Paragraph 7

(1)

The grant for the HLS element of an environmental stewardship agreement shall be the sum of the grant in respect of any—

(a)

HLS options, calculated in accordance with paragraph (2); and

(b)

HLS capital works items, calculated in accordance with paragraph (3).

(2)

In any agreement year the grant for HLS options shall be calculated by—

(a)

multiplying the payment rate referred to in regulation 5(5)(a) for each HLS option included in the environmental stewardship agreement by the number of units for which it is included (giving the payment for each HLS option); and

(b)

adding together the payment for each HLS option.

(3)

The grant for HLS capital works items shall be calculated as follows—

(a)

for HLS capital works items listed in column 1 of Part 4 of Schedule 2, by—

(i)

multiplying the payment rate referred to in regulation 5(5)(b) for each such HLS capital works item included in the environmental stewardship agreement by the number of units for which it is included (giving the payment for each such HLS capital works item); and

(ii)

adding together the payments for each such HLS capital works item;

(b)

for HLS capital works items listed in column 1 of Part 5 of Schedule 2, by—

(i)

multiplying the percentage referred to in regulation 5(5)(c) by the cost for each such HLS capital works item included in the environmental stewardship agreement (giving the payment for each such HLS capital works item); and

(ii)

adding together the payment for each such HLS capital works item; and

(c)

adding together the payments calculated in accordance with sub-paragraphs (a) and (b).