T H E D E P A R T M E N T O F

AGRICULTURE, FISHERIES & FOODAN ROINN TALMHAíOCHTA, IASCAIGH AGUS BIA

HELPSHEET / TERMS & CONDITIONS

FOR THE

2008EU SINGLE PAYMENT SCHEME

(SPS)

AND FOR

THE 2008 DISADVANTAGEDAREAS SCHEME, AND

OTHER 2008 EUAREA-BASED SCHEMES

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ContentsSection Page

1. Closing date for applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

2. Penalties for late applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

3. Advantages of an online application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

4. New Applicants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

5. Data Protection and Freedom of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

6. Schemes for which an SPS application is required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

7. Land that is eligible for SPS payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

8. The single date rule for land availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

9. Controls and Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

10. Cross Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

11. Penalties for over-declaration of area under the SPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

12. Penalties for under-declaration of land parcels under the SPS . . . . . . . . . . . . . . . . . . . . . . . .11

13. SPS Appeals Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

14. The Agricultural Appeals Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

15. Maximise your entitlements payments in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

16. Payment on Set-aside entitlements in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

17. Payment on National Reserve entitlements in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

18. Payment on Sugar Beet entitlements in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

19. Transfer of Entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

20. Transfer of entire holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

21. Consolidation of entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

22. The Disadvantaged Areas Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

23. The Energy Crops Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

24. The Non-food Set-aside Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

25. Penalties applicable to the Energy Crops Scheme and the Non-food Set-aside Scheme . . . .21

26. Hemp production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

27. REPS and Forestry measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

28. Nitrates Derogation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

29. Feed Hygiene Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

30. EU Legislation relevant to your SPS Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

31. Definitions relevant to your SPS Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

32. Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

For a step-by-step guide to completing the 2008 form, see the separate document entitled“Guidelines for completing the 2008 Single Payment Scheme application form”.

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1CLOSING DATE FOR APPLICATIONS - 15 MAY 2008

Applicants must ensure that their completed 2008 Single Payment Scheme/Disadvantaged Areas Scheme (SPS)application form is received in THE SINGLE PAYMENT UNIT, DEPARTMENT OF AGRICULTURE,FISHERIES AND FOOD, OLD ABBEYLEIX ROAD, PORTLAOISE, CO. LAOIS, or in any local office of theDepartment, or submitted online to the Department, no later than mid-night on Thursday, 15 MAY 2008.

Postal applicationsComplete and return the pre-printed application form that you received. Your pre-printed 2008 SPS application formis bar-coded and pre-printed with details relating to you and is therefore for your use or for use by successors only.In the event that the Department does not receive your completed 2008 SPS application, which you sent by post,you will be required to produce the Swiftpost receipt as proof of postage. Keep your Swiftpost receipt safely.

Online applicationsFarmers who register online with the Department for the web-enabled functionality of the SPS system are able tomake their SPS applications online. All the necessary details are at the touch of a button. This is a free service toapplicants. If you have not already registered, you can do so now through the Department's website atwww.agriculture.gov.ie

For further information on how to register for this service, you should contact: e-Services in the Department's Portlaoise Office, Lo call 1890 252 118.

2PENALTIES FOR LATE APPLICATIONS

The closing date for lodging Single Payment Scheme application forms for 2008 is midnight on Thursday 15 MAY2008.

There will be a 25-calendar day period after 15 May for the acceptance of late applications and any necessarysupporting documentation. However, a penalty of a 1% loss in payments per working day that the application isreceived late will apply during this period - see table below. Except in cases of force majeure, applications willnot be accepted after this 25 calendar day period has ended. The same late penalties apply to theDisadvantaged Areas Scheme, the REPS Scheme, the EU Energy Crops Scheme and the EU Protein CropsPremium Scheme. Payment under any of these Schemes cannot be made in 2008 unless a valid 2008 SPSapplication form is submitted.

% Reduction to apply No of Day Date Month per working day Calendar days

Friday 16 May 1% 1

Saturday 17 May 1% 2

Sunday 18 May 1% 3

Monday 19 May 2% 4

Tuesday 20 May 3% 5

Wednesday 21 May 4% 6

Thursday 22 May 5% 7

Friday 23 May 6% 8

Saturday 24 May 6% 9

Sunday 25 May 6% 10

Monday 26 May 7% 11

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Tuesday 27 May 8% 12

Wednesday 28 May 9% 13

Thursday 29 May 10% 14

Friday 30 May 11% 15

Saturday 31 May 11% 16

Sunday 1 June 11% 17

Monday (B.Hol) 2 June 11% 18

Tuesday 3 June 12% 19

Wednesday 4 June 13% 20

Thursday 5 June 14% 21

Friday 6 June 15% 22

Saturday 7 June 15% 23

Sunday 8 June 15% 24

Monday 9 June 16% 25

10 June 100% 26

3THE ADVANTAGES OF AN ONLINE APPLICATION

Following on from the Department's pilot project in 2007, an enhanced online service is available in 2008 to all SPSapplicants. All farmers will be issued with their pre-printed 2008 SPS application form as usual. Registered onlineusers will have the further advantage of having these same pre-printed details, including maps, details ofentitlements etc., available to them when they log on to the Department's website. An SPS 2008 application that iscompleted and submitted online to the Department by a farmer or an authorised agent will be accepted as a validSPS application for 2008, provided that all other conditions of the SPS are met. The submission of a paperapplication is not necessary in these circumstances. The closing date of 15 May 2008 also applies to onlineapplications.

Completing an online SPS applicationThe further development of the online application system for 2008 took into account the feedback from farmers andagents who took part in the 2007 pilot project. It mirrors the printed application insofar as possible. A HELP featureis also available as an explanatory aid for the correct completion of significant details. Extracts from this Helpsheetcan be viewed for guidance at the point of inputting details such as Net Area, Reference Area etc. The onlineapplication is designed with a view to preventing the typical errors that recur on the paper applications each year.Typical errors include missing land parcel details and over-declaration of area claimed. With a view to minimisingerrors, there are certain mandatory fields that the online applicant must complete - for example, all details in relationto parcels, including net area, parcel use in 2008 etc. This will eliminate processing delays due to incomplete forms.The online application also has a warning system that alerts the applicant to a possible area over-claim on a parcel,which will help to avoid a possible penalty.

Land parcels that come into the applicant's possession in 2008 can of course be added, as can details of any newplots. Where a new plot is added, a map outlining the boundaries of that plot must be submitted to the Departmentunder separate cover. This also applies where any other supporting documentation, for example, evidence ofCommonage rights, is required. A printable covering letter for the submission of documents is available online foryour convenience. Parcel details, for example Parcel numbers, Reference areas etc can be requested by telephoningthe Lo-call number relevant to the county.

As with the traditional SPS application, the completion of the online application can be done in stages. Partiallycompleted online applications can be saved at any stage and returned to later at the applicant's convenience. The

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details already entered can be reviewed at any stage before the application is submitted. A partially completedapplication cannot be accepted as a submitted application. The application must be fully completed and submittedonline by the closing date.

Documentation available onlineAccess to comprehensive documentation is available online. This includes a summary screen of the applicant's currententitlements position; a history of entitlements transactions that were entered into in 2005, 2006 and/or 2007, forexample land transfers; any correspondence between the applicant and the Department since the introduction of theSPS; and copies of previous SPS applications. Details of Area Aid applications from 2002 to 2004 are also available.

Online amendment to a 2008 SPS application Where an applicant is unsure of all the land details by the closing date for applications, the form should becompleted insofar as possible and submitted on time. It will be possible to submit an amendment form online untilthe 31 May 2008 deadline for amendments. An online Amendment form may only be submitted where an online2008 SPS application has already been submitted.

Certain amendments can be made after the 31 May 2008 closing date for Amendments. You may withdraw land fromyour application at any time after 31 May 2008 provided the Department has not notified you about any irregularitiesconcerning your Single Payment Scheme application. If you have been notified of an on-the-ground inspection andshould that inspection subsequently reveal an irregularity, an amendment cannot be accepted to that part of yourapplication that is affected by the irregularity found.

Parcels/plots cannot be added or net areas amended at this stage.

The online application has been developed so as to prevent insofar as possible the obvious/innocent errors that occurin written applications. An obvious/innocent error would be a minor clerical error on your part, generally relating tomissing details from your application. The online warnings and validations will draw your attention to such issues.However, there are other obvious/innocent errors - you may for example wish to change a previously declared cropuse. Such amendments will be accepted after 31 May 2008.

Loss of entitlements under the 3-year ruleThere is a basic 3-year “Use them or lose them” rule under the Single Payment Scheme. As 2007 was the end of thefirst 3-year Single Payment Scheme cycle (2005, 2006, 2007), 2008 is the end of the second 3-year Single PaymentScheme cycle - 2006, 2007, 2008 and is therefore a crucial year for a number of farmers. Any farmer who has notdeclared enough eligible hectares when 2006 and 2007 are added together, and who still does not reach his/her totalnumber of entitlements when the 2008 hectares are added to this sum, could lose some or even all of theirentitlements to the National Reserve. Entitlements will be lost where the addition of the hectares declared in all 3years (2006, 2007 and 2008) is still less than the number of entitlements held.

ExampleA farmer has 40 Standard entitlements. He declared 10 hectares in 2006 and 10 hectares in 2007. If this farmerdeclares 10 hectares again in 2008 he will lose 10 entitlements as he has only used 30 hectares over the 3-year 2006to 2008 period. To avoid a loss, he should declare 20 hectares in 2008.

Payment Order of EntitlementsIn a relatively small number of cases, SPS applicants hold entitlements of differing values. It may arise in thesecircumstances, for whatever reason, that sufficient hectares are not available to ensure payment on all of thoseentitlements in 2008. Payment in respect of entitlements will generally be made in the order set out on the pre-printed SPS application form, that is;

Firstly: Set-aside entitlements, where applicable, take priority over all other Single Payment entitlements.

Secondly: Entitlements that come in full from the National Reserve.

Thereafter, Standard, Transferred Standard entitlements or topped-up National Reserve entitlements commencingwith the highest value entitlements.

If you wish to choose a different order of payment in the context that you will not have met the “one eligible hectareof land for each entitlement” by 2008, you may enter an alternative order of payment online on the Payment Orderof Entitlements form.

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Expired Herd NumberWhere an applicant's Herd Number has expired at the date of application, it will not be possible to apply online. Theapplicant will be given a message to this effect on the SPS Home Page. In these circumstances, a written 2008 SPSapplication should be submitted. Application should be made immediately to the Department's local VeterinaryOffice to have the Herd number issue resolved so as to ensure a timely SPS payment.

HELPLINEThe following Lo-call helpline is available to deal with queries relating to online registration - 1890 252 118.

4NEW APPLICANTS

Blank formsBlank non-personalised 2008 SPS application forms are available for new applicants from the Single Payment Unit,Local Offices of the Department of Agriculture, Fisheries and Food, TEAGASC and on the Department's website atwww. agriculture.gov.ie

Herd NumberNew applicants who apply under the Single Payment Scheme and new applicants under the other schemes whichform part of the 2008 SPS application form should ensure that they have a valid Herd Number or, if not, shouldimmediately request a herd number. Application should be made to the Department's local Veterinary Office. Detailsof the new Herd Number should be submitted to the Single Payment Unit as soon as it is available.

Trading of entitlementsA specific application form for the Transfer of Entitlements, including transfer by inheritance, along with thedetailed rules, has been published and is available from the Single Payment Unit, Department of Agriculture,Fisheries and Food, Government Buildings, Portlaoise, Co. Laois or from local offices of the Department, or on theDepartment's website at http://www.agriculture.gov.ie or from TEAGASC. These forms are also available fromthe Transfer of Entitlement Section, Single Payment Unit, Department of Agriculture, Fisheries and Food, EircomBuildings, Knockmay, Portlaoise, Co Laois at Lo-Call 1890-200-560.

InspectionNew applicants may be subject to an inspection by the Department in order to establish that, among other things,they are operating a farming business that is separate and independent from that of any other SPS applicant and thebusiness was not established to artificially create conditions with a view to obtaining advantages under any of therelevant schemes.

MapsNew applicants are obliged to submit a map (or maps) with their 2008 single payment scheme application, outliningclearly the boundaries of each land parcel / plot. Where the unique Land Parcel Identification System Number (LPISNo.) is not available, enter the plot details on the 2008 SPS application form numbering them Plot 1, Plot 2 etc.Identify any new plot by outlining it carefully on either an Ordnance Survey map or a Land Registry map or a LandParcel Identification System map, also numbering them Plot 1, Plot 2, etc on the map. Mark the maps with yourname, address and herd number if available. If the map is part of a Land Registry or Ordnance Survey map, theyshould also be marked with the Ordnance Survey sheet number and the townland in which the parcel is located.

Supporting documentation New applicants are required to furnish, if so requested, proof that they are operating a separate business viz:documentary evidence of entitlement to farm the land declared; receipts in the applicant's own name for purchases,sales or agricultural services related to the business; farm accounts/ tax returns in the applicant's own name; anyother evidence requested.

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12PENALTIES FOR UNDER - DECLARATION OF ENTIRE LAND PARCELS

UNDER THE SINGLE PAYMENT SCHEME

Commission Regulation (EC) No. 796/2004 (as amended) provides for the application of penalties in the case of thenon-declaration of entire land parcels. The penalties provided for are as follows:

(i) Where the under-declaration of land parcel(s) amounts to between 3% and 20% of the area declared in theapplication, a penalty of 1% will apply.

(ii) Where the under-declaration of land parcel(s) amounts to between 20% and 50% of the area declared in theapplication, a penalty of 2% will apply.

(iii) Where the under-declaration of land parcel(s) amounts to over 50% of the area declared in the application,a penalty of 3% will apply.

13SINGLE PAYMENT SCHEME APPEALS COMMITTEE

Following notification of the outcome of their applications under the various review measures that were put in placeand/or the outcome of the review of their Entitlements, farmers may appeal the Department's decision to the SinglePayments Appeals Committee established by the Minister. The appeal should be submitted on the appropriate formto the relevant Section of the Single Payment Unit within fourteen days of the date of issue of the Department'sdecision.

14THE AGRICULTURAL APPEALS OFFICE

A farmer who has had a penalty imposed for a breach of Cross Compliance or for any other breach of the SinglePayment Scheme eligibility conditions may appeal to the Agriculture Appeals Office. Appeals should be lodgedwithin three months of the Department's decision. Appeals should be addressed to: Agriculture Appeals Office,Kilminchy Court, Portlaoise, Co Laois Lo-Call: 1890-671671, Telephone: 057-8667167.

15MAXIMISE YOUR ENTITLEMENTS PAYMENT IN 2008

A farmer who has entitlements under the Single Payment Scheme in 2008 will be paid the full value of thoseentitlements, less any mandatory deductions, provided an SPS application is submitted on time and that one hectareof eligible land is declared in respect of each entitlement.

Loss of entitlements under the 3-year ruleThere is a basic 3-year “Use them or lose them” rule under the Single Payment Scheme. As 2007 was the end of thefirst 3-year Single Payment Scheme cycle (2005, 2006, 2007), 2008 is the end of the second 3-year Single PaymentScheme cycle - 2006, 2007, 2008 and is therefore a crucial year for a number of farmers. Any farmer who has notdeclared enough eligible hectares when 2006 and 2007 are added together, and who still does not reach his/her totalnumber of entitlements when the 2008 hectares are added to this sum, could lose some or even all of theirentitlements to the National Reserve. Entitlements will be lost where the addition of the hectares declared in all 3years (2006, 2007 and 2008) is still less than the number of entitlements held.

ExampleA farmer has 40 Standard entitlements. He declared 10 hectares in 2006 and 10 hectares in 2007. If this farmerdeclares 10 hectares again in 2008 he will lose 10 entitlements as he has only used 30 hectares over the 3-year 2006to 2008 period. To avoid a loss, he should declare 20 hectares in 2008.

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Payment Order of EntitlementsIn a relatively small number of cases, SPS applicants hold entitlements of differing values. It may arise in thesecircumstances, for whatever reason, that sufficient hectares are not available to ensure payment on all of thoseentitlements in 2008. Payment in respect of entitlements will generally be made in the order set out on the pre-printed SPS application form, that is;

Firstly: Set-aside entitlements, where applicable, take priority over all other Single Payment entitlements.

Secondly: Entitlements that come in full from the National Reserve.

Thereafter, Standard, Transferred Standard entitlements or topped-up National Reserve entitlements commencingwith the highest value entitlements.

If you wish to choose a different order of payment in the context that you will not have met the “one eligible hectareof land for each entitlement” by 2008, you may enter an alternative order of payment in Column 6 of theEntitlements Table on the front page of the form. Most applicants have only one set of entitlements, excluding set-aside, and will not therefore need to complete Column 6.

16PAYMENT ON SET-ASIDE ENTITLEMENTS IN 2008

The European Commission has fixed the rate of set-aside at 0% for 2008. A farmer with set-aside entitlements is nottherefore required to put any of his/her land into set-aside in 2008.

In order to draw down the 2008 Single Payment in respect of set-aside entitlements, you must declaresufficient hectares of land that are eligible for set-aside. The use of that set-aside eligible land does not haveto be set-aside. Land that is eligible for set-aside entitlements may be used as follows:

• for any eligible agricultural production (sown to a crop, grazing etc.)or

• you may continue to set it aside as agricultural land that is not in agricultural production (voluntaryset-aside). In this case, the land must be kept in good agricultural and environmental condition for thepurposes of meeting Cross Compliance standards.

Set-aside entitlements must be paid first. In order to draw down full SPS payment you have to declare one hectare for each entitlement held. In calculatingyour 2008 SPS payment therefore, sufficient hectares that are eligible to meet your set-aside entitlements will betaken first from your total land declaration. Payment in respect of your remaining entitlements will then be basedon the remaining hectares declared.

Example 1John has 2 Set-aside entitlements @ €371 each and 10 standard entitlements @ €200 each.He declares 12 hectares on his 2008 SPS application (6 hectares cereals and 6 hectares forage). No set-aside isdeclared but John has declared 2 hectares of eligible set-aside land with an eligible crop other than set-aside.

Payment calculation:2 x €371 +10 x €200 = Full payment.

Example 2Jim has 2 Setaside entitlements @ €371 each and 10 National Reserve entitlements @ €400 each (he consolidatedhis entitlements in 2005).

He declares 10 hectares on his 2008 SPS application (6 hectares cereals and 4 hectares forage). No set-aside isdeclared but Jim has declared 2 hectares of eligible set-aside land with an eligible crop other than set-aside.

Payment calculation:2 x €371 + 8 x €400.

In this case, Jim is short 2 hectares to meet all his entitlements. The 2 set-aside entitlements must be paid first. Ashe only has 8 hectares remaining to draw down payment on his 10 National Reserve entitlements, he can only be

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paid on 8. He therefore loses payment on 2 of these (2 x €400) and, in addition, because they are National Reserveentitlements, which must be used each year, 2 entitlements will revert to the National Reserve.

In short therefore, you don't have to put land into set-aside but you may put it into set-aside on a voluntary basis ifthis suits your farming practice. While the EU Commission has indicated that it will consider the permanent removalof obligatory set-aside as and from 2009, no official proposal to this effect has yet been brought forward.

The Scheme for the Non-Food use of set-aside land will continue. Also, the small number of farmers who weretraditionally entitled to declare Forestry parcels as Forestry Setaside to meet their set-aside entitlements (withoutpayment) may continue to do so.

Penalties and exclusions for under- declaration of eligible set-aside landsUnder the Single Payment Scheme, set-aside entitlements must be utilised before any other entitlements. In order todraw down the 2008 Single Payment in respect of set-aside entitlements, you must declare sufficient hectares of landthat are eligible for set-aside while the use of that set-aside eligible land does not have to be set-aside.

Where a farmer does not declare sufficient hectares that are eligible for set-aside (with any parcel use) to meet allhis/her Set-aside entitlements, that farmer must be considered as not having fulfilled his/her obligations in relationto set-aside entitlements and is liable to penalties. In this case the area corresponding to the non-declared set-asideeligible land will be deemed as not having been found and a penalty corresponding to cases in which an over-declaration of area is made will be imposed - see Section 11 above.

17PAYMENT ON NATIONAL RESERVE ENTITLEMENTS IN 2008

Farmers who receive entitlements from the National Reserve may not sell, lease out or otherwise transfer (except incases of inheritance or gift), any of their entitlements that they have received from the National Reserve for a periodof 5 years starting from the year of allocation. Successful applicants under the National Reserve must continue toengage in an agricultural activity and must use all their entitlements in each year for a minimum period of 5 yearsif they wish to retain their National Reserve Entitlements. Entitlements allocated from the National Reserve aresubject to the modulation deduction in the same way as all other entitlements.

The Department will also make use of the National Reserve to consolidate Entitlements for certain categories offarmers who, for specific reasons, declare less hectares than the Entitlements allocated to them.

18PAYMENT ON SUGAR BEET ENTITLEMENTS IN 2008

In 2006, in the context of the EU reform of the sugar regime, the rates of compensation applicable under the sugarbeet element of the Single Payment Scheme were established. This compensation was incorporated as part of theSingle Payment Scheme in 2006 and will be applicable as set out under for future years.

Rate for additional Amount madCompensation Rate available in the Single Payment Scheme Total Amount per

Year per Contracted Tonne Scheme National Ceiling for Ireland Contracted Tonne

2006 €8.32 €1.29 €9.62

2007 €10.42 €1.29 €11.71

2008 €12.51 €1.29 €13.80

2009 €13.63 €1.29 €14.92

2010 €13.63 - €13.63

2011 €13.63 - €13.63

2012 €13.63 - €13.63

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19TRANSFER OF ENTITLEMENTS

Single Payment entitlements may only be transferred to another farmer within Ireland. The closing date for thereceipt of completed applications to transfer entitlements for the 2008 scheme year is 15 May 2008. The applicationform to transfer entitlements is available on the Department's website www.agriculture.gov.ie Entitlements may besold with or without land but may only be sold without land if 80% have been used in either of the years 2005, 2006or 2007. It should be noted that clawback on the sale of entitlements with and without land has been abolished.Entitlements may only be leased/rented out if accompanied by an equivalent number of hectares of eligible land.Leased/rented entitlements will revert to the transferor on expiry of the lease/rental agreement. Entitlements mayalso be transferred by way of gift or inheritance. Farmers should note that where changes are made to theregistration details of a herdnumber in the period 16 May 2007 to 15 May 2008, the relevant parts of the transfer ofentitlements application form must also be completed.

Competed applications for the transfer of entitlements must be submitted to the Single Payment Unit, Transfer ofEntitlements Section, Department of Agriculture, Fisheries and Food, Eircom Building, Knockmay Road,Portlaoise, Co. Laois. Lo-call 1890-200-560.

20TRANSFER OF AN ENTIRE HOLDING BETWEEN DATE OF LODGING

THE SPS APPLICATION AND 31 DECEMBER 2008.

The “Transfer of an entire holding” means the sale, lease or any similar type of transaction in respect of all of theproduction units concerned. The “Transferor” means the farmer whose holding is transferred to another farmer. The“Transferee” means the farmer to whom the holding is transferred.

Where an entire holding is transferred from one farmer to another, between the date of lodging an application forthe Single Payment Scheme and 31 December 2008, no payment can be made to the transferor as conditions forgranting the Single Payment concerned have not been fulfilled.

In order for payment to issue to the transferee, the transferee must agree to succeed to the responsibilities of thetransferor by completing a Declaration of Undertaking (SPS/UND). This form must be completed by both theTransferor and Transferee and must be accompanied by a Transfer of Entitlement form (SPS/TE 2009). These formsare available on the Department's website www.agriculture.gov.ie The transferee must fulfil the conditions forgranting the aid and honour the undertakings given by the transferor. The holding transferred will be considered asa separate holding and will not be combined with any existing holding held by the transferee for the year in whichthe transfer occurs.

21CONSOLIDATION OF SINGLE PAYMENT ENTITLEMENTS

The main points in relation to the Consolidation of Single Payment entitlements are as follows:

■ Set-aside Entitlements and Special Condition Entitlements cannot be consolidated.■ Set-aside Entitlements will be taken into account in determining the 50% rule.■ A farmer who acquires lands and entitlements by way of purchase/lease cannot consolidate the

purchased/leased entitlements.■ When an entire holding has been gifted/inherited, the farmer who has acquired the lands and entitlements, or

will acquire lands and entitlements, by way of inheritance or gift from a farmer who was in receipt of directpayments during the reference period, can apply to consolidate his/her entitlements.

■ The number of eligible hectares declared in the 2008 Single Payment Scheme application form must be lessthan the number of Entitlements granted to you.

■ The number of hectares declared by you on your 2008 Single Payment Scheme application must be at least50% of the number of Entitlements allocated to you, including any additional entitlements granted to you inrespect of the Sugar Beet compensation. The land lost must also be equal to or greater than the difference

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between the number of entitlements less the eligible hectares land declared in 2008 and must be as a result ofone of the measures eligible for Consolidation listed below.

The reduction in the number of hectares declared in the 2008 SPS Application must have arisen because of one ormore of the following measures:

• The afforestation of land;• The acquisition of land by a public authority for non-agricultural purposes (this will include, for example,

lands compulsorily purchased for road development etc but does not include lands sold for private development);• Lands leased-in during all or part of the reference period (2000-2002) where the lease agreement has expired

or will expire and land parcels in question are not declared on your 2008 SPS application; • Lands rented-in during all or part of the reference period where the rental agreement has expired or will expire

and land parcels in question are not declared on your 2008 SPS application.• Lands lost subject to buildings under the Scheme of Investment Aid for Farm Wast Management.

Applications for Consolidation of Entitlements as a result of hectares lost under the measures outlined above canonly be considered if these hectares were used to establish your entitlements during the reference period.Farmers who are granted additional entitlements as a result of the Sugar Beet Reform in 2006 can apply to have theirentitlements Consolidated. However land must have been lost under one of the measures above.

• If a farmer permanently transfers out (by way of sale/gift/inheritance) an equal number of entitlements andhectares, this land will be excluded from the calculation for consolidation in 2008, however the 50% rule withbe based on the pre-disposal position.

• If a farmer does not replace any owned lands transferred out with at least an equivalent number of hectares,the calculation of consolidated entitlements will be based on the land transferred out as well as the landdeclared on the SPS application form. This will result in a loss of entitlements to the National Reserve.

• Farmers are entitled to apply for consolidation in more than one year provided all the conditions are met. Ifyou were accepted under the Consolidation measure in a previous scheme year and wish to furtherConsolidate in 2008, the land farmed during the reference period and used to establish your entitlements thatwas used in the calculation of your previous Consolidation application cannot be re-used in 2008.

• If you Consolidated in a previous Scheme-Year and have applied to further Consolidate in 2008, the five yearperiod in relation to the National Reserve and Trading out of Entitlements re-commences in 2008.

Supporting DocumentationThe following supporting documentation must be submitted with the completed Consolidation application form asappropriate to your application.

• In the case of sale of land to a public authority for non-agricultural purposes, please enclose a copy of theCPO/sale contract.

• Where a lease has expired, please enclose a certified copy of the expired lease agreement.• Where a rental agreement has expired, you must sign the rental declaration on the front page of this

application. Furthermore, if the Department requires the applicant to provide proof of an expired land rentalagreement, the applicant will be expected to furnish such proof on request.

• Where the consolidation is based on afforested land, details of the land parcels that have been afforested shouldbe enclosed with the application and afforested parcels should be declared on your 2008 SPS application.

• In the case of lands used for buildings under the Scheme of Investment Aid for Farm Waste Management, theapproval letter FWM8 must be supplied.

Please noteConsolidated Entitlements are issued from the National Reserve and cannot therefore be sold or leased for a periodof five years. If you consolidated in further years this five-year rule begins from the latest year of consolidation.During this 5-year period, the farmer must claim all of the consolidated Entitlements each year on the SPSapplication form. Where any of these Entitlements are not claimed in any year, those Entitlements will be lost to theNational Reserve forever.

If you have any queries relating to the Consolidation of Entitlements, please contact Consolidation Section,Single Payment Entitlements Unit, Department of Agriculture, Fisheries and Food, Eircom Building,Knockmay, Portlaoise, Co. Laois. Lo-call 1890 252 240 or 1890 252 241.

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22SPECIFIC TERMS AND CONDITIONS APPLICABLE TO THE 2008

DISADVANTAGED AREAS SCHEME (DAS)

A. EligibilityTo be eligible for payment under the 2008 Disadvantaged Areas Scheme (DAS) you must in your own right:(1) Be a person aged 18 years or over who holds a valid Herd Number issued by the Department of Agriculture,

Fisheries and Food.(2) Occupy and farm in your own right and at your own risk a minimum of 3 hectares of forage land in an area

within the State designated as a Disadvantaged Area by the Minister and classified as Less SeverelyHandicapped Lowland or as a Coastal Area with Specific Handicaps or as More Severely HandicappedLowland or as Mountain Type Grazings.

(3) Undertake to remain in farming in a disadvantaged area for 5 years from the first payment of a DisadvantagedAreas payment.

(4) Comply with Cross Compliance as set down by the Department of Agriculture, Fisheries and Food in itsbooklets

■ The Single Payment Scheme - Your Guide to the Cross Compliance. ■ Guide to Cross Compliance Requirements to be implemented in 2006 and 2007. ■ Explanatory Handbook for Good Agricultural Practice Regulations.■ What to expect if you are selected for an inspection under the Single Payment Scheme/ Disadvantaged

Areas Compensatory Allowance Scheme - published in August 2007 detailing obligations that must berespected by farmers who apply for the Single Payment Scheme.

See Paragraph J below for full details.

(5) Have a holding with a minimum stocking level of 0.15 livestock units per forage hectare.(6) In relation to any mountain commonage that is farmed, be a participant under REPS or any National Scheme

that may be in place or be compliant with the relevant Commonage Framework Plan.(7) Co-operate with Department staff in relation to any inspection or any request for documentation.

B. Area eligible for DASFor the purpose of calculating payment under the 2008 Disadvantaged Areas Scheme, the forage area of yourholding is each hectare of land or part thereof situated in a Disadvantaged Area designated as Less SeverelyHandicapped Lowland or as a Coastal Area with Specific Handicaps or as More Severely Handicapped Lowland oras Mountain Type Grazings within the State. Eligible area can include rough grazing; commonage shares; certaingrazing rights; crops other than grass that are used as forage including maize, fodder beet, sugar beet, turnips,mangolds, forage rape, kale, etc.; and areas used for producing hay or silage.

C. Areas ineligible for DASAreas under roads, paths, buildings, farmyards, woods, scrub, rivers, streams, ponds, lakes, sand, areas of bare rocketc.; areas used for turf-cutting; areas used for quarrying; areas fenced off from grazing use, inaccessible areas andareas not available for the rearing of animals under a REPS plan etc.; areas used for permanent crops or horticulturalcrops; areas under cereal crops harvested for grain; areas used for the aid scheme for dried fodder (grassmealproduction); areas used as sports fields, golf courses, pitch and putt courses etc

D. Livestock Unit ValuesThe following livestock unit values are used for calculating compliance with the minimum stocking level of 0.15livestock units per forage hectare under the 2008 Disadvantaged Areas Scheme. You must possess, hold andmaintain for at least three continuous months of the year the livestock required to maintain the minimum stockinglevel. You may be exempted from compliance with the minimum stocking level of 0.15 livestock units per foragehectare where a REPS plan or a Commonage Framework plan or any other environmental scheme for your holdingrequires a lower stocking level. In such cases the requirement to maintain animals for at least three consecutivemonths of the year will apply to the number of animals per forage hectare which is the equivalent in livestock unitvalues to that lower stocking level.

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Type of animal Livestock Unit value Proof which may be required

Female or male cattle 1.0 livestock unit each Herd Register kept up to date.over 2 years old CMMS compliant.

Female or male cattle 2 years 0.6 livestock unit each Herd Register kept up to date.old or under CMMS compliant.

Female or male sheep 0.15 livestock unit each Flock Register kept up to date.Most recent Sheep Census completed.

Female or male equines 1.0 livestock unit each Equine Passport in your name.over 6 months old

Female or male equines 0.6 livestock unit each Equine Passport in your name.6 months old or under

Female or male goats 0.15 livestock unit each Herd Register kept up to date.Most recent Goat Census completed.

Female or male deer 0.3 livestock unit each Proof of ownership.

E. Aid levels The 2008 Disadvantaged Areas Scheme provides for payment as follows, up to an overall payment ceiling of 45forage hectares.

• Less Severely Handicapped Lowland and Coastal Areas with Specific Handicaps: €82.27 per forage hectare.• More Severely Handicapped Lowland: €95.99 per forage hectare.• Mountain Type Grazings: €109.71 on first 10 forage hectares or part thereof; €95.99 per hectare on

remaining forage hectares.

Where you farm a combination of the above types of lands you will be paid Disadvantaged Areas payment withinthe overall payment ceiling of 45 forage hectares on Mountain Type Grazings firstly, on More Severely HandicappedLowland secondly and on Less Severely Handicapped Lowland and Coastal Areas with Specific Handicaps thirdlyso as to maximise the amount which you can be paid.

■ The maximum area of eligible land under energy crops will be 10 hectares. The payment under theDisadvantaged Areas Scheme will be recalculated to take into account any monies paid on energy crops underthe Energy Crops Scheme.

■ The minimum requirement of 3 hectares forage remains■ The applicant will be required to meet the minimum stocking density of 0.15 livestock units per forage hectare

declared

The entire holding will be treated as one holding for the purposes of payment under the 2008 Disadvantaged AreasScheme.

The 2008 Disadvantaged Area Scheme will be co-funded by the European Union.

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F. Penalties for over-declaration of areaIf the difference is less than 3% of the area found, payment will be based on the area found. However, if thedifference is greater than 2 hectares the penalties as outlined below will be applied.

AREA OVER-DECLARATION IN CONSEQUENCES OFDISADVANTAGED AREAS OVER-DECLARATION

If the difference is either greater than 3% but not The area found will be reduced for payment purposes bymore than 20% of the area determined (found) twice the difference between the area found and the areaor greater than 2 hectares claimed

An over-declaration of area between 20% to 30% No payment in respect of the Disadvantaged Areas Scheme will be made in the year of application

If the difference is greater than 30% of the area No payment under the Disadvantaged Areas Scheme anddetermined (found) any other area related EU Rural Development Scheme will

be made in the year of application

An over-declaration of more than 50% of the No Disadvantaged Areas payment will be made in the yeareligible forage area found of application and an administrative fine, equivalent to the

amount of aid payable on the difference between the areadeclared and the area found, will be deducted from anypayments due in the subsequent three years in respect ofthe Single Payment Scheme, Disadvantaged Areas Scheme,REPS, the EU Energy Crops Scheme or the Protein CropsPremium Scheme

The above penalties will not apply where payment on the found area would not have been different. Furthermore,where you intentionally make an area over-declaration, the following penalties will apply if that over-declarationwould have made a difference to payment.

FORAGE AREA OVER-DECLARATION IN CONSEQUENCES OFDISADVANTAGED AREAS OVER-DECLARATION

An irregular over-declaration of area committed No Disadvantaged Areas payment will be made in theintentionally. year of application and an administrative fine, equivalent

to the amount of aid payable on the difference between thearea declared and the area found, will be deducted fromany payments due in the subsequent three years in respectof the Single Payment Scheme, Disadvantaged AreasScheme, REPS, the EU Energy Crops Scheme or theProtein Crops Premium Scheme.

G. Late applicationsThe 2008 Single Payment Scheme application is the application form for the 2008 Disadvantaged Areas Scheme. Ifthis is received after the closing date of 15 May 2008, a 1% reduction in Disadvantaged Areas payment will applyfor each working day that the application is late up to and including 9 June 2008. No Disadvantaged Areas paymentcan be paid in respect of any application received after 9 June 2008.

H. New applicants for DASIf you do not remain farming in a disadvantaged area for 5 years from the first payment to you of DisadvantagedAreas payment, you must refund to this Department all Disadvantaged Areas payments received since (andincluding) that first payment. Where the holding was transferred by gift or inheritance, or by way of a lease betweenfamily members, the 5-year undertaking will be met provided the transferee remains in farming for the remainderof that period.

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I. InspectionsAt least 5% of applicants will be subject to inspections. Applicants shall agree to permit officials or agents of theDepartment to carry out on-farm inspections with or without prior notice at any reasonable time(s) and withoutprejudice to public liability. When notified of an on-farm inspection the applicant should arrange to be present forthe inspection or should have a representative nominated in his/her place to assist the inspecting officer. To facilitatechecks and on-farm inspections, applicants shall co-operate with Department staff, reply to all queries and provideany documentary evidence that may be requested in relation to their Disadvantaged Areas Scheme application.Failure to do so may lead to loss of aid. If an on-farm inspection cannot be carried out through the fault or action ofthe applicant, the application shall be rejected unless the Department determines an instance of force majeure.

J. Cross ComplianceDisadvantaged Area Scheme applicants must respect the Cross Compliance requirements. Under Cross Compliancerequirements, a farmer receiving Disadvantaged Area Scheme payment must respect the various statutorymanagement requirements set down in EU legislation (Directives and Regulations) on the environment, food safety,animal health and welfare, and plant health and must maintain the farm in good agricultural and environmentalcondition (GAEC). No payment shall be made in favour of beneficiaries for whom it is established that theyartificially created the conditions required for obtaining such payments with a view to obtaining an advantagecontrary to the objectives of that support scheme. The publications set out under were issued to all farmers. Thesepublications outline in detail the cross compliance requirements set out in Commission Regulation (EC) No.796/2004 (as amended) that are applicable under the Disadvantaged Areas Scheme. Farmers should read thesebooklets carefully in conjunction with this Helpsheet. Further details including all checklists are available on theDepartment's web site at www.agriculture.gov.ie

■ The Single Payment Scheme - Your Guide to the Cross Compliance. ■ Guide to Cross Compliance Requirements to be implemented in 2006 and 2007. ■ Explanatory Handbook for Good Agricultural Practice Regulations.■ What to expect if you are selected for an inspection under the Single Payment Scheme/ Disadvantaged Areas

Compensatory Allowance Scheme - published in August 2007 detailing obligations that must be respected byfarmers who apply for the Single Payment Scheme.

Farmers should read these booklets carefully in conjunction with this Helpsheet. Further details including allchecklists are available on the Department's web site. 1% of applicants for the Disadvantaged Area Scheme will besubject to checks under Cross Compliance, with an inspection rate of 5% for bovines and 3% for ovines.

23SPECIFIC TERMS AND CONDITIONS APPLICABLE TO THE ENERGY

CROPS SCHEME

DEFINITIONEnergy crops are defined under Article 88 of Council Regulation (EC) No 1782/2003 as crops supplied essentiallyfor the production of the following energy products:

■ products considered bio-fuels; ■ electric and thermal energy produced from biomass.

AIDAn aid of €45 per hectare per year will be paid for areas sown under energy crops used under the conditions laiddown in TITLE IV, Chapter 5, of Council Regulation (EC) No 1782/2003 and Chapter 8 of Commission Regulation(EC) No 1973/2004. Article 89.1 of Commission Regulation (EC) No 1782/2003 provides for a maximumguaranteed area of 2,000,000 hectares for which aid may be granted; Article 89.2 of this Regulation provides for areduction in the rate payable where this maximum area is exceeded. As the maximum area at EU level was exceededunder the 2007 Scheme, the rate was reduced proportionately to €31.65 per hectare.

ADDITIONAL NATIONAL FUNDINGAn additional top-up of €80 per hectare, funded by the National Exchequer, is also payable. This additionalpayment is subject to a maximum ceiling of 37.5 hectares per producer over any consecutive three-year period inwhich the application for funding is made.

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BIO-ENERGY ESTABLISHMENT SCHEMEA Bio-energy Establishment Scheme to grant-aid the planting of willow and miscanthus, funded by the NationalExchequer, is being established for a limited period. Details can be obtained from Crops Policy Section, Departmentof Agriculture, Fisheries & Food, Kea-Lew Business Park, Mountrath Road, Portlaoise, Co. Laois, telephone:057- 8692231.

CONDITIONS FOR ELIGIBILITYThe aid will be granted only in respect of areas whose production is covered by a contract between the farmer andthe processing industry. Appropriate contracts/letters of undertaking must be submitted to the Energy Crops Sectionbefore the closing date for receipt of applications under the 2008 Single Payment Scheme, where

■ full processing is undertaken by the farmer on his own holding; ■ the processing is undertaken by a processor, or■ the raw materials are delivered to a processor via a collector.

USE OF RAW MATERIAL1. Any agricultural raw material may be grown on the areas covered by the aid, provided that they are intended

primarily for use in the production of the above energy products.2. The raw materials referred to above must be covered by a contract/letter of undertaking in accordance with

the conditions for eligibility outlined above.3. Applicants must deliver all raw materials harvested to the contracted collector/first processor who will take

delivery of them and ensure that an equivalent quantity of these raw materials is used within the EuropeanCommunity for the manufacture of one or more of the energy products defined above.

SECURITY REQUIREMENTS SPECIFIC TO THE ENERGY CROPS SCHEMECollectors or first processors must lodge a security of €60 per hectare in respect of the Energy Crop Scheme. Thesesecurities will be released when documentary proof is furnished that the raw materials concerned have beenprocessed into the appropriate products. Full securities must be lodged on or before the closing date for receipt of2008 SPS applications.

APPLICANTS WHO WISH TO APPLY FOR THE ENERGY CROPS SCHEME MUST:1. Submit a 2008 Single Payment Scheme Application form, with their energy crops detailed as outlined in the

terms and conditions governing the completion of the above application;2. Submit their contract/letter of undertaking on or before the closing date for the 2008 Single Payment Scheme;3. Ensure that contract/letter of undertaking details correspond with their Single Payment application form.

Amendments must be made in writing.

24SPECIFIC TERMS AND CONDITIONS APPICABLE TO THE

NON-FOOD SET-ASIDE SCHEME

DEFINITIONNon Food set aside land is defined as land set aside for producing raw materials for the manufacture within theCommunity of products not primarily intended for human or animal consumption as laid out in Articles 55(b) and107(3) of Council Regulation (EC) No 1782/2003. Appropriate contracts/letters of undertaking must be submittedto the Energy Crops Section before the closing date for receipt of applications under the 2008 Single PaymentScheme, where

■ full processing is undertaken by the farmer on his own holding; ■ the processing is undertaken by a processor, or■ the raw materials are delivered to a processor via a collector.

SECURITY REQUIREMENTS SPECIFIC TO THE NON FOOD SET ASIDE SCHEMECollectors or first processors must lodge a security of €250 per hectare in respect of the Non Food Set asideScheme. These securities will be released when documentary proof is furnished that the raw materials concernedhave been processed into the appropriate products. Full securities must be lodged on or before the closing date forreceipt of 2008 SPS applications.

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USE OF RAW MATERIAL1. Any agricultural raw material may be grown provided they are not primarily intended for human or animal

consumption as laid out in Articles 55(b) and 107(3) of Council Regulation (EC) No 1782/2003.2. The raw materials referred to above must be covered by a contract/letter of undertaking in accordance with

the conditions of eligibility outlined above.3. Applicants must deliver all raw materials harvested to the contracted collector or first processor who will take

delivery of them and ensure that an equivalent quantity of these raw materials is used within the EuropeanCommunity for the manufacture of one or more of the energy products defined above.

APPLICANTS WHO WISH TO APPLY FOR THE NON-FOOD SET-ASIDE SCHEME MUST:1. Submit their 2008 Single Payment Application form with their non food crops detailed as outlined in the terms

and conditions governing the completion of the above application2. Submit their contract/letter of undertaking on or before the closing date for the 2008 Single Payment Scheme3. Ensure that contract/letter of undertaking details correspond with their Single Payment application form.

Amendments must be made in writing.

CONTACT DETAILSPlease note that any farmer applying for either the Energy Crops and/or the Non-Food Set-aside Schemes shouldobtain the full terms and conditions of these schemes by contacting the Energy Crops Section, Department ofAgriculture, Fisheries & Food, Old Abbeyleix Road, Portlaoise, Co. Laois, telephone number: 057 8678701 or 057 8678709, or via email to: energycrops@agriculture.gov.ie

25PENALTIES SPECIFIC TO THE ENERGY CROPS SCHEME AND THE

NON-FOOD SET-ASIDE SCHEME

Where a farmer applying for aid for Energy Crops or declaring parcels as Non-Food Set-aside fails to deliver therequisite quantity of any given raw material, he/she shall be deemed to have failed to fulfil the obligation as regardsparcels intended for energy purposes or non-food set-aside. The penalty is calculated by multiplying the area of landcultivated and used by the applicant for the production of the raw materials by the percentage shortfall in deliveriesof that raw material.

26SPECIFIC TERMS AND CONDITIONS APPLICABLE TO

HEMP PRODUCTION

Hemp may only be grown where the Minister for Health and Children has granted a licence under the Misuse ofDrugs Acts, 1977 and 1984 and Misuse of Drugs Regulations, 1988 and 1993.

Furthermore, Article 13 of Commission Regulation (EC) No 796/2004 requires that, where a farmer intends toproduce hemp in accordance with Article 52 of Council Regulation (EC) No 1782/2003, or hemp grown for fibre asreferred to in Article 106 of that Regulation, the SPS application shall include:

(a) all information required for the identification of the parcels sown in hemp, indicating the varieties of seed used;(b) an indication as to the quantities of the seeds used (kg per hectare);(c) the official labels used on the packaging of the seeds in accordance with Council Directive 2002/57/EC [4], and

in particular Article 12 thereof.

By way of derogation from point (c) of the first subparagraph, where sowing takes place after the deadline forsubmitting the single application, the labels shall be submitted by 30 June at the latest. Where the labels also haveto be submitted to other national authorities, the Member States may provide for those labels to be returned to thefarmer once they have been submitted in accordance with that point. The labels returned shall be marked as used foran application.

Any applicant who intends to produce hemp under the 2008 SPS Scheme must apply for the specific form“2008 Single Payment Scheme Application to produce hemp”. This form is available from the Energy Crops

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Section, Department of Agriculture, Fisheries & Food, Old Abbeyleix Road, Portlaoise, Co. Laois, telephonenumber: 057 8678701 or 057 8678709, or via email to: energycrops@agriculture.gov.ie The completed form andsupporting documentation (as set out at (a), (b) and (c) above) must be returned with your 2008 SPS applicationform by the closing date of 15 May 2008, or, where sowing takes place after this date, by 30 June 2008 at the latest.

27RURAL ENVIRONMENT PROTECTION SCHEME (REPS) AND

FORESTRY MEASURES

Rural Environment Protection Scheme If you are participating in REPS, you are obliged to declare all the land parcels in your holding (Owned, Rented andLeased) on your 2008 SPS application form. You should be aware that only the eligible land parcels declared onyour 2008 SPS application form and registered with a unique number on the Department's land parcel identificationsystem (LPIS) will be eligible for payment under REPS and only the area recorded on LPIS will be reckonable forREPS payment.

Land devoted to newly created Habitats managed under an approved REPS 3 (REPS 3 options 4A, 9B, LINNETHabitat and Riparian Set-aside) or REPS 4: (Habitat or Woodland establishment under Mandatory BiodiversityUndertaking, Option 3C, 4A, 4D, 9B, LINNET, and Riparian Set -aside) plan or under an agri-environmentalscheme administered by the National Parks and Wildlife Service (NPWS) will be eligible to use entitlements underthe Single Payment Scheme. This land will be subject to a waiver from normal grazing and/or cutting managementrequirements under Good Agricultural and Environmental Conditions in cases where these habitats adhere to REPSconditions and NPWS Agri-environment Scheme conditions.

REPS Supplementary MeasuresIf your are participating in REPS Supplementary Measure 4 (Riparian Zones) or REPS Supplementary Measure 5(LINNET Habitats), these areas must be declared on the Single Payment Scheme application form and mapsidentifying the areas must accompany the application form. When completing the Single Payment Schemeapplication form the applicant should:

Declare Riparian Zone in the OTHER category of column 10 and write the words “Riparian Zone” in column 11.

Declare LINNET Habitats in the ARABLE category of column 10 and write the words “LINNET Habitat” incolumn 11.

Both are eligible land-uses to draw down payment under the Single Payment Scheme.

REPS 3 and REPS 4New Habitats under Biodiversity Option 3C: Use of Planted Buffer Zones, 4A: Creation of New Habitat, 4D: FarmWoodland Establishment

If you are participating in REPS 3 Biodiversity Option 4A or REPS 4 Biodiversity Options 3C, 4A, 4D these areasmust be declared separately as a subdivision of a land parcel on the Single Payment Application Form. Declare thesubdivision for the REPS 3 or 4 Habitat in the OTHER category of column 10 and write the words “REPS 3 Habitat”or “REPS 4 Habitat” in column 11. REPS habitats are eligible land-uses to draw down payment under the SinglePayment Scheme.

Temporary SubdivisionWhere you are devoting part of a land parcel into a new habitat under REPS 3 or 4 and, while it is not necessary todefine these areas on a map, you should indicate this subdivision of the parcel on the application form as follows:

Delete that parcel's pre-printed details.

Enter the details of each subdivision of that parcel on a new line using the original 9 digit LPIS parcel number alongwith a specific identifier “A” or “B” after the LPIS No. for each subdivision.

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Example of Temporary Subdivision

LPIS No Gross area Net area L123456778 5.2 4.5L123456778a 5.2 4.0L123456778b 5.2 0.5

FORESTRYIf you are in receipt of aid under the Afforestation Premia and Grants Schemes, you are obliged to declare all theland parcels in your holding on your 2008 SPS application form. All land parcels in receipt of payment under theAfforestation Premia and Grants Schemes are registered on the Department's land parcel identification system(LPIS) with a unique identification number. Failure to declare afforested parcels under these schemes on LPIS couldaffect future forestry premia/grants payments.

28NITRATES DEROGATION

The Nitrates Regulations (SI no. 378 of 2006 as amended) apply to all agricultural holdings and among otherobligations, impose a limit on the amount of Nitrogen from livestock manure that can be applied to land (includingthat deposited by the animals themselves) of 170kg N per hectare per year - please see the Explanatory Handbookfor Good Agricultural Practice Regulations.

A derogation allows eligible farmers to operate above the general limit of 170kg N per hectare but not above 250kg,subject to certain conditions. You should read the eligibility criteria and conditions carefully before making anapplication to ensure that you are eligible for a derogation and that you can meet all of the conditions in full duringthe current year.

To apply for a derogation in 2008, you must:

■ be farming a holding that is at least 80% grass.■ have grazing livestock - a derogation is only available in respect of grazing livestock.■ have a fertilisation plan which meets the Department's requirements prepared and available on your holding

by 1st March 2008■ apply to the Department for a derogation for the year in question.

No applications for derogations will be accepted after the closing date.

By submitting an application for a derogation, you are declaring that:

(a) you have read and understood the terms and conditions, (b) you meet the eligibility conditions for a derogation and (c) you will farm in accordance with the detailed conditions in the current year.

Derogation terms and conditions and templates for fertilisation plans and fertiliser accounts can be found on theDepartment's website at www.agriculture.gov.ie, via the link Nitrates Information. They can also be obtained fromthe Department of Agriculture, Fisheries and Food, Nitrates Section, Johnstown Castle Estate, Co. Wexford (phone053-9163400).

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29FEED HYGIENE REGULATIONS

Under the EU Regulation covering Feed Business Operators (Regulation 183/2005) a declaration is required fromall farmers who are involved in feeding farm animals or growing crops for feed that they are in compliance with theprovisions of the Feed Hygiene Regulations. The Department must also identify farmers who are engaged in thehome mixing of feedstuffs.

The Single Payment Scheme Application Form has a question on the front page that asks if you are complying withthe feed hygiene requirements set out under. If you are satisfied that you are in compliance with these requirements,you should shade the appropriate circle.

In addition, there is a further question on the form for those farmers engaged in home mixing of animal feed.Examples of home mixing would include using a diet feeder; a mixer wagon; or mixing feed ingredients to makeup your own ration etc. You are asked to indicate which type of system you use.

A Guidance Note setting out the provisions of the Feed Hygiene Regulations issued to relevant farmers in early2008. This is reproduced here for your convenience.

FEED HYGIENE REGULATIONS - GUIDANCE NOTE ON GOOD PRACTICEREQUIREMENTS FOR PRIMARY PRODUCERS OF FEED

As the person responsible for primary production, you must ensure that:

■ All operations are managed and carried out in such a way as to prevent, eliminate or minimise hazards thatmight compromise feed safety arising, for example, from chemicals, fertilisers, unclean water, veterinarymedicine products and disposal of farm waste;

■ Primary products at all stages of production, preparation, cleaning, packing, storage and transportation arehandled in such as way as to minimise contamination and spoilage, for example due to contact with animalwaste or due to moulds;

■ Measures are taken to prevent contamination of feed products by vermin and pests;■ Results of any relevant analyses carried out on samples taken from primary products (or other samples

relevant to feed safety) are taken into account; ■ Records are maintained on any occurrence of pests or diseases that may affect the safety of primary products

and on the use of plant protection products, biocides and genetically modified seeds (if appropriate).

As a primary producer you will meet the obligations set out above by complying with the appropriate EU andnational legislation relating to the control of hazards.

■ Records must be maintained of the destination and quantity of all feed material sold off the farm.

GOOD ANIMAL FEEDING PRACTICEPasture grazing

■ Pastures (and croplands) used for grazing must not become contaminated in such a way as to affect the safetyof food of animal origin produced from these pastures;

■ Where appropriate, an adequate rest period should be left between grazing rotations to minimise excessivecross-contamination from manure;

■ After application of agricultural chemicals, the prescribed withholding periods must be observed.

Buildings and equipment■ Buildings used for feed storage and feeding equipment must be kept clean and dry. Systems must be put in

place to regularly remove seed, manure, waste material and other products prohibited in animal feed;■ Chemicals used for cleaning and sanitising must be used according to instructions and stored away from feed

and feeding areas;■ A pest control system should be in place to control the access of pests to minimise the possibility of

contamination of feed and bedding materials;■ Feed and bedding material must be frequently changed so as to prevent mould development;■ Medicated feed must be stored separately from non-medicated feed

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Feeding■ The on-farm feed distribution system must be such that the right feed is sent to the right destination; ■ Feed must be handled during distribution and feeding in such a way that contamination does not occur from

contaminated storage areas and equipment; ■ Non-medicated feeds must be handled separately from medicated feeds to prevent contamination;■ Water for drinking (or for aquaculture) must be of appropriate quality for the animals using that water.

Other■ The person(s) responsible for the feeding and handling of animals must have the ability, knowledge and

competence to look after the animals;■ Records must be maintained of each bought-in feed; ■ Compound feedingstuffs should only be sourced from feed business operators approved by DAFF to

manufacture for sale; ■ Primary feed production and animal feeding are included in cross compliance inspections

30EU LEGISLATION RELEVANT TO YOUR SPS APPLICATION

The TERMS & CONDITIONS of the Schemes set out in this Helpsheet implement the following EU Council andCommission Regulations, and any amendments to these Regulations that are applicable to the 2008 Scheme year.Any further EU Council or Commission amendments made during 2008 will be communicated to farmers and will,where appropriate, also apply to 2008 applications. The complete EU legislation is available athttp://www.europa.eu

■ No. 1782/2003 of 29/9/2003, as amended, establishing common rules for direct support schemes - OJ L270of 21/10/2003.

■ No. 21/2004 of 17 December 2003 establishing a system for the identification and registration of ovine andcaprine animals and amending Regulation (EC) No 1782/2003 and Directives 92/102/EEC and 64/432/EEC- OJ L 5 of 9/1/2004.

■ No. 795/2004 of 21 April 2004 laying down the detailed rules for the implementation of 1782/2003 - OJ. L141of 30/4/2004.

■ No. 796/2004 of 21 April 2004 laying down the detailed rules for the implementation of cross-compliance,modulation and the integrated administration and control system provided for in 1782/2003 - OJ. L141 of30/4/2004.

■ No. 1257/1999 of 17/5/1999 on support for rural development from the European Agricultural Guidance andGuarantee Fund (EAGGF) - OJ L160 of 26/6/1999.

■ No. 817/2004 of 29 April 2004 laying down detailed rules for the application of 1257/1999 - OJ. L 153 of30/4/2004.

■ No. 1255./1999 of 17 May 1999 on the common organization of the market in milk and milk products - OJ.L 160 of 26/6/1999.

■ No.1673/2000 of 27 /7/2000 on the common organisation of the markets in flax and hemp grown for fibre -OJ L193 of 29/7/2000.

■ No. 1973/2004 of 29 October 2004 laying down detailed rules for the application of Council Regulation (EC)No 1782/2003 as regards the support schemes provided for in Titles IV and IVa of that Regulation and the useof land set aside for the production of raw materials - OJ L 345 of 20/11/2004.

■ No. 178/2002 of 28 January 2002 laying down the general principles and requirements of food law,establishing the European Food Safety Authority and Laying down procedures in matters of food safety - OJL 031 of 10/02/2002.

■ No. 999/2001 of 22 May 2001 laying down rules for the prevention, control and eradication of certaintransmissible spongiform encephalopathies - OJ L 147 of 31/05/2001.

■ No. 183/2005 of 12 January 2005 laying down requirements for feed hygiene - OJ L035 of 08/02/2005.■ No. 852/2004 of 29 April 2004 on the Hygiene of foodstuffs - OJ L226 of 25/6/2004.■ No. 853/2004 of 29 April 2004 laying down specific hygiene rules for the hygiene of foodstuffs - OJ L226 of

25/6/2004■ No.1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for

Rural Development - OJ L277 of 21/10/2005.

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■ No.1974/2006 of 15 December 2006 laying down detailed rules for the application of No.1698/2005 - OJL368 of 23/12/2006.

■ No.1975/2006 of 7 December 2006 laying down detailed rules for the application of No1698/2005 as regardscontrol procedures and cross compliance - OJ L368 of 23/12/2006.

■ No.1290/2005 of 21 June 2005 on the financing of the common agricultural policy - OJ L209 of 11/8/2005. ■ No. 885/2006 of 21 June 2006 laying down detailed rules for the application of No1290/2005 - OJ L171 of

23/6/2006.

31RELEVANT DEFINITIONS

The following definitions apply for the purposes of all Schemes covered by the 2008 Single Payment Schemeapplications. Any changes which may be required to the Terms and Conditions as a result of an EU or Ministerialdecision will be published.(1) the “EU” shall mean the European Union.(2) the “Minister” shall mean the Minister for Agriculture, Fisheries and Food.(3) The “Department” shall mean the Department of Agriculture, Fisheries and Food. (4) “Direct payment” shall mean any payment granted directly to farmers under the Single Payment Scheme, the

Proteins Premium Scheme, the Energy Crops Scheme and the Dried Fodder Scheme.(5) “farmer” shall mean a natural or legal person, or a group of natural or legal persons, whatever legal status is

granted to the group and its members by national law, whose holding is situated within Community territory,as referred to in Article 299 of the Treaty, and who exercises an agricultural activity.

(6) “Collector” shall mean any person signing a contract, as defined, who purchases on his own account, any rawmaterials, the primary end-use of which is intended for energy or non-food purposes.

(7) “First processor” means any user of agricultural raw materials who undertakes the first processing thereof, theprimary end-use of which is intended for energy or non-food purposes.

(8 ) “Holding” shall mean all the production units managed by a farmer situated within the territory of the sameMember State.

(9) “Agricultural activity” shall mean the production, rearing or growing of agricultural products includingharvesting, milking, breeding animals and keeping animals for farming purposes, or maintaining the land ingood agricultural and environmental condition as established under Article 5 of Regulation (EC) No1782/2003.

(10) “Agricultural area” shall mean the total area taken up by arable land, permanent pasture and permanent crops.(11) “Arable land” shall mean land cultivated for crop production and land under set-aside, or maintained in good

agricultural and environmental condition in accordance with Article 5 of Regulation (EC) No 1782/2003 orland under greenhouses or under fixed or mobile cover.

(12) “Permanent pasture” shall mean land used to grow grasses or other herbaceous forage naturally (self-seeded)or through cultivation (sown) and that is not included in the crop rotation of the holding for five years orlonger.

(13) “Grasses or other herbaceous forage” shall mean all herbaceous plants traditionally found in natural pasturesor normally included in mixtures of seeds for pastures or meadows (whether or not used for grazing animals).

(14) “Permanent crops” shall mean non-rotational crops other than permanent pasture that occupy the land for fiveyears or longer and yield repeated harvests, including nurseries and short rotation coppice, with the exceptionof multi-annual crops and the nurseries of multi-annual crops. (a) used for the provision of materials for the manufacture within the EU of products not primarily intended

for human or animal consumption (Non-food) and(b) land planted with permanent crops and which are also subject to an application for the aid for energy

crops, shall be considered as eligible hectares for the use of, respectively, set-aside entitlements andpayment entitlements.

(15) “Multiannual crops” shall mean crops of Artichokes, Asparagus, Rhubarb, Raspberries, Blackberries,Mulberries, Loganberries, Black, White or Redcurrants, Gooseberries, Cranberries, Bilberries and other fruitsof the genus Vaccinium.

(16) “Use” shall mean the use of area in terms of the type of crop or ground cover or the absence of a crop.(17) “Crop” shall mean any type of crop or ground cover including grass.

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(18) “Land parcel” shall mean an area of land uniquely within a townland which has a unique identifier numberon the Department's Land Parcel Identification System (LPIS) and must be defined by a permanent boundaryexcept in the case of commonage land. External forage boundaries must be stockproof and appropriate to thefarming enterprise.

(19) “Agricultural parcel” shall mean a continuous area of land on which a single crop group is cultivated by asingle farmer; however, where a separate declaration of the use of an area within a crop group is required inthe context of the Single Payment Regulations, that specific use shall further limit the agricultural parcel.

(20) “Reference parcel” shall mean a geographically delimited area retaining a unique identification as registeredin the GIS in the Member State's identification system referred to in Article 18 of Regulation (EC) No1782/2003.

(21) “Area determined” (found area) shall mean the area for which all the conditions attaching to the payment ofaid have been met; in the case of the Single Payment Scheme, the area declared may be deemed as beingdetermined only if it is actually being accompanied by a corresponding number of payment entitlements.

(22) “Cross-compliance” shall mean respect for the statutory management requirements and the good agriculturaland environmental condition in accordance with Articles 4 and 5 of Regulation (EC) No 1782/2003 and as setdown in the Department's 2005, 2006 and 2007 publications titled“The Single Payment Scheme - Your Guide to the Cross Compliance”, “Guide to Cross Compliance Requirements to be implemented in 2006 and 2007” and “ExplanatoryHandbook for Good Agricultural Practice Regulations”and “What to expect if you are selected for an inspection under the Single Payment Scheme/ Disadvantaged AreasCompensatory Allowance Scheme”.

(23) “Areas of cross-compliance” shall mean the different areas of statutory management requirements within themeaning of Article 4(1) of Regulation (EC) No 1782/2003 relating to public, animal and plant health, theenvironment and animal welfare, and the good agricultural and environmental condition as stipulated inAnnex IV to that Regulation pertaining to soil erosion, soil organic matter, soil structure and the minimumlevel of maintenance required.

(24) “Non-compliance” shall mean any non-compliance with the requirements and standards; the non-compliancewith the obligations set out in Article 4 of Regulation (EC) No 1782/2003 shall equally constitute a case ofnon-compliance with the requirements and standards laid down under the statutory management requirementsand the good agricultural and environmental condition as set down in the Department's 2005, 2006 and 2007publications titled ■ The Single Payment Scheme - Your Guide to the Cross Compliance. ■ Guide to Cross Compliance Requirements to be implemented in 2006 and 2007. ■ Explanatory Handbook for Good Agricultural Practice Regulations. ■ What to expect if you are selected for an inspection under the Single Payment Scheme/ Disadvantaged

Areas Compensatory Allowance Scheme. (25) “Force majeure” or exceptional circumstances shall be recognised in cases such as the following:

(a) the death of a farmer;(b) long-term professional incapacity of the farmer;(c) a severe natural disaster gravely affecting the holding's agricultural land;(d) the accidental destruction of livestock buildings on the holding;(e) an epizootic affecting part or all of the farmer's livestock.

32PAYMENTS

NEW REQUIREMENT AS FROM 16 OCTOBER 2008In accordance with EU regulations, all EU scheme payments to farmers can only be made to a bank account as andfrom 16 October 2008. Payments cannot be issued by cheque after that date. In order to receive any direct paymentsdue to you after that date, those applicants who have not already done so should now submit their bank accountdetails to the Department. Letters in this regard, along with an authorisation form, have issued to those farmers whoare still being paid by cheque.

A copy of the relevant form is available from: Direct Credit Section, Department of Agriculture, Fisheries and Food, Farnham Street, Cavan Tel 049 4368283 oron the Department's website.

SINGLE PAYMENT SCHEMEUnder EU regulations, payments under the Single Payment Scheme are due to commence on 1 December 2008 andmust be made in full by 30 June 2009.

PROTEIN CROPS PREMIUM The supplementary premium payment shall be made at the rate of €55.57 per hectare. The rate indicated may besubject to change if the EU maximum guaranteed area for energy crops is exceeded. Payments are due to commenceas from 1 December 2008.

ENERGY CROPS SCHEME The rate of aid for Energy crops claimed under the Energy Crops Scheme has been set at €45 per hectare. The rateindicated may be subject to change if the EU maximum guaranteed area for energy crops is exceeded. An additionaltop-up of €80 per hectare, funded by the National Exchequer, will also be paid. Payments are due to commence asfrom 1 December 2008.

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