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Land Management Contract Menu Scheme 2006: Notes for Guidance

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SECTION 1 - The Menu Scheme

Introduction

Land management contracts ( LMCs) were introduced in Scotland in 2005. LMCs 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 for public good. This focus on delivering public goods for public funding has increased in importance following CAP Reform in 1993. The LMC concept has 3 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.

In 2005 we introduced the menu scheme for the first time, 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. These measures will produce a public good which will be recognised by those enjoying the countryside.

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 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.

Changes for 2006

There is no longer a Section 4 in the LMC Menu Scheme application form. This information must now be provided on the Single Application Form Field Data Sheets.

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.

For the land based options 6 - 17 you must own or hold the land under a secure tenancy agreement or contractual licence for at least 5 continuous years or, if the tenancy or contractual licence has less than 5 years to run, the landlord must complete and sign the declaration at Section 1 of the LMC( MS) application form. Land based options cannot be undertaken on seasonal let land i.e. 364 days or less.

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.

CHECKLIST - KEY DATES

2006

15 May

This is the last date for submission of applications and the first date of your commitment. No approvals are issued under the Land Management Contract Menu Scheme.

15 May

This is the date that moorland grazing plans must be in place by.

16 May

We aim to start making payments for LMCMS 2005 from this date.

16 May

You must be a member of a quality assurance and/or organic certification scheme on this date and on 16 January 2007 if applying under option 2.

31 May

This is the date by which you must sow a mixture of at least three seed-bearing crop groups under the wild bird seed option.

1 June to 31 August

This is the minimum period for summer grazing cattle.

1 August to 31 March

This is the compulsory period for grazing or cutting rushes by a minimum of one third and a maximum of two thirds.

15 August

This is the date for submission of Farm Woodland Plans.

31 August

This is the last date for the submission of claims for LMCMS 2005.

1 December

This is the date that your animal health and welfare plan must be in place by.

2007

16 January

You must be a member of a quality assurance and/or organic aid scheme on this date and on 16 May 2006 if applying under option 2.

28 February

This is the date from which you can plough or cultivate an area of winter stubble.

28 February

This is the date from which you can plough or cultivate an area of biodiversity cropping on in-bye land.

15 March

This is the date from which you can plough or resow an area of wild bird seed mixture.

When and how do I apply?

Application

The scheme year for the LMC Menu Scheme runs from 15 May - 14 May of the following year. To apply in 2006 you must fill in an LMC Menu Scheme application form ( LMCMS 2) and an IACS Single Application Form ( SAF). You must return both of these forms to your SEERAD Area Office by 15 May 2006. The Menu Scheme does not accept late applications. Your application form is a contract to undertake the options that you selected. There is no approvals process therefore no approval will be issued.

Section 3 of this booklet gives full guidance on how to fill in the menu scheme application form. The IACS explanatory booklet gives guidance on how to fill 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.
  • You must submit an application form, even if you are only continuing your land based options from 2005.
  • 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.
  • Your application is your contract to undertake the measures that you applied for. We will not send you an approval letter. It is your responsibility to meet the obligations on your application.
  • An IACS business can submit only one application each year.

Calculating your allowance

You have a maximum yearly allowance based on the total area of land which is an integral part of your business and declared in your 2006 single application form. This is the total of the land declared on your SAF field data sheets and your estimated share of any common grazing land (either enter your 2005 area or an estimate if your common grazing allocation has changed).

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

Once you have worked out the allowance you have you can choose options on the menu up to that amount. If you choose, or have already chosen, an option that runs for five years, we will take the cost of that option from your allowance for that year and the next four years.

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 €900 (around £630) per hectare for land used for specialised perennial crops, €600 (around £420) per hectare for land used for annual crops and €450 (around £315) per hectare per annum for other land uses.

This means you cannot receive annually a combined sum (through all the above schemes) greater than the above limits for each type of land use. For example if your holding has 10 fields totalling 100 ha of cereals £42000 is the maximum funding per annum for agri-environment measures that could be paid. For 5 fields totalling 100 ha grassland, the ceiling would be £31500 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) unless any of your existing agri-environment commitments come to an end, or you acquire additional land.

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.

Withdrawal from Scheme

If you withdraw from a menu scheme option which has a five year commitment, this will be considered a breach of scheme conditions. Unless there is a valid reason for the withdrawal e.g. force majeure, you may need to repay any Menu Scheme payments already received plus interest. Depending on the circumstances we may also apply a penalty.

Change of Occupier

You may sell or lease land within the scheme. The new occupier(s) must take on the scheme obligations for his/her part of the farm/croft. If the occupier does not undertake the Menu Scheme obligations you may be liable to repay all or part of the payments received plus interest. You must notify SEERAD within 3 months of the sale or lease of part or all of your land. Failure to do so may result in recovery of all or part of the payments you received, with interest.

Season Let Land

You cannot apply for options on seasonal let land, including arable, if your lease for the grazing or mowing is for a period of 364 days or less. This means that your seasonal grazing can be part of your holding calculation but it is not an eligible area for Menu Scheme options.

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Page updated: Tuesday, February 28, 2006