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Arable Area Payment Scheme 2004

C. SET-ASIDE LAND

YOUR SET-ASIDE REQUIREMENT

46. If you are a main producer, the minimum set-aside rate for 2004 is 10%. This is known as obligatory set-aside. Any set-aside above 10% is known as voluntary set-aside. If you are a small producer, you do not have to set aside land but you may do so.

47. Appendix 1 shows you how to work out your set-aside requirement. If you farm land in more than one yield region (for example, the Scottish LFA and non-LFA), you must normally meet your set-aside commitment in each region (see Appendix 5). If you do not meet the obligatory set-aside requirement penalties will apply (see paragraphs 41-45).

48. The minimum set-aside plot is 0.3 hectares. This can be:

• single blocks that are at least 20 metres wide at all points; or
• 10-metre strips next to permanent watercourses (where the minimum plot size is 0.1 hectares); or
• exceptionally a whole field that is completely bounded by permanent, fixed boundaries.

These requirements apply to all types of set-aside.

49. We do not allow 10-metre wide strips if they are separated from the watercourse, except by a fence, a wall, a hedge (including vegetation that has grown up from inside the watercourse), banks or belts of single trees.

50. Permanent watercourses include lochs, ponds, rivers, streams, canals, estuaries and field ditches. If the watercourse runs through a culvert, the culvert should be no more than six metres long.

TYPES OF SET-ASIDE

51. Normal set-aside

• Obligatory and voluntary set-aside
• Multi-annual set-aside (this is no longer available for new applicants)
• Additional voluntary set-aside
• Guaranteed set-aside (this is no longer available for new applicants)

Non-food set-aside

• Obligatory/voluntary set-aside
• Additional voluntary set-aside
• Guaranteed set-aside (this is no longer available for new applicants)

Structural set-aside

• Land in Woodland Grant Scheme, Farm Woodland Premium Scheme or the Scottish Forestry Grant Scheme
• Land in eligible habitats
• Ex-five-year set-aside still in Farm Woodland Scheme

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.

52. If you are claiming for AAPS, you must make sure that your total set-aside area is not bigger than the total cropped area on which you are claiming AAPS aid (that is, maximum 50% set-aside and 50% crops).

53. 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 producing multi-annual crops for biomass production (for example, short rotation coppice);
• ex-five-year set-aside scheme land which has been in continuous set-aside under AAPS since leaving that scheme; or
• land that is eligible for AAPS that has been taken out of arable production under an agri-environmental scheme, and has now left that scheme.

MULTI-ANNUAL SET-ASIDE

54. The option of entering land into a multi-annual set-aside agreement for the first time is no longer available. However, it is still possible to apply for an exemption to the set-aside management rules or follow a specific management plan (see paragraphs 98-100). Scottish Executive Environment and Rural Affairs Department (SEERAD) will be writing to farmers who have multi-annual set-aside agreements about arrangements for the future.

ADDITIONAL VOLUNTARY SET-ASIDE

55. Additional voluntary set-aside was land that had been in the five-year set-aside scheme and then set aside continuously under AAPS since leaving that scheme. Land that has continuously been in set-aside will be allowed to continue in set-aside even if it covers more than 50% of the claimed area (that is, up to 100%). You cannot combine this type of set-aside with any other type of set-aside. If any additional voluntary set-aside land is cropped, it cannot be returned to additional voluntary set-aside.

STRUCTURAL SET-ASIDE

Woodland schemes

56. You may count land entered into the Woodland Grant Scheme (WGS), the Farm Woodland Premium Scheme (FWPS) or the Scottish Forestry Grant Scheme (SFGS) towards your set-aside as long as:

• the land is eligible for AAPS; and
• the WGS or FWPS application was made after 1 July 1995.

However, this land must meet the normal rules and conditions of both AAPS and forestry schemes.

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

• the normal rates of establishment grants under the forestry scheme; and
• an annual FWPS payment that is not more than the relevant set-aside payment
  for the yield region concerned.

We do not pay AAPS aid on structural set-aside.

57. If you would like information on the forestry scheme (including application forms), you should contact your local Forestry Commission Conservancy Office. However, you can also get copies of the SFGS Rules and Procedure booklet from your local SEERAD Area Office.

58. You can set aside land which was originally entered into the former Farm Woodland Scheme (FWPS) through the old five-year set-aside scheme. The set-aside management conditions will not apply to this type of land. You will not be able to receive AAPS set-aside payments while the land is still in the FWPS. If you did not enter the FWPS through the five-year set-aside scheme, you cannot claim your FWPS land as set-aside under the AAPS.

Habitats scheme

59. If you made an application on or after 1 July 1995 to enter eligible arable land into the Waterside Habitats, Damp Lowland Grassland and Marsh Communities, or the Dry Lowland Grassland 20-year options of the former Habitats Scheme, you can count this land against your set-aside obligation in 2004. If you are not sure whether you are eligible to claim AAPS cropping or set-aside aid, please contact your local area office in writing.

60. You must have met the rules and conditions of the Habitats Scheme for any land you want 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 be higher than the AAPS set-aside payment rate in the yield region concerned.

GROWING ORGANIC FODDER LEGUMES ON SET-ASIDE LAND

61. If you manage your holding totally in compliance with the Organic Regulations, you may grow organic fodder crops on your set-aside land. If you want to take advantage of this measure, you must:

• be registered as an organic producer with an approved organic-sector organisation; and
• manage your holding in compliance with the obligations of the Organic Regulation (EU Council Regulation Number 2092/91).

62. For the purposes of this measure, 'holding' is defined in the IACS Regulations as all the production units (that is, all the farms) managed by a farmer in a member state of the EU. This means that to be eligible to grow organic fodder legumes on set-aside land, all the farms making up the IACS business (the holding) must be wholly managed in compliance with the requirements of the Organic Regulation or be in the process of converting to organic production.

63. Holdings made up of a mixture of organic and non-organic farms are not eligible for this option.

64. Organic fodder legume crops on set-aside may be grazed by, or fed to, your or someone else's animals throughout the scheme year. Normal green-cover rules do not apply. However, if the crop is grazed by, or fed to, someone else's animals, you or the other person must make no lucrative return in cash or in kind.

65. You may grow the following organic fodder crops on set-aside land.

66. Mixtures of these crops with cereals or grasses are also allowed, as long as the fodder legume is the main part in the mixture.

SHORT-ROTATION COPPICE AND OTHER BIOMASS CROPS ON SET-ASIDE LAND

67. You may set aside an area of more than 50% of the total area on which you are claiming aid as long as you use all your set-aside land for producing multi-annual biomass crops (for example, short-rotation coppice). The payment will be the same rate as that for obligatory and voluntary set-aside. No other community-financed aid is paid 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 land. For more details of these grants, please contact the Forestry Commission.

USING SET-ASIDE LAND DURING THE SET-ASIDE PERIOD

Important note - Under the EU Regulations, the set-aside period is 15 January to

31 August. However, there are also restrictions on what you can do on set-aside land during the period 1 September to the following 14 January.

Agricultural uses

68. During the set-aside period, you may not use the land for any type of agricultural or horticultural production, with the following exceptions:

• To produce non-food crops.
• After 15 July, to prepare for sowing or sow an arable crop for harvest or use after 15 January 2005. 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 2005 (for example, stubble turnips, kale or any other fodder or vegetable crop).

69. 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 later destroyed.

Non-agricultural uses

70. Under the strict EU rules, set-aside land must not be used for any non-agricultural purpose other than for approved non-food uses. These rules ban all uses of set-aside land which are either commercial or from which any organisation makes any income or benefits. Even if the proposed use is non-commercial and non-lucrative, you must always get approval in writing from your local area office before you carry out any non-agricultural activity on set-aside land. You must apply in writing for approval (giving full details) preferably 15 working days before the proposed activity and in good time to allow changes to arrangements in case the planned activity is not allowed. If you go ahead without getting approval in writing, we may apply penalties. The only activity you do not need approval for is grazing your own non-agricultural animals (for example, a pony kept for you or your family to ride), as long as you do not receive any return in cash or in kind.

71. You must not use set-aside land for any purpose that would bring a return in cash or in kind (lucrative use) for you or anyone else, with the exception of certain local small-scale, charitable fundraising events. You must always get permission in writing from your local area office before you allow anyone to use your set-aside land for any charitable event.

72. You do not need permission for those activities that could be carried out equally well if you were growing a standing crop on the land. So, if you sow a game cover, it would normally be acceptable to encourage wild game or to shoot over the land in the way you might shoot over arable land. But you must not use the land to rear birds for a commercial shoot or to establish new commercial shooting facilities that would not normally take place on arable land. You are not allowed to put feed hoppers on set-aside land during the set-aside period, as it is classed as agricultural production (but see paragraph 125).

73. You must not use the land for any activity that is not in line with the set-aside management rules. In particular, you must not use the land for anything that would damage the green cover. If you break the set-aside management rules, penalties will apply.

Research

74. Research cannot be carried out on set-aside land unless the research is into managing

set-aside land. Research into growing non-food crops on set-aside land may be possible. However, you have to follow all the rules on non-food crops, including the restrictions on the end use.

MANAGING SET-ASIDE LAND

75. 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).

76. 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:

• Traditional buildings
• Stone walls, hedges and trees including hedgerow trees
• Watercourses, ditches, ponds, pools and lochs
• Archaeological remains

77. Wherever practical, you must establish a cover by 15 January (that is, the start of the set-aside season). This cover is needed to minimise nitrate leaching and may be established through any of the options listed below:

• Leave existing cover in place
• Natural regeneration
• Sown green cover
• Sown wild-bird cover
• Bare fallow (but not for two years in a row)

78. If neither undersowing nor natural regeneration is an option, and weather and soil conditions after harvest make it impractical to establish a sown cover, you may leave the land alone until the following spring. However, light tillage - no deeper than seven centimetres - after harvest would help to develop cover to avoid nitrate leaching. In the spring, you could sow a green cover. When you have established a cover, you will need to manage it in line with scheme rules.

79. If crops were still in the ground on 1 October 2003, you don't need to establish a green cover once they are harvested (which must be before 15 January). If you choose not to establish a green cover, you may leave land as bare fallow or allow the natural vegetation to develop to provide cover.

80. However, root or vegetable crops that were still in the ground on 1 October are not acceptable for natural regeneration the following year. This land will need to have an eligible cover sown as soon as is practical after harvest.

81. If you intend to leave the set-aside land in place for another 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 land.
• 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 line with the rules.
• You may replace the cover on the land if necessary.

Existing cover

82. If there is already an adequate cover on your set-aside land, you may leave that in place and manage it in line with the scheme rules.

Natural regeneration

83. You may use natural regeneration 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 want to use natural regeneration after other crops.

84. After harvest, you must leave land to develop a cover from the seed bank and volunteers. Using a straw chopper when combining crops can encourage cover to establish. 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 six to seven centimetres to encourage germination. You should do any discing or cultivation early before any significant growth of vegetation has taken place.

Sown green cover

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

86. Seed mixtures may include broad-leaved plants and wild flowers (including legumes). Other acceptable covers are mustard and phacelia. In other cases, contact your local area office.

87. To make sure that the cover is not then used for herbage seed, you must sow grass covers with home-saved or certified seed. You must not sow breeders' pre-basic or basic seed.

Wild-bird cover

88. Wild-bird cover can provide valuable feeding grounds for birds that eat seeds and insects. If the land is still set aside for more than one year, you must replace this cover during the second calendar year after it was sown.

89. For example, if the cover was sown in the spring of 2002, you must replace it by the set-aside year starting on 15 January 2004. You must replace it if one crop group starts to dominate so that the cover is no longer a mixture where the different parts could not be harvested separately. You may destroy it after one year only if you need to do so (for example, because you want to rotate your set-aside land).

Types of wild-bird cover to sow

90. Wild-bird cover must be a mixture of at least two crop groups which would not normally be grown as a mixture for agricultural production and it must not be practical to harvest the different parts separately. It is irrelevant whether or not you intend to harvest or graze it. What matters is whether the mixture is able to be harvested or grazed. The mixture must be sown on the same land - you cannot sow alternate rows or blocks of each seed.

91. You must make sure that the cover cannot be harvested separately. This is particularly important if the land is to stay as set-aside land. If one part of the cover deteriorates, you must write to your local area office immediately and restore the cover by replacing either the lost parts or the whole cover as soon as possible. Sometimes it will be noticed too late to take corrective action immediately. In this case, it is acceptable to keep the existing cover, but you must destroy it before the plant cover becomes harvestable (normally mid to late July). Again, you must tell your local area office in writing if you intend to do this.

Examples of acceptable wild-bird cover

• A mixture of cereals and brassicas

Examples of unacceptable wild-bird cover

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

Managing wild-bird cover

92. 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. You may use up to 30 kilograms of nitrogen for each hectare to help the cover to establish. You do not have to cut the cover as long as you follow all the rules in paragraph 98. If you take advantage of this, you must not graze the cover, allow the cover to be grazed or use it for any agricultural purpose until after 15 January 2005.

Bare fallow

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

Compulsory cut or destruction

94. You can cut set-aside land as often as you want. However, you must either:

• cut the green cover short (to about 10 centimetres or less) between 15 July and 15 August (you must not remove or use the cuttings, but leave them on the ground to rot); or
• destroy the green cover by 31 August (this option does not apply to multi-annual set-aside land).

95. The cuttings will cause fewer problems to the sward if they are 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. You may not use the cuttings for any agricultural purpose.

96. 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 reduce the damage to wildlife as far as possible by:

• starting regular mowing early in the year;
• setting the mower at the maximum safe height; and
• 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.

97. Try to avoid cutting on or near visible archaeological features. Where cutting is unavoidable, take extra care to avoid damage to these types of features.

Exemptions from the compulsory cutting requirements

98. The exemptions are as follows:

• You may leave up to 25% of each set-aside field or parcel uncut for up to three years to encourage a range of habitats. You don't need any specific exemption. However, if there is likely to be a problem of scrub encroachment onto set-aside land, you should cut the area more often than every three years. If you leave the green cover uncut, the land may not be grazed or cut for hay or silage between 1 September and 14 January.
• You may leave up to two metres adjacent to a hedge or wood permanently uncut to encourage the hedge to broaden or to naturally regenerate the woodland. You don't need any specific exemption.
• If you have sown a wild-bird cover, you don't need to cut it. However, if you want to graze the cover after the end of the set-aside period, you are not exempted from the cutting requirements.
• However, you may apply to your local area office (in writing and preferably at least 15 working days before) for an exemption to cut at a different time, to leave the grass longer or to allow regeneration as long as you do not intend to use the cover (for example, for hay, silage or grazing) at the end of the set-aside period.

Other exemptions

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

• For environmental or archaeological reasons (for example, to benefit or avoid damaging wildlife), to manage the land to encourage ground-nesting birds or to carry out an archaeological excavation. Applications for exemption for archaeological reasons must be supported by Historic Scotland or by the appropriate local authority archaeologist (LAA). You should first contact your LAA unless you know the set-aside area is a 'scheduled ancient monument (SAM)'. In these cases, you should first contact Historic Scotland. If the LAA finds that the site is a SAM, they should refer you to Historic Scotland. However, if there is no LAA, or in the case of other difficulties, you should get advice from Historic Scotland.
• For research into different ways of managing set-aside land or the effects of
  set-aside land (or both). These 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 wanting to train students in agricultural techniques (for example, ploughing) as long as the training does not include sowing or growing any agricultural crop.
• If a gas or electricity company (or other organisation with compulsory purchase powers) is installing a pipeline or cable on your land, you may apply to be exempted from the green cover requirements (for more information, see leaflet AAPL (2002)).
• For reasons of human or animal health or safety, or plant health.

How to apply for an exemption

100. If you want to apply for an exemption because of one of these reasons, you must write to your local area office setting out why you need an exemption. Please attach any supporting documents (for example, copies of letters from the organisation) to your letter. You must receive written agreement from your local area office before you stop following any of the standard management rules for set-aside land.

Tenant farmers

101. If you are a tenant farmer, we strongly advise you to consult your landlord before you apply for an exemption for any management practice which might affect the nature or value of the land (for example, to allow regeneration). This will make sure that you are not breaking a term in your tenancy agreement.

Controlling weeds and volunteer crops

102. You must take action to control those weeds set out in the Weeds Act 1959 (common ragwort, broad-leaved dock, curled dock, spear thistle and creeping or field thistle). The Act allows agriculture ministers to take action against anyone who occupies and manages land from which these weeds are spreading.

103. You may need to take action to control aggressive weeds, crop volunteers or vigorous growth. You may do this using herbicides, cutting or cultivation. We must remind you that cultivation before mid to late July is still possibly one of the most damaging agricultural operations for wildlife and could destroy a wide range of species. As a result, we strongly advise you to consider alternatives such as using herbicides at the right time or frequent cutting to control weeds. In any case, you should always take the precautions set out in paragraph 112.

Herbicides

104. In most situations, you do not need specific permission as long as you use it in line with its specific label or off-label approval.

105. You must get permission in writing from your local area office if you want to spray a herbicide before 15 April, which will result in the green cover being destroyed and the cover will not be replaced immediately.

106. You are not allowed to use residual, soil-acting herbicides unless they have a specific label approval for use on green cover on land that is temporarily removed from production (for example, set-aside land). However, if you are growing a non-food crop on the land, you may use only products with a specific label or off-label approval for the crop in question.

107. You may use non-residual herbicides (that is, herbicides which are mainly absorbed through the leaf and stem) on set-aside land as long as you don't take any action before 15 April that would be likely to destroy the green cover (except if you are replacing the cover, or creating or maintaining a bare strip next to the crop). As a result, you should not spray

broad-spectrum, non-selective herbicides on the land before 15 April. However, you are allowed to use spot applications, wick applicators or selective herbicides which leave the bulk of the green cover intact before that date. If the cover is destroyed by herbicides and you want to keep the land in set-aside for another 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.

108. For non-residual products:

• You may use products approved for a particular crop on a cover that is made up of mainly volunteers or natural regeneration of that crop (for example, you can use a product approved for cereals on cereal volunteers, and you can use one approved for grass on naturally regenerated grass).
• You may use products approved for use on non-crop land or land that is not intended for cropping on set-aside areas, as long as the land is not growing a crop for non-food use. (However, you must follow any restrictions on intervals between applying the product and sowing crops.)
• Off-label arrangements allow certain other herbicides to be used on certain
  set-aside areas. If you are not sure, please contact your local area office.

Pesticides (other than herbicides)

109. You must not use any other pesticides, fungicides or insecticides on set-aside land. However, you can apply to your local area office (in writing and preferably 15 working days before) for a specific exemption to use pesticides if you can show that this is necessary to control plant health problems that cannot be treated in other ways. You must not use these pesticides until you have received written authorisation, nor should you use pesticides near sensitive areas such as watercourses and hedges.

110. You may use only a herbicide with approval for the appropriate crop or situation. In all cases, you must make sure that you follow the statutory conditions set out on the herbicide label. If you intend to graze the green cover after the end of the set-aside period, you can use only pesticides approved for use on grazed land. You must follow all grazing re-entry periods.

Agricultural operations and timing

111. In order not to disturb the green cover, there is a general ban on the following:

• Before 1 May - cultivation and ploughing (if you are a registered organic farmer or converting your holdings to growing organic crops).
• Before 1 July - cultivation and ploughing (for all other farmers).
• Before 15 July - carrying out any preparation for sowing a crop.

112. 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 started to seed.

You must do the following:

• Avoid operations such as non-selective herbicide treatment, cultivation or cutting unless they are strictly necessary (using appropriate selective herbicides can be beneficial).
• Where possible, 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 using herbicides (preferably selective ones) rather than cutting or cultivation.
• If using a non-selective herbicide, leave the rest 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.

Replacing a green cover

113. If you want to replace an existing cover, you may do so at any time as long as you meet the following conditions:

• Soil conditions are suitable for sowing the new cover.
• You have the seed for the replacement cover on the farm before you start to destroy the old cover.
• You sow the replacement cover as soon as possible after destroying the first cover.

If you want to keep the land in set-aside for another year, you must establish a replacement cover so that an adequate cover is in place by 15 January 2005.

MISCELLANEOUS RULES FOR SET-ASIDE LAND

Manure and wastes

114. You can only use slurry, manure or organic waste on set-aside land if it is from your own holding. You may only use this waste if there is an existing green cover on the land. You must not use the waste at levels that would destroy the green cover or could pollute watercourses.

115. If you are using animal manure or slurry, remember the following:

• You should use organic manure moderately. In no circumstances should you use more than 250 kilograms of total nitrogen on each hectare in each year.
• In no circumstances must the levels of manure you use on set-aside land be higher than 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 (for example, black grass, wild oats and cleavers) are very responsive to nitrogen. To avoid encouraging these aggressive weeds, you should use only moderate amounts of animal manure.
• Using slurry and manure can disturb wildlife. Avoid using them when there are likely to be nesting birds (during the period early April to mid July).
• Keep manure away from field margins, hedges and watercourses.
• If your land is in a nitrate vulnerable zone (NVZ), you must take account of the measures detailed in the NVZ action programme.

116. You may store manure or organic waste on set-aside land before spreading it on the field in question. You must not use set-aside land to store larger quantities of manure or waste than you use on the field you are storing them on.

117. You cannot use set-aside land to store, get rid of or dump any type of waste, including sewage sludge.

Fertilisers

118. You may not use fertilisers on land that is due to stay in set-aside the following year, or on multi-annual set-aside land.

Liming

119. You may use lime and gypsum on set-aside land in its last year in set-aside as long as you do not disturb the green cover before 15 July. You may also use paper crumble as a liming agent to set-aside land, again only in its last year in set-aside. You can get more details of the conditions you must meet from your local area office.

Drainage

120. You may not carry out subsoiling, piped field drainage or mole drainage before 1 July. Drainage work can be damaging to sensitive deposits on or near archaeological sites. If a monument is scheduled, drainage operations need formal permission beforehand from the Scottish Ministers through Historic Scotland. For more information, refer to the leaflet 'Archaeological Information and Advice in Scotland', which is available from Historic Scotland or your local area office.

Access

121. In set-aside fields that are vulnerable to illegal access from vehicles you may create a bare ploughed strip of up to five metres wide close to likely access points.

122. If you disturb any right of way through cultivation, you must restore the path in line with Section 23 of the Land Reform (Scotland) Act 2003.

Burning

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

Storing of produce from the previous harvest

124. You may use your set-aside land to temporarily store produce from your holding (for example, bales of straw) as long as there is no risk of damage to the green cover.

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

If you want to leave the land in set-aside

125. 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. You may not use cover established during the set-aside period for any commercial purpose.

You may do the following:

• Harvest hay or silage for your own use (as long as you have cut the cover between 15 July and 15 August and left those cuttings to rot).
• Keep your own animals (including pigs), or other people's, on the land as long as you do not receive any return in cash or in kind. However, you must not keep animals in such numbers as to damage or destroy the green cover.
• Put game-bird release pens or feeding hoppers (or both) on the set-aside area as long as these are used only in connection with a totally non-commercial shoot from which neither you nor any other person receives any return in cash or in kind.

You may not do the following:

• Keep other people's animals on the cover for a return in cash or in kind, or lease the land for those purposes.
• Sell, trade or exchange any hay or silage harvested during this period.
• Use the set-aside cover for any other commercial purpose.
• Harvest the hay or silage cuttings from any cover cut between 15 July and 15 August.

126. 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 line with the rules.

If you want to sow a crop on the land for harvest the following year

127. From 15 July 2004 you may prepare the land for, and sow, cereals, linseed, oilseeds, protein crops, flax, hemp, ornamental bulbs (not including onions or garlic), field-grown trees or shrubs, cane fruits and strawberries (but not any other horticultural crops) intended for harvest after 15 January 2005. You can leave multi-annual set-aside land, 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 temporary grass leys, or other traditional forage crops (for example, stubble turnips, kale or any other fodder or vegetable crop established after 15 July 2004) until after 15 January 2005. No exemptions can be granted for this EU rule.

128. There are financial penalties for breaking the set-aside management rules.

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

129. You may grow certain crops under contract for non-food use on set-aside land. General and management rules are described below. If you do not follow the terms of the contract, you will lose your set-aside payment and your associated crop payments. The lists of eligible crops are in Appendix 7. If you want to use your set-aside land to produce any of the crops listed in table 1 of Appendix 7, you must have a valid signed contract with a collector or first processor.

130. You must make sure that the valid signed contract (which you and the contractor or first processor must sign) is ready to be lodged by the collector or first processor with the RPA by the following dates:

• By 31 January 2004 for winter-sown crops sown between 1 July and
  31 December 2003 (including these dates).
• By 15 May 2004 for spring-sown crops sown between 1 January and 30 June 2004 (including these dates).

If you fail to do so, your AAPS payments will be at risk. You should make sure that you keep a copy of the contract to send to your local area office with your AAA. If you cannot show a signed (signed by you and the contractor or first processor) and dated copy of your contract:

• the set-aside land concerned will not be treated as eligible;
• you may lose your set-aside payment and related crop payments; and
• additional IACS penalties may apply.

If the land under contract is transferred to another IACS applicant, you must contact the RPA as these changes will affect your non-food contract.

MANAGEMENT RULES FOR NON-FOOD SET-ASIDE

131. The normal set-aside management rules do not apply to land growing non-food crops.

However, you must:

• follow the other EU rules on set-aside, including those on non-agricultural use of the land ( paragraphs 70-73);
• not damage, destroy or remove any relevant features on the land;
• follow the Code of Good Practice 'Prevention of Environmental Pollution from Agricultural Activity' (PEPFAA Code), particularly on burning crop residues;
• not use more organic wastes and fertilisers than is allowed in line with normal agricultural practice and recommended in the PEPFAA code; and
• follow 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 before 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).

132. You can grow a range of crops for non-food uses, including oilseeds, cereals and linseed, on set-aside land. The main points to remember are that:

• the crops grown and their intended end-use are restricted to certain crops and end uses (these are listed in table 3 of Appendix 7);
• the non-food end products must have a value greater than all food (including animal feed) by-products;
• you must deliver all the crop harvested from your set-aside land to the collector or first processor for non-food use, even if the amount you harvested is more than the amount predicted in the contract;
• in the case of crops eligible for intervention, (that is, barley, rye and varieties of wheat which may achieve common wheat standard), the amount you deliver must not normally be less than the amount forecast in the contract, even if you have to make up any shortfall from other sources; and
• you cannot receive your set-aside payments until you have delivered your crop to the collector or first processor and sent your local area office a form (IACS 9) declaring the details (including weight) of the delivery.

Permitted end uses

133. The crop grown must be processed within the EU into a non-food product listed in table 3 ( Appendix 7).

Perennial and biennial crops

134. You may grow perennial or biennial crops as a non-food set-aside crop as long as 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 length of the contract. If you do not do this (for example, if you lift the crop from the ground or fail to include the area on your IACS form for each year), you will be breaking the terms of the contract. You would then need to resow the non-food crop and take out a new contract that must be ready and lodged by the dates due for the year the crop is sown. For example, if you sow a crop of Roman camomile in April 2004, your contract must be ready and lodged by 15 May 2004. The contract must clearly show the number of years that the crop is to stay under contract as a non-food set-aside crop. Contracts for multi-annual harvesting can come into force each year as long as (when it is submitted) the contract says that this would be the case. For more information, contact the RPA.

The contract

135. You are responsible for providing a valid contract, and it must contain the following:

• Your main farm code number (that is, the farm code under which you will be sending us your 2004 AAA).
• The name and address of everyone who has signed the contract.
• How long the contract will last.
• The species of each raw material (crop) concerned and the area sown to each species.
• For each species, the forecast yield for each hectare and total forecast quantity to be harvested (in tonnes). The forecast yield must fall within a yield range made available by the Rural Payments Agency (RPA) to anyone concerned including collectors and first processors.
• The principal end use of the raw material, each end use must meet the requirements of Articles 3(1) and 13(3) of EU Commission Regulation (EC) 2461/99, as outlined in paragraph 133;
• A promise from you to deliver all the harvested crop to the collector or first processor. The collector or first processor must 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.
• The forecast quantity of by-products to be produced which are not destined for people or animals to eat. 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. 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.

Amending the contract

137. Contracts (for winter and spring sown crops) may be amended or cancelled (if everyone who signed agrees) at any time up to and including the final date for amending the AAA. Collectors and first processors must send a copy of the amended or cancelled contract to the RPA by that date. The security lodged with the RPA will be adjusted in line with any amendment.

138. However, if the contract is to be amended or cancelled after you have put forward your AAA but before the final date for amending it, you must tell your local area office, in writing, and the collector or first processor must tell the RPA so that all necessary checks can be carried out. As far as possible, you should give notice at least 10 days before the amendment or cancellation. Clearly this will not always be possible if amendments are made close to the deadline. So, as much notice as possible should be given to your local area office and the RPA.

139. After the deadline, a contract can be amended or cancelled only if you cannot provide all or part of the crop covered in the contract. In this case, you must follow the requirements set out in paragraphs 141-143.

Reducing the area under contract

140. If you amend your contract, you should do one of the following, as appropriate:

• If you amend your contract before 15 January 2004 and the contract has been lodged, SEERAD do not need to know but you should inform the RPA.
• If you amend your contract on or after 15 January 2004 and the land is going to stay in set-aside, you must inform your local area office and the RPA in writing.
• If you amend your contract on or after 15 January 2004 but before you have lodged your IACS application, and if the land is not to stay in set-aside, SEERAD do not need to know but you must inform the RPA.
• If you amend your contract on or after 15 January 2004 but after you have lodged your IACS application, and whether or not your land is to stay in set-aside, you must inform your local area office in writing.

Being unable to provide the contract quantity

141. If, for any reason, it becomes clear before harvest that you cannot provide all of the crop set out in the contract (even if you are likely to meet the representative yield for those crops under contract), we advise you to amend your contract after consulting your collector or first processor. After that, you must inform your local area office and the RPA, in writing. If your local area office agrees to reducing the raw material to be produced, you and the collector or first processor named on the contract will need to send form NFC7 to RPA to record the amendment when you send them your IACS 9. Please note that any amendment to your contract must have the written approval of your local area office. This approval should be sent to your collector/first processor who will ask you to complete an NFC7 which together with the approval will be sent to the RPA. The RPA will not consider your amendment/s without the written approval.

142. If a representative yield applies to your crop and you fail to deliver at least that yield, you must contact your local area office, in writing. In exceptional circumstances, a shortfall of up to 10% may be allowed. Your local area office can consider a further shortfall if there is a valid reason, but only if your contract has been amended to allow a smaller amount than that set out in the original contract (see paragraph 141). However, if there are no exceptional circumstances and you have followed the rules of the scheme in all other respects, you may make up the shortfall from raw material obtained from elsewhere.

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

Harvest

144. After harvest, you must deliver the entire crop to the collector or first processor. Delivery may take place on the farm if the collector or first processor takes full legal responsibility for the crop at that stage, but you must keep the crop separate from any other harvested material at all times. We will need an accurate assessment of the weight delivered. This may be done by using volumetric assessment, although not for those crops that need that requirement to meet a representative yield. If you use volumetric assessment, you must keep the crop separate from other crops until an accurate weight is confirmed on a weighbridge approved by the local authority.

Representative yield

145. Under EU rules, the UK must set up representative yields for oilseeds other than HEAR varieties. As well as delivering the entire crop harvested to their collectors or first processors, growers of oilseeds other than HEAR must make sure that this delivery equals at least the representative yield that is appropriate to the crop. The representative yields will be set by Scottish Executive Environment and Rural Affairs Department (SEERAD) by 31 July of the year of harvest, and will be based on a standard quality (that is, adjusted to take account of moisture and admixture content). Details of these yields will be sent to each non-food set-aside grower.

After delivery

146. After delivery, you must send a delivery declaration (IACS 9) form to your local area office declaring the total quantity harvested (by species) and confirming who has taken delivery of the crop. You need to use a separate IACS 9 for each contract. Local area offices will send IACS 9s to all non-food set-aside growers. However, please remember that it is your responsibility to get and fill in an IACS 9. If you have not already received your IACS 9, please contact your local area office. If you send your IACS 9 in late, a penalty may apply.

Payment

147. We will pay AAPS aid on non-food set-aside land at the normal set-aside rate. However, we cannot make the payments until your local area office has received the delivery declaration form (IACS 9) and the collector or first processor has met various commitments (including confirming to the RPA that they have received the entire crop by using form NFC 2). Penalties may apply to you and the collector or first processor if the forms are late. So, it is important that you send in your delivery declaration form as soon as possible and at the latest by 9 February 2005. If you fail to do so, it will result in delays in making any set-aside payment due. You must tell your collector or first processor when the final load of any contract has been delivered.

148. You can find information about the base area (production ceiling) and payment rates in Appendix 3.

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

Eligible crops

149. You can grow a limited range of crops on set-aside land which have no food or animal-feed use under less strict 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 the coppice fits into the landscape (see Appendix 7).

150. You cannot receive any other EU-financed aid on non-food set-aside crops. Under Agenda 2000, grants may be paid for energy crops (miscanthus and SRC). However, this depends on energy crops being included in the Rural Development Plan and (as paying any grants will be shared with the EU) on whether national funds are available. These payments will not affect the eligibility for the set-aside payment.

Permitted end uses

151. The permitted end uses are set out in table 3 in Appendix 7.

Your responsibilities

152. You do not need to have a contract before planting an eligible crop listed in table 2, nor do you need to use form IACS 9. However, when you submit your AAA, you need to give a written undertaking that the crop is intended for an appropriate non-food use and that you understand that penalties will apply if you breach that undertaking. (However, there will be no penalties if you cannot find a market for the crop, as long as you do not use it for food or feed.)

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