AGRICULTURE Citation and commencement 1 These Regulations may be cited as the Common Agricultural Policy Support Schemes (Modulation) (Scotland) Regulations 2000 and shall come into force on 1st January 2001. Application 2 These Regulations shall apply to payments made by ... the Scottish Ministers pursuant to a support scheme in relation to a farmer’s holding for which the Scottish Ministers are the relevant competent authority in accordance with the Integrated Administration and Control System Regulations 1993 . Interpretation 3 In these Regulations– “the Agrimonetary Regulation" means Council Regulation (EC) No. 2799/98 establishing agrimonetary arrangements for the euro; “the Council Regulation" means Council Regulation (EC) No. 1259/1999 establishing common rules for direct support schemes under the common agricultural policy of the European Community; “farmer" has the meaning given to it by Article 10(a) of the Council Regulation; “holding" has the meaning given to it by Article 10(b) of the Council Regulation; ... “the Rural Development Regulation" means Council Regulation (EC) No. 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations; “scheme year" means the twelve months in respect of which payments are made pursuant to the support scheme in question; and “support scheme" means any support scheme listed in the Annex to the Council Regulation. 2 For the purposes of these Regulations, a reference to any European Community Regulation shall include any amendments to it before the making of these Regulations. 3 Any reference in these Regulations to a numbered regulation is a reference to the regulation so numbered in these Regulations. Modulation of support scheme payments 4 1 For the purposes of calculating the amount of any payment to which a farmer is entitled pursuant to a support scheme, the Scottish Ministers ... shall deduct the following specified proportion from the amount to which the farmer would be entitled under the support scheme if this regulation did not apply:– a in respect of the scheme year which begins in 2001, 2.5%; b in respect of the scheme year which begins in 2002, 3.0%; c in respect of the scheme year which begins in 2003 and that which begins in 2004, 3.5%; and d in respect of the scheme year which begins in 2005 and that which begins in 2006, 4.5%. 2 For the purposes of this regulation, a payment to which a farmer would be entitled under the support scheme if this regulation did not apply, includes any payment which is made pursuant to Article 4 or 5 of the Agrimonetary Regulation (by way of supplement to the payment made pursuant to a support scheme) to the extent that such payment is funded by the European Community in accordance with Article 6 of the Agrimonetary Regulation. 3 For the purposes of paragraph (2), a payment made pursuant to Article 4 or 5 of the Agrimonetary Regulation shall be treated as made in respect of the scheme year in respect of which the payment pursuant to the support scheme was made. Application of deducted amounts to rural development measures 5 The Scottish Ministers shall apply the sum deducted under regulation 4 towards funds for one or more of the rural development measures which implement any provision of the following Articles of the Rural Development Regulation:– a Articles 10 to12 (early retirement); b Articles 13 to 21 (less-favoured areas and areas with environmental restrictions); c Articles 22 to 24 (agri-environment); or d Article 31 (afforestation). ROSS FINNIE A member of the Scottish Executive St Andrew’s House, Edinburgh 29th November 2000