Outdoor pig land eligible for SFP

ONE OF THE benefits arising from the Mid-Term Review (MTR) is the inclusion of land used for outdoor pig production.

Subject to cross compliance rules outdoor pig land will be eligible to receive the regional element of the Single Farm Payment (SFP) with effect from 2005.

To trigger entitlement to the SFP on a piece of land however, the occupier must show that the land is “at his disposal for 10 months”.

Although most outdoor pig land rental agreements run for between 12 and 24 months the start and termination dates are often staggered to fit in with root and cereal production.

In a bid to introduce some flexibility into the system, DEFRA has confirmed that the 10-month qualifying period can start at any time between Oct 1 in the year preceding the claim to Apr 30 in the year of the claim.

If no starting date is specified a default date of Feb 1 will be applied.

Outdoor producers will need to ensure that their start dates are within the Oct/Apr period and are also reminded that only one start date will be allowed per holding.

On farms where outdoor pigs occupy rented land within a larger arable enterprise, rental agreements will have to be syncronised to ensure that pig and arable land start dates are identical.

Outdoor pig producers will also need to agree with landowners which of them will be claiming the SFP.

In 2005 the regional element of the payment will be comparatively modest, at just £22/ha (£9/acre) before modulation and financial discipline deductions.

But it then rises in progressive steps over the following seven years to £220/ha (£89/acre) gross by 2012. 

The benefit of the SFP income therefore needs to be reflected in future rental agreements. 

If this payment is retained by the landowner, outdoor pig producers would have to ensure they do not breach cross compliance and other rules which could jeopardise the payments.

The National Pig Association is advising its members to take careful advice before entering into agreements on rented land to ensure that they do not compromise their SFP eligibility.