Single Farm Payment Scheme Information Leaflet 10

DescriptionOther Set Aside Issues and Non Food Set Aside Land
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Official Print Publication Date
Website Publication DateFebruary 03, 2005

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    SINGLE FARM PAYMENT SCHEME INFORMATION LEAFLET 10
    OTHER SET ASIDE ISSUES and NON-FOOD SET ASIDE LAND

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    Note:-This information leaflet details the management conditions applicable to crops grown on set aside land for the manufacture of products for non-food purposes. It also clarifies important issues about other set aside issues. Producers should read this leaflet in connection with Single Farm Payment Information Leaflet No 6, issued on 27 October.

    OTHER SET ASIDE ISSUES

    Set Aside Requirements

    Under the arrangements for the introduction of the Single Farm Payment Scheme in Scotland, there is no obligatory percentage of land to be set aside. Only those producers who had obligatory set aside in any of the years 2000 to 2002 will be allocated set aside entitlements.

    The rules for the management of set aside land continues to apply _ see Information Leaflet No 6.

    Set aside entitlements under the Single Farm Payment Scheme must be claimed first, before your standard entitlements. If you do not activate all your set aside entitlements, your Single Farm Payment will be reduced.

    Set Aside Land Eligibility

    In relation to land eligible to activate set aside entitlements, the following points are relevant:

    • Land eligible to be set aside is arable land 1 as at 15 May 2003 except areas which were under permanent crops, forests or used for non-agricultural activities or under permanent pasture 2.

    • Land claimed as set aside whether in grass and/or in long term (e.g. over 5 years) set aside, is classified as arable and can be used to activate set-aside entitlements.

    • Land that was previously in structural set-aside under the agri-environment woodlands or habitats schemes is eligible to be set aside.

    • SEERAD will inform producers of the eligibility of land for set aside as part of the land information supplied IACS/Single Application Form 2005 that will issue to producers in March 2005. If producers need to confirm the eligibility of a particular field before receipt of this information, and after consulting their own cropping records remain unsure about land eligibility they should contact their SEERAD Area Office who will be able to check historic records on their behalf.

    1 Arable land is defined as, "land in your crop rotation during the five years leading up to 15 May 2003 (note: land claimed as set aside under the Arable Area Payment Scheme during this period qualifies as part of the crop rotation)."

    2 Permanent pasture is defined as, "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 5 years or longer (i.e. from 16 May 1998)."

    One-to-One Switches of Eligible Land for Ineligible Land

    • One-to-One Switches of eligible and in-eligible land are allowed. Further details of one-to-one switches will be available from your area office shortly.

    NON-FOOD SET ASIDE LAND

    1. Introduction
    2. Growing crops for non-food use on set aside land
    3. Management rules for non-food set aside
    4. Permitted end uses for crops grown under contract
    5. Perennial and biennial crops
    6. Contract
    7. Amending the contract
    8. Harvest
    9. Representative yield
    10. After delivery
    11. Eligible crops
    12. Permitted end uses for crops which do not require a contract
    13. Your responsibilities
    Annex 1 Crops that may be sown on set aside land
    Annex 2 Allowable End Products
    Annex 3 Contacting SEERAD - List of Address and Telephone Numbers

    1. Introduction

    This section of the leaflet explains the rules under the Single Farm Payment Scheme (SFPS) for growing, under contract, any agricultural raw material on set-aside land for manufacturing products not primarily intended for human or animal consumption. The conditions are similar to those for non-food set-aside under the previous Arable Area Payments Scheme (AAPS). The changes are:

    • Any agricultural raw material can be grown under contract for an end use. See Annex 2;

    • Representative yields will be set for all agricultural raw materials grown;

    • Applicants can:

    • Process all raw materials harvested into biogas;

    • Use cereals and oilseeds as fuel for heating their agricultural holdings or for producing power or biofuels on the holding. See paragraphs 2.

    2. Growing crops for non-food use on set aside land

    You must have a signed contract with a collector or first processor. The contract must be lodged by the first processor with the Rural Payments Agency (RPA), by 15 May 2005. Your Single Farm Payment will be at risk if you fail to do so.

    You must keep a copy of the contract to send to the area office with your Single Application Form (SAF). If you cannot provide a signed and dated copy of your contract:

    • the set aside land concerned will not be treated as eligible;

    • you will lose part or all of your set aside payment and related single farm payments; and

    • additional IACS penalties may apply.

    You must contact the RPA (see Annex 3) if the land referred to is transferred to another IACS applicant.

    Processing on your holding

    You may undertake processing of Non-Food Crops on your holding and can:

    (a) use all the cereals or oilseeds harvested falling within CN codes 1201 00 90, 1205 10 90, 1205 90 00, 1206 00 91 and 1206 00 99 :

    (i) as a fuel for heating your agricultural holding;

    (ii) for the production on your holding of power or biofuels;

    (b) process all raw materials harvested on your holding falling within the CN code 2711 29 00 into biogas.

    If you process on your holding, you must submit a declaration which includes the following details:

    • your Main Farm Code number;

    • the type of crop and area to be sown;

    • the principal use of the raw material.

    You must agree in the declaration to use or process all the raw material covered by the declaration.

    We need an accurate assessment of the weight harvested. Weighing can be replaced by volumetric assessment in the case of cereals, oilseeds and straw where the entire plant is used.

    You must keep separate records for:

    • the raw material used;

    • the products and;

    • any by-products resulting from its processing.

    We will check to ensure that all the raw material is used directly on your holding or is processed into biogas falling within CN code 2711 29 00.

    Cereals and oilseeds used as in paragraph 2.4(a) must be denatured by dyeing them with a brightly coloured dye. We may authorise the oil produced by processing oilseeds as in paragraph 2.4(a)(ii) to be denatured instead of the oilseeds themselves, providing the denaturing takes place immediately after the seeds are processed into oil and their use is checked.

    3. Management Rules for Non-Food Set aside

    The normal set-aside management rules do not apply to land growing non-food crops. However, you must:

    • follow the other EU rules on set-aside, including those on non-agricultural use of the land (see SFP leaflet 6);

    • follow the Code of Good Practice 'Prevention of Environmental Pollution from Agricultural Activity' (PEPFAA Code); and

    • follow the obligations under the Common Agricultural Policy Schemes (Cross Compliance) (Scotland) Regulations 2004.

    If you destroy the crop before harvest you must establish a green cover and follow the normal set-aside management rules (unless you have a specific written exemption from your local area office).

    4. Permitted end uses

    You can grow any agricultural raw material on set aside land. The main points are:

    • The end use of the materials grown are kept to those listed in Annex 2;

    • The non-food end products must have a value greater than all food by-products (including animal feed).

    5. Perennial and biennial crops

    You can grow perennial or biennial crops as a non-food set aside crop as long as they are intended for a use listed in Annex 2. You must leave the crop in the ground and claim it as a non-food set aside crop each year for the length of the contract. If you do not do this you will break the terms of the contract. You would have to re-sow the non-food crop and complete a new contract that must be lodged by the dates due for the year the crop is sown, i.e., if you sow a crop of Roman camomile in April 2005, your contract must be ready and lodged by 15 May 2005.

    The contract must show the number of years the crop is to stay as non-food set aside. Contracts for multi-annual harvesting can come into force each year as long as this is included in the contract. For further information contact the RPA (Northallerton SMU).

    Rural Payments Agency (RPA)
    Non-Food Set-Aside Section
    Alverton Court
    Crosby Road
    Northallerton
    North Yorkshire DL6 1AD
    Tel: 01609 773751
    Fax: 01609 781726

    6. The contract

    You are responsible for providing a valid contract containing the following:

    • Your Main Farm Code number;

    • The name and address of everyone who has signed the contract;

    • How long the contract will last;

    • The type of crop and the area sown;

    • Any conditions that apply to delivery;

    • For oilseeds include the forecast yield and total forecast quantity to be harvested (in tonnes). The forecast yield must fall within the range made available by the RPA;

    • The principal use of the raw material. This must meet the conditions laid down in Commission Regulation (EC) No 1973/2004 as explained in paragraph 4.1;

    • The forecast quantity of by-products which are not destined for human food or animal feed. This only applies to contracts relating to rapeseed, colza, sunflower seeds or soya beans falling under CN codes ex 1205 00 90, 1206 00 90 or 1201 00 90;

    • You must deliver all the crop harvested from your set aside land to the collector or first processor for non-food use, even if you harvested more than predicted in the contract;

    • In the case of crops eligible for intervention the amount you deliver must not be less than the amount forecast in the contract, even if you have to make up any shortfall from other sources;

    • We will not pay you until you have delivered your crop to the collector or first processor and sent form IACS 9 to your SEERAD Area Office declaring the details of the delivery.

    7. Amending the contract

    Contracts may be amended or cancelled at any time as long as everyone who signed it agrees. The contract can be amended up to and including the final date for amending the SAF (31 May). Collectors and first processors must send a copy of the amended or cancelled contract to the RPA by that date. If the contract is to be amended or cancelled you must inform your local area office in writing.

    If you amend your contract, you should do one of the following:

    • If you amend your contract before 15 January 2005 and the contract has been lodged, you should inform the RPA;

    • If you amend your contract on or after 15 January 2005 and the land is going to stay in set aside, you must inform your local area office and the RPA in writing;

    • If you amend your contract on or after 15 January 2005 but before you have lodged your SAF application, and if the land is not to stay in set aside, you must inform the RPA;

    • If you amend your contract on or after 15 January 2005 but after you have lodged your SAF application, whether or not the land is to stay in set aside, you must inform your SEERAD Area Office in writing.

    A contract can be amended or cancelled after the final date for amending the SAF only if you cannot provide all or part of the crop covered. In this case you must follow the requirements set out below.

    If it becomes clear before harvest that you cannot provide all of the crop set out in the contract you must:

    • amend your contract after consulting your collector or first processor;

    • inform your local area office and the RPA, in writing.

    If the SEERAD Area Office agrees to reduce the raw material to be produced, you and the collector or first processor named on the contract must send form NFC7 to the RPA along with your IACS 9. Please note any amendment to your contract must have the written approval of your local SEERAD Area Office. Once received it should be sent to your collector/first processor who will ask you to complete an NFC7 to be sent with the approval to the RPA. The RPA will not consider your amendments without the written approval.

    If you fail to deliver the representative yield applied to your crop the SEERAD Area Office must be informed in writing. A shortfall of up to 10% may be allowed in exceptional circumstances. The SEERAD Area Office can consider a further shortfall if there is a valid reason, but only if your contract has been amended to allow a smaller amount than in the original contract (see paragraph 8.2). If you have followed the rules of the scheme in all other respects you can make up the shortfall from raw material obtained from elsewhere.

    Your set aside will be reduced by an amount equivalent to the percentage shortfall of the crop if the raw material for the crops grown is not delivered. IACS penalties will also apply. You can avoid penalties if the shortfall is made up from raw material obtained from elsewhere. You must tell your collector or first processor immediately if you choose this option. You must tell your SEERAD Area Office in writing.

    8. Harvest

    You must deliver the entire crop to the collector or first processor. Delivery may take place on the farm if the collector or first processor takes full legal responsibility for the crop at that stage. The crop must be kept separate from any other harvested material at all times. We need an accurate assessment of the weight delivered on a weighbridge approved by the Local Authority.

    9. Representative yield

    Under EU rules, the UK must set up representative yields for crops. As well as delivering the entire crop harvested to collectors and first processors, you must ensure that this delivery equals at least the representative yield appropriate to the crop. We will set the representative yields and will base them on a standard quality. We will send details of these yields to each non-food set aside grower.

    10. After delivery

    You must send a delivery declaration, form IACS 9, to your local SEERAD Area Office to declare the total quantity harvested and confirming who has taken delivery of the crop. You must use a separate IACS 9 for each contract. The SEERAD Area Offices will send the form to all non-food set aside growers. If you do not receive the form, please contact your Area Office. You must tell your collector or first processor when the final load of any contract has been delivered.

    We cannot make payment until your area office has received the IACS 9, and the collector or first processor has met all conditions including confirming to the RPA that they have received the entire crop by using form NFC2. It is important that you send in your delivery declaration form by 31 January 2006. If you fail to do this it will result in a delay in paying your Single Farm Payment.

    11. Eligible crops

    You can grow crops on set-aside land which have no food or animal-feed use under less strict controls. This includes short-rotation coppice (SRC) and miscanthus. See Annex 1 for the full list.

    12. Permitted end uses

    The permitted end uses are set out in Annex 2.

    13. Your responsibilities

    You do not need to have a contract when growing an eligible crop listed in Annex 1. You also do not need to use an IACS 9. When you apply on the SAF you must give a statement in writing that the crop is intended for an appropriate non-food use. You should also confirm that you understand that penalties will apply if you break that undertaking.

    Annex 1: Crops that may be sown on set aside land as long as they are intended for manufacturing the products listed in Annex 2 or for your direct use

    In this table, an 'ex' in front of a CN code means that you are allowed to grow only the plant listed beside the code and not all the plants that fall under the code.

    CN code

    Brief description

    Ex

    0602 90 41

    Short-rotation forest trees with a harvest cycle of 20 years or less.

    Ex

    0602 90 49

    Trees, shrubs and bushes producing plant material covered by CN code 1211 and by chapter 14 of the Combined Nomenclature, excluding all those that can be used for human or animal consumption.

    Ex

    0602 90 51

    Outdoor multi-annual plants (for example, miscanthus sinensis), other than those that can be used for human or animal consumption, in particular those producing plant material covered by CN code 1211 (other than lavender, lavandin and sage) and by chapter 14 of the Combined Nomenclature.

    Ex

    0602 90 59

    Euphorbia lathyris, Sylibum marianum and Isatis tinctoria.

    1211 90 95

    Digitalis lanata, Secale cornutum and Hypericum perforatum, excluding plant material that can be used for human or animal consumption.

    Annex 2: End products that are allowed, other than for human or animal consumption, made from the raw materials grown on set aside for non-food purposes and those in Annex 1

    • All products falling within chapters 25 to 99 of the Combined Nomenclature.

    • All products falling within chapter 15 of the Combined Nomenclature and intended for uses other than for human or animal consumption.

    • Products covered by CN code 2207 20 00 and intended for direct use in motor fuel or for processing for use in motor fuel.

    • Packaging material covered by CN codes ex 1904 10 and ex 1905 90 90, as long as we have proof that the products have been used for non-food purposes in line with Article 158(4) of Commission Regulation (EC) Number 1973/2004.

    • Mushroom spawn covered by CN code 0602 91 10.

    • Lac, natural gums, resins, gum resins and balsams covered by CN code 1301.

    • Saps and extracts of opium covered by CN code 1302 11 00.

    • Saps and extracts of pyrethrum or of the roots of plants containing rotenone covered by CN code 1302 14 00.

    • Other mucilages and thickeners covered by CN code 1302 39 00.

    • All agricultural products listed in Article 146(1) of Commission Regulation (EC) No 1973/2004 and products taken from them by an intermediary process and used as fuel for producing energy.

    • All products listed in Article 146(1) of Commission Regulation (EC) No 1973/2004 and products taken from them and intended for energy purposes.

    • Miscanthus sinensis falling within CN code 0602 90 51, shredded and intended for use as horse litter, mulch, or additives to improve compost and litter for drying and cleaning plants as well as this raw material or its fibber used as materials for construction.

    • All products referred to in Commission Regulation (EEC) Number 1722/93, as last amended by Regulation (EC) Number 216/2004, as long as they are not obtained from cereals or potatoes grown on set-aside land and they do not contain products taken from cereals or potatoes grown on set-aside land.

    • All products referred to in Council Regulation (EC) Number 1260/2001 as last amended by Commission Regulation (EC) Number 30/2004, as long as they are not obtained from sugar beet cultivated on land set aside, and that they do not contain products taken from sugar beet grown on land set aside.

    Annex 3: LIST OF ADDRESSES AND TELEPHONE NUMBERS

    AYR
    Russell House
    King Street
    AYR
    KA8 OBE
    Tel No: (01292) 610188
    Fax No: (01292) 611483
    email: seerad.ayr@scotland.gsi.gov.uk

    BENBECULA
    Balivanich
    ISLE OF BENBECULA
    PA88 5LA
    Tel No: (01870) 602346
    Fax No: (01870) 602077
    email: seerad.benbecula@scotland.gsi.gov.uk

    DUMFRIES
    Government Buildings
    161 Brooms Road
    DUMFRIES
    DG1 3ES
    Tel No: (01387) 274400
    Fax No: (01387) 274440
    email: seerad.dumfries@scotland.gsi.gov.uk

    ELGIN
    32 Reidhaven Street
    ELGIN
    IV30 1VE
    Tel No: (01343) 547514
    Fax No: (01343) 552312
    email: seerad.elgin@scotland.gsi.gov.uk

    GALASHIELS
    Cotgreen Road
    Tweedbank
    GALASHIELS
    TD1 3SG
    Tel No: (01896) 758333
    Fax No: (01896) 892424
    email: seerad.galashiels@scotland.gsi.gov.uk

    HAMILTON
    Cadzow Court
    3 WelIhall Road
    HAMILTON
    ML3 9BG
    Tel No: (01698) 281166
    Fax No: (01698) 285277
    email: seerad.hamilton@scotland.gsi.gov.uk

    INVERNESS
    Longman House
    28 Longman Road
    INVERNESS
    IV1 1SF
    Tel No: (01463) 234141
    Fax No: (01463) 714697
    email: seerad.inverness@scotland.gsi.gov.uk

    INVERURIE
    Thainstone Court
    By Inverurie
    ABERDEENSHIRE
    AB51 5YA
    Tel No: (01467) 626222
    Fax No: (01467) 626217
    email: seerad.inverurie@scotland.gsi.gov.uk

    KIRKWALL
    Tankerness Lane
    Kirkwall
    ORKNEY
    KW15 lAQ
    Tel No: (01856) 875444
    Fax No: (01856) 873309
    email: seerad.kirkwall@scotland.gsi.gov.uk

    LAIRG
    Ord Croft
    Lairg
    SUNDERLAND
    IV27 4AZ
    Tel No: (01549) 402167
    Fax No: (01549) 402117
    email: seerad.lairg@scotland.gsi.gov.uk

    LERWICK
    Charlotte House
    Commercial Road Lane
    LERWICK
    ZEl 0HZ
    Tel No: (01595) 695054
    Fax No: (01595) 694254
    email: seerad.lerwick@scotland.gsi.gov.uk

    OBAN
    Cameron House
    Albany Street
    OBAN
    PA34 4AE
    Tel No: (01631) 563071
    Fax No: (01631) 566756
    email: seerad.oban@scotland.gsi.gov.uk

    PERTH
    Broxden Business Park
    Lamberkine Drive
    PERTH
    PH1 1RZ
    Tel No: (01738) 602000
    Fax No: (01738) 602001
    email: seerad.perth@scotland.gsi.gov.uk

    PORTREE
    Estates Office
    Portree
    ISLE OF SKYE
    IV51 9DH
    Tel No: (01478) 612516
    Fax No:(01478) 613128
    email: seerad.portree@scotland.gsi.gov.uk

    STORNOWAY
    10 Keith Street
    Stornoway
    ISLE OF LEWIS
    HS7 2QG
    Tel No: (01851) 702392
    Fax No: (01851) 705793
    email: seerad.stornoway@scotland.gsi.gov.uk

    THURSO
    Strathbeg House
    Clarence Street
    THURSO
    KW14 7JS
    Tel No: (01847) 893104
    Fax No: (01847) 895983
    email: seerad.thurso@scotland.gsi.gov.uk

    RURAL PAYMENTS AGENCY (RPA)
    Non-Food Set-Aside Section
    Alverton Court
    Crosby Road
    Northallerton
    NORTH YORKSHIRE
    DL6 1AD
    Tel No: 01609 773751
    Fax No: 01609 781726

      Page updated: Monday, August 22, 2005