issue 1 2015

SPS claimants warned against fraudsters Public information is used to convincetargets of the fraudsters assumedidentity. Fraudsters who target SPSclaimants use information aboutpayments, including paymentamounts that are available to thepublic. For example, Europeanlegislation requires the UK and othermember states to make informationabout beneficiaries of CAP paymentspublically available via their nationalpayment agencies. Websites such asFarmsubsidy.org also publishinformation about CAP subsidyschemes that can be searched byscheme type, recipient name orpayment year.

Targets are usually asked to providedetails that can be used by thefraudster to access their account.Alternatively, a target may be askedto transfer money to a ‘safe account’or hand their cards over to a courier.Commenting in November 2014,Katy Worobec, UK Director of FFA,

advised SPS claimants to “beimmediately suspicious” of telephonecallers who ask for personal orfinancial information, or for moneyto be transferred into other accounts.

According to a survey commissionedby FFA and carried out by ICMUnlimited, almost six in ten (58%)people questioned in summer 2014had received suspect calls,compared to just over four in ten(41%) during the previous summer.The amount lost to Vishing scamsincreased almost threefold between2013 and 2014, rising from around£7 million to almost £24 million.The FFA found that small firms ingeneral were being identified as a‘major’ target for financial fraudstersin October 2014, particularly insectors including agriculture,construction and manufacturing.

The FFA warning is available at:http://bit.ly/1IqVjod

Farmers and other Single PaymentScheme (SPS) claimants in the UKhave been alerted to the risk posedby telephone fraudsters. Thewarning, issued by Financial FraudAction (FFA), highlights a threat tothe agricultural industry other thantraditional rural crime, estimated tohave cost rural business in the UKalmost £45 million during 2013.

According to FFA’s intelligence unit,the Financial Fraud Bureau, amountsranging from tens to hundreds ofthousands of pounds have beenstolen from SPS claimants by‘Vishing’ scams during recent years.This type of scam involves fraudsterstelephoning a victim whilepretending to be their bank, thepolice or another trustedorganisation such as the RuralPayments Agency (RPA), and tellingthem that fraudulent activity hasbeen detected in relation to theirpersonal or business account.

agriculturegroupnewsLEADING ADVISERS IN THE AGRICULTURAL SECTOR

impression there is an obligation forthem to permit access or provideadditional ground space to operators,although this is not always the case.”

Read more about Mr Paul’s warningat: http://bit.ly/1zWj94M

Read more about the agreementwith MNOs at:http://bit.ly/1KFTLc3

Landowners should be careful whennegotiating lease terms with mobilenetwork operators (MNOs), who will‘undoubtedly’ be reviewing theirleasing arrangements in light of theGovernment’s plans to help eliminatepoor rural network coverage,according to property specialistsStrutt and Parker.

In November 2014, the Departmentfor Culture, Media & Sport (DCMS)launched a consultation on variouslegislative proposals to reduce partial‘mobile not spots’, meaning locationscovered by just one or two of thefour main MNOs operating in theUK (EE, O2, Three and Vodafone).The following month, CultureSecretary Sajid Javid confirmed that

care needed when negotiatingwith mobile network operators

these companies had entered into abinding deal with the DCMS thatincludes an agreement to spend £5billion collectively on improvingmobile infrastructure by 2017.Speaking to the Farmers Guardian,Strutt and Parker’s Head of TelecomsRobert Paul claimed that MNOsoften quote ‘modernisation’ whenmaking demands of landowners andforce them to sign new agreementsby threatening decommissioningand loss of income. He pointed outthat they are only obliged toconcede where the modernisationwork is required by law, adding“landowners are often unaware oftheir rights when it comes to dealingwith telecoms.” Mr Paul continued:“Landowners may be under the

farm incomes boosted by campsite bookings The number of campsite bookingstaken by farms increased by 85% in2014 compared with 2013,according to data provided byoutdoor accommodation specialistPitchup.com.

The data reveals that over 18,500campsite bookings were recorded atfarms across the UK and Ireland in2014. The average farm campsitereceived £6,461 in total for the year,with the most successful receiving£29,000. This is more than the netincome of the average farm, which is£28,000 according to theDepartment for Environment, Foodand Rural Affairs (Defra).

Farm incomes have dropped by26% since 1995, according toPitchup.com, which has led manyfarmers to seek diversificationopportunities to make their businessmore financially viable. Commentingon the opportunity presented bycampsites, Pitchup.com founder DanYates said: “The set-up and running ofa farm-based campsite is a relativelysimple process and many farms couldsee their income rise dramatically.”

According to figures published byVisitEngland.com, a total of around£2.4 billion is spent by British peopleeach year on domestic camping andcaravanning trips. The figures also

reveal that British people takingdomestic holidays at campsites orcaravan sites spend 25% morenights away on average than thosestaying in hotels.

Farmers wishing to set up a campsiteshould ensure they contact theirlocal authority, to find out whetherthey require a campsite licence andwhether planning permission isrequired.

Find out more at: http://bit.ly/1FQsLGK

New funding for promotingfood products abroad

Food producers will be able to apply for funding towards the costof marketing their produce abroad,as part of a campaign announced by the Rural Payments Agency (RPA). The aim of the ‘Enjoy! It’sfrom Europe’ campaign is to raiseawareness and increase sales of EUagricultural produce. Under thecampaign, producers will be able toclaim up to 50% off marketing costsfor produce such as meat and eggs,and up to 60% for fruit andvegetables. At least 20% of theremaining cost must be paid by theapplicant. The funding is providedthrough two schemes, including one for marketing produce withinthe EU, and another for marketingto the rest of the world. Applicantscan apply for both schemes, butmust complete two separateapplication forms. http://bit.ly/1DUakwd

Welsh Basic PaymentScheme to be issued ininstalments

The Welsh Government will issuefarmers with the first year’s BasicPayment Scheme (BPS) payments intwo instalments, it has beenannounced. They admitted that theywill not be in a position to deliverfull payment by December 2015,due to the complexity of thereformed CAP scheme, whichinvolves transitioning to area-basedpayments over the course of fiveyears. In order to calculate the newBPS payment rates, officials mustgather data on the number offarmers who qualify, the number ofeligible hectares of land and eachfarmer’s chosen application method.Due to these complications, farmerswill receive 80% of the total value ofthe BPS from December 2015, withthe remaining balance being paid byMay 2016 after the full entitlementvalues have been calculated. http://bit.ly/145dfFr

Pesticide rule changes duefrom November

Certificates of competence for usingprofessional pesticides on crops willbecome compulsory for all farmers,including those who were previouslyexempt from certification, under rulechanges coming into force from26th November 2015. Individualsborn before 31st December 1964have previously been permitted touse professional pesticides withoutobtaining a competency certificate,due to rules called ‘Grandfather Rights’.However, from 26th November,anyone wishing to purchaseprofessional pesticides must hold arecognised certificate, such as thePA1, PA2 or PA6. In order to becomecertified, individuals must completea Level 2 City & Guilds qualification,with the specific qualificationrequired depending on the type ofequipment to be used, and whetherwork will be carried out on theindividual’s own land or that of others.http://bit.ly/1IGZcDP

Maintenance payments toincrease for organic farmers

Farmers will receive highermaintenance payments for farmingorganically under the new CountrysideStewardship scheme. Maintenancepayments for rotational land ownerswill be set at £70 per hectare underthe new scheme, up from £18 perhectare previously. Meanwhile,farmers with improved permanentpasture will receive £40 per hectare,up from £17. However, paymentsfor converting to organic productionwill be reduced from January 2016,when the new rural developmentpayment programme starts. ChiefExecutive of licensing body OrganicFarmers and Growers, Roger Kerr, haswelcomed the changes, stating thatthe initial plan for high conversionrates and low maintenance payments‘would have unbalanced existingorganic producers and riskedencouraging people to convert toorganic to make money before

in brief...leaving at the earliest opportunity.’ http://bit.ly/1AbrUYP

Rise in total farmingincomes

The Total Income from Farming(TIFF) in the UK grew by 15% in2013 compared with 2012, reaching£5.63 billion, according to newfigures released by the Departmentfor Environment, Food and RuralAffairs (Defra). It is estimated byDefra that the TIFF is now around174% higher than it was in 2000.The increase in the TIFF correlateswith increasing prices of produce,with total livestock value increasingby over 8% during 2013 to reach£14.24 billion. Meanwhile, the totalvalue of milk rose by almost 12% toreach £4.27 billion, and the value ofcrops rose by almost 5% to reach£9.39 billion, although the value ofwheat was in decline. http://bit.ly/1wUDZR5

Government urged tostrengthen active farmer rules

The Scottish Tenant FarmersAssociation (STFA) has appealed tothe Scottish Government to revisetheir definition of active farmers, toprevent non-farming landlords whorent their land to others fromreceiving payments under the CAPscheme. Under current rules, farmersare able to rent out their land on aseasonal basis, while continuing tobe classified as active farmers andreceiving financial support. The STFAhas therefore urged for the rules tobe strengthened, so that proof ofthe farmer’s main income comingfrom agriculture is required. TheSTFA has also called for increasedproof of farmers occupying andmanaging land themselves.Commenting on the issue, STFAchairman Christopher Nicholsonsaid: “We can see no justification foranyone to be in receipt of supportunless they are actually engaged infarming activity on that land.”http://bit.ly/1AWjN7G

The number of food growers andmanufacturers facing insolvency hasincreased by 28% in the last year,according to data provided byCompanies House.

The data revealed a leap from 114food producers facing insolvency in2013 to 146 in 2014. This includesfarmers, growers and food processingfirms, although it does not take intoaccount sole traders who are notrequired to register with CompaniesHouse. The figures contradictliquidation rates across UK firms as awhole, which dropped from 16,631in 2012 to 14,092 in 2014.

insolvency increase for food producers It has been suggested that theincreasing number of insolvencycases among food producers may bedue to the price war between UKsupermarkets, which has causedretailers to drive down supply chainprices in order to maintain profitmargins. In addition, food producersare reportedly facing cash flowproblems due to delayed paymentsfrom retailers, and increasingrequests for producers to providefinancial contributions towards themarketing and shelf positioning ofproducts.

However, Andrew Opie, Director ofFood and Sustainability at the BritishRetail Consortium, has responded tothe claims by commenting that itwas “far too simplistic to blame

retailers.” He added that “retailersoperate in a highly regulated supplychain with a strict code of practicegoverning contracts and anadjudicator appointed by Parliamentspecifically to ensure fair dealing”.

Read more at: http://bit.ly/1u320nZ

important sites and woodlands andMid Tier agreements will addresswidespread environmental issuessuch as water pollution.

Two types of capital grant will beavailable: universal grants to fundactivities related to issues such astree health, hedges and boundaries,and woodland management; andtargeted grants to fundimprovements to water quality.Farmers applying to the scheme willhave to choose from more than 100environmental management action‘options’, such as managinghedgerows and maintaining areas ofgrassland with low inputs, althoughthe exact number of optionsavailable will depend on what typeof agreement or grant they areapplying for. They will be able to seewhat the Countryside Stewardshippriorities are for their own and localland during the application process,enabling them to increase theirchances of a successful applicationby choosing options most likely tobenefit their local area.

Read more at:http://bit.ly/1BD8QH0

The Department for Environment,Food and Rural Affairs (Defra) haspublished details of its newenvironmental management schemefor England. CountrysideStewardship, which will encouragediversity and focus on ‘quality notquantity’ as a priority. According toFarmers’ Weekly, this new approachis likely to result in the amount ofEnglish farmland covered by an agrienvironment scheme reducing fromaround 70% in 2014 to no morethan 40% by 2020, creating‘winners and losers’ in relation to the£900 million worth of fundingavailable. The CountrysideStewardship scheme is expected toopen to applications in July 2015and will replace EnvironmentalStewardship (ES), the EnglandWoodland Grant Scheme (EWGS)and part of the Catchment SensitiveFarming (CSF) Programme.

Payments will be awarded viaCountryside Stewardshipagreements, available from 2016,and Countryside Stewardship capitalgrants, expected to be available in2015. Higher Tier agreements willcover the most environmentally

countryside stewardship scheme

The UK200Group is a modern and proactive professionalmembership association of independent charteredaccountants and lawyers which provides training andbusiness services to enhance the performance of memberfirms. As well as being focused on the general small tomedium businesses, members have specialist knowledgeand experience of the agriculture, healthcare, charities,legal and property and construction sectors to provideeffective support and advice in the areas of tax, financialmanagement, business planning and legal issues.

www.uk200group.co.uk

This newsletter has been prepared for general interest and it is important toobtain professional advice on specific issues. We believe the informationcontained in it to be correct. While all possible care is taken in the preparation ofthis newsletter, no responsibility for loss occasioned by any person acting orrefraining from acting as a result of the material contained herein can beaccepted by the UK200Group, or its member firms or the author.

UK200Group is an association of separate and independently owned andmanaged accountancy and lawyer firms. UK200Group does not provide clientservices and it does not accept responsibility or liability for the acts or omissionsof its members. Likewise, the members of UK200Group are separate andindependent legal entities, and as such each has no responsibility or liability forthe acts or omissions of other members.

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