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Statutory Instruments made by the National Assembly for Wales
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STATUTORY INSTRUMENTS

2006 No. 2628

LANDLORD AND TENANT, ENGLAND

The Agricultural Holdings (Units of Production) (England) Order 2006

  Made 2nd October 2006 
  Laid before Parliament 5th October 2006 
  Coming into force 7th November 2006 

The Secretary of State, in exercise of the powers conferred by paragraph 4 of Schedule 6 to the Agricultural Holdings Act 1986[1], and now vested in him[2], makes the following Order:

Title, commencement and interpretation
     1. —(1) This Order may be cited as the Agricultural Holdings (Units of Production) (England) Order 2006 and comes into force on 7th November 2006.

    (2) In this Order—

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 England, in order to determine whether that unit is a commercial unit of agricultural land within the meaning of paragraph 3(1) 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, farm arable crop, outdoor horticultural crop or fruit as is mentioned in any of the entries 1 to 3 in column 1 of the Schedule to this Order, then—

    (3) Where land capable, when farmed under competent management, of producing a net annual income is in receipt of hill farm allowance, or was set aside from production in 2005, or was an eligible hectare in 2005, as is mentioned in entries 4, 5 and 6 respectively in column 1 of the Schedule to this Order, then—

Revocation
     3. The Agricultural Holdings (Units of Production) (England) Order 2005[5] is revoked.


Jeff Rooker
Minister of State Department for Environment, Food and Rural Affairs

2nd October 2006



SCHEDULE
Article 2


PRESCRIBED UNITS OF PRODUCTION AND DETERMINATION OF NET ANNUAL INCOME


Column 1

Farming use

 		Column 2

Unit of production

 		Column 3

Net annual income from unit of production (£)
1. Livestock                                 
Dairy cows (other than Channel Islands breeds)            cow 302
Beef breeding cows:                                 
           On less favoured area land under the Hill Farm Allowance Regulations 2006[6] cow -138
           On other land cow -59
Beef fattening cattle (semi-intensive)            head -57(1)
Dairy replacements            head 80(2)
Ewes:                                 
           On less favoured area land under the Hill Farm Allowance Regulations 2006 ewe 8
           On other land ewe 19
Store lambs (including ewe lambs sold as shearlings)            head 2
Pigs:                                 
           Sows and gilts in pig sow or gilt 160
           Porker head 3
           Cutter head 5.50
           Bacon head 8.20
Poultry:                                 
           Laying hens bird 2
           Broilers bird 0.24
           Point-of-lay pullets bird 0.45
Christmas Turkeys            bird 4.50
2. Farm arable crops                                 
Barley            hectare 24
Beans            hectare 54.18(3)
Herbage seed            hectare 230
Oilseed rape            hectare 22
Peas:                                 
           Dried hectare 14.18(3)
           Vining hectare 350
Potatoes:                                 
           First early hectare 1800
           Maincrop (including seed) hectare 1500
Sugar Beet            hectare 250
Wheat            hectare 35
3. Outdoor horticultural crops and fruit                                 
Root vegetables and onions            hectare 2500
Brassicas            hectare 1750
Fresh peas and beans            hectare 1100
Orchard fruit            hectare 1300
Soft fruit            hectare 3600
4. Forage Land                                 
Eligible forage area as defined in regulation 2(1) of the Hill Farm Allowance Regulations 2006            hectare The amount of hill farm allowance required to be paid under regulations 3 and 7 of the Hill Farm Allowance Regulations 2006
5. Set-aside                                 
Land which was, in 2005, set-aside from production under Article 54(3) of Council Regulation 1782/2003:                                 
           Severely disadvantaged land, excluding moorland hectare -19.91
           Disadvantaged land hectare -16.77
           All other land hectare -120.77
6. Eligible hectares                                 
Land which was, in 2005, an eligible hectare for the purposes of Council Regulation 1782/2003, except land which was set-aside from production under Article 54(3) of that Regulation:                                 
           Moorland hectare -9.85
           Severely disadvantaged land, excluding moorland hectare 128.40
           Disadvantaged land hectare 169.43
           All other land hectare 65.63

NOTES TO THE SCHEDULE

     1. This is the figure for animals which would be kept for 12 months. In the case of animals kept for less than 12 months a pro-rata adjustment of this figure is to be made.

     2. This is the figure for animals (irrespective of age) which would be kept for 12 months. In the case of animals kept for less than 12 months a pro-rata adjustment of this figure is to be made.

     3. This figure includes the protein crop premium provided for in Article 76 of Council Regulation 1782/2003.


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 England and sets out the amount which is to be regarded as the net annual income from each such unit for the year 7th November 2006 to 6th November 2007 inclusive. This Order revokes the Agricultural Holdings (Units of Production) (England) Order 2005.

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). Article 2 of this Order provides that, in determining this annual income figure, whenever a particular farming use mentioned in column 1 of the Schedule is relevant to the assessment of the productive capacity of the land in question, the units of production and the net annual income specified in columns 2 and 3 respectively will form the basis of that assessment.

The net annual income figures in column 3 of the Schedule describe 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.

This Order includes net annual income figures for land which was, in 2005, an eligible hectare for the purposes of Council Regulation (EC) No. 1782/2003 (O.J. No. L270, 21.10.2003, p.1), which establishes the Single Payment Scheme. There are separate figures in the Schedule for moorland, severely disadvantaged land excluding moorland, disadvantaged land and other land. There are also separate figures for land which was set-aside from production in 2005.

A regulatory impact assessment has not been prepared for this instrument as it has no impact on the costs of business.

Notes:

 [1] 1986 c.5; section 96(1) of that Act defines "the Minister".back

[2] In relation to England, the functions previously vested in the Minister of Agriculture, Fisheries and Food are vested in the Secretary of State - see article 5(1) of, and paragraph 27 of Schedule 1 to, the Ministry of Agriculture, Fisheries and Food (Dissolution) Order 2002 (S.I. 2002/794).back

[3] O.J. No. L270, 21.10.2003, p.1.back

[4] O.J. No. L208, 29.7.2006, p.3.back

[5] S.I. 2005/2867.back

[6] S.I. 2006/225.back


ISBN 0 11 075146 9


 © Crown copyright 2006

Prepared 9 October 2006

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URL: http://www.bailii.org/wales/legis/num_reg/2006/20062628.html