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Mark Mitchell
Divisional Director, Perth Office

Not so very long ago the Single Farm Payment Scheme was the new kid on the block but having settled in, at least in Scotland, we are now seeing alterations to other familiar payment schemes. The most obvious and high impacting change is that from 15 October 2007 SEERAD (Scottish Executive Environment and Rural Affairs Dept) will take responsibility for paying woodland grants from Forestry Commission Scotland (FCS). SEERAD however operates in a different manner to FCS with payments linked to Business Reference no’s, Farm Code no’s and Field Identification no’s. SEERAD has since 2005 taken the view that any business claiming grants from the Executive should register all their land on IACS forms. They acknowledge that not everyone was aware that woodland should be included on IACS returns and the penalties for under declaration of land only applied to agricultural land and not woodland. From 2007 SEERAD expect all woodland to be registered, including amenity woodland. While many woodland owners are probably aware of the change of payment authority they may not be aware that in order to receive grants they must register their woodland before 15 October 2007. Woodland that currently receives any ongoing grant but hasn’t been registered with SEERAD and given a field  identification no, or a business without a

business reference number or farm code number, will not receive an annual payment in 2007.

Registration of land or woodland is relatively simple and requires a ‘Land and Business Change Form 2007’ (LBCF 2007) to be completed and returned to the local SEERAD office together with a plan identifying the areas. SEERAD map this information, award field identification no’s, and where necessary holding no’s and business reference no’s, which subsequently enables payments to be made to the woodland owner.

The Land Management Contract Scheme (LMC) was rolled out in 2005 at which point the Menu Scheme was made available to farmers and landowners. While the pot from which individual applicants can obtain funding is relatively small the scheme has proved popular. Not being on a tender basis and therefore being assured of receiving payments provided one complies with the obligations entered into is a great incentive to join.

We have waited with baited breath for the full LMC to be rolled out, which was due to take place from January 2007, however SEERAD has not yet submitted the Scottish Rural Development Programme (SRDP) to EU ministers for approval. The recent Scottish Parliament elections will hold up the submission of the SRDP, which could conceivably lead to the draft SRDP being re-visited and amended. The EU has six months in which to approve the SRDP, but I understand that SEERAD is planning to roll out the full LMC in autumn 2007. The scheme will almost inevitably include all existing EU payments such as the Organic Aid Scheme, Rural Stewardship Scheme and Environmental Sensitive Areas Scheme. Obviously we are not aware what will actually be placed before us but it is likely that the LMC Scheme will be on a tender basis.

This review is prepared for general information only. Whilst care is taken in it’s compilation, neither Bell Ingram Limited nor it’s employees or officers accept any liability for the contents or their application to any individual circumstances. Readers are strongly recommended to contact Bell Ingram to obtain advice appropriate to their needs.

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