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Scottish Agriculture
A Guide to Grants and Services

GRANTS

Agricultural Business Development Scheme (ABDS)

The ABDS is a business development scheme for farmers/crofters and their immediate families. It operates under the Highlands and Islands Special Transitional Programme within the legal framework of the Rural Development Regulation.

The ABDS can provide assistance towards investments in agricultural holdings and the development of new, or the expansion of existing, agricultural or non-agricultural diversification enterprises, either on or off-farm/croft, to increase the income-generating capacity of the farming family. The scheme is discretionary with all applications being subject to a selection process - reviewed in funding tranches by Project Assessment Committees.

Legal occupiers of agricultural units within the Highlands and Islands Special Transitional Programme Area who have been actively engaged in agriculture for a minimum of two years are eligible to apply to the scheme for both investments in agricultural holdings and diversification projects.

CONTACT & INFORMATION - SEERAD Area Offices or Scheme Co-ordinator, Longman House, 28 Longman Road, Inverness,
IV1 1SF, Tel: 01463 253 065 or visit the Scottish Executive's website at www.scotland.gov.uk/abds

Grant schemes, which can provide assistance towards the processing and marketing of agricultural produce, were launched within the Highlands and Islands (as an element of the Highlands and Islands Special Transitional Programme) and Lowland Scotland in 2001. The aim of both schemes is to improve structural deficiencies and, in so doing, attempt to guarantee lasting economic benefits to farmers and growers. The schemes include a capital element for assistance towards the purchase of plant and equipment and a non-capital element which can assist with a range of projects including market research and consultancy, product development, point of sale material and attendance at trade fairs.

CONTACT & INFORMATION - Lowland Scotland Scheme: SEERAD, Room 259, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6388/6389 or Highlands & Islands Scheme: Scheme Project Co-ordinator, Longman House, 28 Longman Road, Inverness, IV1 1SF, Tel: 01463 253 065.

The appeals procedure covers schemes under the Integrated Administration and Control System (IACS), as well as agri-environment and afforestation schemes administered by SEERAD. Decisions made on quota arrangements for the Sheep Annual Premium Scheme (SAPS) and Suckler Cow Premium Scheme (SCPS) are also considered.

The procedure is intended to ensure that farmers who feel that SEERAD did not reach the correct decision on their subsidy claim have access to a fair and independent appeals mechanism. Farmers have 60 calendar days from the date of the SEERAD decision letter in which to submit an appeal under the procedure. The procedure has three stages: an in-house review, an external panel review and an appeal to the Scottish Land Court.

CONTACT & INFORMATION - SEERAD Area Offices, or the Appeals Secretariat, Room 028, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6578.

(Closed for applications on 11 June 2004)

The AAPS is a voluntary scheme that offers area payments on eligible land to growers of cereals, linseed, oilseeds, protein crops, flax and hemp. All crops are paid at the same rate (including proteins from 2004) taking account of regional yields. The two yield regions in Scotland comprise land classified as being in the Less Favoured Area (LFA) and land not so classified, i.e. the non-LFA.

To qualify for full payment, all producers growing crops on an area of land greater than that required to produce more than 92 tonnes of crop - based on reference yields of 5.21 tonnes/hectare and 5.67 tonnes/hectare in the LFA and non-LFA respectively - must set aside at least the obligatory rate of set-aside. This is 5% for the year 2004.

Small producers are not obliged to set aside land but may do so on a voluntary basis. All producers will receive payments at the appropriate rate for the crops on which they submit a valid claim.

Compensation is also paid for the land set aside. Management conditions apply to the set-aside land to protect the environment. Set-aside land may be used for the production of specified non-food crops for industrial processing under a contract with the first processor or "collector" of the crop.

The penalty-free deadline for submitting claims for AAPS to the SEERAD Area Offices or electronically for crops grown for harvest in 2004 was 17 May. Claims received after that date incurred a 1% penalty for each working day beyond 17 May up to 11 June 2004. Claims received after that date will be rejected. The 2004 claim form is part of the full annual statement on land farmed which is required under the EU Integrated Administration and Control System (IACS).

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/aaps

(Closing date for last application: 31 December 2004 or 25 January 2005 for late claims)

Only male cattle are eligible for premium and the claimed animals must be retained on the applicant's holding for two months from the day after SEERAD receives the application, unless specified as a later date on the claim form.

Premium can be claimed twice in the life of a steer (castrated male):

• first premium for animals aged from 7 months but under 20 months

• second premium for animals aged 20 months and over

• Premium may only be claimed once in the life of a bull (non-castrated male):

• claim at any time from the age of 7 months

Up to 20 claims can be made each scheme year, with any combination of first, second or bull premium.

To be eligible for payments under the 2004 BSPS, an IACS Area Aid Application (AAA) must have been submitted by the closing date of 17 May 2004 (with exceptions for small producers). The amount of BSP payable is limited by the stocking density calculated as Livestock Units (LUs) per hectare of forage area declared on the AAA 2004 application form. The stocking density limit for 2004 is 1.8 LUs per hectare of validated forage area.

In the UK, bull and first premium is restricted to 1,519,811 animals in any one scheme year. If this number is exceeded, the payment for each animal is reduced proportionately. Producers who claim 30 animals or less will be exempt from any reduction.

Premium is paid at the rate of ¤150 (approx. 105) for steers and ¤210 (approx. 147) for bulls. These sterling equivalents are based on the average rate of exchange over December 2003 (¤1=0.701706).

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/livestocksubsidy

See also the entry on Extensification Payment Scheme elsewhere in this Guide.

Under the Crofters etc Building Grants and Loans Scheme (CBGLS), the following assistance is available to crofters and cottars in the former Crofting Counties:

• grants and/or loans for the erection and improvement of dwelling houses

• grants for the provision and improvement of roads and water supplies for domestic purposes

CONTACT & INFORMATION - SEERAD Area Offices or Crofting Branch, SEERAD, Area 1D, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6210/6216 or visit the Scottish Executive's website at www.scotland.gov.uk/cbglsguide

There are nine Croft Entrant Schemes in operation covering parts of the Western Isles, Skye and Lochalsh, North West Sutherland, Lochaber, Shetland, Ross and Cromarty, Argyll, Orkney and Badenoch and Strathspey.

The purpose of the scheme is to:

• identify suitable young entrants into crofting

• facilitate the entry of suitable young entrants into crofting

• assist young entrants to become established in crofting by way of financial support, advice and guidance

• make crofts available by encouraging outgoing crofters to release their crofts to suitable young entrants

CONTACT & INFORMATION - Crofters Commission, Castle Wynd, Inverness, IV2 3EQ, Tel: 01463 663 450 or visit www.crofterscommission.org.uk

Alternatively, contact the relevant Local Enterprise Company direct.

The Crofting Community Development Scheme aims to encourage crofting communities to:

• improve the quality and the marketing of their agriculture output without increasing the level of production

• establish communication links and management structures within the crofting communities

• diversify and broaden local crofting communities

• adopt beneficial local environment measures

• identify and implement local social and cultural projects

• prepare and implement suitable local training programmes

• use information technology

An incentive payment up to a maximum of 7,000 may be paid to communities with plans meeting the eligibility criteria.

CONTACT & INFORMATION - Crofters Commission, Castle Wynd, Inverness, IV2 3EQ, Tel: 01463 663 450 or visit

www.crofterscommission.org.uk or from Arthur Macdonald,
Scheme Manager, c/o Upper Leachkin, Inverness, IV3 6PN,
Tel: 01463 711 702.

Grants covering a wide range of agricultural activities are available to the following persons in the former Crofting Counties:

• tenants and legal sub-tenants of crofts, and owners occupying unlet crofts who are of the same economic status as crofters

• Common Grazings Committees and Grazings Constables where all the work relates to the Common Grazings

• occupiers of holdings other than crofts, the area of which does not substantially exceed 30 hectares (excluding common pasture) or where the annual rent would not substantially exceed 100 if the holding were let as a croft. In addition, the occupier must be of the same economic status as a crofter.

CONTACT & INFORMATION - SEERAD Area Offices or
Crofters Commission, Castle Wynd, Inverness, IV2 3EQ,
Tel: 01463 663 450 or visit www.crofterscommission.org.uk

A new Dairy Premium Sceme (DPS) is being introduced in 2004 as part of the agreed CAP Reform package to compensate milk producers for price support cuts which take effect from 2004. The premium will be paid at a rate of ¤8.15 per tonne of net quota held on 31 March 2004. Payments will be decoupled in 2005 when they will be incorporated into the Single Farm Payment (SFP).

An Additional Payment (AP) will also be paid in 2004 at a rate of ¤3.66 per tonne of quota and will be distributed to producers on the basis of objective criteria, yet to be determined. It will also be decoupled in 2005 and incorporated into the SFP.

To be eligible for the AP you must also be eligible to receive the Dairy Premium. Non-producing quota holders will not be eligible to receive either premium.

CONTACT & INFORMATION - David Cartwright, SEERAD, Room 226, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY,
Tel: 0131 244 6228 or e-mail david.cartwright@scotland.gsi.gov.uk

From 2004 onward, producers who grow energy crops on any land other than set-aside land may claim the energy crop payment. 'Energy crops' means any agricultural raw materials (except sugar beet) grown for use in the manufacture of bio-fuels and electric and thermal energy produced from biomass.

A flat rate of aid of ¤45 per hectare is available for areas sown under energy crops which meet certain conditions. The payment window is 1 December to 30 June.

The aid is only payable on areas for which production is covered by a contract between a producer and a processor (or a declaration where the material is to be processed on the producer's holding).

For 2004, producers could claim both the Arable Area Payment Scheme (AAPS) payment and the energy crop payment provided both the land and the crops were AAPS eligible. Producers growing energy crops on other land or non-AAPS eligible crops would be eligible to be paid the energy crops scheme payment only. The closing date for applications under the 2004 scheme was 17 May 2004.

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/agriculture

(Closed for applications on 17 May 2004)

Producers receiving Beef Special Premium and/or Suckler Cow Premium for 2004 may be eligible to receive extensification payment under the EPS. To participate in the EPS, they must have submitted an IACS Area Aid Application (AAA) 2004 indicating their intention to claim extensification and giving details of all their forage area.

Within the EPS, there are two sub-schemes, the simplified scheme and the standard scheme. A producer can choose only one scheme for the duration of the scheme year. For both schemes there are two stocking density bands - below 1.4 LU/hectare, and below or equal to 1.8 LU/hectare.

Simplified scheme claimants must keep the stocking density level on their holding either below 1.4 LU/hectare or below or equal to 1.8 LU/hectare throughout the entire calendar year and claimants must choose one or other of these stocking density levels.

Standard scheme claimants must keep their average stocking density for the year either below 1.4 LU/hectare, or below or equal to 1.8 LU/hectare. Claimants are required to inform SEERAD of the total number of cattle (over 6 months old) on their holding at six dates in the year. This information is used to calculate the number of LUs on the holding on each of the six check dates and these are then averaged to calculate the overall stocking density of the holding for the year. These dates are chosen at random and will change from year to year. They will be announced in the farming press, although not until after they have passed. Payment rates under the EPS 2004 are ¤80 (approx. 49.54) per eligible animal for stocking density levels below 1.4 LU/hectare, and ¤40 (approx. 24.27) per eligible animal for stocking density levels less than or equal to 1.8 LU/hectare. These sterling equivalents are based on the average rate of exchange over December 2003 (¤1=0.701706).

Please note that 2004 is likely to be the last year that this scheme operates.

CONTACT & INFORMATION - SEERAD Area Offices or the Scottish Executive's website at www.scotland.gov.uk/livestocksubsidy See also the entry on Beef Special Premium Scheme elsewhere in this Guide.

The FBDS is an innovative business scheme for farmers and their immediate families. The main purpose of FBDS is to encourage the creation of new, or the extension of existing, diversification activities undertaken on or off farm. The scheme was launched in 2001 and operates within the legal framework of the Rural Development Regulation in all parts of Scotland outwith the area covered by the Highlands and Islands Special Transitional Programme. FBDS is discretionary, competitive and cash limited.

All legal occupiers of agricultural units within Lowland Scotland who have been actively engaged in agriculture for a minimum of two years are eligible to apply for financial assistance under the scheme. Immediate family members, resident on or adjacent to the agricultural unit, are also eligible to apply if they are acting with the legal occupier's consent. Collaborative projects may also be considered from groups of three or more eligible applicants, each linked to a separate eligible agricultural business.

FBDS applications are considered in funding tranches by a Project Assessment Committee (PAC), which meets around four times a year. The maximum possible grant linked to an eligible agricultural business is 25,000 or 30,000 for a collaborative project.

Decisions on individual projects will take account of priority for the business, local strategies, market and economic needs and also the availability of funding. However, the PAC may decline to recommend approval of an application, or may offer a lower amount of grant.

CONTACT & INFORMATION - SEERAD, FBDS team, Area 1E, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY,
Tel: 0131 244 6167.

(Closing date for last applications: 17 May 2004)

GLS covers a limited variety of grain legumes, i.e. chickpeas, lentils and vetches, with the aim of encouraging their continued production in the European Community's economic interest. Chickpeas and lentils are normally grown for human consumption and vetches for animal feed. These crops can also be grown to produce seed for sowing. However, under the scheme, there is no stipulated end use other than the crops must be harvested as dried seed.

The GLS comes under the Integrated Administration and Control System (IACS), with the application for aid being contained in form IACS(2). For 2004 the deadline for receipt of applications was 17 May. Penalties for late submissions are set out in Annex 2 of the Explanatory Booklet, IACS(1).

A harvest declaration must be returned to SEERAD by 1 November. Payment is made per hectare for the marketing year which runs from 1 July to 30 June. Applicants cannot claim under both the GLS and the Seed Production Aid Scheme.

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/agriculture

IACS was introduced in 1993 as part of the Reform of the Common Agricultural Policy (CAP). IACS has established a system of controls to combat fraud in the CAP arable and livestock schemes. It applies in all EU Member States and incorporates:

• a unique identification system for fields and animals;

• the requirement (in order to be eligible for aid under the relevant subsidy schemes) for farmers to submit an Area Aid Application (AAA), by 15 May each year, about the land which they farm; and

• an integrated system of checks and inspections, and a uniform system of penalties for late or inaccurate aid applications.

In 2004, the following schemes are under the IACS umbrella:

• 2004 Arable Area Payments Scheme (AAPS)

• 2004 Beef Special Premium Scheme (BSPS)

• 2004 Suckler Cow Premium Scheme (SCPS)

• 2005 Less Favoured Areas Support Scheme (LFASS 2005)

• 2004 Sheep Annual Premium Schemes (SAPS)

• 2004 Extensification Payment Scheme (EPS)

• Grain Legumes Scheme (GLS)

• 2004 Dairy Premium Scheme (DPS)

• 2004 Energy Crops Scheme (ECS)

• 2004 Protein Crop Scheme (PCP)

• Hops Income Aid Scheme

Farmers must comply with all the IACS and relevant scheme rules to be eligible for subsidies when applying to any of these schemes. All fields claimed or declared under the above schemes must be allocated unique field identifiers before payment can be made.

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/iacs

About 85% of Scotland's agricultural land is designated as being within a less favoured area, as set out in the Scottish Rural Development Plan. The LFASS is designed to assist the viability of agriculture within these less favoured areas; and to encourage farming practice which contributes to the economic, social and environmental sustainability of Scotland's rural areas.

The LFASS is area based. It uses stocking densities in 2001 as a proxy for land quality, which is used to establish grazing categories. These, in turn, determine payment rates. In 2004 the basic payment per hectare varies from 26.80 for the best land in readily accessible parts of the mainland, to 7.83 per hectare for the poorest agricultural land on islands. These rates can change depending upon the ratio of cattle to sheep and conformity with minimum and maximum stocking densities.

Claims for support under the LFASS can be made on the Area Aid Application (AAA) form.

To be eligible for LFASS payments, claimants must:

• be at least 16 years of age;

• farm at least three hectares of eligible forage land in the Scottish Less Favoured Area;

• comply with SEERAD's Good Farming Practice (GFP) guidelines and with a number of other environmental controls introduced in 2004;

• carry out an eligible agricultural activity - that is, maintain at least one of the following:

• suckler cows that are part of a regular breeding herd for the rearing of calves;

• a flock of sheep that meets the definition of eligibility for the Sheep Annual Premium Scheme;

• a dairy herd in the ring-fenced or formerly ring-fenced quota areas; or

• a flock of goats, llamas or alpaca for fibre production

CONTACT & INFORMATION - SEERAD Area Offices or Hill Farming and Livestock Subsidies Branch, CAP Management Division, SEERAD, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6643 or visit the Scottish Executive's website at www.scotland.gov.uk/lfass

Various schemes exist for the improvement of certain classes of livestock within the former Crofting Counties. The schemes are administered on behalf of SEERAD by the Crofters Commission.

CONTACT & INFORMATION - Crofters Commission,
Castle Wynd, Inverness, IV2 3EQ, Tel: 01463 663 413/457 or visit
www.crofterscommission.org.uk

The Marketing Development Scheme aims to improve the efficiency of the UK marketing chain. This is done by helping farmers, growers and processors to improve their marketing and commercial expertise and develop efficient marketing structures for both domestic and overseas markets. Grant assistance at the rate of 50% and up to a maximum of 150,000 per project is available under the scheme towards the cost of feasibility studies, the salaries of key marketing staff, training and fees of outside directors.

CONTACT & INFORMATION - SEERAD, Room 259, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6294.

This scheme provides assistance for farmers within NVZs for the provision, replacement or improvement of their slurry and manure storage to meet the requirements of the NVZ Action Programme Regulations.

The grant scheme is voluntary and competitive, with the level of grant set at 40% subject to the condition that the investment ceiling for eligible expenditure on which grant is paid does not in aggregate exceed 34,000. The scheme is administered on a tranche basis. A key requirement of the scheme is the preparation of a Farm Waste Management Plan to demonstrate the need for assistance. Grant is not payable unless the work is completed by 31 October 2005.

CONTACT & INFORMATION - SEERAD Area Offices which cover areas that are affected by the NVZ designation, namely those at Dumfries, Galashiels, Perth and Inverurie, or visit the Scottish Executive's website at www.scotland.gov.uk/nvzgrant

This scheme, which is part of the Scottish Rural Development Plan, provides assistance to farmers and crofters wishing to convert to organic production and sustained support for farmers and crofters who have already converted to organic farming. The OAS is split into 2 sections - a conversion payments section and a maintenance payments section. Both sections run for a 5 year duration giving the potential for 10 years of assistance.

To join the conversion part of the scheme, farmers and crofters must enter into a binding agreement to convert all or part of their production unit to organic standards. The minimum area that can be entered is one hectare; the maximum area on which aid will be paid is 1,000 hectares. Participants in the conversion scheme must at all times remain registered with an approved organic private inspection body and have a conversion plan that has been agreed by the inspection body. Participants will be eligible for payment annually in arrears for five years for each hectare entered. Applicants to the conversion section may also be eligible for assistance with capital items associated with conversion.

Support after the conversion period is also available in the form of organic maintenance payments. Maintenance payments will be available for a minimum of one hectare and a maximum of 1000 hectares. Participants in the maintenance scheme must at all times remain registered with an approved private inspection body. To ensure that funding is being directed towards applications providing high environmental and marketing benefits, applications for both conversion and maintenance payments are subject to ranking arrangements and adherence to environmental standards.

CONTACT & INFORMATION - An explanatory booklet (OAS1) and further information and advice are available from SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/about/organics

The OTMS was set up in response to the BSE crisis in 1996. It provides for the purchase, by the Government, of bovine animals over 30 months of age at the date of slaughter which have been resident in the UK for at least six months. Animals may be presented to the scheme through approved collection centres; these can be either liveweight markets or contracted abattoirs. Casualty animals slaughtered on-farm may be presented through incinerators or rendering plants.

Producers must ensure that animals are presented with approved ear tags and documentary evidence that they are eligible. Cattle Passports are required for all animals. The scheme is administered by the Rural Payments Agency (RPA). RPA makes the payment to the collection centre which then passes the payment on to the producer, less any legitimate expenses previously agreed. There are three dedicated OTMS abattoirs in Scotland at Kilmarnock, Brechin and Orkney.

The scheme is currently under review due to the continuing fall in cases of BSE in the UK and a decision on its future is expected during the Summer of 2004.

CONTACT & INFORMATION - RPA helpline Tel: 0118 968 7333, or SEERAD helpline Tel: 0131 244 6408.

From 2004, producers who grow protein crops are eligible to apply for the protein crop premium. Eligible protein crops are peas (but not those intended for human consumption), beans and sweet lupins.

The flat rate aid is ¤55.57 per hectare on areas which are fully sown and cultivated in accordance with local standards. The payment window for this premium will be 1 December to 30 June.

For 2004, the premium could be claimed on the Area Aid Application (AAA) which had to be submitted to Area Offices by 17 May 2004. The protein premium is payable on eligible proteins which are grown on AAPS land, or grown on land declared as forage or grown on "other land" as declared in the IACS AAA form. Producers claiming protein crops under AAPS are eligible to be paid both AAPS aid and the protein crop premium. Producers growing protein crops on forage areas or other land are eligible to be paid the protein crop premium only.

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/agriculture

The RSS, which is part of the Scottish Rural Development Plan, came into operation in 2001. It provides assistance to encourage farmers and crofters to undertake positive conservation management measures and capital works in association with conservation management.

This scheme is entirely voluntary and requires a prior Environmental Audit to be undertaken for the farm, croft or common grazing to be entered into the scheme. The audit will identify all habitats and features of conservation value on the unit and help applicants decide which areas will benefit most. Assistance is provided towards the cost of the audit.

Participants undertake to join the scheme for at least five years but participation may be extended for a further five years to secure maximum conservation benefit. In addition, they must agree to manage the relevant areas of land and carry out the relevant capital works in line with the rules and conditions of the scheme. Certain general environmental requirements (Standard of Good Farming Practice and General Environmental Conditions) also apply to the farm, croft or common grazing as a whole and not just those areas or features that are being positively managed under the RSS.

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive website at www.scotland.gov.uk/rss

To meet the Scottish Executive's Scottish Forestry Strategy "Forests for Scotland", the SFGS provides grant aid to encourage the creation and management of woods and forests to deliver economic, environmental and social benefits now and in the future. Grants are available under the following main areas.

Woodland expansion grants

To encourage the planting or natural regeneration of new woodlands you can apply for grants to carry out work that will meet one of the SFGS objectives shown below:

• establishing well designed productive woodland

• expanding areas of native woodland, preferably through natural regeneration and the development of Forest Habitat Networks

• improving riparian habitat

• improving urban or post-industrial areas

• improving diversity of the farmed and crofting landscape

There are permitted species and minimum stocking requirements for woodland expansion objectives. The SFGS Applicant's Booklet gives more details.

Locational premiums

Locational premiums, in the form of a top-up to the standard forestry grants for planting new woodlands, are available for the following areas:

• Ayrshire and Arran

• Central Scotland

• Grampian

• Orkney and Shetland

• Western Isles

Stewardship grants

Eight stewardship grants are available for existing woodlands (and where applicable may be available from the year of planting) for:

• improving timber quality

• reducing deer numbers

• native woodlands

• improving woodland biodiversity

• landscape improvement

• developing alternative systems to clear-felling

• woodland recreation

• developing community involvement

CONTACT & INFORMATION - Forestry Commission,
231 Corstorphine Road, Edinburgh, EH12 7AT, Tel: 0131 334 0303. An applicant's pack is available from local FC Conservancy offices. Full details can be found on the Forestry Commission website at www.forestry.gov.uk

This is a successor to the Farm Woodland Premium Scheme (FWPS) and is administered by SEERAD. It is designed to encourage the creation and management of woods and forests, and to provide economic, environmental and social benefits for now and the future through the planting of trees on agricultural land.

Farmers and crofters joining the Farmland Premium can receive annual payments as set out below:

Where the land is to count against the farmer's set-aside obligation, the payment rate will be restricted to the set-aside rate.

Annual payments are made for 15 years for woodlands containing at least 60% broadleaves by area. Provided that the percentage remains above 50% payments will be maintained for 15 years. Plans with less than 60% broadleaves planted will qualify for payments over 10 years.

There is an upper limit of 200 hectares per farm business and planting on unimproved land must not exceed 40 hectares. The Farmland Premium is also available for planting on common grazings in the crofting counties but must not exceed 100 hectares on each common grazing area. These limits apply to all planting after 1 April 1997 under the FWPS and Farmland Premium.

Existing claimants under the FWPS will not transfer their obligations to the Farmland Premium but will benefit from the revised rates listed.

SFGS/Farmland Premium rules and procedures booklet is available from SEERAD offices.

CONTACT & INFORMATION - Forestry Commission,
231 Corstorphine Road, Edinburgh, EH12 7AT, Tel: 0131 334 0303. An applicant's pack is available from local FC Conservancy offices, or visit Forestry Commission website at www.forestry.gov.uk

Growers of certified seed of certain crops, mainly herbage species, may qualify for aid under EC Regulations.

CONTACT & INFORMATION - Rural Payments Agency,
Alverton Court, Crosby Road, Northallerton, North Yorkshire,
DL6 1AD, Tel: 01609 773751 ext. 2661, or visit www.rpa.gov.uk.

(Closing date for last application 4 February 2004 or 29 February 2004 for late claims)

This scheme provides for the payment of an annual premium to sheepmeat producers. Payment is based on the number of female sheep which, by the last day of a specified 100-day retention period, have either:

• given birth to a lamb; or

• attained the age of 12 months.

The payment is in the form of a flat rate premium. A supplementary payment (Less Favoured Area (LFA) supplement) is available to eligible producers who submitted an IACS Area Aid Application (AAA) form by the deadline of 15 May. Rates of payment for the SAP 2003 Scheme were: basic premium 13.48 per eligible animal; LFA Supplement 4.49 per eligible animal. Payments are made with effect from 16 October each year.

In conjunction with SAPS, SEERAD operates the Quality Assured Producers Scheme (QAPS). This makes available an additional payment to producers engaged in the production of sheepmeat to a recognised quality standard (European Standard EN 45011). Funds for QAPS come from Scotland's share of the UK's Sheep National Envelope which amounts to about 2.84 million. The rate of payment in 2003 was 0.89 per eligible animal.

CONTACT & INFORMATION - SAPS or QAPS - SEERAD Area Offices or from Hill Farming and Livestock Subsidies Branch, CAP Management Division, SEERAD, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6643.

Quota - SAP payments are restricted by means of a quota system limiting the numbers on which premium is paid. An explanatory guide on SAP quotas is available from SEERAD Area Offices, the Scottish Executive's website at www.scotland.gov.uk/livestocksubsidy

or Livestock Quotas Branch, CAP Management Division, SEERAD, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY,
Tel: 0131 244 1144.

This scheme was introduced by the UK Government as a result of the Chernobyl nuclear incident in April 1986 and allows for the payment of compensation to sheep producers in areas subject to movement restrictions under the Food and Environment Protection Act 1985. The scheme currently consists of two types of compensation. Sheep producers may claim compensation of 1.30 for each sheep monitored/marked and moved under consent from SEERAD. In addition, sheep producers may claim any market loss incurred on marked animals sold at auction markets and liveweight collection centres under the mark and release arrangements.

CONTACT & INFORMATION - Livestock and Livestock Products Branch, SEERAD, Pentland House, 47 Robb's Loan, Edinburgh, EH14 1TY, Tel: 0131 244 6408.

(Closing date for first application likely to be 15 May 2005)

The Single Farm Payment Scheme will be introduced from 1 January 2005, following EU agreement on the Reform of the Common Agricultural Policy.

An outline of the scheme, its conditions and an initial assessment of entitlements was sent to producers in June 2004.

A further notification will be issued in late autumn 2004.

The CAP Reform package contained a number of options for implementing the SFPS. In reaching a decision on how best to implement the reforms, Scottish Ministers took account of the feedback from a public consultation exercise. The decision was taken to calculate entitlements (and their value) based on average livestock and arable claims submitted by businesses in the period 2000 to 2002 (unless special conditions apply).

The scheme year follows the calendar year and the first year will run from 1 January 2005 to 31 December 2005. SEERAD will send all eligible farmers and crofters an application form showing the initial

• reference amount;

• number of eligible hectares used in the reference period; and

• number and value of payment entitlements.

The application form will be issued with the Area Aid Application (AAA) form at the beginning of March 2005.

Producers will also have to submit an IACS/AAA form and associated field data sheets etc covering their current eligible land in order to "activate" entitlements.

EC Regulations require that payments are made only between 1 December in the year the application is made and 30 June of the following year. We will pay as many valid claims as possible at the earliest point in that payment window.

CONTACT & INFORMATION - SEERAD Area Offices. To view a set of Frequently Asked Questions on the SFPS visit the Scottish Executive's website at www.scotland.gov.uk/singlefarmpayment

(Closing date for last application: 28 February 2005)

There are two elements to this scheme, SPS and Veal Calf Slaughter Premium Scheme (VCSPS):

• SPS - Animals eligible for the slaughter premium are bulls, steers, cows and heifers slaughtered from the age of eight months. To be eligible for SPS, producers must have retained the animals claimed on their holding for two months prior to them leaving the holding to be slaughtered.

• VCSPS - for animals slaughtered at more than one and less than seven months old. Producers must have retained the animals claimed on their holding for two months (for animals slaughtered at three to six months old inclusive) and one month (for animals slaughtered at more than one and less than three months old).

Claims must be submitted within six months of the date the claimed animals ended retention, or by 28 February 2005, whichever is sooner. Each producer may submit up to 12 claims for SPS and 12 claims for VCSPS in a scheme year.

The rate of premium for 2004 is ¤80 (approx. 54) for SPS, and ¤50 (approx. 35) for VCSPS. These sterling equivalents are based on the average rate of exchange over December 2003 (¤1=0.701706). In the UK, SPS and VCSPS are subject to a restriction of 3,266,212 adult animals and 26,271 veal calves. If the restrictions are exceeded, the payment due on each animal will be reduced proportionately.

Although SPS and VCSPS are IACS based schemes, producers wishing to claim SPS and VCSPS only do not have to submit an IACS Area Aid Application (AAA).

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/livestocksubsidy

(Closing date for last application: 6 December 2004 or 31 December 2004 for late applications)

Premium is paid on suckler cows and heifers (over eight months old) forming part of a regular breeding herd used for rearing calves for beef. Milk producers actively involved in milk production, with milk quota of no more than 180,000kg (174,780 litres) on 31 March 2004 may also claim SCP as small milk producers.

The 2004 Scheme runs from 1 July until 6 December 2004. To qualify, producers must keep the animals claimed for a six month retention period. The retention period begins the day after the claim is received, and ends six calendar months later.

To be eligible for payment under the 2004 Scheme, producers must have submitted an IACS Area Aid Application in 2004 by the deadline of 17 May 2004. The amount of SCP payable is limited by the stocking density calculated as Livestock Units (LUs) per hectare of the forage area declared on your AAA 2004 form. The stocking density limit for 2003 is 1.8 LUs per hectare of validated forage area.

The rate of premium for 2004 is ¤200 (approx. 140). These sterling equivalents are based on the average rate of exchange over December 2003 (¤1=0.701706).

CONTACT & INFORMATION - SEERAD Area Offices or visit the Scottish Executive's website at www.scotland.gov.uk/livestocksubsidy

See also the entry on Extensification Payment Scheme elsewhere in this guide.

Quota - Payment of SCP is restricted by a quota system which limits the numbers of animals on which premium will be paid. An explanatory guide on SCP quotas is available from SEERAD Area Offices.

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