Farming Talk: Tread carefully when claiming over dual use

'Dual use' in connection to the Single Payment Scheme (SPS) is the phrase used to describe the situation where separate parties claim SPS and Agri-Environment Schemes (Stewardship) on the same land.

This typically occurs where a landowner has an Entry or Higher Level Stewardship Scheme and a tenant or licensee is claiming the SPS.

Given that an SPS claimant must pass the 'land at your disposal' rule and a Stewardship agreement holder must have sufficient management control to observe the management prescriptions, it is questioned whether each party can fulfil their specific management obligations.

Historically the English Government has taken a pragmatic approach to dual use, while the Scottish Government, and more recently the Welsh Government, have not allowed it.

However, during 2011 the Rural Payments Agency, under pressure from the European Union, has investigated 550 situations where dual use occurred, with the agency writing to 1,100 individuals asking to see the documentation that they had in place relating to the land.

Following these investigations the RPA has confirmed their view that it is possible for both parties to meet the rules for their respective schemes, although some of the situations encountered were not satisfactory.

Specifically questioned were those where an SPS claimant is occupying the land under a licence agreement (grazing licence/grass keep).

It is argued that a licensee does not have sufficient management control or security over the land in order for them to meet the 'land at your disposal' rule for the SPS.

The RPA has made the decision that no penalties will be applied for the 2011 scheme year but that they will be making further investigations during 2012. Given the publicity which has encircled dual use over the past six months, one can only assume that failure to ensure 'eligibility' will be dealt with seriously.

Care should be taken to ensure that the correct documentation is in place to both represent the true situation on the ground and also protect each party's interests.

Balfours are in the process of reviewing a number of situations to ensure compliance, and with the impending May 15 claim deadline looming it is advised that action is taken immediately.

Charles Fitzherbert-Brockholes is from Balfours Property Professionals