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Minutes of the Meeting on the 21st July 2005

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REVIEW OF AGRI-ENVIRONMENT SCHEME PAYMENT RATES:

MEETING WITH STAKEHOLDERS, 21 JULY 2005 , PENTLAND HOUSE

NOTE OF MAIN POINTS

Present:

Andrew Moxey, SEERAD- ASD (Chair) Douglas Bell, SAC

John Henderson, SEERAD-Agriculture Staff Jonathan Hall, SRPBA

John Hood, SEERAD- FBRD Jenny Johnson, SNH

Linda Rosborough, SEERAD- CMD Claudia Rowse, SNH

Scott Walker, NFUS Norman Leask, SCF

Alison McKnight, FWAG Carey Coombs, Soil Association/ LINK

Ann Cowan, SEERAD- FBRD

Welcome, apologies etc

1. Apologies were received from Ingrid Clayden (SEERAD), Becky Shaw ( SCF), Brian Kaye ( SOPA) and Lisa Schneidau (LINK).

Agreement of previous minutes

2. Comments were received from Derek Mackinnon. The first, that under option 26, the reference was to winter stubbles not winter scrub. The second that option 31C was parked at £28 rather than £70.

3. The minutes were agreed subject to the above change.

People Issues

4. It was generally accepted that there was a double funding issue for any participant who had entered an agri-environment schemes post 2002. Therefore anybody entering these schemes after 2002 should get any revised rates. However to restore the confidence of participants it would be helpful if they could be advised of how long these revised rates would run for (i.e. 5 years or life of agreement etc). One group where potential double funding is not an issue is individuals who were in an ESA scheme and have subsequently transferred to an RSS in 2003 or 2004. If stock reduction was the critical component of their ESA and this remains a component of their RSS then there is not a double funding issue. As long as these individuals are treated as having joined the scheme prior to 2002 (i.e. there has been a continuation/ transfer of their agri-environment commitment) there is not a problem. It is only if they are treated as having joined the agri-environment scheme post 2002 that there is a problem.

5. There was a useful discussion and clarification of views for the pre 2002 entrants, where there are several groups to be considered. Those who do not have SFP, those who successfully challenged, those who unsuccessfully challenged and those who did not challenge. There are several scenarios for SEERAD to consider, all of which carry policy and/or financial risks. Can we keep existing rates for those who have no SFP, those who didn't challenge and those who unsuccessfully challenged? Can we offer those who successfully challenged a chance to withdraw the challenge and keep the old rates? (Those who successfully challenged and were content would get the new rates). Also would SFP income forgone bring us to the same position? Norman Leask also asked that consideration is given to Common Grazings Committees. SEERAD agreed to consider further internally, consult the Minister and aim to produce a paper for the meeting on 4th August or an extra meeting the week after.

Rates to Discuss

6. Rates parked at the previous meeting were Options 12, 15-17, 19-22A, 25-28 31B and 31C. These additional rate calculations were discussed.

Option 8 Creation and Management of Species-Rich Grassland

Rate of £248.00 was parked.

Option 13. Creation and Management of Wetland

Rate of £248.00 was parked.

Option 24. Management of Hedgerows

John Henderson thanked FWAG for the hard work put in to provide calculations for this option. It was greatly appreciated. It was agreed that new planting would be available as a capital payment in year 1. Any gapping up after that would be paid as part of the management. An average contractor cost was used as some people utilised their own labour rather than employ contractor's. Rate of £0.85 per metre parked.

Option 23. Management of Extended Hedge

It was agreed to use the Management of Hedgerows approach but only using 50% of the costs as this option only allows for 1 side of the hedge. A figure should be added in for income forgone from the 2m strip . New calculation would be available for next meeting.

Options 29 & 30. Management of Scrub and Management of Native and Semi-Natural Woodland

FWAG had also provided figures for these options; however it was felt that the income forgone element may be too high for those with large areas of Rough Grazings. As most of these options take part on existing land, it was agreed that SEERAD would investigate whether or not IACS could tell what land type (semi-natural, Rough Grazings etc) is dominant. SNH provided some calculations (at this meeting) that they had used for a similar option under their Natural Care Scheme. SEERAD would also liaise with the Forestry Commission. New calculations would be available for next meeting.

Option 32. Management of a Site of Archaeological or Historic Interest

Rate of £80 per 0.25 hectare or part thereof up to 1.50 hectares and £80 per ha thereafter (as per the current rate) parked.

Options 33. 34 & 34A Conservation Management Plan with Special Measures for Small Units, Introduction of Cattle of Scottish Native or Traditional Breed(s) and Retention of Cattle of Scottish Native or Traditional Breed(s).

FWAG and SCF provided calculations (at the meeting) towards these options. The reintroduction figure was generally accepted, but there was some discussion of the retention figure. SEERAD offered the view that some of the detailed calculations were confusing and that it might be simpler to use a 20% incentive figure instead. This would double the payment and was considered to be an improvement, although some reservations were still expressed about it being sufficient to make a difference in the face of other changes (i.e. decoupling). SEERAD agreed to look at the relationship with the Beef Calf Scheme and report back to the next meeting.

OAS Rates

7. Andrew produced his latest calculations. He stated that as the Commission had already approved the conversion rates, it would make sense for the maintenance payment rate to be the based on (and then same as) the year 5 conversion rate. Carey was pleased to see that all the rates now worked out comparable to those wanted by the industry. However he pointed out that they have some concerns about the discretionary system and that this should be reviewed as soon as possible.

8. When revisiting the calculations Andrew had found difficulty in progressing the Rough Grazing flat rate beyond the current £500. By using an incentive it could reach £600. Another option would be to use the £5 per hectare (5th year payment rate) paid under the conversion option, or to use progressive rates i.e. £5 per hectare for the first 100 hectares, then downwards but SEERAD would need to reflect on this within Commission rules. and the knock-on budgetary effect of this (and the other rate changes above). Andrew's methodology was agreed and new figures would be available for meeting on 28th July.

Remaining 400 Rates

9. It was agreed that the progress of the other remaining rates could not be decided until a resolution of the people issues had been found. RSS Capital rates would need to be discussed at a future meeting and this would probably allow progression of similar options under the other schemes. SEERAD would produce a list of those rates already parked for the meeting on the 4th August.

Confirmation of future meetings

28 July, from 10:00am - 1:00pm (Pentland House) - Andrew Moxey to Chair

4 August, from 2:00pm - 5:00pm (Pentland House)

plus, possibly, 11 August

FBRD

22 July 2005

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Page updated: Thursday, August 11, 2005