We are now seeing, as promised, more information filtering through about the 2015 Cross Compliance regulations and the RPA have been running briefing groups throughout the country to try and put the message across and answer many of the queries agents and farmers have about the Basic Payment Scheme (BPS). So what does it all practically mean? Ashley Taylor attended a South West Farming Advice Service (FAS) briefing recently and shares below some of the insights provided by the RPA.
Cross Compliance
The existing system, in terms of Statutory Management Requirements (SMRs) and GAEC, will continue with some additions, although being reduced overall. SMRs, as previously, are set by the EU and DEFRA have no direct control over these, while the GAEC rules are designed by DEFRA, based on a framework provided by the EU. The Soil Protection Review will become a thing of the past, a welcome change to all, and will be replaced with more practical soil management requirements, covered by three new GAEC requirements (4 to 6) as follows;
• Minimum soil cover
• Minimum land management reflecting site specific conditions to limit erosion
• Maintenance of soil organic matter level through appropriate practices including ban on burning arable stubble, except for plant health reasons
• Minimum land management reflecting site specific conditions to limit erosion
• Maintenance of soil organic matter level through appropriate practices including ban on burning arable stubble, except for plant health reasons
These titles are sourced from Implementation of CAP Reform in England – Consultation Document – October 2013 and are subject to change.
We will also see the removal of GAEC 11 as the Weeds Ace 1959 covers these issues sufficiently, an extension to the closed period for hedgerow cutting (to be 1st March to 31st August) which will tighten cutting schedules, together with some further changes to be confirmed in due course.
Crop Diversification
We are now waiting for details of the period during which crops need to be in the ground for inspection, however understandably DEFRA are struggling to set this timeframe for all the crop varieties. This period will likely include the 15th May, which will remain the claim date, and could run from the 1st May to June/July, however this remains in discussion. In reality the RPA do accept that this will be incredibly difficult to police.
DEFRA have now provided a list of crops and the groupings that are considered to be a ‘single crop’ for crop diversification purposes, although they will add to this list during the summer. For example different species of brassica will be considered a single crop, as will solanaceae species (potato, tomato, pepper chilli etc.), and cucurbitacae species (squash, cucumber, butternut squash etc.).
OT1 will become a thing of the past and England is likely to follow a more specific system similar to that already employed in Wales, where specific crops are inputted onto the claim form.
Fallow land, temporary grass and some EFA options will also count as a separate crop, which, one hopes, should somewhat alleviate the pressure on arable growers.
EFA
Ecological Focus Areas will need to comprise at least 5% of the amount of arable land you declare on your BPS application (note: this means 5% of total ‘eligible arable area’ not ‘claimed area’, all land must be declared) and the regulations surrounding what land will count towards an EFA are perhaps the most complex of the new BPS. This allocation does not need to be in a single area and can be made up of a number of pockets of land, providing they comply.
The EFA options have now been confirmed as:
• Land lying fallow
• Buffer strips
• Catch and cover crops
• Nitrogen fixing crops
• Hedges
• Buffer strips
• Catch and cover crops
• Nitrogen fixing crops
• Hedges
For the sporting contingent wild-bird seed mixes and nectar sources can be planted on fallow land, providing potential for game cover to be both EFA (as fallow land) and a separate crop (as wild bird or nectar mix). The RPA are however waiting for confirmation from the EU as to whether different sporting covers will count as one crop over different blocks of cover. This will be particularly relevant to sporting farms and estates on higher ground, where game covers make up the majority of the arable area.
For the hedgerow option, one metre of hedge will equate to 10m2 of EFA, making 1km of hedge equivalent to one hectare of EFA. The hedge in question must also be adjacent to arable land. Now is the time to check your boundary ownership to ensure you do have sufficient hedgerow to comply, as central hedgerow boundaries will count 50:50 between neighbours. This option raises interesting compliance issues, for instance where one has a non-farming neighbouring property who is oblivious to the hedgerow cutting regulations, which could lead to a compliance issue for the claimant.
Also of note is that if a neighbouring farmer has land in temporary grass (arable land under BPS), but you have permanent grass on the other side of the hedge, it is expected that this hedge could count as EFA on both sides. Roadside hedgerows are also expected to count for the full 10m2 per metre, despite the need to cut them for visibility.
However there may be problems for those who choose to use their hedges as EFA options, as the RPA will need to inspect these options to reduce the risk of the UK receiving non-compliance penalties from the EU. This could result in a delayed payment whilst these inspections are taking place and those considering hedgerow options will need to ensure that a delayed payment in/after December 2015 will not cause cash flow problems.
Buffer strips under the EFA options are likely to be comprised of existing no-spray zones next to watercourses, the idea being that there will be as little impact on farming operations as possible.
Despite Mr Paterson’s statement that “within the Nitrogen-fixing Crops option in EFA we will allow the broadest range of qualifying crops and will not impose any additional restrictions on the cultivation of these crops”, it is expected that herbaceous crops grown for forage, for example lucerne for silage, will not be considered a Nitrogen-fixing Crop for EFA purposes.
Permanent Grassland
Similar to the current SPS rules for permanent pasture, permanent grassland is to be “land that has been used to grow grasses or other herbaceous forage for five years or more. If it has been re-sown with grass or other herbaceous forage during the past five years, it is still permanent grassland”.
When a claimant/agent logs onto the new online BPS system in 2015 it is expected that their existing parcel data will already be present. From a permanent pasture/grassland perspective, the ‘clock is already running’ and the new system will likely take account of previous years claims in respect to permanent grassland. Therefore if ground has previously been permanent pasture under SPS, it will show as permanent grassland under BPS. Similarly when reaching the sixth year of temporary grassland, the new system is designed to automatically make the change to permanent grassland. Those who have planted catch crops in the meantime will need to confirm this with the RPA, and that their land is in fact temporary grassland, however it is unclear if evidence of this will be required. Therefore those planting catch crops, which have the effect of keeping permanent grassland temporary, should keep clear records and evidence just in case.
Other points of note
Claimed area – The new Cross Compliance rules apply to the ‘eligible area’, not the claimed area. Therefore if a claimant has 100ha of eligible land, but only 50 entitlements, the 5% EFA and crop diversification rules etc. apply on the whole 100ha of eligible ground.
Fallow – Fallow land is not ‘set-aside’, the definition is broader than this. However the crux is likely to be whether one obtains a production benefit from land, if so it is unlikely to be considered fallow. The fallow period is likely to be something like the 1st or mid-January for six months.
Applications & agent authorisation – From 2015 all applications are expected to be online, including the Rural Development Program (NELMS etc., which incidentally will only be available to 35% of claimants). There will be regional call centre assistance for those who do not have internet access, however it remains to be seen as to the effectiveness of these.
The RPA, Natural England, BCMS and other records are being combined onto the new online system, with the aim of simplifying claims through different organisations. This is likely to highlight ‘dual-use’, presuming it can continue, therefore those with a legitimate ‘dual-use’ should take early advice to ensure this is accommodated in tenancy agreements etc.
SP9 agent authorisation forms will be a thing of the past. It is understood that claimants will simply log onto their BPS system and authorise their agent(s) by the click of a button. We are told that the RPA have taken account of the need to have more than one agent registered for a single claimant, where for example one agent completes the claim and another is transferring entitlements. However the problem will be for those rural claimants without internet access or the ability to use it, and their agents will be a vital contact point for future claims. Despite this there remains a grey area over the provision of a claimant’s online PIN to their agent, which should not technically occur, but where one party has little computer experience it cannot often be helped. We can only hope that the RPA will look after these claimants, as the level of support available is likely to determine their success in a BPS claim and in some cases future farming viability.
One business or two? – This question is currently asked to claimants through the provision and subsequent completion of an IACS 26 or 27 form, which requests information about the beneficiaries of two businesses, the share ownership of the individuals involved in each and other related information. These principles will be part of the BPS online system due to the legal obligation the RPA has to the EU, to know who the beneficiaries of a claim or business are. This is to ensure against double-funding and the like. The level of detail required is currently being discussed, however those who have previously been sent IACS 26 or 27 forms should ensure that they have responded to the benefit of their farming operations. Similarly those with two businesses, perhaps a partnership and a limited company, should seek advice as to the likely implications when they make their first claim in 2015.
Summary
Overall the ‘minefield’ has been laid and those with any queries over their eligibility, cropping plans, EFA or any other aspect are well advised to seek professional opinions at an early stage in order to ensure they do not fall foul of the new scheme. Townsend Chartered Surveyors’ BPS team are on hand to discuss your queries and options for the new scheme and can provide a Basic Payment Plan tailored to your holding if necessary. Contact Ashley Taylor and Chris Allan for further details.
