Are you able to pass the 'active farmer' test?

This will bring about the introduction of new criteria that farmers must meet to gain their subsidy payment, one of these criteria is the hotly debated "active farmer test".

The European Union Commission has confirmed that an active farmer is one that undertakes an agricultural activity.

However, the EU has gone a step further with the active farmer test. This test also operates a "negative list". This is to further prevent agricultural subsidies being used for non-agricultural use. The Active Farmer Test is made up of the following two parts.

Part 1 – Negative list

This is a list of five business types that do not qualify for the agricultural subsidy:

• Railway services

• Airports

• Waterworks

• Real Estate Services

• Permanent sports and recreation grounds

However, if an individual falls within these categories they are able to appeal against it under three tests:

1. Your principal business activity being agricultural activity

2. Your agricultural activity is not a insignificant part of your overall activity

3. You pass the income test

Part 2 – at least one agricultural activity must be undertaken:

• This involves most agricultural activities, a few examples of these are; producing, rearing, growing agricultural produce, breeding animals and keeping land so it is suitable for grazing

• Carry out a minimum activity on land that is naturally kept land

The active farmer test will help to prevent landowners claiming on let land which they have no involvement with – "Payment entitlements should be allocated to the person enjoying the decision making power, benefits and financial risks in relation to the agricultural activity".

This in turn should improve the amount of subsidies that are directly affecting UK land.

The active farmer test is annually assessed therefore meeting the requirements one year doesn't automatically qualify them for the following year.

If an individual fails to meet these requirements then they will be unable to claim the BPS in 2015.

A minimum land area has also been introduced requiring a minimum of five hectares to claim on.

By Tiffany Salmon, Fisher German