The Scottish Government

« Previous | Contents | Next »

Listen

ARABLE AREA PAYMENTS SCHEME 2003

APPENDIX 5 APPLICANTS WITH LAND IN MORE THAN ONE YIELD REGION

Note: This Appendix describes the arrangements for farmers with land in more than one yield region. This could affect you in two ways. Firstly, if you are applying for AAPS aid and are a small producer, i.e. no obligatory set-aside requirement, you will need to calculate the maximum area on which you can claim aid. Secondly, if you have a minimum set-aside requirement, there are arrangements allowing you to count set-aside land in one yield region against crops in another. For 2003 the minimum set-aside requirement is 10% for both the Scottish LFA and non-LFA.

1. SMALL PRODUCERS CLAIMING ON AN AREA WITH NO SET-ASIDE

REQUIREMENT

1.1 There are limits on the area that small producers can claim under AAPS without having to set land aside. These are:

Hectares

If your AAA includes arable land in more than one yield region, e.g. you have both Scottish LFA and non-LFA land, and your total claim exceeds the area limit for any one of those regions, you will need to calculate the notional production on the area on which you can claim aid.

1.2 In essence, you can only claim AAPS aid, including voluntary set-aside, on the area of land needed to produce the equivalent of 92 tonnes using the relevant average regional yields. These reference yields are:

Tonnes/hectare

1.3 To check that your claim is within the maximum area to qualify as a small producer, multiply the area claimed in each yield region by its reference yield. The total should be less than or equal to 92. For example, if your claim is for 10 hectares in the Scottish LFA and
7 hectares in the Scottish non-LFA, you should multiply each of the areas claimed by their reference yields.

This is below the 92 tonnes threshold and you would thus qualify as a small producer.

1.4 Reducing your claim. If your claim comes to more than the equivalent of 92 tonnes, you will need to reduce it. For example, if you have 10 hectares of cereals in the Scottish LFA and 10 hectares of linseed in the Scottish non-LFA, your total area of eligible arable crops (in all regions) exceeds the limit for the regions you are farming in. Your total production using the reference yields is the area in each region multiplied by its reference yield:

(10 x 5.21) + (10 x 5.67) = 108.8 tonnes

This is 16.8 tonnes (i.e. 108.8 - 92) above the 92 tonnes threshold for the exemption from the requirement to have set-aside. You should thus reduce 16.8 tonnes of production from your claim.

If you choose to reduce only the Scottish LFA element of your claim, this would amount to 16.8 divided by the reference yield, i.e.:

Alternatively, if you choose to reduce only the Scottish non-LFA element of your claim you would have to divide 16.8 by the non-LFA reference yield, i.e.:

Thus you could make your claim as a small producer on either:

- 10 hectares of cereals in the Scottish LFA plus 7.04 hectares of linseed (10-2.96) in the Scottish non-LFA; or

- 10 hectares of linseed in the Scottish non-LFA plus 6.77 hectares of cereals (10-3.23) in the Scottish LFA.

Other combinations of land in the two regions that meet the 92 tonnes ceiling would also be possible.

If your claim exceeds the 92 tonnes ceiling and you do not reduce it, your claim will be reduced pro rata and you will be paid on an area equivalent to the 92 tonnes limit. We will not pay on the excess - and you would not subsequently be able to claim it as part of your forage area.

1.5 If you are uncertain about how much land you can claim on, please seek professional advice or consult your local Area Office. If your claim exceeds the 92 tonnes limit and you have insufficient set-aside to support the cropping elements of your claim, we will scale back your claim to the area supported by the eligible set-aside or to the maximum area that can be claimed by a small producer, whichever is the greater.

2. APPORTIONMENT OF OBLIGATORY SET-ASIDE BETWEEN YIELD REGIONS

2.1 If you are claiming AAPS aid on an area above the small producer limit on land located in more than one yield region, you will normally have to apportion your set-aside requirement within each of those regions, in accordance with the size of the cropped area claimed in each region. (However, see paragraph 2.3).

2.2 For example, if you are claiming for 60 hectares of crops on Scottish non-LFA land and for 40 hectares of crops on Scottish LFA land, your set-aside requirement must normally be met in each yield region. For 2003 this means:

The same would apply, for example, if you had a unit in the Scottish LFA and another in England. (Please refer to Appendix 1 for examples of how to calculate your set-aside requirement in 2003.)

2.3 However, there is an exception to the general requirement to meet your set-aside requirement within each yield region:

If you have land in adjoining yield regions with different reference yields, you may meet your set-aside requirement in a single yield region, provided that the set-aside area to be offset is adjusted to take account of the differences in reference yields between the regions. When offsetting your set-aside obligation from either of the Scottish yield regions or from England, the area concerned must be multiplied by the factors in the table on page 54.

NB: Please note that this does not apply to Northern Ireland and Wales since the yield regions are not adjoining.

2.4 When calculating your offsetting set-aside requirement, you must treat the offset set-aside as shown in the examples below.

In the first two examples given below, the area of set-aside land offset in Scottish LFA to account for cropped land in the Scottish non-LFA is calculated on the basis of the set-aside requirement in respect of the area of non-LFA cropping claimed less the area of non-LFA set-aside (if any) multiplied by the 1.09 factor as above. A similar calculation would be required if offsetting set-aside in either of the Scottish yield regions against cropped land in England. In the other two examples, the area of set-aside land offset in the Scottish non-LFA to account for cropped land in the Scottish LFA is calculated on the basis of the set-aside requirement in respect of the area of LFA cropping claimed less the area of LFA set-aside (if any). As per offsetting set-aside in England against either of the Scottish yield regions, there is no need to apply a factor in these examples as the set-aside is being offset in a yield region with a higher reference yield.

2.5 If, in 2003, you farm and claim for 100 hectares in both the Scottish LFA and non-LFA yield regions, your claim would normally be for a minimum set-aside requirement of 10 hectares in both the LFA and non-LFA. This means that for the cropping elements of your claim to qualify in full for AAPS aid, they would thus normally have to be restricted to a maximum of 90 hectares in each yield region.

Example 1

In 2003, you farm and claim for 100 hectares in the Scottish LFA and 100 hectares in the Scottish non-LFA yield regions. If you decide to site all of your set-aside in the Scottish LFA, you must adjust your AAPS claim as follows:

• Your claim in the Scottish non-LFA would be for 100 ha of cropped land.
• The set-aside requirement for the 100 ha of non-LFA cropping is:

100 x (10 ÷ 90) = 11.12 ha
(rounded up from 11.111)

• As you have no non-LFA set-aside and the LFA region has a lower reference yield, the 11.12 ha requirement must be multiplied by a factor of 1.09 to obtain the area to be set-aside in the LFA region:

11.12 x 1.09 = 12.13 ha
(rounded up from 12.121)

• Your claim in the Scottish LFA region would therefore be reduced to:

100 - 12.13 = 87.87 ha

• The 87.87 ha includes the area of LFA land you want to claim cropping and set-aside payments on. Therefore, the minimum set-aside requirement for the LFA land is:

87.87 x 10% = 8.79 ha
(rounded up from 8.787)

• In summary, your overall AAPS claim for 2003 would be:

100 ha of non-LFA cropping

- a maximum of 79.08 ha of LFA cropping (87.87 - 8.79)

- a minimum of 20.92 ha of LFA set-aside (8.79 + 12.13)

Please note that if you opt to offset your set-aside requirement and have insufficient set-aside to support the whole of the cropping elements of your claim, then the yield region which has sufficient set-aside will be paid in full and the set-aside excess in that region will be used to determine the supported cropping area in the other yield region(s).

Example 2

In 2003, you farm and claim for 100 hectares in the Scottish LFA and 100 hectares in the Scottish non-LFA. If you decide to site 2 hectares of your set-aside in the Scottish non-LFA and the remainder in the Scottish LFA, you must adjust your AAPS claim as follows:

• Your claim in the Scottish non-LFA would be for 98 ha of cropped land and 2 ha of set-aside.
• The set-aside requirement for the 98 ha of non-LFA cropping is:

• As you have 2 ha of non-LFA set-aside, your offset requirement to the LFA region is:

10.89 - 2 = 8.89 ha

• As the LFA region has a lower reference yield, the 8.89 ha requirement must be multiplied by a factor of 1.09 to obtain the area to be set-aside in the LFA:

8.89 x 1.09 = 9.69 ha

• Your claim in the Scottish LFA would thus be reduced to:

100 - 9.69 = 90.31 ha

• The 90.31 ha includes the area of LFA land you want to claim cropping and set-aside payments on. Therefore, the minimum set-aside requirement for the LFA land is:

90.31 x 10% = 9.04 ha (rounded up from 9.031)

• In summary, your overall AAPS claim for 2003 would be:

- 98 ha of non-LFA cropping

- 2 ha of non-LFA set-aside

- a maximum of 81.27 ha of LFA cropping (90.31 - 9.04)

a minimum of 18.73 ha of LFA set-aside (9.69 + 9.04)

Please note that if you opt to offset your set-aside requirement and have insufficient set-aside to support the whole of the cropping elements of your claim, then the yield region which has sufficient set-aside will be paid in full and the set-aside excess in that region will be used to determine the supported cropping area in the other yield region(s).

Example 3

In 2003, you farm and claim for 100 hectares in the Scottish LFA and 100 hectares in the Scottish non-LFA. If you decide to site all of your set-aside in the Scottish non-LFA, you must adjust your AAPS claim as follows:

• Your claim in the Scottish LFA would be for 100 ha of cropped land.
• Your total set-aside requirement for the 100 ha of LFA and 100 ha of non-LFA is:

200 ha x 10% = 20 ha

• As the non-LFA region has a higher reference yield, there is no need to apply a factor to the non-LFA land being set aside in respect of LFA crops.
• Your claim in the Scottish non-LFA region would therefore be reduced to:

100 - 20 = 80 ha

• The 80 ha is the maximum area of non-LFA land you can claim cropping on.
• In summary, your overall AAPS claim for 2003 would be:

- 100 ha of LFA cropping

- a maximum of 80 ha of non-LFA cropping

- a minimum of 20.00 ha of non-LFA set-aside

Please note that if you opt to offset your set-aside requirement and have insufficient set-aside to support the whole of the cropping elements of your claim, then the yield region which has sufficient set-aside will be paid in full and the set-aside excess in that region will be used to determine the supported cropping area in the other yield region(s).

Example 4

In 2003, you farm and claim for 100 hectares in the Scottish LFA and 100 hectares in the Scottish non-LFA. If you decide to site 3 hectares of set-aside in the Scottish LFA and the remainder in the Scottish non-LFA, you must adjust your AAPS claim as follows:

• Your claim in the Scottish LFA would be for 97 ha of cropped land and 3 ha for set-aside.
• Your total set-aside requirement for 100 ha of LFA and 100 ha of non-LFA is:

200 ha x 10% = 20 ha

• As you have 3 ha of LFA set-aside, your requirement in the non-LFA is:

20 - 3 = 17 ha

• As the non-LFA region has a higher reference yield than the LFA region, there is no need to apply a factor to the non-LFA land being set aside in respect of LFA crops.
• Your cropping claim in the Scottish non-LFA would thus be reduced to:

100 - 17 = 83 ha

• The 83 ha is the maximum area of non-LFA land you can claim cropping on.
• In summary, your overall AAPS claim for 2003 would be:

- 97 ha of LFA cropping

- 3 ha of LFA set-aside

- a maximum of 83 ha of non-LFA cropping (100-17)

- a minimum of 17 ha of non-LFA set-aside

Please note that if you opt to offset your set-aside requirement and have insufficient set-aside to support the whole of the cropping elements of your claim, then the yield region which has sufficient set-aside will be paid in full and the set-aside excess in that region will be used to determine the supported cropping area in the other yield region(s).

2.6 If you have any doubts on the application of these rules, please seek professional advice or consult your local Area Office.

« Previous | Contents | Next »