The person named applied for premium for 13 cows and seven heifers under the 2003 suckler cow premium scheme. The terms and conditions of the scheme require that where an applicant has applied on 14 animals or more he must continue to own, possess, hold and maintain on his holding during the retention period a number of suckler cows at least equal to 60% and at most equal to 85% and a number of heifers at least equal to 15% and at most equal to 40% of the total number of animals for which premium was requested. On examination of the application submitted by the person named it was found that four heifers calved during the six months retention period leaving 17 cows and three heifers. The three heifers constituted the minimum 15% heifer requirement.
On 11 August 2003 he sold heifer tag number 181691420134 and replaced it with cow tag number GAB811852. The person named has been advised that as the 15% heifer requirement was not now being maintained, cow tag number GAB811852 cannot be accepted as a suitable replacement resulting in the heifer being rejected from the claim with a resultant penalty.
Correspondence has issued to the applicant informing him that as he now has only two eligible heifers the maximum number of eligible cows that can be accepted is 14 in order to comply with the 15% heifer requirement. He has been requested to nominate three cows for deletion from his application. He has also been given the opportunity of appealing this decision.
Reduction penalties on claimed animals are calculated in accordance with paragraphs 39 and 40 of the terms and conditions of the scheme. The total number of rejected animals under the suckler cow, special beef and slaughter premium schemes is divided by the sum of the eligible animals under these three schemes and the percentage reduction penalty will be applied equally across these schemes and the extensification premium. This will apply at balancing payment stage.