NEWS LETTER

Grassland NVZ Derogation – Do You Qualify ?

Nitrate Vulnerable Zone (NVZ) legislation states that all farms may spread a maximum 170kg N/ha from organic manures, although farms whose grassland area is over 80% can apply for a derogation from this limit. This increases the maximum limit from organic manures to 250kg N/ha.

Applications do not need to be made for 2009, although you must keep a record of the percentage of the farm in grass during 2009, and a record of the calculations of compliance with the limits.

For those farmers who still require the derogation, this must now be applied for on an annual basis. 2010 applications must be submitted no later than March 31st. There a number of matters to note regarding this derogation, in particular the 250kg N/ha limit only applies where the manure applied is from grazing livestock, whereas the limit for non-grazing livestock is still 170kg N/ha.

If the EA approve the derogation, various records need to be completed, (and some of them submitted for audit), including:

1. Nitrogen and phosphate application plans for every field, records of manure applications and manufactured N & P applications for each field
2. Compliance calculations
3. Records including farm maps and field sizes, cropping, details of animal housing, and manure storage systems including storage volumes.

There are also other management implications in receiving the derogation to be aware of including cultivation and cropping restrictions and the need for routine soil sampling to be undertaken.

To ensure compliance, around 3% of the derogated farms will be inspected by the Environment Agency in each calendar year.

For further information regarding the derogation or help in applying for one, and any other NVZ issues please contact either Gemma Dalton or Stuart Milsom of the Agricultural team on 01285 648 107.

Hedge Cutting Dates – SPS Closed Period Reminder

Claimants of the Single Payment are reminded that they must not trim hedgerows between March 1st & July 31st, unless they are deemed dangerous, dead or obstructive to a public right of way.

Business Rates – The 2010 Revaluation

The next revaluation of non-domestic rates is due to come into effect on April 1st 2010, based on rateable values assessed as at the valuation date of April 1st 2008.

Currently property used for agricultural purposes is not rateable, but any business property used for a non-agricultural purpose will fall into this category.

Farmers who have traditionally not paid business rates for any commercial property will be advised if such a property becomes rateable.  A proposal to change the new rateable value can only be made after April 1st 2010 and can be made either online or in paper form.

The payment is calculated by multiplying the rateable value of the property by the multiplier. For 2010/11 this is 41.4p for the standard and 40.7p for the small business.

Empty Property Rate Relief: Reliefs are available if a property is unoccupied or has a rateable value of less than £ 18,000.

Small Businesses: Certain types of business and those with a rateable value of less than £ 6,000 are eligible for a 50% relief from rates. A sliding scale is available for an RV of between £ 6,001 and £ 12,000.

Rural Rate Relief: A business in a designated rural settlement of fewer than 3,000 people can apply to the Council for a 50% reduction in rates.

For further information on this, please contact either the Agricultural or Commercial teams on 01285 648 106.

Cirencester Health & Safety Awareness Event – March 2nd

The Health & Safety Executive is arranging a Farm Safety and Health event at the RAC Cirencester, Rural Skills Centre on March 2nd.

The half day demonstrations will remind farmers about the actions they need to take to avoid people being killed, injured or made ill on their farms.

There will be 6 different accident causes/scenarios demonstrated, (each lasts between 15 and 20 minutes) including livestock handling, quad bikes, ladders and work at height.

At each demonstration there will be qualified instructors, with relevant industry experience, giving demonstrations and guidance on hazard spotting, risk reduction and safe working practice.

The HSE will be writing to invite farmers in the coming weeks, with further information available at www.hse.gov.uk/agriculture/diary or by contacting HSE on 01179 886 061

ELS Renewals – Register Now and Don’t Miss Out

Have you received a renewal invitation for Entry Level Stewardship scheme (ELS)? If so, the form needs to be completed and returned to minimise delays in renewal and payments, and give you the best chance of receiving the correct paperwork.

Moore Allen & Innocent can assist you with the option of completing the renewal on-line, which will speed up and simplify the entire process. More on the new options available under ELS in the next Update, but in the meantime please contact Stuart Milsom, Paul Oughton or Gemma Dalton on 01285 648 107 for further information.

Protecting the Family Farm from Divorce
Daniel Eames of Clarke Willmott, Solicitors

A divorce can have a devastating effect on the family farm (estate) with the courts having little regard for the fact that a farm has been in a family for generations.  This understandably has led to parents holding onto the farm for longer and ignoring the advice of their agent or accountant to pass it onto their son or daughter at an early stage to avoid the effects of inheritance tax.

However, whilst the courts have not changed their general approach on divorce, there have been two recent cases where the courts have decided to take into account agreements which limit the financial provision for the other spouse. These cases open up the possibility of ring-fencing inherited assets and of making property settlements which only benefit a spouse whilst the children are in education. This is a far cry from the usual 50:50 division which can lead to farms being split up and/or the farming business being crippled by debt in order to fund a divorce settlement.

Ideally the agreement should be entered into before marriage (known as a prenuptial agreement) but even where the parties are already married a subsequent agreement (known as a postnuptial agreement) can be just as effective provided there are no subsequent changes in the parties’ circumstances which would make the agreement unjust. Thus where a son or daughter already has a spouse and children a postnuptial agreement is likely to provide security for a parent who wishes to transfer a farm to that son or daughter.

In either case, both parties should have independent legal advice and the agreement should provide for the financial needs of the other spouse (and any children).  Importantly though the agreement could limit these needs to the use of the farmhouse or a farm cottage whilst there are children. The practicalities of a temporary division of the farm should be discussed with your Agent but must be viewed as a significant improvement on the outcome without an agreement.

The Agent may also need to be consulted when preparing the financial disclosure which must accompany the agreement (particularly important for a prenuptial agreement) as valuations and plans will generally be required to show the extent of any wealth.

For further information contact Brian Smith of the Agricultural Team on 01285 648 112 or Daniel Eames of Clarke Willmott who specialises in farming divorces and can be contacted on 0845 209 1694 or by email at daniel.eames@clarkewillmott.com

Single Payment Scheme Overpayment Claims

You may have recently read of cases where farmers are challenging claims being made by the Rural Payment Agency regarding overpayment of Singe Payment monies. There is, however, a potential conflict with European legislation if the overpayment was made in error by the RPA and could not be ‘reasonably detected’ by the farmer, or if the agency did not try to reclaim the money within 12 months.

We are currently challenging several such cases where, according to the RPA, farmers have been overpaid over several years. Contact Paul Oughton of the Agricultural Team for further information on 01285 648 113.

Full time No. 2 position available on 1,000 acre North Cotswolds arable/beef farm.
No accommodation available. Tel. 07778 150 125

Biomass Crops Funding Increases

Natural England has announced that the rate of grant for biomass planting under the Energy Crops Scheme has increased from 40% to 50%, for costs incurred after January 1st 2010. The funding is available for miscanthus and short rotation coppice grown for energy use, and payments will be made to cover half the cost of cultivation, ground preparation, rhizome/rootstock supply and planting.

Applications must comprise a minimum of 3 hectares, in total, with individual plots no less than ½ hectare each. There is no upper limit on the amount of eligible land that can be entered in the Scheme, but any crop areas must be retained for at least 5 years. Critically, the crop must be used to produce electrical power and/or heat, and those growing the crop solely for rhizome multiplication are not eligible for grant aid. The higher funding rate will also be available to 2009 applications where work is yet to start.

The Government-funded National Non-Food Crops Centre’s energy crops calculator (www.nnfcc.co.uk) lets growers compare the gross margins of wheat with SRC and Miscanthus at various wheat yields and prices.

Establishing Biomass is a long term strategic decision for a business and Moore Allen & Innocent is able to assist you in assessing whether this option is right for you in light of other objectives, personal and financial. Applications for the planting of Miscanthus may also be subject to the Environmental Impact Assessment (EIA) as well as detailed mapping requirements which we can also assist you with. Contact us on 01285 648 113 for further information.

Single Payment Scheme Entitlements

The deadline for Single Payment Scheme Entitlement transfers has been set as April 4th. We currently have several lots of Entitlements available and demand for more. Contact Stuart or Gemma on 01285 648 107 for details of the latest availability.

For clear, objective and professional advice on these or any other agricultural and rural estate issues please contact one of our Agricultural Team:

Robert Young ~ Mark Hill ~ Christopher Graham ~ Paul Oughton ~ Brian Smith
Peter Kirby ~ Katherine Foot ~ Stuart Milsom ~ Margaret Bush

Tel. 01285 648 113                                                             Fax. 01285 640 494    

This newsletter is produced for guidance only and should not be used as a substitute for professional advice. Accordingly no liability or responsibility for any loss or damage can be accepted by Moore Allen & Innocent or other contributors as a result of any person, company or other organisation acting or refraining from acting upon comment on this newsletter.

• Farm & Estate Management • Sales & Purchases of Rural Properties • Valuations • Estate Planning •
• Landlord & Tenant • Farming Agreements • Auctions • Compensation & Compulsory Purchase •
• Farm Buildings • Expert Witness • Planning & Development • Grants & Quotas • Agri-Environment •
• Woodland • Digital Mapping • Diversification • Employment • Payroll & Accounts •

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