Regulation 10 Transitional payments

(1)

This regulation applies to an applicant under these Regulations who was eligible for and was granted a payment under the 1999 Regulations.

(2)

In this regulation “the 1999 Regulation payment” means the payment to which an applicant under these Regulations was entitled to and paid under the 1999 Regulations.

(3)

In respect of the Scheme Year 2001, the amount of less favoured area support paid by the Scottish Ministers under these Regulations shall be not less than 90% of the 1999 Regulation payment.

(4)

In respect of the Scheme Year 2000/2, the amount of less favoured area support paid by the Scottish Ministers under these Regulations shall be not less than 80% of the 1999 Regulation payment.

(5)

In respect of the Scheme Year 2003, the amount of less favoured area support paid by the Scottish Ministers under these Regulations shall be not less than–

(a)

a sum equal to the sum paid in respect of Scheme Year 2002; or

(b)

a sum not less than 50% of the difference between the applicant’s entitlement in respect of Scheme Year 2003 and the 1999 Regulation payment,

whichever is the lower.

(6)

In the event that the forage area of the holding is reduced by more than 25% in the course of the Scheme Years 2001 to 2003 when compared with the forage area declared by the applicant in 1999 for the purpose of the 1999 Regulation payment, the Scottish Ministers will, in respect of–

(a)

the Scheme Year that the reduction in forage area first exceeds 25%; and

(b)

in each subsequent Scheme Year,

calculate the transitional payments described in 10(3) to 10(5) above by reducing the 1999 Regulation payment by 1/75th for each percentage point above 25% that the forage area has been reduced.