CAP expert puts spotlight on changes

Scottish farmers and crofters will need to familiarise themselves with a number of changes to this year’s farm subsidy application process, a leading Common Agricultural Policy expert said.

According to Alice De Soer – a secretary and adviser at the Central Association of Agricultural Valuers – the Scottish Government’s handling of last year’s applications and issuing of payments has been “glacially slow”, and there will inevitably be a knock-on impact on this year’s application process, which opened on Tuesday.

At the Scottish Agricultural Arbiters and Valuers Association conference in Dunblane, Ms de Soer called into question the Government’s ability to process all payments by the end of next month, and said the Government was required under EU rules to send all farmers and crofters a letter confirming their entitlement allocations by April 1.

“Is it possible? Can all the mapping be completed (by April 1) and can all the letters be pre-populated and sent out?” asked Ms de Soer.

She said initial Basic Payment Scheme rates for last year would be 62.38% of a claimant’s 2014 value.

This figure is then assessed against the 2019 flat rate, which all subsidy payments must eventually become, and a payment schedule outlining the transition from the 2015 rate to the 2019 rate would then be mapped out in five equal steps.

Producers also needed to be aware of the windfall profit clause which applies if an applicant’s agricultural land area falls by more than 40% as a result of a short limited duration tenancy or limited duration tenancy being terminated before the end of its term, a seasonal let of less than one year not being renewed, and in cases where agricultural land has been sold.

Essentially to avoid the windfall profit clause, which will take away 100% of the entitlement value related to the lost land area, the area declared on this year’s application form must be at least 60% of the determined area or entitlement held last year.

Ms de Boer also sounded a warning over the transfer of entitlements and said any “without land transfers” would result in a 50% siphon, or loss, of entitlement value.

She said the only way to avoid the siphon was to transfer entitlements with land, either through the sale of land with the sale of entitlements or the lease of land with the lease of entitlements.

“You can transfer entitlements but it is a case of buyer beware,” said Ms de Soer.

She said all entitlement transfer forms must be received by the Government no later than April 2.

Providing guidance to farmers and crofters applying for the 2016 round of support, she said the Single Application Form (SAF) could once more be submitted either online or by paper.

However, those applying to the National Reserve for a new allocation of entitlements will only be able to apply online.

You can transfer entitlements but it is a case of buyer beware.

ALICE DE SOER