3.—(1) The appropriate Minister may, in respect of any Scheme year, pay to any person who is on the qualifying day for that year the occupier of eligible land, a compensatory allowance for cattle and sheep owned or leased under a formal leasing arrangement by him on that day, being cattle comprised in a regular breeding herd and sheep comprised in a qualified flock.
(2) A compensatory allowance in respect of any Scheme year shall be paid to an occupier of eligible land only if (except in the case of such an occupier who is in receipt of a retirement pension) he has entered into a written undertaking in such form as the appropriate Minister may require to the effect that he will, for a period of five years from the first payment of a compensatory allowance made under these Regulations, the 1993 Regulations, the 1992 Regulations or the 1984 Regulations, continue to use eligible land for agricultural purposes.
(3) Subject to the following provisions of these Regulations, a compensatory allowance for cattle shall be payable in respect of the number of breeding cows comprised in a herd on the qualifying day at a rate of 20.3 ECU per cow.
(4) Subject to the following provisions of these Regulations, a compensatory allowance for sheep shall be payable in respect of the number of ewes comprised in a flock on the qualifying day at a rate of 3.045 ECU per ewe.
(5) The total amount of a compensatory allowance which may be paid in respect of any Scheme year–
(a)to the occupier of severely disadvantaged land, shall not exceed £81.13 or 123 ECU (whichever rate results in the lower payment in sterling) for each hectare of such land which was included in an area aid application made under Commission Regulation 3887/92 in the year preceding that year and was determined by the appropriate Minister to be eligible forage area for the purposes of that Regulation or which is relevant afforested land; or
(b)to the occupier of disadvantaged land, shall not exceed £60.85 or 123 ECU (whichever rate results in the lower payment in sterling) for each hectare of such land which was included in an area aid application made under Commission Regulation 3887/92 in the year preceding that year and was determined by the appropriate Minister to be eligible forage area for the purposes of that Regulation or which is relevant afforested land.