More SFP Q and As
Submit your own SFP question …
FWi will endevour to answer all your single farm payment queries, but where there are several submission of a similar type a general answer will be provided.
“Stacking” Q & As
The English SFP will be based initially on historic subsidy receipts but flat-rate area payments will replace these by 2012. Such a complex scheme has, not surprisingly, created issues, especially where land has changed hands.
Q: Most of our land is rented from several different landlords who are all now claiming the entitlements themselves, so that they will get the area payment. If we only establish entitlement on the 18 acres we own, by activating these 18 acres will we get all our historic payments. We want to make sure we get all the historic payments due to us while they last.
A: It is possible to “stack” THE historic REFERENCE AMOUNT onto a smaller area of land than was farmed during the reference period (2000-2002). But these payments will rapidly diminish as the historic element of the SFP is replaced by the area payment until 2012 when they disappear.
Q: How do I concentrate all of my historic element of the single payment onto a reduced proportion of the land that I currently farm so that I can benefit from all of it when I retire onto that reduced proportion in a couple of years time?
A: The number of entitlements created in 2005 is determined by the land area declared for establishment of entitlements. Therefore, if a holding has shrunk since the reference period its historic REFERENCE AMOUNT will automatically be spread over the smaller area.
But it is possible to “stack” HISTORIC REFERENCE AMOUNT even if the land area has not changed. Enter the area in datasheet Columns I and J only for the fields that you plan to keep after retirement, for the others enter zero. All your historic payments will now be concentrated on to those fields. (You must still complete the rest of the columns for all land under your control on May 16, 2005)
If the historic element is purely arable, then there is no limit to the amount of ‘stacking‘ that can occur. But beware if the history is ‘polluted‘ by one of the Article 47 sheep, beef or dairy schemes as this places a 5000 euro/ha ceiling on the value of entitlements. Above this level, applicants can elect to be awarded entitlements subject to special conditions, but these carry with them a requirement for 50% production.
Also bear in mind that once entitlements have been created after 16 May 2005 the historic and regional elements cannot be separated. This means you will not get no payments at all on the fields you chose not to establish and claim entitlements on in Columns I and J. Also note the diminishing value of historic entitlements mentioned in the previous question.
Q: We are in the process of buying some land from a neighbouring farmer. We have paid the deposit and hope to complete around 6th April. He has told us he is claiming the historic element relating to the land but can we still include the land on our SP5 and establish entitlements so as to claim the area based payment?
A: Unless a private contract clause has been included in a sale the vendor will automatically “stack” his historic entitlements on his retained land. But as long as the land is under your control by May 16 you can establish area entitlements. To actually get paid in 2005, you must be in occupation by April 30 (the last date for the 10-month occupation period).
General Q & As
Q: What crops are covered under the OT1 code?
A: OT1 basically is a catch-all code for all the crops grown in 2005 that do not have a specific code. Broadly speaking, protein crops, energy crops, horticultural crops and set-aside have their own codes but all other arable cropping (wheat, barley, oilseed rape, sugar beet) is covered by OT1.
OT1 also includes land not wholly in production (GAEC 12) and game cover not being used as set-aside. For example, there is no longer any need to differentiate between a field split between wheat, oilseed rape and non-set-aside game cover – it is all OT1.
OT1 also applies to multi-annual crops but not permanent crops (PC1) or other non-eligible crops (NE1). Since the guidance book has been printed, a new code has been created for Hops HO1. Woodlands not in any special schemes are forests, FR1.
Q: What code should I use for my set-aside?
A: SA1 should be used for all set-aside unless it is non-food set-aside, multi-annual set-aside or the old guaranteed scheme for which there are separate codes.
Q: We have some areas of land currently coded NA1 (non-agricultural use) which we plan to return to eligibility/production. Should we establish entitlements on them?
A: Yes, if the non-agricultural use is temporary in nature and land will return to agricultural activity shortly. Remember that entitlements must be activated within three years before they are lost to the reserve, although because farmers can ‘rotate‘ entitlements this should not be an issue providing farmers have at least one-third of the land area relative to the number of entitlements they hold.
Q: If a field has been in grass for 5 years, then put in to an arable crop does it count in the area on which set-aside must calculated or not?
A: Land use on 15 May 2003 is important in determining both requirements for set-aside and eligibility for set-aside. Broadly speaking, land that was under a permanent crop or permanent pasture (Para 25 of set-aside guidance notes ) in 2003 does not require set-aside and will not be allocated set-aside entitlements even if it is now in the arable rotation.
DEFRA will allocate proportionally the correct number of set-aside entitlements to your holding based on eligible land on which entitlements are being established in 2005 (8% lowland, 1.3% SDA non moorland, 0% SDA moorland). Thus having a ‘buffer‘ above the 8% will mean no risk of additional set-aside, it will simply be treated as GAEC 12 land.
Land eligible to be used as set-aside follows similar rules (i.e. it had to be in non-permanent cropping on 15 May 2003) UNLESS it was in a qualifying EU agri-environmental or woodland scheme and the application was submitted after 28 June 1995. It can then be used as set-aside even if it does not meet the definition of arable land. In most cases, however, it will be more financially lucrative to claim the agri-environment or woodland scheme payment rather than the set-aside payment on this land.
Also remember that you must have the correct amount of set-aside in each region – and that a business may be exempt in one region but not another (the small producer thresholds are different in the regions – 19.48 ha in the lowland and 122.36 ha in the SDA non moorland).
The regulations state that set-aside entitlements have to be established prior to normal entitlements. Whilst paragraph 377 of the guidance booklet would appear to suggest that anyone with a shortfall of set-aside simply foregoes the set-aside payment I would express caution with this interpretation. I‘d allow a margin of safety. Set-aside entitlements can always be traded away in future years if a business wishes to have 100% normal entitlements (which a fen root-cropping business might).
Q: Most of our land is rented from several different landlords who are all now claiming the entitlements themselves, so that they will get the area payment. If we only establish entitlement on the 18 acres we own, by activating these 18 acres will we get all our historic payments. We want to make sure we get all the historic payments due to us while they last.
A: It is possible to “stack” historic entitlements onto a smaller area of land than was farmed during the reference period (2000-2002). But these payments will rapidly diminish as the historic element of the SFP is replaced by the area payment until 2012 when they disappear.
Q: How do I concentrate all of my historic element of the single payment onto a reduced proportion of the land that I currently farm so that I can benefit from all of it when I retire onto that reduced proportion in a couple of years time?
A: The number of entitlements created in 2005 is determined by the land area declared for establishment of entitlements. Therefore, if a holding has shrunk since the reference period its historic entitlements will automatically be spread over the smaller area.
But it is possible to “stack” entitlements even if the land area has not changed. Enter the area in datasheet Columns I and J only for the fields that you plan to keep after retirement, for the others enter zero. All your historic payments will now be concentrated on to those fields. (You must still complete the rest of the columns for all land under your control on May 16, 2005)
If the historic element is purely arable, then there is no limit to the amount of ‘stacking‘ that can occur. But beware if the history is ‘polluted‘ by one of the Article 47 sheep, beef or dairy schemes as this places a 5000 euro/ha ceiling on the value of entitlements. Above this level, applicants can elect to be awarded entitlements subject to special conditions, but these carry with them a requirement for 50% production.
Also bear in mind that once entitlements have been created after 16 May 2005 the historic and regional elements cannot be separated. This means you will not get no payments at all on the fields you chose not to establish and claim entitlements on in Columns I and J. Also note the diminishing value of historic entitlements mentioned in the previous question.
Q: We are in the process of buying some land from a neighbouring farmer. We have paid the deposit and hope to complete around 6th April. He has told us he is claiming the historic element relating to the land but can we still include the land on our SP5 and establish entitlements so as to claim the area based payment?
A: Unless a private contract clause has been included in a sale the vendor will automatically “stack” his historic entitlements on his retained land. But as long as the land is under your control by May 16 you can establish area entitlements. To actually get paid in 2005, you must be in occupation by April 30 (the last date for the 10-month occupation period).
Q: Where supporting evidence is required in the private contracts clause section of the form must the documents be originals?
A: No, says the Rural Payments Agency in its latest supplementary information. Unless the case is due to probate, applicants may supply self-certified copies.
Q: If we have Countryside Stewardship grass margins should we submit sketch maps showing them separate from the main field?
A: No sketch maps are required for any of the agri-environment areas listed in Paragraph 29 of the handbook. This includes CSS margins, beetle banks and some arable stewardship, ESA and habitat scheme components.
Q: In Column N of the field data sheets what code do I use for Countryside Stewardship grass margins? As I see it, they are temporary, neither P (permanent nor rotational).
A: Permanent. The question only refers to the positioning of the strips during the lifetime of CSS and other specific environmental agreements.
Q: Our farm is in the pilot entry level scheme do we have to put a P in Column N for every field in the scheme or just the grass fields which are permanent grass?
A: It is also not necessary to complete the box where the only environmental measures in a field are for Entry Level.
Q: On land registered for the SFP, can I still hold organised motor cycle events on my land?
A: New guidance from the RPA has clarified the situation for non-agricultural use. Activities such as bird watching, walking and farm visits, which do not affect agricultural operations, will be allowed without restriction during the 10-month period. A 28-day limit has been applied to more involved activities, like country fares and clay pigeon shooting, but motor sports and recreational uses like golf course are not considered compatible. However, if the activity only affects part of a field it is possible to claim on the rest. The RPA suggests anybody in doubt about a particular activity get in touch with their payment agency.
Q: Is there a problem using the default ten-month period in Question 5 of the SP5 form?
A: The default period suggested by DEFRA is 1 February to 30 November. Farmers should take great caution with the ten month period as they cannot be overlapped down the line and thus starting with a late-ten month period in 2005 could cause future problems.
For a purely combinable crop business the obvious choice is 1 October to 31 July which synchs nicely with the cropping cycle. It also avoids straddling the traditional Michaelmas tenancy period when land is usually given up and taken on.
Also at the moment only one start date is allowed per claim in England and thus if a farmer takes on a piece of land with a different ten month period there could be a problem in getting them to ‘sync‘ meaning a loss of payment for one party in one year on some of the land.
Q: What is the deadline for submitting SPS applications?
A: The deadline for the receipt of application forms is Monday 16 May 2005. Late applications will be accepted up to 10 June 2005 but will be subject to substantial late claim penalties. Applications received after 10 June will be rejected.
Q: I have not received an SP5 form or application pack, what should I do?
A: Customers who have been registered with us for some time will have been receiving pre-populated application forms since early in March. We are currently posting out blank application forms to those customers who have only recently registered with RPA. If by the 13 April you have not received an application pack the call the CSC.
Q: What does Empowerment mean?
A: Empowerment means identifying people who can act on behalf of the business. This means that when dealing with us the empowered person can make decisions, see all information and sign forms for the business.
Q: Can I buy/sell land or entitlements after the Single Payment Scheme has started?
A: You can sell entitlements with or without land attached, and land with or without entitlements. You can also lease land with entitlements attached but not lease entitlements without land. There may be more limitations depending on your circumstances. Further information can be found on the Defra website www.defra.gov.uk under CAP Reform.
Q: Who do I contact regarding RLR mapping queries?
A: For general queries regarding RLR and the receipt of maps please call the Workington helpline on 0845 0567001.
For land that is bought, sold or exchanged you should contact the RLR Reading helpline on 01189 687713.
Q: I am completing the land use category column G on the SPS Annex 5b Basic Field Data form. What do I enter if the land use code is not listed in the crop codes on pages 84 and 85 of the handbook, e.g. wheat, barley or oats?
A: If the code is not listed you must use OT1 for ‘other‘. Do not use the codes from other question‘s tables even if there is one for your crop or land use.
Q: If the digitised field area(s) are different to the area declared on my previous IACS claim form, which area should I use for my SPS 2005 claim form?
A: The digitised areas should be used on your SPS application, providing you have not changed field boundaries since your RLR maps were mutually agreed and signed off with RPA.
Q: I have submitted an IACS 22 form but the changes have not been included on the maps?
A: Due to the increased number of IACS 22‘s that have been received, there is currently a backlog to be processed. You should not hold back or delay claiming SPS if your IACS 22 has not yet been processed. You will need to amend your SPS application to reflect what the situation is on the ground as of 16 May 2005. The SPS explanatory guidance gives further details.
Q: What is my Trader or Vendor number?
A: A vendor or trader number is a six digit reference number that helps us to identify your business. Existing customers can find this on any payment advice notes that we have issued, new customers who are in the process of being registered will be informed of their numbers in due course. It is not essential to have your trader number or vendor number on your application form, so do not worry if it is not to hand.
Q: Why, if I’ve been claiming before, do I have to re-register?
A: The Customer Register is RPA‘s new database that links all of your business information together in one place. It will save you time , it will improve security and it will improve our service to you.
Q: What is permanent pasture – as asked at Question 15 of the SPS claim form?
A: Permanent pasture is land used to grow grasses or other herbaceous forage, either naturally (self-seeded) or through cultivation (sown), and that is not included in the crop rotation of the holding for five years or longer excluding land which has been set-aside during this period whether under AAPS, the SPS, Regulation (EC) No 2078/92 or Regulation (EC) No 1257/1999.
Q: How to I obtain a holding (CPH) number?
A: You do not need a CPH number in order to submit a claim, customers who will be receiving blank claim forms up until 11 April should not worry of they haven’t yet got a CPH number. Each blank application form will contain an individual reference number unique to their business which will enable RPA to identify each one.