The overpayment in question arose as a result of the person named being paid on animals under the 1998 special beef premium scheme in excess of the permitted two livestock units per forage hectare limit. Under EU Regulations governing the special beef premium scheme, a stocking density limit of two livestock units per hectare applies based on the forage area declared on an applicant's area aid application. The person named declared 33.05 forage hectares on his 1998 area aid application and, therefore, was entitled to payment on a maximum of 66.10 reckonable livestock units.
Reckonable livestock units consist of animals submitted by the applicant for special beef premium, suckler cow premium and ewe premium schemes together with notional livestock units derived from any milk quota held. The milk quota of the person named utilises the following livestock units: – 37,211 gallons divided by 897 gallons = 41.48 livestock units.