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The Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020

Type Statutory-Instrument

Publication 2020-01-30

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

articles Not indexed

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 3(1), (7) and (9) of the Direct Payments to Farmers (Legislative Continuity) Act 2020 , and in accordance with paragraph 1(2) of Schedule 5 to the European Union (Withdrawal Agreement) Act 2020 .

PART 1 — Introductory

Citation, commencement, application and extent

1

(1) These Regulations may be cited as the Financing, Management and Monitoring of Direct Payments to Farmers (Amendment) Regulations 2020.

(2) These Regulations come into force on exit day and paragraph 1(1) of Schedule 5 to the European Union (Withdrawal Agreement) Act 2020 does not apply.

(3) Subject to paragraph 4, these Regulations extend to the United Kingdom.

(4) Regulation 16 extends to England and Wales and applies in England only.

PART 2 — Amendment of Regulation (EU) 1306/2013

Amendment of Regulation (EU) 1306/2013

2

Regulation (EU) No 1306/2013 of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy in so far as it relates to the Common Agricultural Policy (“CAP”) direct payment schemes is amended in accordance with regulations 3 to 11.

Amendment of Title 1 (Scope and Definitions)

3

(1) In Article 1—

(a) in point (a), for the words from “under” to the end substitute “ for direct payments ”;

(b) in point (c), for “Member States” substitute “ relevant authority ”;

(2) In Article 2—

(a) in paragraph 1—

(i) for point (f), substitute—

(f) “sectoral agricultural legislation” means, insofar as it relates to direct payments: (i) any applicable acts adopted within the framework of the common agricultural policy on the basis of Article 43 TFEU; (ii) any delegated or implementing acts adopted on the basis of acts referred to in point (i); (iii) regulations made in the exercise of powers under any act referred to in point (i);

(ii) for point (g), substitute—

(g) “irregularity” means any infringement of a provision of sectoral agricultural legislation resulting from an act or omission by an economic operator, where the infringement results, or would result, in a reduction or loss of public revenue or an unjustified item of expenditure;

(iii) after point (g), insert—

(h) “constituent nation” means England, Wales, Scotland or Northern Ireland, as the case may be; (i) “direct payment support” means financial support granted under any of the support schemes listed in Annex I to Regulation (EU) No 1307/2013; (j) “economic operator” means any person or public entity or group of such persons or entities, including any temporary association of undertakings, which offers the execution of works or a work, the supply of products or the provision of services on the market; (k) “relevant authority” means: (i) in England, the Secretary of State; (ii) in Wales, the Welsh Ministers; (iii) in Scotland, the Scottish Ministers; (iv) in Northern Ireland, the Department of Agriculture, Environment and Rural Affairs; (l) “relevant accounting officer” means: (i) in England, the accounting officer for the Department for Environment, Food and Rural Affairs; (ii) in Wales, the Permanent Secretary of the Welsh Government; (iii) in Scotland, the Permanent Secretary of the Scottish Government; (iv) in Northern Ireland, the Permanent Secretary of the Department of Agriculture, Environment and Rural Affairs;”. (m) “appropriate authority” means: (i) subject to point (ii), the relevant authority for the constituent nation in which the regulations apply; (ii) the Secretary of State: (aa) in relation to Scotland, if consent is given by the Scottish Ministers; (bb) in relation to Northern Ireland, if consent is given by the Department of Agriculture, Environment and Rural Affairs.

(iv) in paragraph 2, for “the CAP” substitute “ expenditure on direct payments and for the purposes of sectoral agricultural legislation ”.

Amendment of Title 2 (General Provisions on Agricultural Funds)

4

(1) Omit Articles 3, 4 and 6.

(2) For Article 7 substitute—

(1) Paying agencies shall be departments or bodies designated by the relevant authority, which have an administrative organisation and a system of internal control that provide sufficient guarantees that payments are legal and regular, and properly accounted for. (2) The number of paying agencies shall be restricted to no more than one per constituent nation. (3) Paying agencies shall be responsible for the management and control of expenditure on direct payments. With the exception of payment, the carrying out of those tasks may be delegated. (4) The relevant authorities shall have joint responsibility for the following tasks: (a) to take or coordinate, as the case may be, actions with a view to resolving deficiencies of a common nature; (b) to promote and, where possible, ensure harmonised application of sectoral agricultural legislation.

(3) Omit Articles 8 to 10.

(4) In Article 11, omit “for in Union law”.

Amendment of Title 3 (Farm Advisory System)

5

(1) For Articles 12 to 15 substitute—

The relevant authority must have in place a system for advising beneficiaries on land management and farm management (“farm advisory system”). That farm advisory system shall be operated by designated public bodies and/or selected private bodies. That system shall cover the agricultural practices beneficial for the climate and the environment laid down in Chapter 3 of Title III of Regulation (EU) No 1307/2013 and the maintenance of the agricultural area as referred to in point (c) of Article 4(1) of that Regulation.

Amendment of Title 4 (Financial Management)

6

(1) In the heading of Title 4, omit “of the Funds”.

(2) For the heading of Chapter 1 substitute— “ Direct payment support ”.

(3) Omit Articles 16 to 19, and 21 to 25.

(4) For Article 26 substitute—

(1) Where the relevant authority has an obligation to reimburse in respect of the 2019 adjustment rate, as provided for in Article 26(5) as it had effect immediately before exit day, the reimbursement must only be paid to relevant farmers. (2) For the purposes of paragraph 1, a relevant farmer is a person who would be liable to be subject to an adjustment rate under Article 26 as it had effect immediately before exit day.

(5) Omit Articles 27 to 29.

(6) Omit Articles 39 to 45.

(7) In Article 46—

(a) omit paragraphs 1 to 4;

(b) for paragraph 5 substitute—

(5) The appropriate authority may make regulations laying down specific conditions applying to the information to be booked in the accounts kept by paying agencies.

(8) Omit Articles 47 and 48.

(9) In Article 49—

(a) in the first paragraph—

(i) omit “accredited”;

(ii) for the words from “Union” to the end substitute “ the law applying in the constituent nation ”;

(b) in the second paragraph omit “accredited”.

(10) In Article 50—

(a) omit paragraph 1;

(b) for paragraph 2 substitute—

(2) The appropriate authority may make regulations laying down rules on the conditions on which the supporting documents referred to in Article 49 are to be kept, including their form and the time period of their storage.

(11) Omit Articles 51 to 53.

(12) In Article 54—

(a) in paragraph 1 for “Member States” substitute “ the relevant authority ”;

(b) omit paragraph 2;

(i) in the first subparagraph, for “Member States” substitute “ the relevant authority ”;

(ii) in point (a)(ii)—

(aa) for “Member State” substitute “ relevant authority ”;

(bb) for “its national law” substitute “ the law applying in the constituent nation ”;

(iii) in point (b), for “national law” substitute “ the law applying in the constituent nation ”;

(iv) omit the last subparagraph;

(d) omit paragraphs 4 and 5.

(13) For Article 55 substitute—

Sums recovered following the occurrence of irregularity or negligence and the interest thereon must be made over to the paying agency and booked by it as revenue collected in connection with direct payment support.

(14) For Article 57 substitute—

In order to ensure correct and efficient application of the provisions relating to the conditions for the recovery of undue payments and interest thereon, the appropriate authority may make regulations setting out procedures for such recovery as set out in this Section.

Amendment of Title 5 (Control systems and penalties)

7

(1) For the heading of Article 58 substitute— “ Financial Management ”.

(2) In Article 58—

(a) in paragraph 1—

(i) for the words from “Member States” to “Union”, in the first place it occurs, substitute “ The relevant authority must take all measures necessary to ensure proper management of public money ”;

(ii) in point (a), for “the Funds” substitute “ direct payment support ”;

(iii) for point (d) substitute—

(d) enforce penalties through legal proceedings, as necessary;

(b) in paragraph 2—

(i) for “Member States” substitute “ The relevant authority ”;

(ii) for “Union”, in the first place it occurs, substitute “ direct payment ”;

(iii) for the words from “minimising” to “Union” substitute “ ensuring proper management of public money ”;

(3) Any conditions established by the relevant authority to supplement conditions for receiving direct payment support contained in retained direct EU legislation shall be verifiable.

(d) omit paragraph 4.

(3) In Article 59—

(a) in paragraph 1, for “Member States” substitute “ relevant authority ”;

(b) for paragraph 4 substitute

(4) Where appropriate, all on-the-spot checks provided for in sectoral agricultural legislation shall be carried out at the same time.

(d) in paragraph 6—

(i) omit “to be”;

(ii) omit “by the Commission”.

(4) In Article 62—

(a) In the heading, remove “Commission”;

(b) in paragraph 2—

(i) for “Commission shall adopt implementing acts” substitute “ appropriate authority may make regulations ”;

(ii) in point (a)—

(aa) for “Member States” substitute “ relevant authority ”;

(bb) omit the words from “resulting” to the end;

(iii) for point (d) substitute—

(d) the authorities responsible for performing compliance checks and the content and frequency of those checks;

(iv) omit point (f);

(v) omit the second subparagraph.

(5) In Article 63—

(a) In paragraph 1, omit the second subparagraph;

(b) in paragraph 2—

(i) for “Member States” substitute “ the relevant authority ”;

(ii) omit “Article 64 and”;

(c) in paragraph 4, for the words from “Commission” to “Article 115” substitute “ appropriate authority may make regulations ”;

(d) in paragraph 5—

(i) for “The Commission shall adopt implementing acts” substitute “ The appropriate authority may make regulations ”;

(ii) omit the second subparagraph.

(6) In Article 67—

(a) in paragraph 1, for “Each Member State shall set up and” substitute “ The relevant authority must ”;

(b) for paragraph 2 substitute—

(2) The integrated system shall apply to the support schemes listed in Annex I of Regulation (EU) No 1307/2013.

(i) in point (a), for “Member States may lay” substitute “ nothing in this Regulation prevents the relevant authority from laying ”;

(ii) in point (b)—

(aa) omit “the single area payment scheme and”;

(bb) for “Chapters 1 and” substitute “ Chapter ”;

(cc) omit “; the payment for areas with natural constraints referred to in Chapter 4 of Title III of Regulation (EU) No 1307/2013”;

(dd) omit the words from “; the crop” to the end.

(7) In Article 68, omit paragraphs 3 and 4.

(8) In Article 69—

(a) in paragraph 1—

(i) in the second subparagraph—

(aa) for “Member State” substitute “ constituent nation ”;

(bb) for the last sentence substitute “ The database shall allow direct and immediate access to the data relating to at least the previous four consecutive years and for data related to “permanent grassland and permanent pasture” as defined in point (h) of Article 4(1) of Regulation (EU) No 1307/2013, relating to at least the previous five consecutive calendar years. ”

(ii) omit the third subparagraph;

(b) for paragraph 2, substitute—

(2) A decentralised computerised database may be set up in each constituent nation on condition that these, and the administrative procedures for recording and accessing data must be designed to be homogenous throughout the United Kingdom and are compatible with one another to allow for cross checks.

(9) In Article 70—

(a) in paragraph 1—

(i) in the first subparagraph, omit the last sentence;

(ii) in the second subparagraph, for “Member States” substitute “ the relevant authority ”;

(b) in paragraph 2, for “Member States” substitute “ The relevant authority ”.

(10) In Article 71(2), for “Member State” substitute “ constituent nation ”.

(11) In Article 72—

(a) for paragraph 1 substitute—

(1) Each year, a beneficiary of direct payment support must submit an application, indicating, where applicable: (a) all the agricultural parcels on the holding, as well as the non-agricultural area for which support referred to in Article 67(2) is claimed; (b) the payment entitlements declared for activation; (c) any other information provided for in this Regulation or the relevant sectoral agricultural legislation or by the relevant authority concerned. The relevant authority must determine the minimum size of agricultural parcels in respect of which an application may be made. However, the minimum size shall not exceed 0,3 .

(b) in paragraph 2—

(i) for “Member States” substitute “ the relevant authority ”;

(ii) omit point (b);

(i) in the first subparagraph, for “Member States” substitute “ The relevant authority ”;

(ii) in the second subparagraph, for “A Member State” substitute “ The relevant authority ”;

(iii) omit the third subparagraph;

(d) in paragraph 4, for “A Member State” substitute “ The relevant authority ”.

(e) in paragraph 5—

(i) for the words from the beginning to “1182/71, the” substitute “ The ”;

(ii) for the words “Commission” to “Article 115” substitute “ appropriate authority may make regulations ”.

(12) In Article 74—

(a) in paragraph 1—

(i) for “Member States” substitute “ the relevant authority ”;

(ii) for “them” substitute “ the relevant authority ”;

(b) in paragraph 2, for “Member States” substitute “ the relevant authority ”;

(13) In Article 75—

(a) in paragraph 1—

(i) for “Member States” substitute “ the relevant authority ”;

(ii) omit “of up to 50%”;

(b) in paragraph 2, for “Member States” substitute “ relevant authority ”;

(i) for “Commission shall adopt implementing acts” substitute “ appropriate authority may make regulations ”;

(ii) for “implementing acts”, in the second place it occurs, substitute “ regulations ”;

(iii) omit the last sentence.

(14) In Article 76—

(a) in paragraph 1—

(i) for “protects the financial interests of the Union” substitute “ ensures proper management of public money ”;

(ii) for the words from “Commission” to “Article 115” substitute “ appropriate authority may make regulations ”;

(iii) for point (a) substitute—

(a) specific definitions needed to ensure a harmonised implementation of the integrated system;

(iv) in point (b), omit “by the Member States”;

(b) in paragraph 2—

(i) for the words from “Commission” to “Article 115” substitute “ appropriate authority may make regulations ”;

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