Select Committee on Agriculture Appendices to the Minutes of Evidence

Annex 1



  In general the scheme descriptions for Wales are very similar to England. Only the differences and issues specific to Wales have been noted in this annex.



  In Wales, to qualify for area payments part of the area on which aid is claimed has to be set aside, unless the total area claimed is 17.79 hectares or less, in which case there is an exemption from the requirement for set-aside. In 2000 the obligatory set-aside rate is 10 per cent.

AAPS Statistics for 1999

  In Wales there were 2,342 claims received and expenditure totalled £10.4 million. Approximately 51,600 hectares (ha) of arable land was claimed under the main scheme in Wales, of which around 41,300 ha was in cereals, 2,100 ha in oilseeds, 1,100 ha in proteins and 2,000 ha in linseed. Set-aside accounted for approximately 5,100 ha. Nearly 16,200 ha was claimed under the simplified scheme.

  Although the base area for maize in Wales was exceeded in 1999 there was enough surplus within other crop base area to cover this so that total base area was not exceeded (see table below).

Base areaClaimed area
Total Crops61,40051,600

  The table below gives the payment rates for Wales, in Sterling and in Euros per hectare for 1999 and 2000, and in Euros only for 2000 (the Sterling rates for 2000 will be based on the average of the exchange rates prevailing during June):
Wales (LFA)1999
Cereals (including maize)£178.3922 274.42296.28
Oilseeds£374.9474 576.78500.49
Proteins£257.6682 396.37366.13
Linseed£345.0312 530.76445.71
Set-aside£225.9578 347.59296.28
Wales (non LFA)1999
Cereals (including maize)£182.6307 280.94303.32
Oilseeds£374.9474 576.78500.49
Proteins£263.7919 405.79374.83
Linseed£353.2285 543.37456.30
Set-aside£231.3724 355.85303.32


  In 1999 in Wales there were 26,562 claims received and expenditure totalled £23.5 million.


  In 1999 in Wales there were 7,645 claims and expenditure totalled £25.6 million.


  In Wales a Statutory Instrument will be made during 2000-2001.


  In Wales in 1999 there were 13,967 claims and expenditure totalled £90 million.


  In Wales a Statutory Instrument will be made during 2000/2001.


  The GB lowland and Wales less favoured area are the relevant Ring-Fence-Areas in Wales.


  The Agenda 2000 CAP reforms have changed the basis on which support for farmers in the Less Favoured Areas (LFAs) can be provided. In future, LFA aid payments must comply with the Rural Development Regulation (RDR). This requires that payments be made on an area, rather than headage, basis. However, delays in introducing the RDR meant that special arrangements were made for headage-based HLCAs to continue to be paid in 2000.

  A new area-based Tir Mynydd scheme has been introduced as part of the Wales Rural Development Programme (WRDP). The first payments under this scheme will be made early in 2001.

  Tir Mynydd is partly funded by the EU and is designed to make an effective contribution to the maintenance of the social fabric in upland rural communities through support for continued agricultural use. Tir Mynydd will also help to preserve the farmed upland environment by ensuring that land in LFAs is managed sustainably. Tir Mynydd, part of the WRDP, is operated under authority of Council regulation 1257/99 and Commission Regulation 1750/99. [Assembly legislation is being drafted.]

  Claimants must submit an IACS area aid application in the year prior to Tir Mynydd payment. They must farm at least six hectares of eligible forage land in the less favoured areas of Wales on which they keep breeding sheep or suckler cows at a minimum stocking density of 0.1 livestock units. Claimants must adhere to Good Farming Practice.

  Payments per hectare for 2001 will be:

    Disadvantaged Area—£23/ha

    Severely Disadvantaged Area—£35/ha

  These rates will be paid up to and including 140 hectares. For a holding of over 140 hectares, payments on eligible forage land on that part of the holding in excess of 140 hectares, but up to and including 640 hectares, will be reduced by 35 per cent.

  For a holding of over 640 hectares, payments on eligible forage land on that part of the holding in excess of 640 hectares will be reduced by 70 per cent.

  Payments may be enhanced by up to 20 per cent if farmers meet certain environmental criteria such as low stocking or farming organically.

  The move to area based payments will lead to some redistribution of support when compared to HLCAs. The rates set and the taper all minimise this effect. To allow hill farmers to adjust to the new payments, and to take advantage of other income streams that will build up under WRDP, a safety net mechanism will cushion those farmers who will lose money. In 2001 the safety net guarantees that no farmer will receive less than 90 per cent of the 2,000 receipts paid under HLCA, provided their forage area does not decline. In 2002 the safety net falls to 80 per cent.

  In 2003 the minimum sum payable (on the same assumptions) will be the farmers entitlement together with 50 per cent of the difference between that entitlement and sum payable in 2000, where that sum is greater than his entitlement as calculated under Tir Mynydd:

  In 2004 and subsequent years the safety net will no longer apply.


  As a result of the introduction of the Euro, agrimonetary compensation payments were made to 1998 SAP claimants to ease the transition to the new agrimonetary system. In 1999 these payments were also made to AAPS, BSPS, SCPS claimants. This compensation is being paid in three instalments.

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