Revised payment rates for HLS

The following gives information and answers typical questions regarding the revised payment rates under Higher Level Stewardship (HLS) for capital items.

1.         Q:  Which HLS capital items are affected by the payment rate change?

A:  The following HLS capital item payment rates are being revised:

Item description	Item code	Current payment rate	New payment rate
Hedgerow restoration including laying, coppicing and gapping up	HR	£5.00/m	£7.00/m
Stone wall restoration	WR	£16.00/m	£30.00/m
Stone-faced hedge bank restoration	BS	£34.00/m	£55.00/m
Earth bank restoration	ER	£3.00/m	£10.10/m
Sheep fencing	FSB/H	£1.80/m	£2.50/m
Post and wire fencing	FW/B	£1.20/m	£2.50/m
Grip blocking drainage channels	GBC	£3.40 per block	£4.30 per block

 

2.         Q:  Why are these rates changing?

A:  The payment rates for a number of HLS capital items are being revised as a result of the introduction of similar options within Uplands ELS. The exception is the Grip blocking payment rate, which is being increased in line with the ES Review of Progress recommendations. These new rates have now been approved by the EU and will be implemented from 1^st July 2010.

3.         Q:  When are the payment rates changing?

A:  The revised rates will be applied to new HLS agreements starting from 1^st July 2010.

4.         Q:  Why are the remaining capital item payment rates not changing?

A:  The remaining capital items are not available under Uplands ELS and have not been subject to any review of their rates, so are not being revised at this time.

5.         Q:  Are there any plans for a wider payment rate review?

A:  Defra Ministers agreed last year to delay any payment rate review of Agri-Environment schemes due to the volatility in farm prices.  There are no plans for a full review in 2010 but the situation will be assessed this year.

 

 

 

 

6.         Q:  Do I receive the increased payment rates if I currently have an HLS agreement?

A:  If you have an existing HLS agreement, you will receive the new payment rates for the relevant capital works carried out after the 5 year break point in your agreement.

7.         Q:  Why do I have to wait until the 5 year break point in my agreement to receive the increase in payment rate?

A:  The new rates are being implemented according to the rules laid out in the HLS handbook. The HLS handbook states that payment rates will remain the same for the first 5 years of the agreement, even if they are reviewed during this period. This decision was made to provide guaranteed income for farmers and to allow Defra to work within agreed scheme budgets.  It must be stressed that a rate review could result in rates going up or down so this system prevents sudden changes in farmer income and Defra budgets.

8.         Q:  If I add Uplands ELS options to my existing HLS agreement, will I receive the enhanced payment rates?

A:  If you have an existing ELS/HLS agreement:

·         Those which are ERDP agreements (i.e. start dates up until 1^st January 2007) will be re-started with a new 10 year agreement.  This also applies to HLS only agreements. As these are new agreements they will be eligible for the new rates.

·         Those which are RDPE agreements (start dates from 1^st February 2007) will be treated as an extension of the existing agreement rather than a new agreement. So the new rates for the HLS capital items will only apply at the 5 year break point of the original ELS/HLS agreement. If you choose to add capital works using the Uplands ELS options these will pay at the higher rate in that strand (although the options do have caps on the total amount which can be included).

9.         Q:  Why is there a difference in the rates paid for some of the HLS capital items and the comparable options under Uplands ELS?

A:  The difference in payment rates is due to the different specifications covered by the payments. Uplands ELS options include several management requirements that are covered by separate supplements under HLS, so the options are not all directly comparable.

10.       Q:  Why are the new rates not being applied to CSS and ESA agreements with the equivalent options?

A:  The new rates are being implemented to harmonise payments for new agreements within different strands of Environmental Stewardship (Uplands ELS and HLS) only. Agreements taken out before 1^st July when the new rates apply will not be altered, and this includes agreements in the classic schemes.

 

11.       Q:  Can I close my HLS agreement early and take out a new one to access the new payment rates?

A:  You may only withdraw from your HLS agreement at the end of the fifth year. You will be in breach of your agreement and will incur a penalty if you withdraw at any other time unless it is due to exceptional circumstances. After the fifth year you will have access to the new rates if you apply for the affected works in a new Capital Works Plan.

12.       Q:  I have an existing Capital Works Plan (CWP) in my HLS agreement with these items but they haven't been completed/claimed yet.  Can I delay carrying them out/claiming them until after the 5 year break point so I can benefit from the higher rates?

A:  No. The duration of a CWP cannot cross the 5 year break point of an agreement. All works from an existing CWP must be completed before the plan end date. The payment rates applied to items in a CWP are the payment rates current at the start of the CWP. CWPs set up after the 5 year break point will benefit from the new rates.

13.       Q.  If I decide to not complete my capital works under my current plan can I re-instate them at a later date?

A:  Unclaimed items at the end of a plan term cannot be automatically rolled forward into a new plan – you must re-apply and compete for funding. Ideally the end date should be within the first 5 years of the agreement to maximise environmental benefits and ensure good value for money. The expected expenditure per annum must be agreed with your Natural England adviser when setting up your agreement and this will be used to track progress and reserve budget for future years.