In February 2009 the EU approved a change in the Single Payment Scheme (SPS). The change means that land eligible for SPS in 2008 will continue to be eligible to receive SPS even when it is subsequently afforested under the English Woodland Grant Scheme (EWGS). This has an impact on farm woodland payments under EWGS because the rates have always taken account of loss of SPS payments as well as agricultural income foregone.
We have reviewed with an agronomist the agricultural income foregone and have now reached a conclusion on the revised payments rates where there is an ongoing eligibility for SPS. These new rates are available in the table at the bottom of the page. We have also taken this opportunity to simplify the payment structure and align it more closely with the categories used for defining SPS payments.
Please note that the proposed payment rate changes have to be independently verified and then approved by the EU before we can confirm them with absolute certainty. We hope this will be completed during the summer of 2009 in time for the next planting season.
Effect on EWGS WCG applications from 1st May 2009
Land managers proposing to plant woodland under EWGS on land which received SPS in 2008 will be able to receive the proposed Farm Woodland Payment (FWP) rates in addition to claiming SPS. This will be without any double funding risks or deductions. This is good news for woodland planting. In the vast majority of cases where the land is eligible for SPS the total payment to the land manager of SPS+FWP will be substantially greater than was available under the old FWP rates alone.
Non-farmers will continue to be capped at €150/ha/yr. The payment period will continue to be 15 years for broadleaf woodland and 10 years for conifer woodland.
If you intend to submit an application for woodland creation and continue to claim SPS, you should declare your land for SPS this year on your SP5 form. In terms of EWGS, if you apply for the new FWP we will automatically apply the appropriate rate if eligible.
Proposed new rates based on agricultural income foregone alone
| Land use/location* | Proposed Farm Woodland Payment rate |
|---|---|
| Arable land in the lowlands | £300 |
| Other improved land in the lowlands | £200 |
| Unimproved land and/or land in the uplands | £60 |
*Upland = land in Severely Disadvantaged Areas.
Lowland = land outside Severely Disadvantaged Areas.
