3.—(1) The appropriate authority may pay in respect of the Scheme Year to any person who maintains breeding cows or ewes on eligible land, a compensatory allowance for each breeding cow and ewe which he owns, or leases under a formal leasing arrangement, throughout the retention period applicable to the animal concerned.
(2) A compensatory allowance may be paid only where the eligible land on which the claimant maintains breeding cows or ewes was included in a valid area aid application submitted in 1999.