The Agriculture Improvement Regulations 1985

EXPLANATORY NOTE

These regulations implement in part the provisions of Council Regulation (EEC) No. 797/85 on improving the efficiency of agricultural structures and Council Directive No. 75/268/EEC on mountain and hill farming and farming in certain less-favoured areas.

The regulations, which apply throughout the United Kingdom, and operate (except for regulations 1 and 19) from 1st October 1985, make provision for aid for agricultural businesses in the form of grants in respect of expenditure of a capital nature incurred in pursuance of approved improvement plans (regulation 9). The works, facilities and transactions eligible for grant and the rates of grant applicable to them are set out (regulation 10 and the Schedule). Facilities for tourism and craft projects on a farm may be eligible for grant where they are additional to other eligible works included in an improvement plan (regulation 6(3)(k) and paragraphs 12 and 13 of the Schedule). Higher rates of grant may be payable for agricultural business in less-favoured areas (regulation 10(2) and the Schedule) or for business carried on by young farmers or by partnerships in which a young farmer is a partner (regulation 10(3) to (5)). Less-favoured areas are defined by reference to designated maps which are available for inspection during normal office hours at the addresses specified in the definition of designated maps (regulation 2(1)). Copies of the maps may be inspected during normal office hours at any Regional or Divisional Office of the Ministry of Agriculture, Fisheries and Food, at any Divisional Office of the Welsh Office Agriculture Department, at any Area Office of the Department of Agriculture and Fisheries for Scotland or at any County Agricultural Executive Office or selected Area Offices of the Department of Agriculture for Northern Ireland.

The classes of person and type of agricultural business which may benefit from grant-aid are defined (regulations 3 and 4). To benefit from assistance an applicant must submit an improvement plan for approval by the appropriate Minister (regulation 5). The plan must show that its completion will bring about a lasting and substantial improvement of the situation of the business and its economy, especially the income per labour unit required in carrying on the business (regulation 6(1)).

The regulations also—

• (a) impose certain restrictions on approval of improvement plans (regulation 6(2) to (8));

• (b) provide for the variation and withdrawal of plans (regulation 8);

• (c) provide for standard costs (regulation 13);

• (d) provide for the reduction or withholding of grant in certain circumstances where it would otherwise be payable (regulation 15) and for the recovery of grant paid (regulation 16);

• (e) create an offence, punishable on summary conviction with a maximum fine of £2,000, of knowingly or recklessly making a false statement to obtain grant (regulation 17);

• (f) confer rights of entry (regulation 18);

• (g) set a closing date of 31st December 1994 for submission of improvement plans for approval (regulation 7).

Amendments are also made to the Farm and Horticulture Development Regulations 1981 being previous regulations relating to improving agricultural structures. Further restrictions on the approval of grant in connection with pig and dairy enterprises are set out in relation to works, facilities or transactions included in an application for a variation of a development plan received on or after the day after these regulations are made and to claims for grant towards expenditure incurred on or after that day (regulations 1(2)(a) and 19).