Land eligibility inspections are continuing across the country. The Department of Agriculture’s focus is on farmers in areas of natural constraint (ANC) to ensure that they are completed before payment can start in late September.
Inspectors have to see that land can be grazed, putting a different focus on inspections.
There seems to be fewer issues from farmers after inspection in this area. I have received a number of queries regarding what happens if land is found to be ineligible this year.
The good news is that the Department is using the area of land farmed in 2013 as the reference area to establish over- or under-claims.
Where the farmer is farming more land in 2015, the chances of getting a penalty has greatly reduced this year.
Take a farmer who submitted 40ha in 2013 and 50ha in 2015, for example. They are found to have 45 eligible hectares on inspection.
No penalty will arise in this situation as it is the lesser of 2013 or 2015 that is used to establish entitlements. The farmer will establishes 40 entitlements (2013), so no over-declaration occurs.
If 55ha is found on inspection, no over-claim penalty arises again as the farmer will only establish 40 entitlements, even if more land is found.
So, the lesser of declared land or found land is used in such situations.
There is a chance of penalties where the land is less than in 2013 and there is an under-declaration.
For example, if the land submitted in 2013 and 2015 is 50ha, the farmer could potentially establish 50 entitlements.
However, on inspection, if 48 eligible are found, he will get a penalty of 1% (between 3% and 20% under-declaration) but will establish 48 entitlements. He will not be penalised in future years. The penalty is only 2% if the under-declaration is between 20% and 50% and only 3% is the under-declaration amounts to 50% of the area declared.
Where a land eligibility penalty is imposed on the Basic Payment Scheme (BPS), this is not applicable to the greening payment for the majority of farmers. The only place it could be is in the case of farmers with arable land where the non-compliance affects the applicant’s greening status. In other words, it causes him/her to no longer be compliant with crop diversification or ecological focus areas. Cross-compliance penalties are applicable to greening payments, as are late application penalties for greening payments.
If a penalty is imposed on the basic payment, the greening payment is hit with the same penalty.
Inspection tips
September is a good month to check your farmyard ahead of winter.Most penalties under nitrates are caused by broken pipes failing to minimise the collection of soiled water, as well as how you collect and manage farmyard manure in the winter. Check stock for missing tags. Once you have ordered them before an inspection starts, you can avoid penalties. Check tags on sheep as well to ensure that there are no issues. Remember to keep both the flock register and the cattle herd register and movement up to date.
Land eligibility inspections are continuing across the country. The Department of Agriculture’s focus is on farmers in areas of natural constraint (ANC) to ensure that they are completed before payment can start in late September.
Inspectors have to see that land can be grazed, putting a different focus on inspections.
There seems to be fewer issues from farmers after inspection in this area. I have received a number of queries regarding what happens if land is found to be ineligible this year.
The good news is that the Department is using the area of land farmed in 2013 as the reference area to establish over- or under-claims.
Where the farmer is farming more land in 2015, the chances of getting a penalty has greatly reduced this year.
Take a farmer who submitted 40ha in 2013 and 50ha in 2015, for example. They are found to have 45 eligible hectares on inspection.
No penalty will arise in this situation as it is the lesser of 2013 or 2015 that is used to establish entitlements. The farmer will establishes 40 entitlements (2013), so no over-declaration occurs.
If 55ha is found on inspection, no over-claim penalty arises again as the farmer will only establish 40 entitlements, even if more land is found.
So, the lesser of declared land or found land is used in such situations.
There is a chance of penalties where the land is less than in 2013 and there is an under-declaration.
For example, if the land submitted in 2013 and 2015 is 50ha, the farmer could potentially establish 50 entitlements.
However, on inspection, if 48 eligible are found, he will get a penalty of 1% (between 3% and 20% under-declaration) but will establish 48 entitlements. He will not be penalised in future years. The penalty is only 2% if the under-declaration is between 20% and 50% and only 3% is the under-declaration amounts to 50% of the area declared.
Where a land eligibility penalty is imposed on the Basic Payment Scheme (BPS), this is not applicable to the greening payment for the majority of farmers. The only place it could be is in the case of farmers with arable land where the non-compliance affects the applicant’s greening status. In other words, it causes him/her to no longer be compliant with crop diversification or ecological focus areas. Cross-compliance penalties are applicable to greening payments, as are late application penalties for greening payments.
If a penalty is imposed on the basic payment, the greening payment is hit with the same penalty.
Inspection tips
September is a good month to check your farmyard ahead of winter.Most penalties under nitrates are caused by broken pipes failing to minimise the collection of soiled water, as well as how you collect and manage farmyard manure in the winter. Check stock for missing tags. Once you have ordered them before an inspection starts, you can avoid penalties. Check tags on sheep as well to ensure that there are no issues. Remember to keep both the flock register and the cattle herd register and movement up to date. 
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