SIGNIFICANT numbers of Welsh farmers face cross compliance penalties for allegedly over-declaring land eligible for the new Basic Payment Scheme subsidy.

Changes have been made to the range of features farmers can include in their entitlement, with parts of fields that can’t be grazed or cultivated excluded.

But agents acting on behalf of farmers say that in some cases shadows created by trees and structures are causing confusion because government staff are using computer maps to verify claims.

This had resulted in large deductions being made to the eligible areas farmers have submitted on their Single Application Forms; in some cases, this had triggered penalties.

John Crimes, of CARA Wales, says land has been deducted from the majority of claims he submitted.

“The Welsh government has reduced the area we have declared on virtually every claim that has been paid so far. We have been very careful to measure and take out trees and other features but it has been a waste of time.’’

Mr Crimes says government staff had been unwilling to explain why areas had been deducted.

“They will only tell us where the areas are, we really are in the dark.

“In most cases it seems to be shadows from trees and structures. We have had one case of a 3.5-hectare clean field being deducted.

“When farmers receive the paperwork it gives a list of the fields where land has been removed but not an explanation. We re-examine the maps and it is quite obviously clean land. The only way we can counter this is to lodge an appeal which wastes time and is costly. We have to find the payment statement, identify the fields that have been deducted, re-measure them and lodge an appeal.’’

Mr Crimes says in cases where physical inspections had been carried out by government staff, the areas had in general been increased but in many cases where applications had been assessed remotely, areas were reduced.

The new rules in Wales mean that if a field includes natural features such as rock or bracken, farmers must make allowances for them and deduct a representative area from their claim form. Groups of trees and clusters of rocks, scree, scrub and bracken are ineligible.

For the Thomas family, who produce sheep on one of Wales’ highest farms, the Welsh government’s interpretation of the new rules has led to a 49ha deduction from their claim. They submitted a claim for 443 hectares but it was alleged that they had over-claimed by just over 24ha. Under the Welsh government’s penalty system, this was doubled to 49ha.

Sarah Thomas, who farms with her husband and two sons, insists the disputed area is clean land.

“It doesn’t make any sense, we are entitled to claim on that land and because of that we are going to fight it,’’ says Mrs Thomas, who farms Eisteddfa Gurig at Plynlimon near Aberystwyth.

“We understood that farmers were losing a little bit here and there but nothing as great as this.’’

An appeal has been lodged but Mrs Thomas says the situation has caused great worry for her family.

They run a flock of 900 ewes and have extended their overdraft to pay for feed because they have yet to receive the first 80% of their BPS.

“We have been assured that this will be paid in the next day or so but things are getting desperate,’’ says Mrs Thomas.

“If we lose our appeal we will seriously have to consider the future of the flock, the figures just won’t add up.’’

Farmers have 60 days from receipt of payment to appeal against a decision but, because paperwork can arrive up to three weeks after payment has been made, farmers are urged to check the documentation promptly; if they don’t appeal, they cannot seek to have the deducted area included in entitlements for five years.

When appeals are dismissed, farmers face heavy penalties. “If a claim is made on 100 hectares and the government finds that only 95 hectares of that is claimable, the claim isn’t just reduced by that 5ha, it is doubled,’’ Mr Crimes explains. In fact, any deduction over two hectares is automatically doubled.

Another major issue, he adds, is that there is no guarantee that appeal decisions will be made before May 15th – the deadline for submitting next year’s form. “There is a danger that if the decision hasn’t been made by that date and the Welsh government does not agree with the appeal, the disputed land will be entered on the form again and the penalty will increase because that error could then be seen as intentional.’’

The Welsh government says its new streamlined appeals process had been introduced to allow farm businesses to easily appeal decisions they believe to be inaccurate.

“Farmers can contact Rural Payments Wales with their CRN, Trading Title and Field References so officials can carry out a reassessment,’’ says a spokesperson.

“Every effort is being made to carry out reassessments as quickly as possible and we expect the vast majority to be replied to by May 15.”