Under the area-based compensatory allowance scheme there is a minimum stocking density level required of 0.15 livestock units equivalent per forage hectare in the calendar year preceding the year of application for compensatory allowances. This is to ensure that the land is being farmed, and to prevent problems of undergrazing and is a requirement laid down by the European Commission. The minimum stocking level will not apply where agri-environment or other recognised environmental measures require a lower stocking density. In addition, farmers who are unable to meet the minimum stocking level but who traditionally qualified for headage grants in respect of cattle and or sheep may continue to qualify for payment, provided their land is being utilised and is not in danger of undergrazing.
Livestock units (LUs) are calculated as follows: