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Minutes of the Meeting on the 14 July 2005

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REVIEW OF AGRI-ENVIRONMENT SCHEME PAYMENT RATES:

MEETING WITH STAKEHOLDERS, 14 JULY 2005, PENTLAND HOUSE

NOTE OF MAIN POINTS

Present:

Ingrid Clayden, SEERAD- FBRD (Chair) Douglas Bell, SAC

Derek MacKinnon, SEERAD-Agriculture Staff Jonathan Hall, SRPBA

John Hood, SEERAD- FBRD Jenny Johnson, SNH

Andrew Moxey, SEERAD- ASD Claudia Rowse, SNH

Scott Walker, NFUS Brian Kaye, SOPA

Alison McKnight, FWAG Carey Coombs, Soil Association, LINK

Jenny Pickthall, SEERAD- FBRD

Welcome, apologies etc

1. Apologies were received from Linda Rosborough (SEERAD), Beck Shaw ( SCF), Norman Leask ( SCF) and Lisa Schneidau (LINK).

Agreement of previous minutes

2. Comments were received from Craig Campbell. The first, to add to paragraph 4 the words: "except where a higher rate is deemed to be indispensable for effective implementation of the measure" was agreed. The second comment referred to "parking" rates for Options 7 and 14. It was agreed that these had been parked at £26 and £300 respectively at the last meeting. It is option 13 that was awaiting further information.

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

Rates to "Park"

4. Rates parked at the previous meeting were Options 1-7, 9-11, 14,18 and 22. SEERAD Agricultural staff recalculated more RSS rates subject to the higher contractor rates from the SAC handbook and the change in labour costs. These additional rate calculations were discussed.

5. Option 12. Management of Lowland Raised Bogs

Rate of £74 was parked.

Option 13. Creation and Management of Wetland

SNH have no figures to provide evidence for percentage loss of yield under this measure. FWAG suggested looking at 100% loss and then taking into account the grazing value of the land.

Action: Alison to circulate FWAG calculations to the group by Monday

Option 15. Management of flood plain

Rate of £30 parked.

Option 16. Management of Basin and Valley Mires Buffer Areas

Rate of £260 parked.

The group agreed both Option 15 and 16 will become increasingly important and need to be the subject of further discussion, separate to this review, in the context of LMCs and the Water Framework Directive.

Option 17. Moorland Management

Rate of £1/ ha was parked.

Option 19. Muirburn

Rate of £11/ ha was parked.

Option 20. Bracken Eradication Programme for Moorland

Rate of £26 was parked.

Option 21. Creation of Grass Margins or Beetlebanks

This option was agreed to have significant conservation benefits and is very costly and difficult to implement. It was agreed that we do not want uptake to drop so a 20% incentive was agreed. Therefore a rate of £619 was parked.

Option 22A. Creation of conservation headlands (No N fertiliser)

Rate of £150 was parked with an incentive of £0.34.

Option 24. Management of Hedgerows

FWAG calculations need to exclude annual strimming costs.

Action: Alison to liaise with Douglas and circulate amended calculations. Action: SEERAD to draft note with proposals for hedgerows.

Option 25. Introduction of Retention of Extensive Cropping

It was agreed that a decent incentive was needed as this is a valuable measure.

Rate of £120 was parked.

Option 25P. Introduction of Retention of Extensive Cropping (Premium)

Rate of £180 was parked.

Option 26. Spring Cropping

Rate of £106 was parked. This measure does however need to be reviewed for 2007 to dovetail with the LMC rate for winter stubble.

Option 27. Management of Cropped Machair

Rate with no seaweed/dung was parked at £220.

Rate with seaweed/dung was parked at £270.

Option 28. Unharversted Crops

It was agreed that a high incentive is very important for this measure. A rate of £445 was parked.

Option 31A, B and C. Management of Ancient Wood Pasture

Rate of £70 was parked for Option 31B.

Rate of £28 was parked for Option 31C.

Action: SEERAD will take away the calculation for 31A and look into it further.

Option 34 and 34A. Introduction and Retention of Cattle

It was agreed to discuss this rate next week with a representative from SCF present.

OAS Rates

6. Carey raised his concern at the inconsistency in approach between calculations for the RSS rates and OAS rates, which work on very basic gross margins. He felt that organic farming delivered the same benefits as many of the RSS prescriptions eg, conservation headlands. It was agreed that a fundamental review of how we support organics in the context of LMCs is needed.

7. When revisiting the calculations Andrew used the production system assumptions agreed for previous OAS rates by the Organic Stakeholders Group. This meant that it was only necessary to focus on the Unit values of the most influential items, notably feed costs. The Rough grazing rate in OAS Maintenance and other OAS rates need to be looked at further for the next meeting.

Action: SEERAD to revisit calculations to include concentrates and to revisit the feed costs.

Action: Carey and Brian to liaise with Andrew with aim to agree rate at next meeting.

Further Rates to Discuss

8. Management of Woodland

The Group outlined a number of issues involved in implementing this measure: calculations are currently made on the basis that this option is always on very poor grounds, this is not always the case; the reduction in LFASS needs to be taken into account when fencing off an area.

Action: FWAG and others to circulate evidence for revising the calculations by Monday.

9. Management of Scrub

Action: FWAG and others to circulate evidence for revising the calculations by Monday

10. Management of Extended Hedges

Without an incentive the calculation for this measure gives a figure of £345.

Action: FWAG and others to circulate evidence for revising the calculations by Monday

People Issues

11. SEERAD are still awaiting advice from solicitors on a number of the people issues. Subject to legal advice we would like to move forward deciding the ranking threshold for 2005 applicants as soon as possible after the conclusion of the review group. All RSS audits will be paid for whether the applicants decided to proceed with their application or not.

12. SEERAD noted a number of concerns raised by the stakeholders:

· Is it feasible for 2005 applicants to review their applications?

· Jenny Johnson expressed concern about the lack of public understanding of the double funding issue.

· When will existing participants get paid and at what rate?

· Will RSS ceilings operate on the basis of existing rates?

Action: SEERAD to consider all of these issues in the light of legal advice.

Confirmation of future meetings

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

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

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

FBRD

15 July 2005

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Page updated: Thursday, August 11, 2005