The Direct Payments to Farmers (Reductions) (England) Regulations 2023

This Statutory Instrument has been made to correct an error in S.I. 2022/407 and is being issued free of charge to all known recipients of that Statutory Instrument.

Statutory Instruments

2023 No. 456

Agriculture, England

The Direct Payments to Farmers (Reductions) (England) Regulations 2023

Made

20th April 2023

Coming into force in accordance with regulation 1(2)

The Secretary of State, in exercise of the powers conferred by sections 11(1) and 50(3) of the Agriculture Act 2020(1), makes the following Regulations.

A draft of this instrument was laid before, and approved by a resolution of, each House of Parliament in accordance with sections 11(5) and 50(6)(a) of the Agriculture Act 2020.

PART 1 E+W Introduction

Citation, commencement, extent and application E+W

1.—(1) These Regulations may be cited as the Direct Payments to Farmers (Reductions) (England) Regulations 2023.

(2) These Regulations come into force—

(a) as regards Parts 1 and 2, immediately before the day which falls 21 days after the day on which they are made;

(b) otherwise, on the day which falls 21 days after the day on which they are made.

(3) These Regulations extend to England and Wales but apply in relation to England only.

Commencement Information

I1 Reg. 1 in force at 10.5.2023, see reg. 1(2)(a)

PART 2 E+W Amendment to Article 11A of Regulation (EU) No 1307/2013

Amendment of Regulation (EU) No 1307/2013 E+W

2.  In Regulation (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy(2), in Article 11A (progressive reductions of direct payments), in the table, in the third row (amounts above £50,000.00 and more than £150,000.00) of the first column (portion of direct payment), before “more” insert “no”.

Commencement Information

I2 Reg. 2 in force at 10.5.2023, see reg. 1(2)(a)

PART 3 E+W Substitution of Article 11A of Regulation (EU) No 1307/2013 and saving provision

Amendment of Regulation (EU) No 1307/2013 E+W

3.  In Regulation (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy, for Article 11A substitute—

“Article 11A E+W Progressive reductions of direct payments

The Secretary of State must reduce the amount of direct payments to be granted for the claim year 2023 to a farmer under Title III by the percentage specified in column 2 of the table below applied to the portion of the direct payment specified in column 1 of that table.

Portion of direct payment	Claim year 2023: reduction percentage to be applied to the corresponding portion of the direct payment
£30,000.00 or less	35%
Amounts above £30,000.00 and no more than £50,000.00	40%
Amounts above £50,000.00 and no more than £150,000.00	50%
Amounts above £150,000.00	55%”.

Commencement Information

I3 Reg. 3 in force at 11.5.2023, see reg. 1(2)(b)

Saving E+W

4.  Notwithstanding the substitution, by regulation 3, of Article 11A of Regulation (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy, that Article, as substituted by regulation 2 of the Direct Payments to Farmers (Reductions) (England) Regulations 2022(3) and as amended by regulation 2 of these Regulations, continues to have effect for the purposes of determining any rights and liabilities to and in respect of direct payments for the claim year 2022.

Commencement Information

I4 Reg. 4 in force at 11.5.2023, see reg. 1(2)(b)

Mark Spencer

Minister of State

Department for Environment, Food and Rural Affairs

20th April 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend Regulation (EU) No 1307/2013 (EUR 2013/1307) (“the Direct Payments Regulation”) to make provision for and in connection with the phasing out of direct payments under the basic payment scheme in relation to England during the agricultural transition period.

Regulation 2 makes a minor amendment to Article 11A of the Direct Payments Regulation to correct an error in regulation 2 of the Direct Payments to Farmers (Reductions) (England) Regulations 2022 (S.I. 2022/407), which takes effect before regulation 3 comes into force.

Regulation 3 substitutes Article 11A of the Direct Payments Regulation in order to give effect to percentage reductions that are to be applied to direct payments granted to a farmer under the basic payment scheme for the claim year 2023. Article 11A was inserted into the Direct Payments Regulation by regulation 3 of the Direct Payments to Farmers (Reductions and Simplifications) (England) (Amendment) Regulations 2021 (S.I. 2021/407) to give effect to the first of the progressive reductions that applied to the claim year 2021. Article 11A of the Direct Payments Regulation was substituted by regulation 2 of S.I. 2022/407 which gave effect to further progressive reductions that applied to the claim year 2022.

Regulation 4 saves the effect of Article 11A of the Direct Payments Regulation, as substituted by regulation 2 of S.I. 2022/407 and as amended by regulation 2 of this instrument, for the purposes of determining any outstanding rights and liabilities to and in respect of direct payments for the claim year 2022.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

(1)

2020 c. 21.

(2)

EUR 2013/1307. Relevant amending instruments are S.I. 2020/91 and 1513, S.I. 2021/407 and S.I. 2022/407. EUR 2013/1307 was incorporated into domestic law by section 1 of the Direct Payments to Farmers (Legislative Continuity) Act 2020 (c. 2). Article 11A was inserted by regulation 3 of S.I. 2021/407 and was substituted by regulation 2 of S.I. 2022/407.

(3)

S.I. 2022/407.