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ARABLE AREA PAYMENTS SCHEME 2003
APPENDIX 8 MULTI-ANNUAL SET-ASIDE
1. You may, under certain circumstances, enter your land into Multi-Annual Set-Aside. This option provides for the same land to be set aside for up to 5 years whilst guaranteeing that you will not be adversely affected by any decreases in the basic aid rate (in ยค or any reduction in the yield under the regionalisation plan.
2. If you wish to enter land into a multi-annual set-aside agreement, you need to complete a Form IACS 22 (2003) which is available from your local Area Office and return it by 15 May. Where you are entering land which has been planted to short rotation coppice this should be stated on the form. If you need to have a management plan approved, Form IACS 23 (2003) should be submitted to your local Area Office at any time. Further information on the preparation of a management plan is given in Leaflet AAP (2003) MAS/MP.
3. Depending on your status you may enter agreements for periods of 3, 4 or 5 years:
- If you are an owner-occupier or a tenant farmer with 5 or more years of your tenancy left, then your agreement can be for a period of 3, 4 or 5 years.
- If you are a tenant farmer with LESS than 5 years of your tenancy left you may enter an agreement to cover the remaining complete Scheme years of your tenancy - subject to a minimum of 3 Scheme years.
4. If you are a tenant you are advised to consult your landlord before entering into a multi-annual set-aside agreement. If you are farming on a short term tenancy of less than 3 years it would not be advisable to enter into a multi-annual set-aside agreement unless you have written assurance that the tenancy will be renewed.
5. Other than land used to grow non-food crops such as short rotation coppice, (where the rules in paragraphs 155-158 apply), land entered into multi-annual set-aside must be managed in accordance with:
- The management rules in paragraphs 77-119; or
- A management plan which has been approved by your local Area Office.
6. If you are not entitled to set aside up to 100% of your claimed area and you subsequently reduce the cropped area of your claim so that the area under multi-annual set-aside exceeds 50% of your claim, the area covered by the agreement may be adjusted accordingly to ensure the limit on set-aside is respected. No penalty will apply to the area that is then withdrawn from the multi-annual agreement.
7. The commitment under multi-annual set-aside relates to the land. If occupancy of the land changes during the 3 or 5 year agreement period, the new occupant may take over the agreement for the remainder of the agreement period (including the observance of any management plan). If the new occupant does not take over the agreement, penalties will be applied to the previous occupant.
8. If a new holder of a multi-annual set-aside agreement fails to observe the terms of the agreement at any point during the remainder of the agreement period, penalties for early withdrawal will be applied. Farmers wishing to transfer their multi-annual set-aside agreement are therefore strongly advised to seek professional advice before entering into any such arrangements.
9. If you intend to withdraw from a multi-annual set-aside agreement, or transfer the agreement to another farmer, you must complete a Form IACS 24 (2003). Where the agreement is being transferred, both parties must sign the form. The form must be submitted to your local Area Office within 3 months of the transaction taking place, or 15 May if sooner.
10. The EU Regulation states that where a producer deliberately goes back on an agreement before it ends, penalties will apply. This means that the agreement must be honoured for the full 3 or 5 years, except where:-
- the area is to be afforested under an agri-environment scheme; or
- there is a change in the farm structure beyond your control.
11. A producer may leave an agreement or reduce the area covered by it without penalty in the circumstances described at paragraph 9. However, a penalty will be applied for any plot withdrawn if a producer fails to:-
- declare the land as set-aside in the area aid application;
- observe the management conditions; or
- observe the terms of any management plan.
The penalty will be calculated as follows:-
Area x (set-aside payment rate x 5%) x the number of years left in the agreement.
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