2024 No. 10 (W. 4)

Landlord And Tenant, Wales

The Agricultural Holdings (Units of Production) (Wales) Order 2024

Made

Laid before Senedd Cymru

Coming into force

The Welsh Ministers, in exercise of the powers conferred by paragraph 4 of Schedule 6 to the Agricultural Holdings Act 19861 and now vested in them2 make the following Order.

Title, application, coming into force and interpretation1

1

The title of this Order is the Agricultural Holdings (Units of Production) (Wales) Order 2024, it applies in relation to Wales and comes into force on 7 February 2024.

2

In this Order—

  • “designated maps” (“mapiau dynodedig”) means the two volumes of maps numbered 1 and 2; each volume being marked “Volume of maps of less favoured farming areas in Wales” and with the number of the volume dated 20 May 1991 and signed by the Secretary of State for Wales and deposited at the offices of the Welsh Government, Cathays Park, Cardiff CF10 3NQ;

  • “disadvantaged land” (“tir dan anfantais”) (except in the expression “severely disadvantaged land”) means any area of land shown coloured blue on the designated maps;

  • “eligible hectare” (“hectar cymwys”) has the same meaning as in Article 32(2) of Regulation 1307/2013;

  • “less favoured area” (“ardal lai ffafriol”) means any area of disadvantaged land or severely disadvantaged land;

  • “Regulation 1307/2013” (“Rheoliad 1307/2013”) means Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy3;

  • “severely disadvantaged land” (“tir dan anfantais ddifrifol”) means any area of land shown coloured pink on the designated maps.

Assessment of productive capacity of land2

1

Paragraphs (2) and (3) have effect for the purpose of the assessment of the productive capacity of a unit of agricultural land situated in Wales, in order to determine whether that unit is a commercial unit of agricultural land within the meaning of paragraph 3(1) of Schedule 6 to the Agricultural Holdings Act 1986.

2

Where the land in question is capable, when farmed under competent management, of being used to produce any livestock, farm arable crop, outdoor horticultural crop or fruit as mentioned in any of the entries 1 to 3 in column 1 of the Schedule to this Order, then—

a

the unit of production prescribed in relation to that use of the land is the unit in the corresponding entry in column 2, and

b

the amount determined, for the period of 12 months beginning with 12 September 2023, as the net annual income from that unit of production in that period is the amount in the corresponding entry in column 3, as read with any relevant note to that Schedule.

3

Where land capable, when farmed under competent management, of producing a net annual income was an eligible hectare in 2022 in accordance with entry 4 in column 1 of the Schedule to this Order, then—

a

the unit of production prescribed in relation to that use of the land is the unit in the corresponding entry in column 2, and

b

the amount determined, for the period of 12 months beginning with 12 September 2023, as the net annual income from that unit of production in that period is the amount in the corresponding entry in column 3.

Lesley GriffithsMinister for Rural Affairs and North Wales, and Trefnydd, one of the Welsh Ministers

SCHEDULEPrescribed units of production and determination of net annual income

Article 2

column 1

Farming use

column 2

Unit of production

column 3

Net annual income from unit of production (£)

1. Livestock

Dairy cows

cow

967.00

Beef breeding cows:

on land in a less favoured area

cow

5.00

on other land

cow

-28.00

Beef fattening cattle (semi-intensive)

head

-24.00(1)

Dairy replacements

head

154.00(1)

Ewes:

on land in a less favoured area

ewe

-15.00

on other land

ewe

10.00

Store lambs (including ewe lambs sold as shearlings)

head

12.00

Pigs:

sows and gilts in pig

sow or gilt

265.00

porker

head

9.90

cutter

head

13.00

bacon

head

15.60

Poultry:

laying hens

bird

4.60

broilers

bird

0.30

point-of-lay pullets

bird

0.90

Christmas turkeys

bird

14.90

2. Farm arable crops

Barley

hectare

334.00

Beans

hectare

181.00

Oilseed rape

hectare

164.00

Dried peas

hectare

200.00

Potatoes:

first early

hectare

2,650.00

maincrop (including seed)

hectare

3,060.00

Sugar beet

hectare

620.00

Wheat

hectare

540.00

3. Outdoor horticultural crops and fruit

Orchard fruit

hectare

4,460.00

Soft fruit

hectare

17,870.00

4. Eligible hectares

Land which was, in 2022, an eligible hectare for the purposes of Regulation 1307/2013

severely disadvantaged land

hectare

116.18

disadvantaged land

hectare

116.07

all other land

hectare

50.76

(1)

This is the figure for animals (irrespective of age) which are kept for 12 months. In the case of animals kept less than 12 months, a pro-rata adjustment of this figure is to be made.

EXPLANATORY NOTE

(This note is not part of the Order)

This Order prescribes units of production for the assessment of the productive capacity of agricultural land situated in Wales and sets out the amount which is to be regarded as the net annual income from each such unit for the year 12 September 2023 to 11 September 2024 for certain purposes of the Agricultural Holdings Act 1986 (“the 1986 Act”).

An assessment of the productive capacity of agricultural land is required in determining whether or not the land in question is “a commercial unit of agricultural land” for the purposes of the succession provisions of the 1986 Act; in particular sections 36(3) and 50(2). “A commercial unit of agricultural land” is a unit of agricultural land, which, when farmed under competent management, is capable of producing a net annual income which is not less than the aggregate of the average annual earnings of two full-time male agricultural workers aged 20 years or over (as defined in paragraph 3 of Schedule 6 to the 1986 Act).

Article 2 of this Order provides that, in determining this annual income figure, whenever a particular farming use mentioned in column 1 of the Schedule is relevant to the assessment of the productive capacity of the land in question, the units of production and the net annual income specified in columns 2 and 3 respectively will form the basis of the assessment.

This Order includes net annual income figures for land which was, in 2022, an eligible hectare within the meaning of Article 32(2) of Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy. There are separate figures in the Schedule for disadvantaged land and severely disadvantaged land, land in a less favoured area and other land.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to this Order. As a result, it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with this Order.