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Arable Area Payment Scheme 2004

APPENDIX 5: APPLICANTS WITH LAND IN MORE THAN ONE YIELD REGION

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 (that is, you have no obligatory set-aside requirement), you will need to work out 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 2004, 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 as follows:

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

1.2 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 as follows:

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 area by their reference yields.

This is below the 92 tonne threshold so you would 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) is bigger than 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 (that is, 108.8 - 92) above the 92 tonne threshold for the exemption from the requirement to have set-aside land. So, you should reduce 16.8 tonnes of production from your claim.

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

16.8 = 3.23 hectares (the area by which you have to reduce your LFA claim)
5.21

Or, if you choose to reduce only the Scottish non-LFA part of your claim, you would have to divide 16.8 by the non-LFA reference yield.

16.8 = 2.96 hectares (the area by which you would have to reduce your non-LFA claim)
5.67

As a result, 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 tonne ceiling would also be possible.

If your claim is bigger than the 92 tonne ceiling and you do not reduce it, we will reduce your claim proportionately and pay you on an area equivalent to the 92 tonne limit. We will not pay on the excess - and you would then not be able to claim it as part of your forage area.

1.5 If you are not sure how much land you can claim on, please get professional advice or consult your local area office in writing. If your claim is bigger than the 92 tonne limit and you don't have enough set-aside land to support the cropping parts of your claim, we will reduce your claim to:

• the area supported by the eligible set-aside; or
• the maximum area that a small producer can claim;

whichever is greater.

2. DIVIDING OBLIGATORY SET-ASIDE LAND BETWEEN YIELD REGIONS

2.1 If you are claiming AAPS aid on an area that is bigger than the limit that small producers can claim on land in more than one yield region, you will normally have to divide your
set-aside requirement within each of those regions in line 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 2004 this means the following:

The same would apply, for example, if you had a unit in the Scottish LFA and another in England. (Please see Appendix 1 for examples of how to work out your set-aside requirement in 2004.)

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. However, you must adjust the set-aside area to be offset 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, you must multiply the area concerned by the factors in the table on page 52:

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

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

In the first two examples, the area of set-aside land offset in Scottish LFA to account for cropped land in the Scottish non-LFA is worked out based on the set-aside requirement for 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. You would need to use a similar calculation 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 worked out based on the set-aside requirement for the area of LFA cropping claimed less the area of LFA set-aside (if any). You don't need to use 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 2004 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 parts of your claim to qualify in full for AAPS aid, they would normally have to be restricted to a maximum of 90 hectares in each yield region.

Example 1

In 2004, 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 land in the Scottish LFA, you must adjust your AAPS claim as follows:

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

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

• As you have no non-LFA set-aside and the LFA region has a lower reference yield, you must multiply the 11.12-hectare requirement by 1.09 to get the area to be set aside in the LFA region.

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

• As a result, your claim in the Scottish LFA region would be reduced to the following:

  100 - 12.13 = 87.87 hectares

• The 87.87 hectares include the area of LFA land you want to claim cropping and set-aside payments on. So, the minimum set-aside requirement for the LFA land is as follows:

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

• In summary, your overall AAPS claim for 2004 would be:

  - 100 hectares of non-LFA cropping;
  - a maximum of 79.08 hectares of LFA cropping (87.87 - 8.79); and
  - a minimum of 20.92 hectares of LFA set-aside land (8.79 + 12.13).

If you choose to offset your set-aside requirement and don't have enough set-aside land to support all the cropping parts of your claim, we will pay in full for the yield region that has enough set-aside land. We will also use the set-aside excess in that region to set the supported cropping area in the other yield region (or regions).

Example 2

In 2004, you farm and claim for 100 hectares in the Scottish LFA and 100 hectares in
the Scottish non-LFA. If you decide to site two hectares of your set-aside land in the Scottish non-LFA and the rest in the Scottish LFA, you must adjust your AAPS claim as follows:

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

(rounded up from 10.888)

• As you have two hectares of non-LFA set-aside land, your offset requirement to the LFA region is as follows:

  10.89 - 2 = 8.89 hectares

• As the LFA region has a lower reference yield, the 8.89 hectare requirement must be multiplied by 1.09 to get the area to be set aside in the LFA.

  8.89 x 1.09 = 9.69 hectares

• As a result, your claim in the Scottish LFA would be reduced to the following:

  100 - 9.69 = 90.31 hectares

• The 90.31 hectares include the area of LFA land you want to claim cropping and set-aside payments on. So, the minimum set-aside requirement for the LFA land is as follows:

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

• In summary, your overall AAPS claim for 2004 would be:

  - 98 hectares of non-LFA cropping;
  - 2 hectares of non-LFA set-aside land;
  - a maximum of 81.27 hectares of LFA cropping (90.31 - 9.04); and
  - a minimum of 18.73 hectares of LFA set-aside land (9.69 + 9.04).

If you choose to offset your set-aside requirement and don't have enough set-aside land to support all the cropping parts of your claim, we will pay in full for the yield region that has enough set-aside land. We will also use the set-aside excess in that region to set the supported cropping area in the other yield region (or regions).

Example 3

In 2004, 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 land in the Scottish non-LFA, you must adjust your AAPS claim as follows:

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

  200 hectares x 10% = 20 hectares

• As the non-LFA region has a higher reference yield, there is no need to use a factor to the non-LFA land being set aside for LFA crops.
• As a result, your claim in the Scottish non-LFA region would be reduced to the following:

  100 - 20 = 80 hectares

• The 80 hectares is the maximum area of non-LFA land you can claim
  cropping on.
• In summary, your overall AAPS claim for 2004 would be:

  - 100 hectares of LFA cropping;
  - a maximum of 80 hectares of non-LFA cropping; and
  - a minimum of 20 hectares of non-LFA set-aside land.

If you choose to offset your set-aside requirement and don't have enough set-aside land to support all the cropping parts of your claim, we will pay in full for the yield region that has enough set-aside land. We will also use the set-aside excess in that region to set the supported cropping area in the other yield region (or regions).

Example 4

In 2004, 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 land in the Scottish LFA and the rest in the Scottish non-LFA, you must adjust your AAPS claim as follows:

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

  200 hectares x 10% = 20 hectares

• As you have 3 hectares of LFA set-aside land, your requirement in the non-LFA is as follows:

  20 - 3 = 17 hectares

• As the non-LFA region has a higher reference yield than the LFA region, you don't need to use a factor to the non-LFA land being set aside for LFA crops.
• As a result, your cropping claim in the Scottish non-LFA would be reduced to the following:

100 - 17 = 83 hectares

• The 83 hectares is the maximum area of non-LFA land you can claim cropping on.
• In summary, your overall AAPS claim for 2004 would be:

- 97 hectares of LFA cropping;
- 3 hectares of LFA set-aside land;
- a maximum of 83 hectares of non-LFA cropping (100 -17); and
- a minimum of 17 hectares of non-LFA set-aside land.

If you choose to offset your set-aside requirement and don't have enough set-aside land to support all the cropping parts of your claim, we will pay in full for the yield region that has enough set-aside land. We will use the set-aside excess in that region to set the supported cropping area in the other yield region (or regions).

2.6 If you are not sure how to follow these rules, please get professional advice or consult your local area office.

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