SINGLE FARM PAYMENT SCHEME AND CAP REFORM - FREQUENTLY ASKED QUESTIONS
AS AT 17 MARCH 2004
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Scottish Executive
Environment and Rural Affairs Department
CAP Management Division
IMPORTANT NOTE
This list of Frequently Asked Questions has been drawn up following the announcement on CAP Reform by the Acting Minister for Environment and Rural Development, Mr Allan Wilson. It is designed to:
Provide the latest information on developments; and,
lay the foundation for the information to be given to producers when the arrangements are finalised.
The information in these FAQs should only be used as a guide and it is subject to change: the FAQs have been drafted in advance of the issue of the agreed EC implementing rules (Commission Regulations) that will govern the scheme and which are not expected before Easter 2004. It will be revised, as further details become known. Given that the information may change, any business decisions which maybe made are at the producer's risk.
The FAQ should be read and used, therefore, bearing in mind that many of the details are still to be finalised. Decisions have yet to be made on the operation of the National Reserve, the use of the National Envelope and certain other flexibilities forming part of the CAP Reform package. The information contained in these FAQs is an early indication of what may be required by all relevant legislation, both the existing Council Regulation and forthcoming European and domestic legislation. Readers should refer to the relevant legislation for the full requirements of the Single Farm Payment scheme. The Scheme's common rules have been established in Council Regulation (EC) 1782/2003, (OJ L 270, 21.10.2003).
GUIDE TO CONTENT:
For details on:-
Basic elements of the Single Farm Payment Scheme (SFPS)
How Payment Entitlements, Applications and Transfer will work
Claim on the National Reserve and Appeals
Other Aspects of CAP Reform
Some Business- specific questions
Terms used in talking about CAP Reform
An Example of how possible Payment Entitlements might look
CONTENTS
1. Single Farm Payment Scheme
1.1What is the Single Farm Payment Scheme (SFPS)?
1.2How will SFPS be calculated?
2. Eligibility
2.1Who is eligible for the Single Farm Payment?
2.2Is it the Landlord or Tenant who is eligible?
2.3What happens if my holding changes hands or my business changes its status?
3. Reference Period and Amount
3.1What do "Reference Period" and "Reference Amount" mean?
3.2Can a farmer / crofter choose a different reference period?
3.3What happens if my farming activity was adversely affected during the reference period?
4. Payment Entitlements
4.1What are "Payment Entitlements"?
4.2Are all entitlements the same?
4.3How will my normal Payment Entitlements be calculated?
4.4Will the value of my Payment Entitlements be affected if base payments were reduced because of penalties (i.e. over and above actual shortfalls)?
4.5What is eligible to be counted towards the reference area?
5. SFPS Conditions / Requirements
5.1What is expected in return for Payment Entitlements under the SFPS?
5.2Who decides what good agricultural & environmental conditions (GAEC) are?
5.3Does GAEC mean minimum / maximum stocking densities?
5.4What happens in the event of non-compliance with Cross-Compliance?
6. Business / Holding Payment Entitlements
6.1How will I find out what my Payment Entitlements are?
6.2What will the Notification of Payment Entitlements look like?
6.3Why is the process so long?
6.4Will Payment Entitlements be paid in full? What reductions will be made?
6.5Can SEERAD's assessments be challenged?
6.6Will SEERAD provide potential beneficiaries with copies of past claims?
6.7What is the impact of exchange rates & inflation on Payment Entitlements?
7. Applications and Payment
7.1When does the Single Payment Scheme start?
7.2How do I apply for the SFPS?
7.3 When is the closing date for SFPS applications?
7.4Why is it important to apply in 2005?
7.5When will I be paid?
7.6Will I be able to get an advance on my payment?
8. Transfers of Land & Entitlements - Sales & Leasing
8.1What now for producers with land and entitlements?
8.2Will transfers of my payment entitlements be siphoned, like quotas?
8.3Will payment entitlements be ring-fenced?
9. National Reserve
9.1What is the National Reserve?
9.2How much is the reduction to reference amounts?
9.3Are amounts issued from the National Reserve a one-off payment?
9.4How will SEERAD allocate the National Reserve?
9.5Will payments FROM the Reserve be at the same as payments TO the Reserve?
9.6Will there be any special conditions attached to any reference amounts I am granted from the National Reserve?
10. Appeals
10.1Will I be able to appeal against SEERAD's SFPS decisions?
10.2What will be involved in a formal appeal?
10.3What kind of decisions may be appealed?
11. CAP Reform - Other Flexibilities
11.1What is involved? What has been covered? What is still to be covered?
12. Dairy Sector and CAP Reform
12.1What is in CAP Reform for the Dairy sector?
12.2Who is eligible for the Dairy Premium?
12.3How is the Dairy Premium worked out?
13. Farm Advisory System (FAS)
13.1What is the aim of the FAS?
13.2How does FAS fit in with other advisory arrangements?
13.3When does FAS start?
13.4Is FAS compulsory?
13.5What are the arrangements for FAS? Is it on a "first come, first served" basis?
14. Modulation
14.1What is "modulation"?
14.2What is different under CAP Reform?
14.3Will HM Treasury continue to match-fund National modulation?
14.4What will the rates of modulation be?
14.5What is SEERAD's justification for modulation?
15. National Envelope for Beef Producers
15.1What is this?
15.2What has been chosen for Scotland?
15.3Is this extra money, over and above the SFPS?
16. Business-type Questions - Miscellaneous
16.1How will common and shared grazings be dealt with under the SFPS?
16.2Will Producers who increased production since the reference period lose out?
16.3Will SEERAD compensate producers for the loss of Suckler Cow and Sheep Quota?
16.4Is SEERAD still committed to developing Land Management Contracts (LMCs)?
16.5What about cross-border producers i.e. those farmers with land in Scotland and, say England?
16.6If a producer quit farming in 2003, do they still get Payment Entitlements?
ANNEX A: GLOSSARY OF TERMS
ANNEX B: SFPS - EXAMPLE OF PAYMENT ENTITLEMENTS (LIVESTOCK SCHEMES) *