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Single Payment Scheme - Review of Agreements Important for Compliance

Following the introduction of the ‘dual use’ rule for Welsh Single Payment Scheme claimants, Powells Chartered Surveyors urge farming businesses to have the appropriate written agreements in place to prevent financial penalties.

David Powell, Managing Director of Powells Chartered Surveyors, explains “Under the Single Farm Payment Scheme, separate parties have previously been permitted to claim Agri-environment Scheme payments and SPS payments on the same parcel of land”.  However, the introduction of Glastir, the new Agri Environment Scheme for Wales in 2012, coincides with the implementation of the ‘dual use’ regulations by the Welsh Assembly. 

Only the Single Farm Payment claimant will be entitled to claim any future Rural Development Schemes such as Glastir.  The situation in England is currently under review with the Rural Payments Agency currently writing to scheme claimants to request information.

It is important that claimants of SPS who also let land out seasonally, such as for third party grazing, ensure that they have robust licence agreements with the appropriate provisions in place to prevent a breach of the dual use rule, should they be inspected by the Welsh Assembly Government. 

David comments “With this in mind, it may be necessary to review existing Tenancy Agreements and Grazing Licences to ensure that each party who wishes to claim the Single Payment Scheme and Glastir can demonstrate that they have the land ‘at their disposal’ and ‘management control’ in order to meet requirements of both schemes”.  David also warns, however, in making changes to existing agreements or putting new agreements in place, it is important that land owners and farmers are aware of tenure, financial and tax implications that may arise. 

For further information on the latest changes to Single Payment Scheme and the forthcoming CAP Reform, please contact David Powell at Powells Chartered Surveyors - 01600 714140 or email david.powell@powellsrural.co.uk

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Telephone: 01600 714140
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