Welsh CAP Roundup November 26, 2014 12:00 am The Welsh Government has published a CAP Reform Q&A, this can be found at http://wales.gov.uk/topics/environmentcountryside/farmingandcountryside/farming/schemes/basic-payment-scheme/q-and-a-for-farmers-landowners-on-cap-reform-from-2015/?lang=en. Whilst much was already known, the publication does give us some more answers, the main announcements are summarised below. Greening This was detailed back in September, we have summarised what we know and put them into a Welsh Greening Factsheet. This can be found under the ‘Bulletins’ tab at the top of the page. The remainder of this article looks at the other elements of the BPS. Payment Regions and Entitlements From 2015 Wales will be split into three BPS payment regions as follows: Moorland (above 400m and has 50% or more semi-natural upland vegetation or is comprised of 50%or more rock outcrops and semi natural upland vegetation and is used primarily for rough grazing) the remaining Severely Disadvantaged Area all other land (including Disadvantaged Area and Lowland). A letter has been sent to all who submitted a claim in 2013 or 2014, within this letter are details of land classifications, land use and the right to obtain BPS entitlements. Those farmers, who did not claim in 2013, did not meet the minimum claim size, or have otherwise not been eligible for SPS 2013 will not have the right to BPS entitlements. Those wishing to apply for BPS entitlement will have to do so through the National Reserve – see below. Where information contained in the letter is incorrect the Welsh Government should be informed by the end of December 2014. It should be noted that if parcels have been added to the 2014 SAF they will not appear on the statement, a revised Statement will be issued in due course. Farmers can use private contract clause for the sale or the lease of land that has occurred in 2013, 2014 and up to 15th May 2015. This gives the right to transfer BPS entitlements with land. For private contacts each party (the sellor/lessor and purchaser/lessee) must be an active farmer in 2015. Details of any private contracts entered must be submitted of the SAF 2015 form along with a copy of the contract and FM4 form. The entitlement trading window for BPS 2016 will reopen in December 2015 and will close on 2nd April 2016. Active Farmer and Minimum Activity Rules Under EU legislation there are only two ways that a farmer can be classed as inactive. These are, firstly, having the majority of their land ‘naturally kept in a state suitable for grazing and cultivation’ (and not undertaking minimum activity levels on it) and, secondly, appearing on the ‘negative list’. In Wales, only saltmarsh and coastal dunes are classified under the category of ‘naturally kept land’. The minimum activity if more than 50% of the holding is such land is; Meet a minimum stocking density of 0.05 LU per Ha or Maintain stock proof fencing and provide fresh water for livestock or Control injurious invasive plants. The negative list includes operators of airports, waterworks, railway services, real-estate services and permanent sport and recreational grounds). The rules on the problematic areas of ‘real estate services’ and ‘permanent sport and recreation grounds’ follow almost exactly those in England. More details on this are contained in our BPS article in October, and that for England this month. The only major difference is on one of the ‘readmission criteria’ for active farmer. In England, agricultural receipts must be at least 15% of to total business receipts to be readmitted to the BPS. In Wales, the figure must be a third. National Reserve For those who are not eligible for an allocation of BPS entitlements they may be able to apply to the National Reserve. The form, along with any supporting evidence, must be submitted by the 15th May along with the BPS claim. There will be three National Reserve categories; Young Farmer (40 years or younger setting up for the first time as head of the holding or in control in the 5 years before submitting the first BPS claim), New Entrant (no agricultural activity within the last 5 years, the business starting no earlier than 2013) and those who were unable to activate 2013 entitlement through force majeure or exceptional circumstances. Entitlements will be valued at the regional average value within each regions in the year they are allocated. If you do not qualify under these three categories you may still be able to apply to BPS entitlements under ‘proof of production’ if; you have never held entitlements but can prove that on the 15th May 2013 you reared or grew agricultural products you did not receive a 2013 SPS payment but were producing on the 15th May 2013 at least 5 hectares of fruit, vegetables, ware or seed potatoes or ornamental plants or cultivating vineyards. Those who have submitted forms will be informed if they have been successful or not in March 2015. Detailed guidance on the National Reserve form is available at http://wales.gov.uk/topics/environmentcountryside/farmingandcountryside/rpwonline/how-to-complete-online-applications/national-reserve-form/?lang=en. Young Farmer Top-up The Young Farmer top up is equivalent to 25% of the 2019 average entitlement value and is payable on a maximum of 25 hectares in Wales. Estimated 2019 flat rate values including Greening for each region are: Moorland €20 SDA land €200 DA and Lowland €240 Other Points It should be noted that the Welsh Government have announced that it may be necessary to make two payments in 2015 as claims are validated. Claimants are reminded that the usage rules have changed subtly. Under BPS at least once every two years, a claimant must activate all of his entitlements in a single year to prevent them from being lost. It will not be possible to ‘rotate’ excess entitlements anymore to prevent confiscation.
