Welsh Assembly Government Sorts Out Dual Claims
The Tenant Farmers Association has congratulated the Welsh Assembly Government for its common sense approach to resolving a problem with dual claims on land and urges England to consider following its lead.
A recent clarification of EU rules has brought into question the current practice, which allows more than one party to claim under different schemes on the same parcel of land - referred to as “dual claims”. This has occurred, for example where a tenant farmer claims under the Single Payment Scheme whilst their landlord holds an agri-environment agreement on the same parcel of land.
The Welsh Assembly Government has therefore decided to phase out this practice from January 2010; affecting approximately 5,000 Welsh farmers, who will need to change their management arrangements as a result.
Where a landlord currently holds an agri-environment agreement (such as Tir Cynnal or Tir Gofal) and his tenant claims under the Single Payment Scheme, the two parties will need to agree who will become the single claimant from 2010 if land is to be entered into the new Organic Farming Conversion Scheme or from 2012 for land entered into Glastir. This decision must be based on new rules set out to determine who has management control of the land being used to support the claims.
TFA Chief Executive George Dunn said, “Landlords should never have been able to claim for agri-environment schemes where they had let land out to farm tenants. The new rules on "management control" will mean that only owner occupiers, tenants or licensors in Wales will be able to access the schemes, which is a common sense approach. I would urge the authorities in England to carefully consider the decision of the Welsh Assembly Government in the way they administer schemes.
“It is essential that there are early negotiations between landlords and tenants who currently make dual claims to agree to a new structure or longer term tenancies where necessary. The TFA believes the most sensible approach is for landlords to confirm that their tenants have the management control of the land and can therefore claim under the schemes, in return for reflecting any enhanced value in the rent paid. We will be supporting our Welsh members through this significant change,” said Mr Dunn.
The TFA has also been working with the Welsh Assembly Government to clarify how the new rule will be implemented in relation to short duration Farm Business Tenancies. The main concern is that a term of at least five years still remaining on the tenancy is needed if tenants wish to be the claimant. The TFA has proposed that in such circumstances landlords should be able to ‘countersign’ or ‘indemnify’ agreements or claims so that they take on the responsibilities if their tenants leave before the end of the five-year period. The Welsh Assembly Government is due to confirm shortly whether this will be accepted.
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Ref: MR30
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Date: 26 October 2009
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Notes for Editors:
For further information contact TFA Agricultural Policy Adviser Gemma Bumford on 0118 930 6130 or TFA Communications and Events Co-ordinator, Jenna Kirkpatrick on 0118 930 6130.
