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 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 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 already committed under LMO. If you choose an option that runs for five years the cost of that option will be offset each year against your allowance for the duration of your 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.