Chapter 2: Intervention in Agricultural Markets Section 20: Declaration relating to exceptional market conditions
Section 20 provides for the Secretary of State under subsection (1) to make a declaration stating that exceptional market conditions exist which warrant the use of the financial assistance or intervention powers under section 21.
	The declaration of exceptional market conditions triggers the Secretary of State’s power under section 21 to make or agree to make payments, loans, guarantees and other forms of financial assistance available to affected farmers; or to operate the public intervention and private storage aid schemes.
	Exceptional market conditions may exist where there is a severe disturbance, or the threat of such a disturbance, in the agricultural markets that has or could have a significant adverse effect on farmers in England, judged by the prices they can receive for the sale of agricultural products. This does not extend to impacts on farmers caused by other exceptional events, such as extreme weather events or animal disease unless they result in an actual or threatened market disturbance which results in reduced prices.
	The critical factor determining whether a situation is considered to create exceptional market conditions under this section is the actual or threatened severe market disturbance that results in a fall in price of one or more agricultural products, regardless of the nature of the circumstances that gave rise to that disturbance.
	Subsection (2) sets out a two-part test to identify where exceptional market conditions may exist. There must be a severe disturbance to agricultural markets, or the serious threat of one, and it must have, or threaten to have a significant adverse effect on producers to constitute exceptional market conditions.
	Subsection (3) sets out what must be included in the declaration.
	Subsection (3)(d) provides that the powers provided for in section 21 are available for use until the declaration is no longer in effect.
	Subsection (4) states that the declaration has effect until the specified end-date, which must be no more than three months from the date when it is published.
	Subsection (5) allows the Secretary of State to revoke the declaration made under subsection (1) by making and publishing a further declaration to that effect.
	Subsection (6) provides a power to extend the declaration made under subsection (1) by a further three months, by making, and publishing a declaration to that effect at any time in the 7 days ending with the day of the original declaration’s end date.
	Subsection (7) allows the Secretary of State to make a new declaration of exceptional market conditions relating to the same events if the exceptional market conditions continue.
	Subsection (8) states that declarations made under subsections (1), (5), and (6) must be published and then laid before Parliament as soon as practicable.
	Subsection (9) explains that "agriculture" in sections 20 and 21 includes "horticulture".