The Scottish Government

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1 Introduction

Rural Development Contracts Land Managers Options ( LMO) are being introduced under the 2007-13 Scotland Rural Development Programme ( SRDP). The aims of the SRDP are to increase competitiveness in agriculture and forestry, improve the environment and the countryside and enhance the quality of life in rural areas. LMO provide support for the provision of economic, social and environmental improvements across Scotland.

Land Managers Options are similar to the Land Management Contract Menu Scheme ( LMCMS) introduced in 2005. If you have continuing commitments under LMCMS you must continue to follow the relevant guidance issued in 2005 and 2006. You must also continue to comply with Good Farming Practice. The LMCMS was a pilot scheme. Based on its successful uptake, LMO have been included in the new SRDP. It will continue to be a non-competitive scheme.

All future amendments to this guidance will be published on the Scottish Government Website.
http://www.scotland.gov.uk/Topics/Rural/SRDP/Land-Managers-Options

Who can apply

Any land managers with land in Scotland can apply. You must

• be registered with the Integrated Administration and Control System ( IACS)
• have a business reference number ( BRN). If you do not already have a BRN you can apply for one through your Scottish Government Rural Payments and Inspections Directorate ( SGRPID) Area Office.

For the land based options 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 in the LMO (2) 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 Single Farm Payment Scheme ( SFPS) or any other IACS scheme (for example Energy Crops Scheme) to apply for LMO funds.

Only land in Scotland is eligible.

Check list - key dates

When and how do I apply

The scheme year for Land Managers Options runs from 15 May - 14 May of the following year.

To apply you must

• fill in a LMO application form LMO (2)
• fill in an IACS Single Application Form ( SAF)
• submit both these forms to your SGRPID Area Office by 15 May

Your application form is a contract to undertake the options that you selected. You will receive an acknowledgement letter but there is no approvals process so no approval letter will be issued. We do not accept late Land Managers Options applications therefore applications received after the 15 May will be rejected.

Section 1-2 Gives guidance on how to fill in your LMO application form. For guidance on completing the IACS Single Application Form ( SAF) see the IACS Notes for Guidance ( IACS1 and 1a). You can get extra copies of the application form from SGRPID Area Offices or the Scottish Government website ( http://www.scotland.gov.uk/Topics/Rural/SRDP/Land-Managers-Options )

• You can complete your application electronically through Rural Payments online. www.ruralpaymentsonline.com
• You must submit a SAF as confirmation of the land you are applying for to enable us to confirm your allowance.
• Your maximum allowance is based on the land in Scotland declared on your SAF.
• We may pass information to other parts of the Scottish Government so they can monitor and evaluate the Scheme.
• Your application is your contract to undertake the options that you apply 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 land in Scotland which is an integral part of your business and declared in your Single Application Form ( SAF). This is the total area of land declared on your SAF Field Data Sheets and your share of any common grazing land (which will initially be based on your previous years allocation unless you tell us otherwise).

The allowance limits the funding available under LMCMS and LMO.

We will check these areas and adjust your allowance where necessary when the area is finalised.

You can work out your own maximum allowance using the following rates.

• £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.

You can choose LMO options up to the amount of your allowance less the funding you have committed under LMCMS. If you choose an option that runs for five years the cost of that option will be offset against your allowance for the duration of your LMCMS/ LMO contract.

If the amount claimed in your LMO application exceeds your allowance there will be a facility to limit the payment to the maximum allowance but you will be expected to undertake all the options that you have selected. If it is found you have falsely declared land to increase your maximum allowance penalties will apply.

Common Grazings

Individuals cannot undertake agri-environment, woodland and access options on the common grazings. However, your share of the common grazing will be included in the calculation of your allowance.

Common grazing committees can apply for any options under LMO and their allowance will be based on the area of the common grazing. The same option cannot be funded under both an individual crofter and the common grazings clerk's application.

Withdrawal from Five Year commitments

If you withdraw from a Land Managers Option which has a five year commitment, you should write to your SGRPID Area Office explaining why. Unless there is a valid reason for the withdrawal e.g. force majeure, you may need to repay any LMO payments already received plus interest. Depending on the circumstances, we may also apply a financial penalty.

Change of Occupier

If you sell or lease land which relates to an existing commitment:

• the new occupier may agree to take on these existing obligations
• you must submit a successor's form to SGRPID Area Office within 3 months of the sale or lease of that land.

If not, you may be liable to repay all or part of the payments received plus interest and, depending on the circumstances, we may also apply a penalty.

Land ownership and control

1) If you are a landlord, you can only apply for funding for activities on land that you let out on a seasonal basis. You will be responsible for making sure the requirements are met on the land.

2) If you are a tenant or contractual licensee, you must discuss your proposed application with your landlord to make sure it does not break the conditions of your tenancy or licence.

3) If you have a tenancy or a licence with less than five years to run, you will have to make a joint application with your landlord or the land owner if you wish to undertake agri-environment, forestry or access options. The landowner must fill in and sign the declaration in the LMO application form to confirm that they will make sure your commitments under any five year options would continue to be met if you stopped having control over the land during the five years of your commitment. The landlord or new tenant must enter into a 'successor's agreement' within three months of the tenancy or licence ending by submitting a completed successor's form. Otherwise you will have to repay the scheme payments already paid, with interest. Depending on the circumstances, you may have to pay a penalty.

4) You cannot apply for options on seasonal held land, including arable, if your lease is for a period of less than a full year. This means that the seasonal held land can be part of your allowance calculation but it is not an eligible area for LMO activity by you.

Conservation or management agreement

If you want to take up an option on land which may impact upon a nationally or internationally protected area, you must confirm that all appropriate consents have been obtained before you apply to us. These documents must be made available during an inspection. You must also continue to meet the conditions set out in any management agreement that you may have with Scottish Natural Heritage.

Scheduled Monuments

Scheduled monuments are protected by law. You should already be aware of any scheduled monuments on your land, but if you are in doubt, consult Pastmap ( www.pastmap.org ) or contact Historic Scotland for advice:

Historic Scotland
Longmore House
Salisbury Place
Edinburgh
EH9 1SH

Phone: 0131 668 8770
E-mail: hs.inspectorate@scotland.gsi.gov.uk

You must obtain scheduled monument consent ( SMC) from Historic Scotland before carrying out any work that might cause ground disturbance on a scheduled monument. Not all options under LMOs are suitable on scheduled monuments, so it is important that you contact Historic Scotland for advice before making your Land Managers Options application. You should do this as soon as possible, as Historic Scotland staff may not be able to deal with consultations at short notice.

SMC applications are normally dealt with within nine weeks. If you do require SMC, you may therefore need to submit your Land Managers Options application before SMC has been granted. However, you should not start any option affecting land containing a scheduled monument until you have received your SMC in writing, or a letter from Historic Scotland confirming that you do not need SMC. Keep any written correspondence or consent you receive, as we will need to see this during an inspection. Do not send it to us with your application.

Also, if you are carrying out agri-environment options you must avoid damaging or destroying any historic or archaeological features or areas on the land and follow Scottish Ministers' guidance for the protection of such features or areas.

Minimum Level of Grazing

To avoid under-utilisation stock must be present at the application stage of the agreement and graze the grassland at a minimum stocking density of at least 0.04 livestock units/hectare of grassland. This minimum stocking density must be maintained and the stock must utilise the grassland available to the business for the duration of the agreement. This grassland will include all the forage included in the SAF each year.

The defined livestock density shall be based on the livestock figures and forage area declared on your SAF using the figures below:

Table of conversion of animals to livestock units

Compatibilities

Tables will be available on the SRDP website showing where you cannot receive payment for the LMO option if you are already managing the area of land under another Agri-environment or Forestry scheme.

http://sh45inta/Topics/Rural/SRDP/RuralPriorities/HowItWorks/SchemeRules/OptionCompatibilites

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