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Scotland Rural Development Programme 2007-2013: Aid for Agri-Environmental Commitments (Point IV.C.2 of the Guidelines)

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Aid for Agri-Environmental Commitments (Point IV.C.2 of the Guidelines)

1. OBJECTIVE OF THE MEASURE

Which one of the following specific objectives does the support measure promote?

image of crossed box ways of using agricultural land which are compatible with the protection and improvement of the environment, the landscape and its features, natural resources, the soil and genetic diversity, reduce production costs;

image of uncrossed box an environmentally-favourable extensification of farming and management of low-intensity pasture systems, improve and re-deploy production ;

image of uncrossed box the conservation of high nature-value farmed environments, which are under threat increase quality;

image of uncrossed box the upkeep of the landscape and historical features on agricultural land;

image of uncrossed box the use of environmental planning in farming practice
If the measure does not pursue any of the above objectives, please indicate which are the objectives aimed at in terms of environmental protection?

(Please submit a detailed description)
If the measure in question has already been applied in the past, what have been the results in terms of environmental protection?

Measures have already been applied (apart from the proposed new Rural Development Contract Land Managers' Options and Rural Priorities included in the new SRDP) and have proved to be effective in helping to meet the aims and objectives of the agri-environment schemes and agri-environment measures under the Land Management Contract Menu Scheme (now re-named the Rural Development Contract Land Managers' Options). The total area of land being managed under these schemes is around 1.6m hectares.

2. ELIGIBILITY CRITERIA

2.1. Will the aid be exclusively granted to farmers who give agri-environmental commitments for a period between five and seven years?

image of crossed box yes image of uncrossed box no

2.2. Will a shorter or a longer period be necessary for all or particular types of commitments?

image of crossed box yes image of uncrossed box no

In the affirmative please provide the reasons justifying that period

Agreements will commence on 1 January each year. Some operations involve management of the land over the winter period i.e. after harvest to the following spring. For agreements containing such measures the agreement will end on 31 March after 5 calendar years have elapsed i.e. a duration of 5 years and 3 months.

2.3. Please confirm that no aid will be granted to compensate for agri-environmental commitments that do not go beyond the relevant mandatory standards established pursuant to Articles 4 and 5 of, and Annexes III and IV to Regulation ( EC) No 1782/200324 as well as minimum requirements for fertiliser and plant protection product use and other relevant mandatory requirements established by national legislation and identified in the rural development programme.

image of crossed box yes image of uncrossed box no

If no, please note that Article 39(3) of Regulation 1698/2005 does not allow for aid for agri-environmental commitments that do not involve more than the application of these standards and requirements.

2.4. Please describe what the above mentioned standards and requirements are and explain how the agri-environmental commitments involve more than their application .

Extracts from the SEERAD publication entitled "Cross Compliance: Notes for Guidance" are attached at Annex A. This sets out a list of Standard Management Requirements ( SMRs) and Good Agricultural Environmental Condition ( GAEC) measures. Annex A also sets out some examples of how agri-environmental commitments go beyond ( GAEC).

3. AID AMOUNT

3.1.Please specify the maximum amount of aid to be granted based on the area of the holding to which agri-environmental commitments apply:

The State Aids covered by this Supplementary Information Sheet relate to "top-up" state aids covering the element of any agri-environment payment that exceeds the annual ceiling on co-financed payments for the land type specified in the Annex to Council Regulation 1698/2005. Some options have a payment rate which individually exceeds the relevant annual ceiling. A list of these options showing a breakdown of each payment rate is attached at Annex B. However, it is also possible that the annual ceilings could be exceeded due to a combination of payments for agri-environment measures or due to payments being made which were originally scheduled for the an earlier year ( e.g. as a result of a late claim). For this reason, a list of all existing agri-environment measures which have a co-financed payment rate is also attached at Annex C. All payment rates listed in Annexes B and C have already been approved by the European Commission. Annex D contains the proposed new Rural Development Contract Land Managers' Options and Rural Priorities (agri-environment measures) which are included in the new SRDP.

image of uncrossed box for specialised perennial crops €900/ha ………. (maximum payment of 900 €/ha)

image of uncrossed box for annual crops €600/ha …..………. (maximum payment of 600 €/ha)

image of uncrossed box for other land uses €450/ha………(maximum payment of 450 €/ha)?

image of uncrossed box local breeds in danger of being lost to farming €200…(maximum payment of 200 €/live stock unit)?

image of uncrossed box other?………

24 Council Regulation 1782/2003 establishing common rules for direct support schems under the common agricultural policy and establishing certain support schemes for farmers, OJ L 270, 21.10.2003, p. 1

If the maximum amounts mentioned are exceeded please justify the compatibility of the aid with the provisions of Article 39(4) of Regulation ( EC) N° 1698/2005.

3.2. Is the support measure granted annually?

image of crossed box yes image of uncrossed box no

If no, please provide the reasons justifying other period

……………………………………………………………………………

3.3. Is the amount of annual support calculated on the basis of:

- income foregone,
- additional costs resulting from the commitment given, and
- the need to provide compensation for transaction costs

image of crossed box yes image of uncrossed box no

Explain the calculation method used in fixing the amount of support and specify the income foregone, additional costs and possible transaction costs

The management payment rates take account of profit foregone and cost incurred. No transaction costs have been included. Some payment rates which were approved by the EC prior to 1 January 2007 have an incentive element included where this has been judged desirable to encourage greater uptake of the measure. The annualised capital payments are for non-remunerative capital works necessary for the fulfilment of agri-environment commitments. For these capital rates, there is no element of income foregone, nor is these an incentive element or transaction costs included. Contractors' costs form the basis of standard capital payment rates which represent a contribution towards the cost of the work involved.

3.4. Is the reference level for calculating income foregone and additional cost resulting from the commitments given, the standards and requirements as mentioned above under point 2.3?

image of crossed box yes image of uncrossed box no

If no please explain the reference level taken into consideration

…………………………………………………………………………………………………

……………………………………………………………………………..

3.5.Are the payments made per unit of production?

image of uncrossed box yes image of crossed box no

If yes please explain the reasons justifying that method and the initiatives undertaken to ensure that the maximum amounts per year eligible for Community support as set out in the Annex to Regulation ( EC) N° 1698/2005 are complied with.

…………………………………………………………………………………

………………………………………………………………………

3.6. Do you intend to give aid for transaction costs for the continuation of agri-environmental commitments already undertaken in the past?

image of uncrossed box yes image of crossed box no

3.7. If yes, please demonstrate that such costs still continue to be incurred

……

3.8. Do you intend to give aid for the costs of non-productive investments linked to the achievements of agri-environmental commitments (non-productive investments being investments which should not lead to a net increase in farm value or profitability)?

image of uncrossed box yes image of crossed box no

3.9. If yes, which aid rate will be applied (max. 100 %)?

This relates to annual non-remunerative capital works ( e.g. fencing) necessary for the fulfilment of agri-environment commitments. For these capital rates, there is no element of income foregone, nor is these an incentive element or transaction costs included. Contractors' costs form the basis of standard capital payment rates which represent a contribution towards the cost of the work involved i.e. the aid rate will in no case exceed 100%.

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Page updated: Tuesday, July 24, 2007