James McIntyre of Fisher German LLP in Stafford reports that the RPA are likely to start posting the 2008 SP5 application forms to farmers towards the end of February, which is one month earlier than in previous years.
The application forms have been altered more significantly than in 2006 or 2007. Section E which listed entitlements held has been deleted and farmers must instead check entitlements held via their Entitlements Statement. If surplus entitlements are held, then a separate SP11 may need to be completed because the RPA will activate the higher value entitlements first. Entitlements must be claimed at least every third year to avoid confiscation and use by dates therefore must be carefully checked.
Another change effective from the 2008 scheme year is that all farmers will be paid by BACS. Currently only 40,000 farmers are paid this way and over 60,000 must complete a form SP12 with their application or payments will not be received.
It has been widely published that the ten-month rule has been abolished in favour of a single date - 15 May 2008. The SP5 forms were printed before this decision was made and it is vital to avoid delays that the ten-month rule start and end dates, together with ‘A’ or ‘B’ in the appropriate columns, are entered. Farmers should be aware that they will now be liable for cross compliance throughout the year not just in their ten-month period.
For 2008 there is a 0% rate for compulsory set aside; however, there still remains a trap for the unwary. Set aside entitlements must still be matched against eligible land (arable or temporary grass). Farmers with temporary grass must be particularly careful because land in continuous grass becomes permanent pasture after five years and cannot be used for set aside in future, even if arable crops are grown in between.
Finally, FVP authorisations to entitlements have been abolished which means farmers can now use ordinary entitlements to claim on land growing fruit, vegetables and potatoes. Farmers should also note that many of the land use codes have changed.
For further information, please contact James McIntyre on 01785 220044 or visit www.fishergerman.co.uk.