The Agricultural Holdings (Units of Production) (Wales) (No.2) Order 2001

Made: 29th August 2001

Coming into force: 31st August 2001

In exercise of the powers conferred by paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986[^f00001], which are now vested in it, the National Assembly for Wales[^f00002] hereby makes the following Order:-

Title, commencement and interpretation

1

• (1) This Order may be cited as the Agricultural Holdings (Units of Production) (Wales)(No.2) Order 2001 and shall come into force on 31st August 2001.

• (2) Any reference in this Order to “the Schedule” is a reference to the Schedule to this Order.

• (3) Any reference in this Order to a Community instrument is a reference to that instrument and any amendment of such instrument in force on the date this Order is made.

• (4) In this Order:

• “Council Regulation 2467/98” (“Rheoliad 2467/98 y Cyngor”) means Council Regulation (EC) No. 2467/98 on the common organisation of the market in sheepmeat and goatmeat[^f00003];

• “Council Regulation 1251/99” (“Rheoliad 1251/99 y Cyngor”) means Council Regulation (EC) No. 1251/99 establishing a support system for producers of certain arable crops[^f00004];

• “Council Regulation 1254/99” (“Rheoliad 1254/99 y Cyngor”) means Council Regulation (EC) No. 1254/99 on the common organisation of the market in beef and veal[^f00005].

Assessment of productive capacity of land

2

• (1) Paragraphs (2) and (3) of this article have effect for the purpose of the assessment of the productive capacity of a unit of agricultural land situated in Wales, in order to determine whether that unit is a commercial unit of agricultural land within the meaning of sub-paragraph (1) of paragraph 3 of Schedule 6 to the Agricultural Holdings Act 1986.

• (2) Where the land in question is capable, when farmed under competent management, of being used to produce any livestock, crop, fruit or miscellaneous product, as is mentioned in any of the entries 1 to 7 in column 1 of the Schedule, then —

• (a) the unit of production prescribed in relation to that use of the land shall be the unit specified in column 2 of the Schedule opposite to that entry, and

• (b) the amount determined, forthe period of 12 months beginning with 12th September 2000, as the net annual income from that unit of production in that period shall be the amount specified in column 3 of the Schedule opposite that unit of production.

• (3) Where land capable, when farmed under competent management, of producing a net annual income is designated as set aside land, as is mentioned in entry 8 in column 1 of the Schedule, then —

• (a) the unit of production prescribed in relation to that use of the land shall be the unit specified in column 2 of the Schedule opposite to that entry, and

• (b) the amount determined, for the period of 12 months beginning with 12th September 2000, as the net annual income from that unit of production in that period shall be the amount specified in column 3 of the Schedule opposite that unit of production.

• (4) The Schedule has effect subject to the Notes to the Schedule.

SCHEDULE — PRESCRIBED UNITS OF PRODUCTION AND DETERMINATION OF NET ANNUAL INCOME

Signed

Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998[^f00006].

D. Elis-Thomas — The Presiding Officer of the National Assembly — 29th August 2001

Explanatory note

(This note is not part of the Order)

This Order prescribes units of production for the assessment of the productive capacity of agricultural land situated in Wales and sets out the amount which is to be regarded as the net annual income from each such unit for the year 12th September 2000 to 11th September 2001 inclusive.

An assessment of the productive capacity of agricultural land is required in determining whether or not the land in question is a “commercial unit of agricultural land” for the purposes of the succession provisions in the Agricultural Holdings Act 1986: see in particular sections 36(3) and 50(2). A “commercial unit of agricultural land” is land which, when farmed under competent management, is capable of producing a net annual income which is not less than the aggregate of the average annual earnings of two full-time male agricultural workers aged 20 years or over (paragraph 3 of Schedule 6 to the 1986 Act). In determining this annual income figure, neither the system of farming carried out on a particular holding nor historical data from that holding will necessarily be used. Instead, whenever a particular farming use mentioned in column 1 of the Schedule to this Order is relevant to this determination, the units of production and the net annual income specified in columns 2 and 3 respectively will form the basis of the assessment of the productive capacity of the land in question.

The net annual income figures in column 3 of the Schedule specify the net annual income from one unit of production. In some cases the net annual income is derived from a unit which will be on the land for the full twelve-month period. In other cases the net annual income is derived from a unit which will be on the land for only part of the year, and there may be more than one production cycle in the twelve-month period. The assessment of the productive capacity of the land will take account of the total production in the course of a year.

Footnotes

[^f00001]: 1986 c. 5.

[^f00002]: By virtue of the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I.1999/672), the functions of the Secretary of State for Wales under paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986, were, so far as they were exercisable in relation to Wales, transferred to the National Assembly for Wales.

[^f00003]: OJ No. L312, 20.11.98, p.1.

[^f00004]: OJ No. L160, 26.6.99, p.1, as last amended by Council Regulation (EC) No.2704 / 1999 (OJ No. L327, 21.12.99, p.12).

[^f00005]: OJ No. L160, 26.6.99, p.21.

[^f00006]: 1998 c. 38.

[^f00007]: S.I. 1996/1500, as amended by S.I. 1997/33, S.I. 1998/206, S.I. 1999 /375 and S.I. 1999 / 3316.