Explanatory note

These Regulations amend Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (“the Horizontal Regulation”) and Commission Implementing Regulation (EU) No 809/2014 laying down rules for the application of Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system, rural development measures and cross compliance. These Regulations make changes to inspection requirements and reduce control rates for rural support schemes in Scotland to address the effects of the coronavirus pandemic. They also simplify and improve the retained EU law relating to rural support schemes to make permanent some temporary changes that have proved beneficial.

Regulation 2 simplifies and improves the retained EU law relating to the operation of rural support schemes by allowing for payments to be made for direct payment support and the support for rural development specified in Article 67(2) of the Horizontal Regulation after completion of all administrative checks.

Regulations 3(2), (3) and (5) allow for physical checks to be replaced by other forms of evidence, including new technologies for inspections related to direct payments and rural development schemes for claim year 2021. Regulations 3(2) and (3) also consolidate the text on these derogations for claim years 2020 and 2021. The terms ‘direct payment support’ and ‘support for rural development’ used in regulations 3(2) and (3) are defined in Article 2 of the Horizontal Regulation.

Regulation 3(4) reduces the control rate for inspections related to animal aid schemes to 1% for claim years 2020 and 2021.

Regulation 3(6) reduces the control rate for ex-post checks, in calendar year 2021, to at least 0.6% and allows for physical checks to be replaced by other forms of evidence, including new technologies, for inspections related to investment operations.

Regulation 3(7) reduces, for claim year 2021, the cross compliance control rate to 0.5%, derogates, for claim years 2021 and 2022, from the requirement to substitute the control rate for certain cross compliance acts and standards from 1% to a higher rate, if such a rate is set out in separate legislation applicable to that specific act or standard. Regulation 3(7) also simplifies and improves the retained EU law on rural support schemes by removing the obligation to automatically increase the cross compliance inspection rate in the year following any significant non-compliance.

A Business and Regulatory Impact Assessment has been prepared. Copies may be obtained online at www.legislation.gov.uk.