AGRICULTURE Title and commencement 1 These Regulations may be cited as the Sheep Annual Premium and Suckler Cow Premium Quotas Regulations 2003 and shall come into force on 1st October 2003. Interpretation 2 1 In these Regulations— “calendar year” means a period of twelve months ending on 31st December; “ Commission Regulation 2342/99 ” means Commission Regulation ( EC ) No. 2342/1999 laying down detailed rules for the application of Council Regulation (EC) No. 1254/1999 on the common organisation of the market in beef and veal as regards premium schemes ; “ Commission Regulation 2550/01 ” means Commission Regulation (EC) No. 2550/2001 laying down detailed rules for the application of Council Regulation (EC) No. 2529/2001 on the common organisation of the market in sheep meat and goat meat as regards premium schemes and amending Regulation (EC) No. 2419/2001 ; “the Community legislation ” means Article 9 of Council Regulation 2529/01 , Articles 6 and 8 of Council Regulation 1254/99 , Articles 22 to 26 and so far as they relate to suckler cow premium, 31 and 32 of Commission Regulation 2342/99 and Articles 2 to 5, 10 to 12 and 14 of Commission Regulation 2550/01; “Council Regulation 1254/99” means Council Regulation (EC) No. 1254/1999 on the common organisation of the market in beef and veal ; “Council Regulation 2529/01” means Council Regulation (EC) No. 2529/2001 on the common organisation of the market in sheepmeat and goatmeat ; “holding” has the same meaning as in— Article 3(b) of Council Regulation 2529/01 in so far as these Regulations relate to sheep annual premium quota; and Article 3(b) of Council Regulation 1254/99 in so far as these Regulations relate to suckler cow premium quota; “lease” means— a temporary transfer under Article 9(4) of Council Regulation 2529/01 in so far as these Regulations relate to sheep annual premium quota; and a temporary transfer under Article 8(3) of Council Regulation 1254/99 in so far as these Regulations relate to suckler cow premium quota, and “lessor” shall be construed accordingly; “ the Minister ” means— in relation to England, the Secretary of State; in relation to Wales, the National Assembly for Wales; in relation to Scotland, the Scottish Ministers; and in relation to Northern Ireland, the Department of Agriculture and Rural Development; “producer” has the same meaning as in— Article 3(a) of Council Regulation 2529/01 in so far as these Regulations relate to sheep annual premium quota; and Article 3(a) of Council Regulation 1254/99 in so far as these Regulations relate to suckler cow premium quota; “quota” means sheep annual premium quota or as the case may be suckler cow premium quota; “quota register” means the register prepared and maintained under regulation 13; “scheme year” means any calendar year in respect of which sheep annual premium may be paid but also includes the period in relation to an application for premium in respect of a given calendar year which falls within the preceding calendar year; “sensitive zones” means the sensitive zones specified in Schedule 1 and a reference to a numbered sensitive zone is a reference to the sensitive zone so numbered in that Schedule; “sharefarming agreement” means a farming contract made between the owner of land (including a person entitled for a term of years certain or other limited estate) and a farmer with no legal interest or charge in or over the land concerned which does not constitute the parties partners or employer or employee but merely contracting parties whose liabilities remain separate, whose contributions are defined by the agreement between them, whose responsibility for planning and managing the farming enterprise is joint and whose rewards are an agreed share of the revenue of that enterprise; and any reference in these Regulations to a “sharefarmer” is a reference to any farmer such as specified above; “sheep annual premium” means the premium granted under Article 4(1) of Council Regulation 2529/01 and any reference in these Regulations to the Sheep Annual Premium Scheme for a given scheme year is a reference to the arrangements adopted by the Minister for enabling sheep annual premium to be granted in respect of that scheme year; “sheep annual premium quota” means the right to sheep annual premium subject to the individual ceiling referred to in Article 4(3) of Council Regulation 2529/01; “the sheep annual premium quota national reserve” means the national reserve of sheep annual premium quota established under Article 10(1) of Council Regulation 2529/01; “suckler cow premium” means the premium granted under Article 6(1) of Council Regulation 1254/99 and any reference in these Regulations to the Suckler Cow Premium Scheme for a given year is a reference to the arrangements adopted by the Minister for enabling suckler cow premium to be granted in respect of that year; “suckler cow premium quota” means the right to suckler cow premium subject to the individual ceiling referred to in Article 6(3) of Council Regulation 1254/99; “the suckler cow premium quota national reserve” means the national reserve of suckler cow premium quota established under Article 9(1) of Council Regulation 1254/99; “the Suckler Cow Premium Regulations ” means the Suckler Cow Premium Regulations 2001 , the Suckler Cow Premium (Scotland) Regulations 2001 and the Suckler Cow Premium Regulations (Northern Ireland) 2001 ; “transfer”, in relation to quota means— a transfer of sheep annual premium quota under Article 9(1) of Council Regulation 2529/01 in so far as these Regulations relate to such quota; and a transfer of suckler cow premium quota under Article 8(1) of Council Regulation 1254/99 in so far as these Regulations relate to such quota, but does not include a lease, and “transferor” shall be construed accordingly. 2 Any reference in these Regulations to a Community instrument is a reference to that instrument as amended on the date these Regulations are made. 3 In so far as these Regulations relate to sheep annual premium quota, any reference in them to— a the national reserve is a reference to the sheep annual premium quota national reserve; and b the national reserve for a given year is a reference to the sheep annual premium quota national reserve for any given scheme year, in so far as it comprises— i any sheep annual premium quota which has been added to that or any previous national reserve in accordance with regulation 10(1), ii any sheep annual premium quota which has been added to that or any previous national reserve in accordance with regulation 10(2), iii any sheep annual premium quota carried forward from the national reserve for the previous year in accordance with regulation 12(5). 4 In so far as these Regulations relate to suckler cow premium quota, any reference in them to— a the national reserve is a reference to the suckler cow premium quota national reserve; and b the national reserve for a given year is a reference to the suckler cow premium quota national reserve for any given calendar year later than 1997 in so far as it comprises— i any suckler cow premium quota which has been added to that or any previous national reserve in accordance with regulation 10(1), ii any suckler cow premium quota which has been added to that or any previous national reserve in accordance with regulation 10(2), iii any suckler cow premium quota carried forward from the national reserve for the previous year in accordance with regulation 12(5). Location of holdings 3 1 The location of a producer’s holding in any given scheme year, or as the case may be, calendar year shall be that determined as at 15th May in that year. 2 Where a producer’s holding is not situated entirely in a single sensitive zone, then— a where the holding concerned is situated in two sensitive zones, it shall be treated for the purposes of these Regulations as being located in whichever of those sensitive zones contains the greater part of the agricultural area utilised for farming on that holding; and b where the holding concerned is situated in at least 3 sensitive zones, the sensitive zone in which it shall be treated as being located for the purposes of these Regulations is as follows— i if the holding is situated entirely in Great Britain, then— aa if the greater part of the agricultural area utilised for farming on that holding is situated within the land comprising sensitive zones 1 to 4, it shall be treated for the purposes of these Regulations as being located in whichever of those sensitive zones contains the largest single part of the holding, and bb if the greater part of the agricultural area utilised for farming on that holding is situated in sensitive zone 5, it shall be treated for the purposes of these Regulations as being located in that zone, and ii if any part of that holding is situated in sensitive zone 6, then— aa if the greater part of the agricultural area utilised for farming on the holding concerned is situated in that zone, it shall be treated for the purposes of these Regulations as being located in the said zone, and bb if the greater part of the agricultural area utilised for farming on the holding concerned is situated in Great Britain— aaa where the majority of the holding is situated within the land comprising sensitive zones 1 to 4 and that part of sensitive zone 6 which is disadvantaged land or severely disadvantaged land, that holding shall be treated for the purposes of these Regulations as being located in whichever of those sensitive zones contains the largest single part of the holding, and bbb where the majority of the holding is situated within the land comprising sensitive zone 5 and that part of sensitive zone 6 which is not disadvantaged land or severely disadvantaged land, that holding shall be treated for the purposes of these Regulations as being located in whichever of those sensitive zones contains the largest single part of the holding. 3 Where a producer’s holding is located in sensitive zone 5, or is to be treated by virtue of paragraph (2) as so located, and the parts of the holding in sensitive zone 5 are not situated entirely within England, Wales or Scotland, the holding shall be treated for the purposes of these Regulations as being located in whichever of those countries contains the greatest part of the agricultural area utilised for farming on the holding that is within sensitive zone 5. 4 In this regulation— a “agricultural area utilised for farming” has the same meaning as in Article 5(b) of Council Regulation ( EEC ) No. 571/88 on the organization of Community surveys on the structure of agricultural holdings between 1988 and 1997 ; b “disadvantaged land” and “severely disadvantaged land” have the same meanings as in regulation 2(1) of the Hill Livestock (Compensatory Allowances) Regulations (Northern Ireland) 1996 . Transfer or lease of quota: notification 4 1 The notification of a transfer or lease of quota as required by Article 12(2) of Commission Regulation 2550/01 or as the case may be Article 24(2) of Commission Regulation 2342/99 shall be made to the Minister with responsibility for the part of the United Kingdom in which the transferor’s holding is located in that scheme year or as the case may be calendar year, in such form as the Minister may determine. 2 The deadline for notifying a transfer or lease of sheep annual premium quota in respect of a scheme year shall be, in relation to any holding located in Northern Ireland, on 2nd January in that year and, in relation to any other holding, on 4th February in that year. 3 The deadline for notifying a transfer or lease of suckler cow premium quota in respect of a given calendar year shall be— a if the producer receiving the quota under the transfer or lease submits a suckler cow premium application for that year by the end of the period specified in regulation 4(2) of the Suckler Cow Premium Regulations for submitting such an application, the date of lodgement of that application; or b if no such application is submitted by that date by that producer, the end of the period so specified. 4 Notification of a transfer or lease of suckler cow premium quota in respect of a given calendar year may be made from such date prior to the deadline for that notification, as specified in paragraph (3), as the Minister may reasonably determine. 5 Notification of a transfer or lease of sheep annual premium quota in respect of a given scheme year may be made from such date prior to the deadline for that notification, as specified in paragraph (2) as the Minister may reasonably determine. 6 Nothing in this regulation shall prevent quota from being transferred through an inheritance at any time, but— a in the case of suckler cow premium quota, the beneficiary may not (except where, in relation to a particular calendar year, the transfer takes place by the deadline specified in paragraph (3)) use the quota concerned to claim suckler cow premium until the quota has been transferred to him; and b in the case of sheep annual premium quota, the beneficiary may not (except where, in relation to a particular calendar year, the transfer takes place by the deadline specified in paragraph (2)) use the quota concerned to claim sheep annual premium until the quota has been transferred to him. Transfer or lease of quota: other provisions 5 Where a producer transfers quota without transferring his holding, the part of the quota surrendered to the national reserve under Article 9(2) of Council Regulation 2529/01 or Article 8(1) of Council Regulation 1245/99 shall be 15%. Transfer of quota with holding 6 1 For the purposes of regulation 5(1), a producer shall be taken to have transferred quota without transferring his holding if he has not transferred the quota in question together with his holding within the meaning of this regulation. 2 A producer shall be regarded as transferring suckler cow premium quota together with his holding only if the circumstances specified in any of Case A, Case B or Case C set out in Part I of Schedule 2 apply. 3 A producer shall be regarded as transferring sheep annual premium quota together with his holding only if the circumstances specified in any of Case A, Case B or Case C set out in Part II of Schedule 2 apply. 4 For the purposes of paragraphs (2) and (3), if the Minister is not satisfied that the recipient of the quota has already taken over the transferor’s holding, the transfer of quota shall be deemed to be a transfer without a corresponding transfer of a holding. Sensitive zones 7 1 Quota that is allocated to a producer from the national reserve for a given year shall be regarded as belonging to the sensitive zone which the producer has in his application for the allocation concerned indicated as being the one in which his holding is to be situated in that year. 2 A producer shall not (except in accordance with regulation 8) acquire by transfer or lease in any scheme year, or as the case may be, calendar year quota which does not belong to the sensitive zone in which his holding is located in the scheme year, or as the case may be, calendar year concerned. 3 A producer shall not receive sheep annual premium or suckler cow premium in respect of any scheme year, or as the case may be, calendar year in reliance on quota that does not belong to the sensitive zone in which his holding is located in that year. Transfers and leases between sensitive zones 8 1 A producer whose holding is in any given scheme year, or as the case may be, calendar year located in one of sensitive zones 1 to 4 may in that year transfer or lease quota belonging to that zone to any producer whose holding is in that year located in sensitive zone 5 only if— a the transferor or lessor is participating in a qualifying environmental scheme that involves extensification of livestock production; b he cannot fully use his quota without exceeding the maximum stocking level permitted under that scheme; and c the amount of quota transferred or leased does not exceed the amount by which his quota exceeds the maximum stocking level permitted under the scheme. 2 Quota that is transferred to a producer by virtue of paragraph (1) shall be regarded as belonging to sensitive zone 5. 3 In paragraph (1), “qualifying environmental scheme” means— a the aid scheme introduced by Council Regulation (EEC) No. 2078/92 on agriculture production methods compatible with the requirements of the protection of the environment and the maintenance of the countryside ; or b an experimental scheme made under section 4(1) of the Countryside Act 1968 . Division of national reserves 9 The national reserve for a given year shall be divided into 6 divisions, consisting of a division corresponding with each sensitive zone. Distribution of quota among divisions 10 1 Quota that falls to be surrendered to the national reserve for a given year under Article 9(2) of Council Regulation 2529/01 or Article 8(1) of Council Regulation 1254/99 (in each case as read with regulation 5(1)) following the notification of its transfer as required by Article 12(2) of Commission Regulation 2550/01 or as the case may be Article 24(2) of Commission Regulation 2342/99 (in each case read with regulation 4) shall be added to the division of the national reserve for the immediately following year which corresponds with the sensitive zone in which the transferor’s holding was located in the scheme year or as the case may be calendar year in respect of which the notification was required. 2 Quota that falls to be withdrawn from a producer or transferred to the national reserve following the application of Article 9(2) of Council Regulation 2529/01 or Article 9(2) of Council Regulation 1254/99 in respect of a scheme year or as the case may be calendar year shall be added to the division of the national reserve for the immediately following year which corresponds with the sensitive zone in which the producer’s holding was located in the scheme year or as the case may be calendar year in respect of which Article 9(2) of either Council Regulation 2529/01 or Council Regulation 1254/99 was applied. Sheep Quota Purchase Scheme 11 1 For the purpose of this regulation— a “Sheep Quota Purchase Scheme” means the scheme operated by the Secretary of State to buy back sheep annual premium offered by a producer; and b “Sheep Quota Purchase Scheme Agreement” means an agreement between a producer and the Secretary of State, following a successful application to surrender quota by a producer under the Sheep Purchase Quota Scheme, to buy back sheep annual premium quota offered by the producer. 2 Any quota acquired by the Secretary of State through the Sheep Quota Purchase Scheme and added to the national reserve in accordance with regulation 10(2) may be allocated by the Secretary of State in accordance with regulation 12. 3 Any person who surrendered quota through the Sheep Quota Purchase Scheme shall not acquire additional quota, by any means, unless they have acquired land by purchase or tenancy or the Secretary of State is satisfied they have acquired land under written agreement for exclusive occupation for a defined period of time, which is in addition to the land that formed part of his holding at the date of the Sheep Quota Purchase Scheme Agreement. Allocations of quota from the national reserve 12 1 There shall be 6 categories of person (as specified in Part I of Schedule 3, of which category III and category VI are divided into 2 groups) eligible to be allocated quota from the national reserve for a given year. 2 Any reference in these Regulations to a numbered category is a reference to the corresponding category of person specified in Part I of Schedule 3. 3 Where a person who considers that he falls within any of the categories of person specified in Part I of Schedule 3 wishes to be allocated quota from the national reserve for a given year he may, subject to paragraph (14), apply for such an allocation to be made to him to the Minister with responsibility for the part of the United Kingdom in which his holding is located in that year or, if he does not possess a holding, to the Minister with responsibility for the part of the United Kingdom in which he intends his holding to be located in that year, in such form and by such date as that Minister may from time to time direct. 4 Where a person has made a successful application for an allocation of quota from the national reserve for a given year in accordance with paragraph (3), the Minister to whom the application was made shall— a subject to paragraph (8); and b to the extent that such quota is available under paragraphs (6) and (9), allocate to the person concerned the amount of quota of the corresponding kind which is specified in Schedule 4 from the division of that national reserve corresponding with the sensitive zone in which his holding is located in that year or (if he does not possess a holding) the sensitive zone in which he intends his holding to be located in that year. 5 Where quota remains in a division of the national reserve for a given year after allocations of quota from that division have been made to all successful applicants, the Minister with responsibility for the part of the United Kingdom in which the sensitive zone corresponding with that division is situated shall direct that— a some of the remaining quota be transferred to such other divisions of that national reserve as he may determine and that the rest of that quota be carried forward for distribution from the corresponding division of the national reserve for the following year; b all of the remaining quota be transferred to such other divisions of that national reserve as he may determine; or c all of that quota be carried forward for distribution from the corresponding division of the national reserve for the following year. 6 Within each division of the national reserve for a given year the Minister with responsibility for the part of the United Kingdom in which the sensitive zone corresponding with that division is situated shall make allocations of quota category by category, beginning with the first category of person specified in Part I of Schedule 3 until all available quota in that division is exhausted. 7 Within categories III and VI, group (a) shall rank equally with group (b) in each case. 8 Where any person (other than one falling within category I) who has made a successful application for an allocation of quota from the national reserve for a given year in accordance with paragraph (3) has acquired quota of the corresponding kind by transfer between the date the factors establishing his eligibility for the allocation came into being and the date the allocation falls to be made, the quota so acquired shall be deducted from that allocation. 9 If there is insufficient quota within a division of the national reserve for a given year to enable all successful applications for allocations of quota from it by those persons falling within a particular category of person specified in Part I of Schedule 3 to be met, the Minister with responsibility for the part of the United Kingdom in which the sensitive zone corresponding with that division is situated shall in the light of the quota available to fund those allocations reduce the amount of quota allocated to those persons in such a way that they each receive the same proportion of the quota to which they would otherwise be entitled under Schedule 4. 10 A person falls within category II only if the condition specified in Part II of Schedule 3 is satisfied in his case. 11 A person falls within category III, group (b), or category IV only if the conditions specified in Part III of Schedule 3 are satisfied in his case. 12 Where any category of person specified in Part I of Schedule 3 is divided into 2 groups, a person shall be eligible for an allocation of quota from the national reserve for a given year in respect of only one of those groups and shall specify in any application under any such category the particular group in respect of which he wishes the allocation to be made. 13 A person shall, subject to paragraph (15), be eligible for an allocation of quota from the national reserve for a given year in respect of each category of person specified in Part I of Schedule 3 into which he falls. 14 A person who in the 2003 scheme year fell within category III group (b), category IV or category VI group (a) of the sheep annual premium quota natural reserve, but was not allocated quota from the national reserve for the 2003 scheme year in respect of that category, shall be entitled to apply for an allocation of quota from the national reserve for 2004 in respect of that category. 15 A person (other than one falling within category II) who has made a successful application for an allocation of quota from the national reserve for a given year in accordance with paragraph (3), shall not apply for an allocation of quota in accordance with that paragraph from the national reserve for any subsequent year in reliance on any factor which rendered the first-mentioned application successful. 16 Schedule 5 shall have effect for determining when allocations of quota from the national reserve for a given year become effective and when they shall be regarded as having been obtained for the purposes of Commission Regulations 2550/01 and 2342/99. 17 The Minister to whom an application for an allocation of quota from the national reserve for a given year is made in accordance with paragraph (3) may by notice to the applicant direct him to provide by such date as is specified in the notice such further information as that Minister may consider relevant for the purpose of determining the application. 18 For the avoidance of doubt, a successful application for an allocation of quota for the purposes of paragraph (15) includes the case where the allocation concerned has been reduced in accordance with paragraph (9). Quota register 13 1 The Minister with responsibility for the part of the Untied Kingdom in which a producer’s holding is located shall prepare and maintain a register containing an entry for each such producer who has quota. 2 The entry for each producer shall include— a his name; b his address; c his holding number; d his producer identification number; e an indication of the sensitive zone to which his quota belongs; f a statement of the amount of his quota; g a statement of the amount of any of that quota that he has leased to other producers, together with the expiry dates of any such leases; and h the amount of any additional quota that he holds under leases from other producers, together with the expiry dates of any such leases. Copies of quota register entries 14 1 Any producer, any person acting on behalf of a producer who wishes to transfer or lease quota or any person who has entered into a financial arrangement with a producer in reliance on an expectation of the producer’s continuing right to receive sheep annual premium or suckler cow premium may make a request to the Minister in such form as the Minister may from time to time direct for a copy of the entry in the quota register relating to that producer. 2 The Minister shall inform the producer of any request under paragraph (1) made by a person who has entered into any financial arrangement with that producer such as is specified in that paragraph. 3 After taking into account any representations made by the person making the request the Minister shall decide whether to comply with it. Verification of applications for allocations of quota from a particular national reserve 15 1 For the purpose of verifying an application for an allocation of quota from the national reserve for a given year any duly authorised officer of the Secretary of State (in the case of an application made in England), of the National Assembly for Wales (in the case of an application made in Wales), of the Scottish Ministers (in the case of an application made in Scotland) or of the Department of Agriculture and Rural Development (in the case of an application made in Northern Ireland) shall (on producing if so required some duly authenticated document showing his authority) have the following powers— a at any reasonable time to enter any land other than land used only as a dwelling; and b (to such extent as is reasonable) to require the production of, to inspect, to take copies of and to detain any record (in whatever form) relevant to the application. 2 Any duly authorised person who enters premises by virtue of paragraph (1)(a) may take with him such other persons as he considers necessary. Offences and penalties 16 1 Any person who, in connection with these Regulations or the Community legislation, makes a statement or uses a document which he knows to be false in a material particular, or recklessly makes a statement or uses a document which is false in a material particular, shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale. 2 Any person who intentionally obstructs any officer such as is specified in paragraph (1) of regulation 15 in the exercise of his powers under that regulation shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale. Transitional measures 17 Reference in these regulations to the sheep annual premium quotas national reserve and the suckler cow premium quotas national reserve for a given scheme year, or as the case may be, calendar year includes a reference to sheep annual premium quota and suckler cow premium quota carried forward in accordance with The Sheep Annual Premium and Suckler Cow Premium Quotas Regulations 1997 . Revocation 18 The Sheep Annual Premium and Suckler Cow Premium Quotas Regulations 1997 are revoked. Alun Michael Minister of State Department for Environment, Food and Rural Affairs