This item was published during the term of a previous administration that ended in April 2007
Listen
Less Favoured Areas payments begin
26/03/2002
Payment of 8900 claims with a total value of almost £34 million under the Less Favoured Areas Support Scheme have been authorised by the Executive.
Changes to the 2002 Less Favoured Areas Support Scheme - worth around £61 million to those farming some of the most marginal land in Scotland - were agreed by the European Commission on March 8, 2002 clearing the way for payments to start.
Minister for the Environment and Rural Development Ross Finnie said:
"Earlier this month, I gave a commitment that payments would start this month and that the bulk of expenditure under the scheme would be paid by the end of March.
"I am happy to announce that both these undertaking have been achieved, with some 65% of all claimants being paid, and equating to around 55% of the total funding for this scheme. This money should be in bank accounts by 28 March. Action is being taken to pay the remaining amounts as soon as possible."
The changes to the Less Favoured Area Support Scheme were approved formally by the European Commission's Structural Funds (STAR) Committee on March 8, 2002.
The main changes announced for LFASS 2002 are:
- Payment rates on rough grazing will be increased by £3.50 per hectare
- The existing environmental top up will be amended
- A new environmental measure for less-extensive producers
- The minimum stocking density on Moorland farms will be increased from 0.08 lu/hectare to 0.12 lu/ha
- The safety net arrangements will continue as previously planned, that is the safety net will apply at the level of 80% of a claimant's HLCA 2000 payment, for LFASS 2002
- Overcompensation will be avoided by limiting the maximum gain from LFASS 2002 to £2500 (in comparison to HLCA 2000)
SEERAD is aware that the introduction of a Maximum Scheme Payment condition needs special provisions under certain circumstances. Consequently separate arrangements will apply to claimants who:
- increased their forage area during the operation of LFASS, compared with that used to calculate the HLCA 2000 baseline
- have businesses with both traditional and new livestock activities
- received an HLCA 2000 payment that was significantly less than their track record of HLCA claims would suggest
In these cases, for both safety net and capping purposes, SEERAD will re-assess the HLCA 2000 baseline to be used for both the application of the safety net in 2002 - i.e. 80% of the increased baseline amount - and as the starting point for calculating the maximum scheme payment (i.e. the starting point amount prior to the addition of £2,500).
Claimants who consider they might be covered by these special provisions do not require to take any immediate action. The Explanatory Notes contain full guidance and an application form which can be sent to the local SEERAD Area Office to register their wish to have their application considered against these special criteria