Explanatory note

(This note is not part of the Scheme)

This Scheme, which applies to Great Britain provides for the payment of annual grants to abate financial losses incurred in consequence of the conversion of agricultural land (including, in Scotland, common grazings) to use for woodlands. The Scheme complies with Council Regulation (EEC) No. 2080/92 instituting a Community aid scheme for forestry measures in agriculture (OJ No. L215, 30.7.92, p.96).

This Scheme supersedes the Farm Woodland Premium Scheme 1992 (S.I. 1992/905) under which no further new applications may be accepted after the coming into force of this Scheme (paragraph 16 and Schedule 3, paragraph 4).

This Scheme provides for applications for grants in respect of eligible land (as defined in paragraph 2(1)) to be made by occupiers of agricultural land carrying on agricultural businesses, and by grazings constables and grazings committees in respect of common grazings in Scotland. An initial entrant must submit with his application a plan for the conversion of eligible land to woodlands, which must be consistent with proposals for conversion agreed by him with the Forestry Commissioners for the purposes of the Woodland Grant Scheme (paragraph 3(1)). Where payment of grant is due under the Scheme in respect of converted land, or where the planned conversion has not yet been completed, a successor to the initial entrant may apply for grant (paragraph 3(2)). An initial entrant must run an agricultural business, but is not required to maintain his agricultural business once his application has been approved, nor is a successor to an initial entrant required to run an agricultural business. Every applicant is required to give undertakings with respect to the planned conversion, the management and use of the land to which his application relates and related matters (paragraph 8).

The Scheme also—

(a)

excludes certain categories of land (paragraphs 5 and 6);

(b)

imposes on Scheme participants maximum and minimum limits in relation to the amount of land which may be converted to woodlands. In establishing whether maximum limits are exceeded, the Scheme provides for consideration to be given to conversions anywhere in the United Kingdom which can reasonably be regarded as falling within the same “holding”, a term which, except in one respect, has the same meaning as in Council Regulation (EEC) 3508/92 (OJ No. L355, 5.12.92, p.1) which establishes an integrated administration and control system for certain Community aid schemes. In that Regulation, a holding means all production units managed by a farmer (that is to say “an individual agricultural producer, whether a natural or legal person or a group of natural or legal persons, whatever legal status is granted the group and its members by national law, whose holding is within Community territory”). However, in this Scheme, where an applicant lets land on a grazing licence or seasonal let and retains significant management functions, that land will be deemed to form part of the applicant’s holding, whether or not it would for the purposes of Council Regulation 3508/92 (paragraphs 2(1) and 7);

(c)

classifies eligible land types into—

arable land eligible for arable area payments under the support system for producers of certain agricultural crops established by Council Regulation (EC) 1765/92 (OJ No. L181, 1.7.92, p.12, as last amended by Council Regulation (EC) 1575/96 (OJ No. L206, 16.8.1996, p.1);
other cropped land or improved grassland; and
unimproved land

(paragraphs 2(1), 9 and 10 and Schedules 1 and 2).
Rates of grant depend on whether the eligible land is disadvantaged or severely disadvantaged land. Those categories of land are defined in paragraph 2(1) by reference to designated maps. The maps are available for inspection during normal office hours at the addresses specified in the definition;

(d)

specifies the duration of payments and rates of grant according to the category of woodlands and the type of land from which they were converted. The rate of payment is capped where an applicant counts converted land as being set aside for the purposes of the set-aside requirement of Article 7(1) of Council Regulation (EEC) 1765/92 as amended. In such cases the rate payable under this Scheme cannot exceed the compensatory payment provided for in relation to that land by Article 7(5) of that Regulation (paragraph 9);

(e)

provides for the imposition, where certain financial conditions apply, of limits on the number of applications or approvals during any specified period of the Scheme (paragraph 12);

(f)

permits participants to vary their plans with the consent of the appropriate Minister (paragraph 13);

(g)

provides for the withholding or recovery of grants and termination of participation in cases of false statements, failure to observe requirements or excess of area limits (paragraph 14); and

(h)

requires participants to allow entry onto and inspection of their land by persons duly appointed by the appropriate Minister, for the purposes of verifying accuracy of particulars and ensuring compliance with requirements (paragraph 15).

This Scheme also amends the Farm Woodland Premium Scheme 1992—

(a)

to remove the requirement for a participant or a successor to run an agricultural business;

(b)

to amend the rates of payment under that scheme;

(c)

to provide different rates of payment depending on whether the land was, at the time of application to the scheme—

arable land eligible for arable area payments under the support system for producers of certain agricultural crops established by Council Regulation (EC) 1765/92;
other cropped land or improved grassland; or
unimproved land;

(d)

to limit the rate of payment where an applicant counts converted land as being set aside for the purposes of the set-aside requirement of Article 7(1) of Council Regulation (EEC) 1765/92. In such cases, the rate payable under this scheme cannot exceed the compensatory payment provided for in relation to that land by Article 7(5) of that Regulation;

(e)

to provide that management of converted land for coppicing is permitted for conservation purposes only; and

(f)

to provide for the Minister to refuse to allow variations of conversion plans which increase materially the area of unimproved land or the overall area of eligible land to be converted,

(paragraph 16 and Schedule 3).