Following requests from the NFU, Defra has issued an information note regarding the transitional arrangements for existing agri-environment agreements which continue into the next Rural Development Programme.
In the information note, Defra has tried to clarify
- the legal requirements under which agreements operate following amendments to the implementing rules (Commission Regulation (EC) No 1974/2006) were agreed on 15 June 2011 and published on 15 July as Commission Implementing Regulation (EU) 679/2011
- the potential implications of CAP greening or other possible changes which may yet emerge from the EU Commission.
Headline messages regarding the legal requirements for agreements and hence the need for any revision clause are as follows:
- Only agreements starting on or after 1 January 2012 will be required to include a revision clause. The revision clause means that they can be adjusted as necessary to meet any new requirements in the next programme. Agreement holders will have the choice to accept the revisions or withdraw from the agreement without penalty i.e. without recovery of payments;
- The requirement for any revision will only apply to 5-7 year agreements i.e. ELS/OELS/Uplands ELS;
- HLS agreements, which are ten years or more, will not be affected by these rule changes;
- The vast majority of ES agreements will therefore be able to continue into the next programme without adjustment, other than to bring them into line with any changes to the legislative baseline (e.g. cross compliance), as already provided for in agreements;
- Pre- 2007 agreements (i.e. under the previous Programme) can continue without adjustment until the end of their term. CSS and ESA agreements are therefore unaffected.
Whilst this will offer some reassurance to members, the uncertainty over the impact of CAP and in particular CAP greening remains an ongoing concern to the NFU. On this point Defra simply state that they do not as yet know “what new or changed requirements will be in the next Rural Development programme, particularly in respect of potential changes arising from the current CAP greening discussions. These changes may require agreements to be adjusted. And we do not know the required timescale for changing agreements. Furthermore, CAP discussions are at too early a stage to be able to say whether changes will be made to existing cross compliance requirements. Where these changes affect the current payment baseline there is a potential impact on what we can pay for under ES, which could involve changes to the scheme and agreements”.
To view the full Defra information note including some questions and answers you can download the document to the right of this page.
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