide, leave the residue of the cover in place for as long as possible to provide cover from predators for young birds in the nest;
• if you have to mow, start to mow regularly early in the year to discourage birds from nesting; set the cutter at the maximum safe height; and mow from the centre of the field outwards or from one end of the field to the other to leave an escape route for wildlife.

Herbicides

109. In most situations, specific permission is not required provided the herbicide is used in accordance with its specific label or off label approval. Current statutory conditions as detailed in paragraph 115 must be followed.

110. Written permission must be sought from your local Area Office prior to spraying a herbicide before 15 April which will result in the destruction of the green cover and that cover is not being replaced immediately.

111. Residual, soil-acting herbicides are not allowed unless they have a specific label approval for use on green cover on land temporarily removed from production, e.g. set-aside. However, if you are growing a non-food crop on the land, only products with a specific label or off-label approval for the crop in question may be used.

112. Non-residual herbicides, that is herbicides of a type which are primarily absorbed through the leaf and stem, may be used on set-aside land provided that, before 15 April, no action is undertaken which would be likely to destroy the green cover (except if replacing the cover or creating/maintaining a bare strip next to the crop). Thus, broad spectrum, non-selective herbicides should not generally be sprayed on the land before 15 April, but spot applications, the use of wick applicators or the use of selective herbicides which leave the bulk of the green cover intact are permissible before that date. If the cover is destroyed by herbicides and you wish to keep the land in set-aside for a further year, you must establish a new cover before the start of the set-aside year. If you are in multi-annual set-aside, you must not take any action that would destroy the green cover, unless you are doing so in order to replace it.

113. For non-residual products:

• Products approved for a particular crop may be used on a cover consisting predominantly of volunteers or natural regeneration of that crop, e.g. a product approved for cereals can be used on cereal volunteers, one approved for grass can be used on naturally regenerated grass.
• Products approved for use on non-crop land or land not intended for cropping may be used on set-aside areas, provided that the land is not growing a crop for non-food use. (However, any restrictions on intervals between applying the product and sowing crops must be observed.)
• Off-label arrangements allow certain other herbicides to be used on certain set-aside areas. If in doubt, please contact your local Area Office.

Use of Pesticides (other than Herbicides)

114. You must not apply any other pesticides, e.g. fungicides or insecticides, to set-aside land. You can, however, apply to your local Area Office, in writing, preferably 15 working days in advance, for a specific exemption to apply pesticides where you can demonstrate that this is necessary to control plant health problems that cannot be remedied by other means. You must not apply such pesticides until you have received written authorisation; nor should you use pesticides near sensitive areas such as watercourses and hedges.

Legislation

115. A herbicide with approval for the appropriate crop or situation must be used. In all cases you must make sure that you follow the statutory conditions set out on the herbicide label. It is your responsibility to make sure that your use of herbicides complies with the Food and Environment Protection Act 1985, the Control of Pesticides Regulations 1986, as amended, and the Plant Protection Products Regulations 1995, as amended, which implement the provisions of EC Directive 91/414 concerning the placing of plant protection products on the market.

116. If you intend to graze the green cover after the end of the set-aside period, only pesticides approved for use on grazed land can be used. All grazing re-entry periods must be observed.

Cultivation

117. In order not to disturb the green cover, there is general prohibition on:

• Before 1 May - cultivation and ploughing (for registered organic farmers or holdings in organic conversion);
• Before 1 July - cultivation and ploughing (for all other farmers); and
• Before 15 July - carrying out any preparation for sowing a crop.

118. If you disturb any right of way through cultivation you must restore the path in accordance with Section 43 of the Countryside (Scotland) Act 1967.

Replacing A Green Cover

119. If you wish to replace an existing cover, you may do so at any time provided that the following conditions are met:-

• soil conditions are suitable for sowing the new cover; and
• you have the seed for the replacement cover on the farm before you start to destroy the old cover; and
• the replacement cover is sown as soon as possible after destruction of the first cover.

If you wish to keep the land in set-aside for a further year, you must establish a replacement cover so that an adequate cover is in place by 15 January 2004. It is recommended that you avoid replacing the cover between April and July as this can harm wildlife.

MISCELLANEOUS RULES FOR SET-ASIDE LAND

Manure and Wastes

120. You can only apply slurry, manure or organic waste to set-aside land if it is from your own holding. Such waste may only be applied where there is an existing green cover on the land and must not be applied at levels which would destroy the green cover or which could cause pollution of watercourses.

121. If you are applying animal manure or slurry remember:

• applications of organic manure should be moderate and in no circumstances should they exceed 250 kg/ha/year total nitrogen;
• levels of application of manure to set-aside land must in no circumstances exceed the application rates set out in the Code of Good Practice - Prevention of Environmental Pollution from Agricultural Activity (the PEPFAA Code);
• some vigorous weed species, e.g. black-grass, wild-oats and cleavers, are very responsive to nitrogen. To avoid encouraging these aggressive weeds, it will be prudent to apply only moderate amounts of animal manure;
• the application of slurry and manure can disturb wildlife. Avoid applications when there are likely to be nesting birds (during the period early-April to mid-July); and
• keep manure away from field margins and hedges.

122. Manure or organic waste may be stored on set-aside land prior to spreading on the field in question. Set-aside land must not be used to store larger quantities of manure or waste than are to be applied to the field on which they are being stored.

123. You cannot use set-aside land as a storage, disposal or dumping ground for any form of waste, including sewage sludge.

Fertilisers

124. Farmers may not apply fertilisers to set-aside land due to remain in set-aside the following year, or to multi-annual set-aside.

Liming

125. You may apply lime and gypsum to set-aside land in its last year in set-aside provided that you do not disturb the green cover before 15 July. Paper crumble may also be applied as a liming agent to set-aside land, again only in its last year in set-aside. Further details of the conditions that must be met are available from your local Area Office.

Drainage

126. Sub-soiling, piped field drainage and mole drainage may not be carried out before
1 July unless it is essential to prevent flooding. In that case the green cover must be reinstated as soon as possible after the work is complete. Drainage work can be damaging to sensitive deposits on or near archaeological sites. Where a monument is scheduled, drainage operations require formal prior consent from the Scottish Ministers through Historic Scotland. For further information refer to the leaflet "Archaeological Information and Advice in Scotland" available from Historic Scotland or from your local Area Office.

Prevention of Illegal Access

127. In set-aside fields that are vulnerable to illegal vehicular access, i.e. adjacent to a road or a track, you may create a bare ploughed strip of up to 5 metres wide adjacent to likely points of access.

Burning

128. You must not burn any cover on your set-aside land.

Storage of Produce from the Previous Harvest

129. You may use your set-aside land for the temporary storage of produce from your holding, e.g. bales of straw, provided that there is no risk of damage to the green cover.

USE OF THE LAND AT THE END OF THE SET-ASIDE PERIOD

If You Wish to Leave the Land in Set-Aside

130. The end of the set-aside period is 31 August. There are restrictions on what you can do with any cover on the land at the end of the set-aside period between 1 September and the following 14 January. No cover established during the set-aside period may be put to any commercial use.

You may :

• harvest hay or silage for your own use, provided that you have cut the cover between 15 July and 15 August;
• keep your own animals (including pigs), or other people's, on the land, provided that you do not receive any return in cash or kind. (In the case of pigs, where agreements to keep pigs on land usually cover a longer period, farmers wishing to allow pigs onto land leaving set-aside must submit a copy of their Tenancy Agreement to their local Area Office.) However, they must not under any circumstances be kept in such numbers as to damage or destroy the green cover; or
• site game bird release pens and/or feeding hoppers on the set-aside area, provided that these are used solely in connection with a totally non-commercial shoot from which neither the farmer nor any third party derives any return in cash or kind.

You may not:

• keep other people's animals on the cover for a return in cash or kind, or lease the land for such purposes; or
• sell, barter or exchange any hay or silage harvested during this period; or
• use the set-aside cover for any other commercial purpose.

131. If the cover has been destroyed or has not established, you must establish a new cover before the start of the next set-aside period in accordance with the rules.

If You Wish To Sow A Crop On The Land For Harvest The Following Year

132. From 15 July 2003 you may prepare the land for, and sow, cereals, linseed, oilseeds, protein crops, flax, hemp, ornamental bulbs (excluding onions or garlic), field grown trees or shrubs, cane fruits and strawberries (but not any other horticultural crops) intended for harvest after 15 January 2004. You can leave multi-annual set-aside, without penalty, after 31 August in the final year of the agreement and may sow crops on the land from 15 July in that final year for harvest from 15 January the following year. You may also sow a temporary grass ley under this provision. However, you cannot graze grass leys, or other traditional forage crops, e.g. stubble turnips, kale or any other fodder or vegetable crop established after 15 July 2003, until after 15 January 2004. No exemptions can be granted in respect of this EU rule.

133. There are financial penalties for infringement of the set-aside management rules, e.g. failure to comply with the rules prohibiting agricultural use and restricting non-agricultural use. You are thus strongly advised to ensure that all the management rules are observed.

GROWING CROPS FOR NON-FOOD USE ON SET-ASIDE LAND

134. You may grow certain crops under contract for non-food use on set-aside land. However, the EU rules are very strict. If you do not comply with them, you will lose your set-aside payment and your associated crop payments. General and management rules are described below. The list of eligible crops are given in Appendix 7.

GENERAL RULES

135. The requirement to provide a valid contract is your responsibility and it must contain the following:

• your main farm code number, i.e. the farm code under which you will be submitting your 2003 AAA;
• the name and address of all the contracting parties;
• the duration of the contract;
• the species of each raw material (crop) concerned and the area sown to each species;
• for each species, the forecast yield per hectare and total forecast quantity to be harvested (in tonnes). The forecast yield must fall within a yield range made available by the RPA to interested parties including collectors and first processors;
• the principal end-use of the raw material, each end-use being in conformity with the requirements of Articles 3(1) and 13(3) of EU Commission Regulation (EC) 2461/99 as outlined in paragraph 140;
• an undertaking by the farmer to deliver all the harvested crop to the collector/first processor and the collector/first processor to take delivery of all of it and use an equivalent amount of material within the EU to make one or more of the end products listed in Table 3; and
• the forecast quantity of by-products to be produced which are not destined for human or animal consumption. This only applies to contracts relating to rapeseed, colza, sunflower seeds or soya beans falling under CN codes ex 1205 00 90, 1206 00 90 or 1201 00 90.

136. You must ensure that the valid, signed (by both parties) contract is concluded in time for it to be lodged by the collector or first processor with the RPA by the following dates:

(a) for crops sown between 1 July and 31 December 2002 inclusive (winter sown crops) by 31 January 2003; or

(b) for crops sown/to be sown between 1 January and 30 June 2003 inclusive (spring sown crops) by 15 May 2003.

The collector or first processor must deposit with the RPA a security equal to 250 euros per hectare for the area covered by the contract by the final date for the lodgement of the AAA in the year of harvest. If the land under contract is transferred to another IACS applicant you must contact the RPA, as such changes will affect your non-food contract.

MANAGEMENT RULES FOR NON-FOOD SET-ASIDE

137. The normal management rules do not apply to land growing non-food crops.

However, you must:

• observe the other EU rules on set-aside, including those on non-agricultural use of the land (paragraphs 70-76);
• not damage, destroy or remove any relevant features on the land;
• observe the Code of Good Practice "Prevention of Environmental Pollution from Agricultural Activity" (PEPFAA Code) particularly on burning crop residues;
• not apply organic wastes and fertilisers in quantities in excess of those accepted as being in accordance with normal agricultural practice and recommended in the PEPFAA code; and
• observe the minimum separation distance rules for neighbouring high and low erucic acid rapeseed crops (these are set out in full in Appendix 4).

If you destroy the crop prior to harvest you must establish a green cover and follow the other set-aside management rules unless you have a specific written exemption from your local Area Office.

138. A range of crops for non-food uses, including oilseeds, cereals and linseed, can be grown on set-aside land. The key points to note are that:

• the crops grown and their intended end-use are restricted to certain crops/end-uses listed in Table 3, Appendix 7;
• the value of the non-food end products must be greater than the value of all food (including animal feed) by-products;
• you must have signed and dated a contract with a collector or first processor;
• this contract must conform with the requirements set out in paragraphs 142-149;
• the collector or first processor must lodge the contract with the RPA by 31 January for winter sown crops, and by 15 May for spring sown crops. If he fails to do so, your payments will be at risk;
• you must deliver all the crop harvested from your set-aside land to the collector/first processor for non-food use, even if the quantity harvested exceeds the quantity predicted in the contract;
• in the case of crops eligible for intervention, i.e. barley, rye and varieties of wheat which may achieve common wheat standard, the quantity delivered must not normally be less than the quantity forecast in the contract, even if you have to make up any shortfall from other sources;
• you cannot receive your set-aside payments until you have delivered your crop to the first processor or collector and sent your local Area Office a form (IACS 9) declaring the details (including weight) of the delivery.

139. Oilseeds grown on set-aside are subject to special restrictions as a result of the agreement between the EU and the United States which requires the EU to take "appropriate corrective action" if the by-products of these oilseeds exceed the equivalent of one million tonnes of soya bean meal. The Commission is monitoring such production and we will advise you in due course if any penalty is to be applied.

Permitted End-Uses

140. The crop grown must be processed within the EU into a non-food product listed in Table 3 ( Appendix 7). The value of the non-food end product(s) must be greater than the total value of all the by-products destined for food or feed and produced from the same processing. The RPA is responsible for assessing the relative values and you should contact them if you have any doubt about the relative value of your crop.

Perennial/Biennial Crops

141. You may grow perennial or biennial crops as a non-food set-aside crop provided they are listed in Table 1 for an end use in Table 3. You must leave the crop in the ground and claim it as a non-food set-aside crop each year for the duration of the contract. If this continuity is broken, e.g. if you lift the crop from the ground or fail to include the area on your IACS form for each year, this would constitute a break in the contract. Then the details in paragraph 147 re-apply. In other words, you would have to re-sow the non-food crop and take out a new contract that must be concluded and lodged by the dates due for the year the crop is sown. For example, if you sow your crop in April 2003, e.g. Roman camomile, you must conclude and lodge your contract by 15 May 2003. The duration details on the contract must clearly state the number of years that the crop is to remain under contract as a non-food set-aside crop. Contracts for multi-annual harvesting can be activated each year provided, on lodgement, that the contract specified that this would be the case. For further information contact the RPA.

The Contract

142. If you wish to use your set-aside land to produce any of the crops listed in Table 1, you must have a valid signed contract with a collector or first processor. A collector is someone who buys the harvested crop from farmers to sell it on to a suitable processor.

NB. You should ensure that you retain a copy of the contract for submission to your local Area Office with your AAA. If you are unable to produce a signed (by both parties) and dated copy of your contract, the set-aside land concerned will not be regarded as eligible, and you may lose both your set-aside payment and related crop payments, and additional IACS penalties may have to be applied.

Amendment of the Contract

143. The contract (for winter and spring sown crops) may be amended or rescinded (with the agreement of the contracting parties) at any time up to and including the final date for amending the AAA, i.e. 15 May. Collectors and first processors must deposit a copy of the amended/rescinded contract with the RPA by 15 May. The security lodged with the RPA shall be adjusted in line with any amendment.

144. However, if the contract is to be amended or rescinded after you have submitted your AAA but by 15 May, you must inform your local Area Office and the collector/first processor must inform the RPA to enable all necessary checks to be carried out. As far as possible, notification should be made at least 10 days before the amendment or rescission. Clearly this will not always be possible if amendments are made close to the 15 May deadline. As much notice as practicable, therefore, should be given to your local Area Office and the RPA.

145. After 15 May, amendment or rescission of the contract may only be possible if you are unable to provide all or part of the crop covered in the contract. In such cases, you must observe the requirements outlined in paragraphs 147-149.

Reductions of Area Under Contract

146. If you amend your contract, you should follow the appropriate course of action from the following:

• if you amend your contract before 15 January 2003 and the contract has been lodged, SEERAD do not need to know but you should tell the RPA;
• if you amend your contract on or after 15 January 2003 and the land is going to remain set aside, you must inform both your local Area Office and the RPA; or
• if you amend your contract on or after 15 January 2003 but before you have lodged your IACS application, and if the land is not to remain in set-aside, SEERAD do not need to know but you must inform the RPA; or
• if you amend your contract on or after 15 January 2003 but after you have lodged your IACS application, and if the land is not to remain in set-aside, you must inform both your local Area Office and the RPA.

Inability to Provide Contract Quantity/Reduction of Area under Contract

147. If, for any reason, it becomes clear before harvest that you are unable to provide all of the crop specified in the contract (even if the representative yield is likely to be met for those crops subject to one) you are advised to amend your contract in consultation with your collector/first processor. Thereafter, you must inform your local Area Office and the RPA. When your local Area Office agrees to a reduction of the raw material to be produced, you and the collector/first processor named on the contract will need to submit Form NFC7 to RPA to record the amendment when you submit your IACS 9.

148. If your crop is subject to a representative yield and you fail to deliver at least that yield, then you must contact your local Area Office. In exceptional circumstances, a shortfall of up to 10% may be permitted. A further shortfall can be considered by your local Area Office where there is a valid reason, but only where your contract has been amended to allow a lesser amount than that specified in the original contract (see paragraph 147). However, if there are no exceptional circumstances and you have complied with the rules of the scheme in all other respects, you may make up the shortfall from raw material obtained from elsewhere.

149. If you fail to deliver the amount of raw material for the crops listed in Table 1, then your set-aside will be reduced by an amount equivalent to the percentage shortfall of the crop and IACS penalties will be applied. You can avoid penalties if you make up the shortfall from raw material obtained from elsewhere. If you choose this option you must inform your collector/first processor immediately and they must inform the RPA that the contract is not yet complete.

Harvest

150. After harvest you must deliver the entire crop to the collector/first processor. Delivery may take place on farm if the collector/first processor takes full legal responsibility for the crop at that stage, but the crop must be kept separate from any other harvested material at all times. The Department will require an accurate assessment of the weight delivered. This may be done by volumetric assessment initially although not for those crops subject to a representative yield. Where volumetric assessment is used, the crop must be kept separate from other crops until an accurate weight is established on a weighbridge approved by the local authority.

Representative Yield

151. The EU rules require the UK to set up representative yields for oilseeds other than HEAR varieties. In addition to delivering the entire crop harvested to their collectors/first processors, growers of oilseeds other than HEAR must ensure that this delivery equates to at least the representative yield appropriate to the crop. All non-food set-aside growers will be sent notification of these yields with their IACS 9 form. The representative yields will be set by SEERAD by 31 July of the year of harvest, and will be based on a standard quality, i.e. adjusted to take account of moisture and admixture content.

152. If the representative yield appropriate to your crop is set at a higher level than the yield in your contract you must still deliver at least the representative yield.

After Delivery

153. After delivery you must send a delivery declaration (IACS 9) form to the local Area Office declaring the total quantity harvested, by species, and the person or persons to whom it has been delivered. A separate IACS 9 is required for each contract. Local Area Offices will send IACS 9s to all applicants with non-food set-aside crops. However, please remember that it is your responsibility to obtain and complete an IACS 9. If you have not already received your IACS 9 please contact your local Area Office. Late submission of your IACS 9 may result in a penalty being applied.

Payment

154. AAPS aid will be paid on non-food set-aside land at the normal set-aside rate. However, the payments cannot be made until the local Area Office has received the delivery declaration form (IACS 9) and the collector/first processor has fulfilled various commitments including confirming to the RPA receipt of the entire crop by means of form NFC 2. Penalties may be applied to both collector/first processor and the farmer if the forms are late. It is important, therefore, that farmers send in their delivery declaration form(s) as soon as possible and at the latest by 9 February 2004. Failure to do so will result in delays in making any set-aside payment due. You must inform your collector/first processor when the final load of any contract has been delivered.

CROPS WITH NO FOOD OR ANIMAL FEED USE LISTED IN TABLE 2

Eligible Crops

155. A limited range of crops that have no food or animal feed use can be grown on set-aside land under less onerous controls than those listed in Table 1. They include short rotation coppice (SRC) and miscanthus and are listed in Table 2. If you intend to grow SRC on your set-aside land, you should pay particular attention to siting your set-aside land so as to fit the coppice into the landscape (see Appendix 7).

156. You cannot receive any other EU financed aid on non-food set-aside crops. Under Agenda 2000, provision was made for the payment of grants for energy crops (miscanthus and SRC). However, this was dependent on energy crops being included in the Rural Development Plan and, as the payment of any grants will be on a shared basis with the EU, the availability of national funds. These payments will not affect the eligibility for the set-aside payment.

Permitted End-Uses

157. The permitted end-uses are set out in Table 3, Appendix 7.

Obligations on the Farmer

158. There is no need to have a contract before planting an eligible crop listed in Table 2. No delivery notification on form IACS 9 is required. However, when you submit your AAA, you will have to give a written undertaking that the crop is intended for an appropriate non-food use and that you understand that any breach of this undertaking will result in penalties. (There will, however, be no penalties if you cannot find a market for the crop, provided that you do not use it for food or feed.)

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