SCHEDULE 1 GENERAL ENVIRONMENTAL CONDITIONS
Regulation 3(2)(a)
1 On rough grazings, unimproved grassland, reverted improved grassland, machair and dune grassland, wetlands, water margins, native, amenity or semi-natural woodlands and scrub–
(a) the conservation interest shall not be damaged by new drainage works, ploughing, clearing, levelling, re-seeding or cultivating;
(b) livestock shall be managed to avoid poaching or overgrazing;
(c) pesticides shall not be used except with the consent of the Secretary of State; and
(d) lime or fertiliser, including farmyard manure and slurry, shall not be used except with the consent of the Secretary of State.
2 Any muirburn shall be carried out in accordance with the guidance approved by the Secretary of State.
3 Hedges, native, amenity or semi-natural woodland and scrub shall not be removed or cleared.
4 Designed landscapes, parkland policy grassland, drystone or flagstone dykes or walls, individual trees or hedgerow trees and parkland railing fencing shall not be removed or destroyed without the consent of the Secretary of State.
5 Any features or areas of historic or archaeological interest shall not be damaged or destroyed and guidance approved by the Secretary of State for the protection of such features or areas shall be followed.
6 Guidance approved by the Secretary of State for the avoidance of pollution shall be followed.

SCHEDULE 2 MANAGEMENT ACTIVITIES
Regulations 3(3)(a) and 9(2)(a)
Management activity	Site criteria	Management requirements
1 Management of grassland for birds	A field used for growing hay or silage	(a) The field must not be rolled, harrowed or grazed after 15th May; (b) Mowing or the reintroduction of grazing must not take place before 15th July or, where corncrakes (crex crex) are likely to be present, 1st August; (c) Hay and silage must be cut only in such manner as minimises the risk of damage to young birds; (d) Fertiliser, slurry or farmyard manure must not be applied to the field after 31st May; and (e) Pesticides may be used only with the consent of the Secretary of State.
2 Management of species-rich grassland	Species-rich grassland on inbye land	(a) Livestock must be excluded from the site for a period of not less than 3 months between 15th April and 15th August; (b) After that period, the grass must be grazed down or cut; and (c) The site must not be used for supplementary feeding of stock; (d) Fertiliser, slurry or manure must not be applied to the land; and (e) Pesticides may be applied only with the consent of the Secretary of State.
3 Creation of species-rich grassland	Arable land or improved grassland	(a) Any existing grassland cover must be destroyed; (b) The site must be sown with a low productivity grass and herb mix to create a new sward; (c) The site must not be mown or grazed between 15th April and 15th August; (d) For the remainder of the year grazing must not exceed an annual average of 1.4 livestock units per hectare; (e) The site must not be used as a site for supplementary feeding of stock; (f) Fertiliser, slurry or manure must not be applied to the land; and (g) Pesticides may be applied only with the consent of the Secretary of State.
4 Management of wetland	Wetland on inbye land	(a) Livestock must be– (i) excluded for a period of not less than 4 months between 1st April and 31st August; or (ii) excluded for a period of 3 months from 1st April provided that grazing in the following period of 3 months from 1st July does not exceed 0.3 livestock units per hectare; or (b) Grazing must not exceed 0.15 livestock units per hectare for 6 months from 1st April; (c) Fertiliser, slurry or manure must not be applied to the land; and (d) Pesticides may be applied only with the consent of the Secretary of State.
5 Creation of wetland	Existing arable land or improved grassland where the raised water levels resulting from creation of wetland would not adversely affect other agricultural land or cause the erosion of river banks.	(a) The site must be managed to ensure that it is normally saturated with water for a significant proportion of the year; (b) The site must not be mown or grazed for a period of not less than 3 months between 15th April and 15th August; (c) Outwith such period, grazing must not exceed an annual average of 1.4 livestock units per hectare; (d) Fertiliser, slurry or manure must not be applied to the land; and (e) Pesticides may be applied only with the consent of the Secretary of State.
6 Management of water margin	Inbye land which borders a watercourse having a bed width of not less than 0.6 metres or still water and which– (a) in the case of a site bordering a watercourse having a bed width of less than 1.2 metres, has a minimum width of 5 times the bed width of the watercourse; (b) in the case of a site bordering a watercourse, has a minimum width of 6 metres; and (c) in the case of a site bordering still water, has a minimum width of 12 metres.	(a) Livestock must be excluded except for the period from 1st August to 30th September when grazing at a stocking density of no more than 0.15 livestock units per hectare may take place; (b) The site must be maintained by the control of statutory weeds, hogweed and japanese knotweed and, as the case may be, by clearing the watercourse of any obstacle; (c) Fertiliser, slurry or manure must not be applied to the land; and (d) Pesticides may be applied only with the consent of the Secretary of State.
7 Management of flood plain	A site which forms all or part of a flood plain where– (a) all or part of the flood plain is included in the undertaking as the site of another management activity; and (b) the flooding of the site would not adversely affect other agricultural land.	The natural flooding of the land must not be hindered.
8 Management of coastal health	Land bordering the sea containing moorland or species rich grassland affected by salt spray and exposure.	(a) Livestock must be excluded between 1st April and 31st August; (b) The site must be grazed between 1st September and 30th November; (c) Between 1st December and 31st March, any grazing should not exceed 0.08 livestock units per hectare; (d) The land must not be used as a site for supplementary feeding of stock; (e) Fertiliser, slurry or manure must not be applied to the land; and (f) Pesticides may be applied only with the consent of the Secretary of State.
9 Stock disposal	Moorland which is of conservation interest and has a stocking density which does not exceed an annual average of 4.5 livestock units per hectare.	(a) The requirements of the moorland management plan must be followed; and (b) Ewe numbers on the holding for the purposes of IACS of which the site forms part must be reduced by at least the number of ewes removed from the site in accordance with the plan and must not be increased for the relevant period.
10 Muirburn	Moorland identified in a moorland management plan as appropriate for muirburn.	All muirburn must be undertaken in accordance with guidance approved by the Secretary of State.
11 The creation of grass margin or beetlebank	Land forming a strip between 1.5 metres and 6 metres in width around or across arable fields.	(a) The strip must be established by sowing a suitable mix of grass seed; (b) The strip must not be grazed; (c) Fertiliser, slurry or manure must not be applied to the strips; and (d) Pesticides may be applied only with the consent of the Secretary of State.
12 Creation of conservation headland	Headland with a minimum width of 6 metres around arable fields.	Insecticides and herbicides may be applied to the headlands only with the consent of the Secretary of State.
13 Introduction or retention of extensive cropping	A site comprising arable land or improved grassland in the Less Favoured Area which does not exceed 4 hectares and subject to a maximum area per undertaking of 8 hectares.	(a) A minimum 3 year rotation of crops must be agreed with the Secretary of State. (b) Application of fertiliser must not exceed 50kg N: 25kg P2O5: 25kg K20 per hectare; (c) Ploughing, cultivations and the spreading of fertiliser may only take place between 28th February and 15th May; and (d) Insecticides and herbicides may be applied only with the consent of the Secretary of State.
14 Management of cropped machair	Cropped machair	(a) The site must be in a rotation of one or more years of arable cultivation with at least as many years of fallow; (b) Ploughing and cultivation may only take place between 28th February and 15th May; (c) The site must be left to revert to natural grass after the crop harvest; (d) Pesticides may be applied only with the consent of the Secretary of State; (e) No artificial fertiliser may be applied to the land; and (f) Seaweed and manure may be applied in accordance with traditional practice.
15 Creation of extended hedge	A strip of arable or improved grassland situated alongside an existing or newly created hedge.	(a) All livestock must be excluded and no arable cultivations may be carried out within 3 metres of the centre line of the hedge; (b) Where the hedge is trimmed in January or February it must not be trimmed again for two years or, where it is trimmed in any other month, for three years; (c) The grass in the strip must not be cut, unless with the consent of the Secretary of State; (d) Fertiliser, slurry or manure must not be applied to the land; and (e) Pesticides may be applied only with the consent of the Secretary of State.
16 Management of scrub	Grazed land with suppressed scrub.	(a) Stock must be excluded from the land; (b) Fertiliser, slurry or manure must not be applied to the land; and (c) Pesticides may be applied only with the consent of the Secretary of State.
17 The provision of access	A site on inbye land, comprising a 10 metre wide strip or, subject to a maximum of 4 hectares, all or part of a field, which, in the opinion of the Secretary of State, provides a new or significantly enhanced access opportunity.	(a) The site must be available for public access at no charge; (b) Unobstructed passage must be maintained over the site; (c) The site and any field crossed by the site must be kept free of refuse; (d) With the exception of bulls under 10 months of age, bulls must be excluded from the site or any field crossed by the site; (e) Adequate means of entry must be provided and maintained; (f) Signboards and waymarking arrows must be installed at appropriate positions and maintained; (g) Any erosion caused to the site must be repaired; (h) Consent must be given to details of the access opportunity being made public by the Secretary of State; (i) The site may be closed to the public for a specified number of days with the consent of the Secretary of State, providing a sign giving notice of the intended closure is posted at each entry point to the site at least 2 weeks in advance of the date of closure; and (j) Public liability insurance cover in respect of at least one claim of up to £1 million in any year shall be maintained.
18 Management of a site of archaeological or historic |interest	Land containing a site of archaeological or historic interest.	The management of the site must be agreed in advance with the Secretary of State and may include, as appropriate, controls over grazing, the cutting and removal of trees, scrub and woody plants, the repair of erosion damage, the establishment of unploughed buffer zones and the realignment of fences, tracks and resiting of hard standings.

SCHEDULE 3 CAPITAL ACTIVITIES
Regulations 3(3)(b) and 9(2)(b)
	Column 1	Column 2
	Capital activity	Specification
1.	Bracken control on any area of land identified in a moorland management plan as requiring such control or on any area where such control would benefit a site managed as part of the undertaking under these regulations or under any of the Regulations mentioned in Regulation 7(1).	(a) Control must be effected by cutting or crushing twice per year for 3 years or, subject to paragraph b., by spraying with asulam or other herbicides approved by the Secretary of State for this purpose; and (b) Aerial spraying may be carried out only with the prior written consent of Scottish Natural Heritage and, where the area to be sprayed is an area which drains into still or flowing water from which a public water supply is obtained, of the local water authority.
2.	Erection of a fence, gate, footbridge or stile required for any of the management activities set out in Schedule 2 or which provide some other conservation benefit.	(a) The construction and all materials used must conform with the appropriate British standards. (b) Except as otherwise provided, fence stobs must be placed at intervals of no more than 3.5 metres or, where high tensile wire and droppers are used, 12 metres; (c) Except as otherwise provided, a fence must have a minimum of 6 line wires or 2 line wires and woven wire netting; and (d) A scare fence must consist of a minimum of 2 line wires with stobs at intervals of not more than 6 metres.
3.	Building or restoration of traditional drystone or flagstone dyke or wall	Drystone or flagstone dyke or wall should be rebuilt with material traditional to the locality and to a standard normally found there.
4.	External work to restore vernacular building to a wind and watertight condition	Restoration must normally be carried out using the same material used in the original construction.
5.	Amenity tree planting on a site not exceeding 0.25 hectares	(a) Planting density must not exceed one tree per 10m2; and (b) Native species appropriate to the site must be planted.
6.	Installation of tree guard and stake or a self-supporting tree guard required to protect amenity tree and hedge planting carried out as part of an undertaking under these Regulations.	The guard and stake or self-supporting tree guard must be securely fixed to protect newly planted material from damage by rodents and grazing animals.
7.	Planting of marram grass into areas threatened with erosion.	(a) Transplants should be harvested from areas where marram is well established and there is little danger from erosion; (b) Plants should be established at a density of at least 9 plants per square metre; and (c) Planting should take place in late spring or autumn.
8.	Installation of a water trough required because the management of a water margin as part of an undertaking under these Regulations will result in stock being denied access to traditional watering points.	(a) The water trough must be a purpose made item and incorporate a ballcock to shut off the water supply; and (b) The trough must be permanently mounted on a durable base and a stop cock must be provided to control the water supply.
9.	Planting, replanting, coppicing or laying of a hedge.	(a) Where new hedging or gapping up of existing hedges is undertaken, plants must be established in a double row with a minimum of 8 plants per metre in total; and (b) A single species must not account for more than 75% of the plants established.
10.	Creation or restoration of pond	(a) Existing habitats must not be damaged; (b) The site must be capable of retaining water; and (c) There must be an adequate supply of water.
11.	Sowing of species rich grass as part of the management activity, creation of species rich grassland, included in the undertaking.	(a) Any existing sward should first be destroyed by cultivation or herbicide treatment; and (b) A mixture consisting of no more than 85% fine- leaved or non-aggressive grasses and at least 15% mixed native flowers must be sown.
12.	Erection of suitable fencing to trap blowing sand and infill previously eroded dune areas.	Fencing must be fixed at right angles to the prevailing sand bearing wind and constructed of posts and rails with stobs no more than 3 metres apart and 4 rails (70mm × 20mm).

SCHEDULE 4 MAXIMUM PAYMENT RATES FOR ACTIVITIES
Regulation 8(1)

PART I MANAGEMENT ACTIVITIES
	Column 1	Column 2
	Activity	Maximum payment rate
1.	Management of grassland for birds	£125 per hectare per annum.
2.	Management of species-rich grassland	£80 per hectare per annum.
3.	Creation of species-rich grassland	£250 per hectare per annum.
4.	Management of wetland	£80 per hectare per annum.
5.	Creation of wetland	£250 per hectare per annum.
6.	Management of water margin	£100 per 0.25 hectare per annum.
7.	Management of flood plain	£25 per hectare per annum.
8.	Management of coastal heath	£80 per hectare per annum.
9.	Stock disposal	Subject to Part IV of this Schedule £35 per ewe per annum for each ewe removed from the flock including, where the undertaking is in substitution for an undertaking under the Heather Moorland (Livestock Extensification) Regulations 1995, any ewe removed prior to such substitution in respect of the undertaking under those Regulations.
10.	Muirburn	£5 per hectare per annum for the area of moorland identified for burning.
11.	Creation of grass margin or beetlebank	£184 per 0.25 hectare or part thereof per annum.
12.	Creation of conservation headland	£100 per hectare per annum.
13.	Introduction or retention of extensive cropping	£120 per hectare per annum.
14.	Management of cropped machair	£140 per hectare per annum or, where cultivation is combined with the traditional application of seaweed and dung, £220 per hectare.
15.	Creation of extended hedge	£125 per 0.25 hectare or part thereof per annum.
16.	Management of scrub	£55 per hectare per annum.
17.	Provision of access	Where the site comprises a 10 metre wide strip £170 per hectare per annum or, in the case of set aside land, £90 per hectare per annum; or Where the site comprises all or part of a field, £50 per hectare per annum; or, in the case of set aside land, £45 per hectare per annum.
18.	Management of a site of archaeological or historic interest	£80 per 0.25 hectares per annum or part thereof up to 1.5 hectares and £20 per 0.25 hectare or part thereof thereafter.

PART II CAPITAL ACTIVITIES
	Column 1	Column 2
	Activity	Maximum payment rate
1.	Bracken control	£100 per hectare.
2.	Erection of– (a) stock fence	£2.50 per metre.
	(b) Scare, temporary or rabbit fence	£1.25 per metre.
	(c) deer fence	£5.50 per metre.
	(d) gate and posts	£20 per metre.
	(e) single stile	£20 per stile.
	(f) double stile	£40 stile.
	(g) footbridge	£125 per footbridge.
3.	Building or restoration of traditional stone dyke or wall	£9 per square metre.
4.	Restoration of vernacular building	50% of the cost approved by the Secretary of State.
5.	Amenity tree planting	£1 per tree (maximum 250 trees per 0.25 hectare).
6.	(a) Tree guard and stake	£1 per tree guard and stake.
	(b) Self-supporting tree guard	35 pence per tree guard.
7.	Planting of marram grass	£4 per square metre.
8.	Water trough	£100 per trough.
9.	Planting, replanting, coppicing or laying of a hedge	£3 per metre.
10.	Creation or restoration of a pond	£2 per square metre up to 100 square metres and £1 per square metre thereafter.
11.	Sowing of species-rich grassland	£300 per hectare.
12.	Sand blow fencing	£7 per metre.

PART III ADVICE
	Column 1	Column 2
	Activity	Maximum payment
1.	Conservation audit	£375.
2.	Moorland management plan	£500.
PART IV 1 Where an undertaking includes stock disposal, payments for that activity shall not exceed £7,000 per annum or in the case of a common grazings committee £10,000 per annum or, in either case, such lower sum as may be determined in accordance with the provisions of this Part.
2 Where the undertaking is at the commencement of any year thereof a subsequent undertaking, the sum specified in paragraph 1 in relation to the undertaking shall be reduced to the extent that the amount mentioned in paragraph 3 relates to the same year.
3 The amount referred to in paragraph 2 of this Part is the amount of grant payable in respect of stock disposal, including any amount already paid, under these Regulations to the applicant, or to any person who together with the applicant is a farmer for the purposes of IACS, in respect of any prior undertaking.
4 For the purposes of this Part an undertaking is a subsequent undertaking if it is a subsequent undertaking for the purposes of regulation 8 and an undertaking is a prior undertaking if it is a prior undertaking for those purposes.
5 Where an undertaking is deemed to have, for the purposes of regulation 8, a date of commencement earlier than another undertaking it shall be so deemed also for the purposes of this Part.
6 Where regulation 8(8) applies, the Secretary of State shall review the sum specified in paragraph 1, or such lower sum as is determined after application of the provisions of this Part, including the prior application of this paragraph, in relation to an undertaking and shall reduce such sum to the extent that payment of it would result in the applicant or any person mentioned in paragraph 3 receiving grant under these Regulations which he would not have received had the applicant been the applicant at the commencement of the year or been established as being a person who together with others was a farmer for the purposes of IACS at that date.
7 The provisions of this Part shall not apply to an undertaking which is in substitution for an undertaking under the Heather Moorland (Livestock Extensification) Regulations 1995.

SCHEDULE 5 INTERPRETATION OF SCHEDULES
Regulation 2
In Schedules 1 to 4–
“agricultural land” means land used for agriculture and includes land which is set-aside land or is a habitat site as defined in regulation 2(1) of the Habitats (Scotland) Regulations 1994;
“amenity woodland” means small-scale woodland planted and maintained primarily for improvement of the landscape;
“beetlebank” means a grass sward created in the margin of arable fields, or strips through fields taken out of arable production in order to allow insects to over-winter;
“coastal heath” means land bordering the sea containing moorland or species-rich grassland affected by salt spray and exposure;
“conservation audit” means a report of the survey of a farm to identify the extent and location of habitats and features of conservation interest and the opportunities for enhancement;
“conservation headland” means a strip of land at least 6 metres wide which borders an arable field and which is left untreated by herbicide or insecticide applications to allow the natural development of varied flora;
“cropped machair” means sandy plains formed when calcareous shell-sand has been blown over glacial deposits and peat and which has been subject to cultivation within the last 10 years;
“designed landscape” means garden or a landscape, including parkland policy grassland, which is included in a record, recognised by the Secretary of State, of existing historic gardens and designed landscapes;
“ewe” means a female sheep which is at least one year old on the 1st of January preceding the date of the application for grant;
“extensive cropping” means a specified arable rotation system without the use of pesticides (except to control statutory weeds) and restricted use of fertilisers in order to promote habitats for birds, in particular to allow nesting to be completed;
“extended hedge creation” means management of new or existing hedges by fencing off a strip 3 metres from the centre line of the hedge and taking the necessary land out of agricultural production in order to provide more diverse flora and an improved habitat for invertebrates, birds and small mammals;
“floodplains” means eligible land adjacent to a watercourse which is subject to periodic flooding in times of high precipitation;
“heather moorland” means areas of land in which heather (calluna vulgaris) or other dwarf shrubs including bell heather (erica cinera), cross-leaved heath (erica tetralix), crowberry (empetrum nigrum), blaeberry (vaccinium myrtillus) or bog myrtle (myrica gale), occur throughout the vegetation;
“hedge” means a line of shrubs or trees which delineate field boundaries;
“improved grassland” means either land used for grazing where over one third of the sward comprises, singly or in mixture, ryegrass, cocksfoot or timothy, or land that has been improved by management practices such as liming and top dressing, where there is not a significant presence of sensitive plant species indicative of native unimproved grassland;
“inbye land” means that part of a farm not comprising the hill and rough grazings, the bulk of which is used for arable and grassland production;
“Less Favoured Area” means land which is disadvantaged land or severely disadvantaged land as defined in the Hill Livestock (Compensatory Allowances) Regulations 1996;
“machair” means sandy plains formed when calcareous shell-sand has been blown over glacial deposits and peat but does not include cropped machair;
“moorland” means land with predominantly semi-natural upland vegetation or comprising predominantly rock outcrops and semi-natural upland vegetation used primarily for rough grazing;
“muirburn” has the same meaning as in section 39(1)(f) of the Hill Farming Act 1946;
“native woodland” means self-seeded woodland of native species or woodland derived from an originally naturally occurring woodland;
“over-grazing” means grazing land with livestock in such numbers as adversely to affect the growth, quality or species composition of vegetation on that land to a significant degree;
“parkland policy grassland” means permanent pasture forming part of a designed landscape including individual or groups of amenity trees;
“pesticides” means herbicides, insecticides or fungicides;
“poaching” means the trampling or treading of the ground surface by livestock resulting in permanent damage to the vegetation;
“reverted improved grassland” means land, previously improved by agricultural management operations which, from an agricultural viewpoint, has degenerated and is now showing significant presence of plant species indicative of unimproved grassland;
“rough grazings” means land containing semi-natural vegetation including heathland, heather moorland, bog and rough grassland used or suitable for use as grazing;
“scrub” means low growing woody vegetation of small trees and shrubs including linear scrub along field margins;
“semi-natural woodland” means native woodland which has been modified by human activity;
“species-rich grassland” means inbye land used for grazing or mowing which is not normally treated with mineral fertiliser or lime and does not constitute rough grazing, but which is floristically diverse;
“statutory weeds” means spear thistle (cirsium vulgare), creeping or field thistle (cirsium arvense), curled dock (rumex crispus), broad-leaved dock (rumex obtusifolius) and ragwort (senecio jacobaea);
“unimproved grassland” means inbye land used for grazing or mowing which is not normally treated with mineral fertiliser or lime and does not constitute rough grazing;
“vernacular buildings” means traditional, agricultural buildings which are not in use or intended for use as dwellinghouses or for permanent or temporary accommodation.
“water margin” means an area of inbye land bordering an area of still or flowing water;
“wetland” means inbye ground which is normally saturated with water for a significant proportion of the year;
S.I.1996/1500 as amended by S.I.1997/33.
1946 c. 73.