SINGLE FARM PAYMENT - ARE YOU PREPARED?

The single farm payment was introduced on 1st January 2005 and, as you may well be aware, replaces most agricultural subsidies.

As has been reported in the press, the new single farm payment will be made up of two key elements – flat rate area based and historical entitlements. There will be preconditions to claiming the new payment that will relate in part to the occupation of land in the period 2000 – 2002 and in part the occupation of land for a continuous ten month period commencing at any time between the 1st October 2004 and the 30th April 2005 with a default start date of the 1st February 2005.

These entitlements will be transferable and will be payable to the occupier of the land in question.

Whether, therefore, you are an owner-occupier; landowner; full agricultural tenant on a 1986 or earlier Agricultural Holdings Act tenancy; an occupier of land by way of Farm Business Tenancy or licence, these changes may well have a fundamental effect on you.

There are several key issues that need to be addressed and we would suggest the following are some of the more important ones:

1. Who is going to register land for the purpose of the area payment?
2. On what ground is any historical element going to be claimed?
3. Is the land in question registered on the Rural Land Register?
4. Has sufficient allowance been made in this years cropping to allow for set aside under the new regulations? This needs to be in place now and will apply to many farmers who have not previously had to comply, particularly those with temporary grass.
5. Who, and on what basis, is going to occupy the land for which ten months in 2005 for the purposes of single farm payment?
6. What is going to happen to the occupation of the land post 2005 and who is going to have the benefit of the single farm payment?
7. Is there a possibility of a claim under one of the categories for National Reserve?
8. Can you establish authorisation as a fruit, vegetable or potato grower?

The detailed rules surrounding the single farm payment are extremely complex and everyone’s individual circumstances will produce a different solution as to how it should be addressed.

What can be said for all circumstances is that the earlier these matters are addressed and the more co-operation there is between all those concerned, the more likely it is that we will achieve a positive outcome within the single farm payment regime.

If you would like to discuss the single farm payment and how it effects your particular circumstances, then please feel free to contact any of the Partners within the Practice in the first instance.