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Land Management Contract Menu Scheme 2005 : Notes for Guidance

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SECTION 1 - The Menu Scheme

Introduction

Common Agricultural Policy ( CAP) Reform gives us the opportunity to introduce land management contracts ( LMCs) in Scotland. Introducing LMCs will help to encourage sustainable land management in Scotland. LMCs are an important way of delivering the objectives set out in 'A Forward Strategy for Scottish Agriculture'. The LMC concept has been developed with stakeholders and has widespread support across the range of interests. It is a whole farm system of support, which makes payments for the delivery of environmental, social and economic benefits. This focus on delivering public goods for public funding has increased in importance following CAP Reform. The LMC concept has three tiers.

Tier 1 - The Single Farm Payment and cross compliance

Securing a basic level of environmental protection, food safety and animal welfare.

Tier 2 - LMC Menu Scheme

Delivering widespread benefits leading to economic, social and environmental improvement.

Tier 3 - development for 2007

Will deliver tailored benefits leading to economic, social and environmental enhancement.

We are introducing the Menu Scheme for the first time in 2005, alongside the new Single Farm Payment Scheme. The menu is designed to provide a range of measures suited to the range of land management activities and land types throughout Scotland.

There are many options to choose from. Farmers and crofters can use the menu to choose which activities they want to carry out. The activities chosen will depend on what suits the farmer's or crofter's circumstances, their plans for future business development, and what measures they are eligible for under the scheme. Some measures such as training and farm visits, are one-offs. Others, such as the agri-environment measures and the animal health and welfare programme, run for five years.

Who can apply?

All land managers in Scotland can apply, but must be registered with the Integrated Administration and Control System ( IACS) and have a business reference number( BRN). If you do not already have a BRN we will give you one.

You do not have to take part in the SFPS or any other IACS scheme (for example Energy Crops Scheme). You can take part if you are already in an agri-environment scheme, such as the Rural Stewardship Scheme ( RSS) or Organic Aid Scheme ( OAS). However, you may not apply for some of the options on land managed under an existing scheme. Only land in Scotland is eligible.

When and how do I apply?

Applications

To apply in 2005, fill in an LMC Menu Scheme application form ( LMCMS 2) and an IACS Single Application Form ( SAF). Return the SAF by 16 May 2005 and the LMC Menu Scheme application by 6 June 2005. You are responsible for delivering your forms to your SEERAD Area Office . The Menu Scheme does not accept late applications.

Section 3 of this booklet gives full guidance on filling in the menu scheme application form. The IACS explanatory booklet gives guidance on filling in the IACS single application form. You can get extra copies of the application forms from SEERAD Area Offices or the SEERAD website ( www.scotland.gov.uk/menuscheme).

  • You must fill in a SAF for us to work out your allowance.
  • If you are a 'cross-border' applicant with land in Scotland and elsewhere in the UK, your maximum allowance under the menu scheme is based on the Scottish land declared on the IACS.
  • We may pass information to SEERAD agents so they can monitor and evaluate the menu scheme.

Calculating your allowance

You have a maximum yearly allowance based on the total area of land you declared in your 2005 single application form. This is the total of boxes X and Y on your field data sheets and your estimated share of any common grazing land (which should be worked out by multiplying the area of common grazing land by your share of it as declared in section 6 of the single application form).

We will check these areas and adjust your allowance where necessary.

You can work out your own maximum allowance. It is:

  • £75 a hectare for your first 10 hectares;
  • £30 a hectare for your next 90 hectares;
  • £1 a hectare for your next 900 hectares;
  • 10p a hectare for any hectares over 1000.

Once you have worked out your allowance you can choose options on the menu up to that amount. We will only pay you for options you choose in the 2005 scheme year.

You will be able to work out your maximum allowance in 2006 based on the land you declare in your 2006 single application form. If you choose an option that runs for 5 years, we will take the cost of that option from your allowance for the year you chose the option and the next four years after that.

Financial limits

There are restrictions under EU regulations on the maximum annual funding available. The ceiling on your total claims across the Agri-environment options under the LMC Menu Scheme, with the RSS, CPS, OAS, ESA and the Habitats Scheme is E900 (around £630) per hectare for specialised perennial crops, E600 (around £420) per hectare for annual crops and E450 (around £315) per hectare per annum for other land uses.

This means you cannot receive a combined sum (for all the above schemes) greater than the above figures for each type of land use. For example 10 fields totalling 100 ha of cereals could have £42,000 funding per annum for agri-environment measures or 5 fields totalling 100 ha grassland would have a ceiling of £31,500 per annum.

If you already have commitments to this level you will only be eligible for payments under the Menu Scheme for options 1-5 and 15-17. You will not get further funding for agri-environment (options 6-14).

If the amount claimed in your Menu Scheme application exceeds the funding available to you because you have exceeded your allowance or breached the maximum funding ceiling for all agri-environment measures, there will be a facility to amend your application to reduce the funding sought. If it is found you have falsely declared land to increase your maximum allowance penalties may apply.

Common Grazings

Agri-environment, woodland and access options cannot be undertaken on the common grazings. However, as outlined above your share of the common grazing will be used in calculating your allowance.

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Page updated: Wednesday, May 11, 2005