The first years payments will be based on 90% of the historic receipts (based on the payments received in 2000, 2001 and 2002) for the individual farm together with 10% regional flat rate payment.

Over the period of 8 years there will be a transition from predominantly individual farm basis to regional flat rate basis.

Year.... 2005 2006 2007 2008 2009 2010 2011 2012
Historic 90% 85% 70% 55% 40% 25% 10% 0%
Regional 10% 15% 30% 45% 60% 75% 90% 100%

Eligible hectarage for the flat rate payment is the area of the farm taken up by arable land and permanent pasture with the exception of any area under permanent crops, forests or used for non-agricultural activities. Farmers will be asked to declare this eligible hectarage early in 2005.

Of particular concern to farmers who have SDA in England is that the flat rate basis for payment is based on two regions. These are Severely Disadvantaged Land and all other land. The suggested estimates for these two different payment rates show a huge difference. The fact that there is a large amount of very productive improved SDA which is carrying a lot of stock and therefore has a large historic element appears to have been overlooked. It is already apparent that there are a large number of producers who feel well aggrieved by DEFRA’s announcement.

Wales has opted under devolved powers to go for payments on an historic basis. This on the face of it would appear to be the more straightforward way.

How holdings with land on either side of the border will be treated is yet to be decided however we expect an announcement shortly.

McCartneys are monitoring the development of the S.F.P. scheme closely and will be pleased to advise existing and new clients in relation to any aspect including applications to the National Reserve.


G R Owens FRICS FAAV Tel: 01547 528621
McCartneys, Knighton E-mail: knighton@mccartneys.co.uk