DEFRA have recently confirmed that the ten month rule for the Single Payment Scheme will be abolished with effect from 1 April 2008. This means that the new rule will be that the land must be at an applicant's disposal on 15 May each year, which is the application deadline.
This change in regulations will have a significant effect on land tenure and contract farming agreements and also applicants will need to consult with their accountants as to whether the change in the rules affects the way (and in particularly which year) the Single Payment is actually treated.
Andrew Bays of BCM Bays Curry McCowen comments: "This is a welcome change and should lead to increased simplicity with respect to the Single Payment Scheme where land is rented out to other parties. However, it may well be that existing arrangements will need to be revisited to make sure that they are allowable under the new regulations."
