Explanatory Note
(This note is not part of the Regulations)
These Regulations make provision for the implementation in England and, for certain purposes, the United Kingdom, of the European Regulations (as defined in regulation 2(1)) relating to the administration of the common agricultural policy (“the CAP”) of the European Union. Except as otherwise stated, these Regulations apply in England only. Any reference in this Note to a Regulation is a reference to that EU Regulation as defined in regulation 2(1).
Part 2 sets out provisions on control and enforcement in relation to direct payments to farmers and rural development payments. Regulations 3 and 4 extend to the United Kingdom. Regulation 3 specifies which competent authority may determine a single application for direct payments and regulation 4 permits competent authorities to enter into agency arrangements with each other. Regulation 5 specifies the final date for submission of a single application, aid application or payment claim. Regulation 6 prescribes the minimum size of qualifying agricultural parcel. Regulation 7 provides that a repayment due from a beneficiary is recoverable as a debt and regulation 8 provides for the rate of interest on that repayment.
Regulation 9(1), which extends to the United Kingdom, enables set-off between sums due to competent authorities and direct payments due to a farmer. Regulation 9(2) enables set-off between sums due to and from a beneficiary. Regulations 10 and 11 confer powers of entry and inspection for enforcement purposes. Regulation 13 provides for the period in which the transferee of a holding must inform the Secretary of State of the transfer and request payment. Regulation 14 confers on the Secretary of State and others the power to determine that a rural development beneficiary has breached the terms of a commitment or other requirement. Regulation 15 confers powers of recovery and other powers on the Secretary of State and others where there has been such a determination. Regulation 16 creates offences and penalties.
Part 3 implements Articles 91 to 101 (cross-compliance) of the Horizontal Regulation, and associated Regulations, and sets out further requirements on beneficiaries relating to the maintenance of standards for good agricultural and environmental condition (Schedule 2). Schedule 3 lists exceptions from those requirements. These provisions replace the Agriculture (Cross compliance) (No. 2) Regulations (S.I. 2009/3365) which are revoked (Schedule 5).
Part 4, which extends to the United Kingdom, implements Articles 79 to 88 of the Horizontal Regulation and relates to the scrutiny of commercial documents and transactions financed by the European Agricultural Guarantee Fund (“EAGF”), excluding payments granted directly to farmers under the Direct Payments Regulation. These provisions replace the Common Agricultural Policy (Protection of Community Arrangements) Regulations 1992 (S.I. 1992/314) which are revoked (Schedule 5). Regulations 21 and 22 confer powers of entry and inspection for enforcement purposes. Regulation 24 further provides for the powers of authorised persons and the competent authority in relation to scrutiny. Regulation 25 creates offences and penalties. Regulation 28 provides for a due diligence defence. Regulation 29 confers a power on the competent authority to recover any money paid by or payable to the authority in relation to a relevant transaction.
Part 5 provides for appeals to the Secretary of State in respect of decisions made under the European Regulations in relation to the EAGF (“Pillar 1 decisions”) and European Agricultural Fund for Rural Development (“Pillar 2 decisions”) and determinations under regulation 14. Regulation 32(4) confers a power on the Secretary of State to charge an appeal fee of £100 if there is no sum in dispute or it is less than £2,000, £250 if it is £2,000 or more up to £10,000, or £450 if it exceeds £10,000 (regulation 32(5) and Schedule 4). The £250 and £450 fees are new in relation to Pillar 1 decisions. All the fees are new in relation to Pillar 2 decisions.
Part 6 provides for the service of notices (regulation 33), the calculation of the exchange rate for amounts of aid expressed in euro (regulation 34, which extends to the United Kingdom) revocations and saving provisions (regulation 35 and Schedule 5) and the review of these Regulations (regulation 36).
An evidence summary on the implementation of changes to cross-compliance in England was published on 16th June 2014. It is available on the following website, www.gov.uk/government/cross-compliance-evidence-summary.pdf, or from the Common Agricultural Policy direct payments team at the Department for Environment, Food and Rural Affairs, Nobel House, 17 Smith Square, London SW1P 3JR. The administration and enforcement measures in this instrument are, for the most part, a continuation of existing measures which will not have any new or additional impact on businesses, charities or voluntary sector. An impact assessment has therefore not been prepared.