New Entitlements for Permanent Fruit & Vegetables, Nursery Crops and Vines FAQ
FAQ Issued 06 March 2009
Q8 amended on 17th March
Q18 added 30 April - and following numbers updated.
1. Who can apply for these new entitlements?
A: To establish entitlements and claim payment under the Single Payment Scheme (SPS), you must be a farmer as defined by the EU regulations (see definition below).
There are three further requirements which also apply to establish new entitlements:
1. The land parcels must not have been eligible to establish entitlements in 2005 (even if the farmer chose not to establish entitlements with respect to this land and even if another farmer occupied the land in 2005).
2. You need to have grown eligible crops in your land parcels on at least one day during the relevant reference period in 2008;
3. The land parcels and your holding must be of a certain minimum size.
For the purposes of SPS a farmer is defined as a natural or legal person, or a group of natural or legal persons, whatever legal status is granted to the group and its members by national law, whose holding is situated within the EU and who exercises an agricultural activity. This includes legally constituted bodies such as partnership, company or trust.
Further details of the three requirements are in Information Note 2, which can be read at www.rpa.gov.uk/new-entitlements.
2. How do I apply for new entitlements?
A: Please refer to Information Note 2 which explains what you need to do depending on whether you are already registered with RPA for SPS. You should have already contacted RPA to register your interest in applying for new entitlements. If you have not registered your interest with RPA, you should contact our Customer Service Centre as soon as possible. You need to register your interest with RPA even if you are an existing SPS customer. If you delay registering with us, you risk not being able to claim for what you may be entitled to.
3. What land is eligible to claim new entitlements for?
A: Land under the following crops is eligible:
Permanent fruit and vegetables – the reference period for these crops is 1 January – 30 September 2008.
The following crops meet the eligibility requirements: (Not all of these are commercially grown in the UK)
apples, pears, apricots, peaches (including nectarines), cherries, plums, sloes (including damsons) and quinces; citrus fruit, plantains, figs, pineapples, avocados, guavas, mangoes, mangosteens, papayas and locust beans; mint, melissa and rosemary; and nuts, almonds, hazelnuts, walnuts, chestnuts, pistachios, pine nuts, macadamia nuts, pecans, other nuts (not areca or cola nuts).
If you have other permanent fruit and vegetable crops which you think may be eligible let us know and we will consider them against the definitions in the EU regulations.
Nursery crops – the reference period for these crops is 1 January – 30 September 2008.
These are defined as areas of young woody plants grown in the open air, on soil in greenhouses or under polytunnels for subsequent transplantation:
vine and root-stock nurseries;
fruit tree nurseries;
ornamental nurseries;
nurseries of forest trees (excluding those for the holding's own requirements grown within woodland); commercial forest-tree nurseries, whether in woodland or outside, are included in the definition, as are non commercial forest-tree nurseries for the holding's own requirements grown outside woodland. Christmas trees will not usually be eligible as they are not grown for subsequent transplantation; and trees and bushes for planting in gardens, parks, at the roadside and on embankments, for example, hedgerow plants, rose trees and other ornamental bushes, ornamental conifers, including in all cases their stocks and young seedlings.
For information on plants in containers see section 3 of Information Note 2. Any nursery crops not meeting the above definitions are not eligible for the establishment of new entitlements.
Vines – the reference period for these crops is 1 January – 31 July 2008.
This includes all vines planted out in the field, whether they are currently productive or not. Vines grown on soil under polytunnels are also eligible.
4. What are the cross compliance requirements?
A: The Cross Compliance requirements will apply to you if you receive direct payments (including SPS) under Common Agricultural Policy (CAP) support schemes or if you receive payments under certain Rural Development Schemes. Payments made to you may be reduced if you do not comply with these requirements. All agricultural activities are covered by cross compliance and you must comply with the requirements across the whole agricultural area of your holding, regardless of the amount of land you claim under SPS. This includes common land over which you exercise or hold rights of common, including rights in gross.
There are three aspects to Cross Compliance:
Specific European legal requirements, known as Statutory Management Requirements (SMRs);
Domestic legal requirements requiring farmers to keep their land in Good Agricultural and Environmental Condition (GAEC);
Requirements to maintain a level of permanent pasture not included in the crop rotation for 5 years or more. This is not currently a cross compliance requirement for individual farmers, but may become one in future years.
Once you register your interest in applying for new entitlements, if you are a new farmer you will be sent a copy of the cross compliance publication The Guide to Cross Compliance in England. You can also find further information about the Cross Compliance requirements on the website www.crosscompliance.org.uk or by calling the cross compliance advice line on 0845 345 1302.
5. I currently receive the Area Payment for Nuts. What do I need to do to apply for new entitlements?
A: If you applied for the Area Payment for Nuts in 2008 we have already registered your interest in new entitlements. You will be sent an application form for new entitlements (SP20) in mid June 2009. You will need to complete and return this to us by 13 August 2009. If you do not receive a form by the end of June you should request one from our Customer Service Centre.
6. When do I have to have crops on the land in order to be eligible?
A: For land under permanent fruit and vegetables (including commercial orchards) and nursery crops, the crops needed to be present on the land on at least one day between 1 January and 30 September 2008. For vines, the crops needed to be present on the land on at least one day between 1 January and 31 July 2008.
If more than one farmer grew eligible crops on the same area of land during the relevant 2008 reference period, it is only the farmer who had the crops in the land on the latest date in the reference period who will be eligible to apply for new entitlements.
7. What happens if the normal allocation process will not accurately reflect my current business? Can I apply to use a different reference period?
A: We will normally calculate your entitlements based on the eligible area you have in the 2008 reference period (see question titled “When do I have to have crops on the land in order to be eligible?” above). However, under hardship or National Reserve provisions you may receive an increased allocation of entitlements under certain conditions if this standard method of calculating the number of entitlements provides an allocation that does not properly reflect your current business. Further details are supplied in Annex 1 of Information Note 2.
8. How do I register my land with RPA?
A: If you have not registered any/all of your agricultural land with RPA, you will need to make sure that all the agricultural land on your entire holding is registered on the Rural Land Register (RLR) using an RLE01 form. The form will be sent to customers who require it once they have telephoned us to register their interest in new entitlements. The form should have been returned to RPA by 26 February 2009, therefore you must return it as soon as possible or you risk not get what you are entitled to.
9. Are there any new crops eligible to claim SPS against existing entitlements in 2009, but which cannot be used to apply for new entitlements?
A: Yes, this applies to any permanent crops not covered by the question titled “What land is eligible to claim new entitlements for?” above. To date we have identified the following crops in this category:
Lavender;
Miscanthus;
Reed Canary Grass; and
Short Rotation Coppice.
Details of any additional crops which come under this category will be published as soon as they become available.
10. How do I get paid on the new entitlements?
A: SPS has an annual application process. If you apply for new entitlements and are successful, you will be able to activate your entitlements for payment for the first time in the 2010 SPS scheme year by completing the 2010 SP5 application form. The deadline for 2010 SPS applications will be 17 May 2010. You will have to comply with scheme rules and complete your application form correctly to be eligible to receive an SPS payment.
The SP5 form and related 2010 scheme guidance will be sent to you in Spring 2010. However, if you do not receive copies, it is your responsibility to obtain them. You can obtain copies of all the current guidance booklets about the SPS by calling our Customer Service Centre on 0845 603 7777.
11. When will I be able to claim payment against my new entitlements?
A: You will be able to claim payment against the new entitlements for the first time in 2010. However, land under the new eligible crops can be used to claim payment against existing entitlements in 2009.
12. Can I buy in entitlements to claim on my orchards in 2009 and still establish new entitlements for 2010?
A: Yes, it is possible to do this. Farmers with land under these newly eligible crops can now claim for payment against any existing SPS entitlements they already have, or obtain (purchase/lease) for that year, for the 2009 scheme year. Further information on transferring entitlements is available in the RLE1 Guidance Notes. You would need to have registered as an RPA customer and you need to make sure the form to transfer entitlements has been received by RPA by 2 April 2009. It is also acceptable for you to sell the entitlements which you bought for claiming in 2009, before claiming against new entitlements in 2010.
13. How are the new entitlements being funded?
A: Other than a small amount in respect of vines, no additional money has been made available to specifically fund any new entitlements. If in the year of allocation there are insufficient unallocated funds within the English SPS financial ceiling, the value of all existing SPS entitlements will need to be scaled back. However, initial estimates indicate the reduction, if needed at all, would be minimal (less than 0.5%).
14. Where can I find more information?
A: Our website (www.rpa.gov.uk/new-entitlements) contains Information Note 2 (which replaced Information Note 1), and our contact details, as well as full details of the SPS. We will be updating it with further information about the new entitlements as soon as it becomes available.
15. Do I have to be occupying the land at the time I submit my application for new entitlements?
A: No. As long as you were growing eligible crops in the relevant 2008 reference period, it does not matter if you no longer occupy the land. However, we can only accept applications from one farmer for each area of land (see question titled “When do I have to have crops on the land in order to be eligible?” above).
16. The land was rented out in 2008; who is eligible to apply for new entitlements, the landlord or the tenant?
A: To apply you must have had the land at your disposal in the 2008 reference period. Section E of the current Single Payment Scheme Handbook and Guidance for England gives details of how to assess whether you have land at your disposal.
17. I have bought/leased-in some land since the 2008 reference period, can I use this to apply for new entitlements?
A. It is the farmer who had the land at his disposal in the 2008 reference period who has the right to apply for entitlements. However, this farmer can choose to give you the right to apply for entitlements instead (see questions below on the Private Contract Clause).
18. I am considering applying for new entitlements but I have heard that there is going to be a change to the minimum claim size for SPS 2010. Please can you confirm?
A – Following changes to the EU rules, from the 2010 scheme year there will be a new minimum total claim size for SPS, Area Payment for Nuts and Protein Crop Premium. We must choose a minimum area which is between 1ha and 5ha and Defra are currently consulting on what minimum we should set (see www.defra.gov.uk). The decision will be announced in due course and this page will be updated accordingly. The new minimum affects claims for payment only. The minimum holding size on which you can establish entitlements is still 0.3ha.
Private Contract Clause
19. If I sell my newly eligible land before the deadline for applying for new entitlements on 13 August 2009, can I give the buyer of the land the right to establish the new entitlements that I could have established?
A: Yes. You can do this by using a provision called the Private Contract Clause (PCC).
20. What is the private contract clause (for new entitlements)?
A: This is a provision within the Regulations that provides for the sale of farm holdings on which there is newly eligible land, in full or in part, together with the right to establish new payment entitlements on the sold land. These circumstances will apply if the land is sold prior to the deadline for applying for new SPS entitlements.
21. When can the private contract clause be used (for new entitlements)?
A: It can be used:
where a sale contract is concluded or modified before 13 August 2009; and when the sale contract stipulates that all the holding or part of the holding is sold, in full or in part, together with the right of the buyer to establish the new payment entitlements in respect of the hectares transferred.
22. How does the private contract clause work (for new entitlements)?
A: The PCC will apply if the buyer and seller agree to a contract of sale at any time up to 13 August 2009 that indicates that the buyer has the right to establish the new entitlements on the transferred hectares.
The seller may apply for establishment of payment entitlements or alternatively they can give express written permission to the buyer to establish the new entitlements. Either way the “reference area” which corresponds to the hectares involved in the sale is passed to the buyer for inclusion in the calculation of their entitlements.
Whether the seller or the buyer applies to establish the new entitlements they must provide a copy of the sales contract with their new entitlements application form.
23. Who can use the private contract clause (for new entitlements)?
A: The RPA will have to be satisfied that both the seller and the buyer are farmers within the terms of the Regulations. It is important to the note that the seller must ensure that he is a farmer at the time of the application for new entitlements.
Business Changes
Inheritance
24. I have inherited land that was being used to grow newly eligible crops during the reference period. Can I establish new entitlements using this land?
A: If you inherited the land during the reference period and were the last person to have this land at your disposal in that period (and were using it to grow newly eligible crops), you can establish entitlements in the normal way.
If you have inherited the land between the end of the reference period and the deadline for applications for new entitlements (13 August 2009) you will need to indicate this on the SP20 form in order to use the land to establish new entitlements.
Mergers
25. I am managing a holding that was formed by the merger of two or more separate holding that used land to grow newly eligible crops during the reference period. Can I establish new entitlements against the relevant areas?
A: If the merger took place during the reference period and you were the last person to have this land at your disposal in that period (and were using it to grow newly eligible crops), you can establish entitlements in the normal way.
If the merger took place between the end of the reference period and the deadline for applications for new entitlements (13 August 2009) you will need to indicate this on the SP20 form in order to use the land to establish new entitlements.
Scissions
26. I am managing a holding that was formed following the split of a larger holding into two or more new holdings. The original holding used land to grow newly eligible crops during the reference period. Can I establish new entitlements against the relevant areas?
A: If the split took place during the reference period and you (the new business) were the last person to have any relevant land at your disposal in that period (and were using it to grow newly eligible crops), you can establish entitlements in the normal way.
If the split took place between the end of the reference period and the deadline for applications for new entitlements (13 August 2009) you will need to indicate this on the SP20 form in order to use the land to establish new entitlements.
NB At least one of the new holdings must be managed by the original farmer in order for this provision to be available. If this is not the case please see the FAQ covering the transfer of reference area using a Private Contract Clause which may help.
National Reserve
1. What are the National Reserve provisions used for?
A: Our standard method of calculating the number of new entitlements is based on the area of newly eligible crops you grew in the relevant 2008 reference period (excluding any land which was eligible to have been used to establish entitlements in 2005). If you consider this provides an allocation that does not properly reflect your current business you may apply for an increased allocation of new entitlements from the National Reserve. Some qualifying conditions apply.
2. What are the qualifying requirements for National Reserve?
A: These are different depending on which of the two categories apply to you. You may qualify for an allocation from the National Reserve under two different categories, depending on your circumstances.
The categories are:
- Investors
- Transfer of leased land.
Full details of the qualifying requirements can be found in the Application to establish new entitlements (SP20) Guidance (June 2009).
3. How do I apply to the National Reserve?
A: You can apply for an increased allocation of new entitlements from the National Reserve on the new entitlements application form (SP20). If you registered your interest in the new entitlements, you will have been sent this form in June 2009. If you have not received a form yet, you should contact us to ask for one. You must then complete the form and send it back to us, together with supporting evidence, by midnight 13 August 2009.
4. What evidence do I have to supply in support of my National Reserve application?
A: The evidence you must supply depends on the category(ies) you apply under. Details of the evidence required are given in the Application to establish new entitlements (SP20) Guidance (June 2009).
We must receive supporting documents (including continuation sheets and supporting documents for National Reserve applications) by 13 August 2009 to avoid late application penalties. If you send us your SP20 by 13 August 2009 you cannot send supporting documents after the deadline without having to withdraw and re-submit your application, and therefore incur late application penalties. Read paragraphs G1 - G3 of the Guidance. We will not accept any supporting documents we receive after 7 September 2009 and your application for increased allocation of new entitlements National Reserve will be rejected .
5. What land details should I include at Part F of the SP20? Should it be the land bought or the land used to grow the eligible crops.
A: The fields that need to be entered in Part F are the fields used to grow the newly eligible crop after the reference period. If the crops were in the ground in the reference period then they should be entered in Part B, but if they were in the ground in late 2008/2009 (due to the circumstances of the investment) then they should be entered in Part F.
It is details of the land purchased to facilitate the expansion of the business that should be included in the evidence to support the National Reserve application.
Applicants applying under the National Reserve must enter F, N or V in column F7 (Part F) for the fields used to grow the newly eligible crops after the reference period.
Hardship
6. What are the hardship provisions used for?
A: We normally calculate your entitlements based on the eligible area you have in the reference period. However, in cases of force majeure and exceptional circumstances, the regulations allow us to use your eligible area in 2007 instead. So, if the area of your production in the 2008 reference period was adversely affected by unforeseeable circumstances that were beyond your control, and which could not reasonably have been avoided, you can apply to benefit from provisions in the regulation regarding force majeure or exceptional circumstances.
If accepted this would allow your number of entitlements to be calculated using 2007 data. Each case will be treated on its own merits, but examples of the type of circumstances intended to be covered by this provision are:
- Death or long term professional incapacity of the farmer.
- Severe natural disaster affecting the agricultural land of the holding, for example, severe flooding.
7. How do I apply for hardship?
A: You can apply for an increased allocation of new entitlements under the hardship provisions on the new entitlements application form (SP20). If you registered your interest in the new entitlements, you will have been sent this form in June 2009. If you have not received a form yet, you should contact us to ask for one. You must then complete the form and send it back to us, together with supporting evidence, by midnight 13 August 2009.
8. What evidence do I have to supply in support of my hardship application?
A: You will need to provide documentation to prove that the event has occurred and that it resulted in your production being adversely affected. The type of evidence will depend on the event which has occurred and each case will be judged on its merits.
We must receive supporting documents (including continuation sheets and supporting documents for hardship applications) by 13 August 2009 to avoid late application penalties. If you send us your SP20 by 13 August 2009 you cannot send supporting documents after the deadline without having to withdraw and re-submit your application, and therefore incur late application penalties. Read paragraphs G1 - G3 of the Guidance. We will not accept any supporting documents we receive after 7 September 2009 and your application for an allocation of new entitlements under the hardship rules will be rejected.
General (National Reserve & hardship)
9. If I qualify for an award under the National Reserve and hardship, do I get both awards?
A: No. If you qualify for an allocation of new entitlements under the hardship rules and under the National Reserve you will only receive one allocation, either from the National Reserve or under the hardship rules. We will give you the allocation that offers you the largest number of entitlements.
Page published: 17 March 2010