Young farmers: victims of circumstance

Through no fault of their own, approximately 250 “old young” farmers, have fallen into the trap of not receiving any young farmer benefits, despite the fact that they pioneered partnerships.

In the early noughties, the Department of Agriculture established a long-term succession plan for dairy farms called New Entrant Parent Partnerships, to be registered through Teagasc. It was a specific agreement allowing young farmers to work on their home farm with their parents – its main purpose being that they could buy quota at a priority rate.

While they were given a milk supply number, there was never any requirement to have a herd number, meaning they didn’t qualify for installation aid under the old CAP. Under the 2013 CAP reform, they can no longer qualify as a young farmer by activating a herd number because the schemes only apply to those who got into farming in the last five years.

The minister commented on the matter at the recent Carrigaline Macra/AIB agri talk and said it was a legal, rather than a financial, issue.

Macra's agricultural affairs manager Derry Dillon discusses the situation in our podcast below:

Many of these young farmers are not, or will not, be eligible for the young farmer schemes. There are approximately 250 young farmers affected by this anomaly.

This is a unique group of farmers and Macra’s position is that they should be considered ‘‘established’’ and defined as a young farmer from the date they activate a herd number, which is the case for all other farmers.

Patrick McCarthy, vice-chair of Macra’s agricultural affairs committee, believes there is a genuine force majeure case required to resolve this matter. “There is a clear anomaly for these young farmers who were involved in New Entrant Parent Partnerships as they can never be defined as young farmers,” said McCarthy.

“They were not defined as young farmers under the past CAP and now they are not defined as young farmers under the current CAP.”

Macra is calling for the minister to make a case for these young farmers at European Commission level.

The Irish Farmers Journal spoke to two young farmers who have been affected by this situation to get their side of the story.

James Barber, Co Laois

James Barber, a 32-year-old farmer from Laois, formed a partnership with his father in 2005 after he left college.

“It was my way of showing commitment to the farm and it was the advice given to my parents at the time,” said Barber.

“I never had any say in the business at that point and I didn’t take any drawings from the farm, it was only a partnership in name.

“The partnership gave us access to buy quota, but our accountant advised my parents not to buy any at the time as quota wasn’t really an issue then.”

In the autumn of 2008, James and his father had a conversation about signing over the farm and his parents had met their solicitor. This would have enabled James to receive installation aid, as he would have a herd number, and his father could have availed of the early retirement scheme.

“Then the installation aid, REPS and early retirement scheme were pulled. Between the three of them, we lost out on €144,000 in direct payments,” Barber said. “Under the new system, I’m missing out on roughly €21,000 as I don’t get the 25% top-up or the 60% grant.”

If the laws had stayed the same, James would have been eligible for one year of the 25% young farmer top-up and one year of the 60% TAMS grant for young farmers. This has a serious effect when competing for land with young farmers who have received top-ups and can pay more.

“We’re after bleeding here for seven years and have gone through a horrible time with banks in trying to sign over the farm which cost €12,000 in legal fees,” Barber said, before adding “I’m tired of it. Simon (Coveney) has sympathised with me twice in 12 months when I approached him about the issue.

“I have been put in a compromised position through none of my own doing. I was doing the best for my family and my future and it hurts.

“These new schemes are brought in to encourage transfer of land. I don’t mind not qualifying for new schemes, but I should get installation aid.

‘‘If a resolution is not made, this will become an election issue,” Barber said.

John Mullins, Co Cork

After completing his Green Cert in 2000, a machinery course in 2002 and spending some time in Australia in 2004, dairy farmer John Mullins entered a New Entrant Parent Partnership with his parents in 2004.

“I always wanted to go milking cows and I saw this as a good opportunity to go farming while my parents were still young,” Mullins explained. “I got a good bit of quota in the first year but only in dribs and drabs thereafter and I had to pay for it all at category one price.”

Similar to James, John finds it difficult to rent land.

“Land we had leased for 20 years went up in price this year and auctioneers are continuously trying to get the young farmer money,” Mullins said.

He finds it most frustrating as this issue was raised with the Department before the CAP reform was negotiated.

“I understood that it would be ok if my name was not on my parents’ herd number,” Mullins said.

“Then, in early 2015, the issue of groups came into it. We are now in a group that categorises us as having started farming when we entered the partnership. The Department should go back to the way it was and define us as young farmers using our herd number. That would sort most people out.”

Other schemes

Not only has this made John miss out on young farmer schemes, but there are now two houses drawing an income from their 110-cow dairy farm as there is no incentive for his parents to step back. It is also preventing him from applying to other schemes. “We haven’t got our BPS this year because of it,” said John.

“I’ve rung three times and it hasn’t been processed yet. If I log on to agfood.ie, I can’t see my details. I’ve been trying to do a GLAS application, but my adviser has no access to my maps and the deadline is fast approaching.

“I went into farming when it wasn’t seen as cool to do so and I have got no benefit for being a young farmer,” he said.