Any farmer who was eligible to receive a direct payment in 2013 (Single Payment, Grassland Sheep Scheme, Burren Farming for Conservation Programme, Beef Data Programme) is automatically eligible to receive an allocation of entitlements under the Basic Payment Scheme in 2015. The greater majority of farmers in Ireland will be eligible for an allocation of a new set of entitlements on the basis of this provision.
Note that persons with a combined direct payment of less than €100.00 from these schemes are not considered as having been eligible for a direct payment and will not therefore be granted an automatic allocation right.
The so called Scottish derogation allows for the allocation of entitlements to farmers who never held entitlements, either owned or leased, but who were actively farming in 2013. Such farmers must produce verifiable evidence of production for that year. Note also that Member States may apply further eligibility criteria for this category of farmers as regards appropriate skills, experience or education. The question of whether Ireland will apply such criteria remains to be decided.
Note: farmers who fulfil this condition are advised not to purchase entitlements under the 2014 scheme year. Such entitlements will not carry forward to the new scheme in 2015 but would have the effect of disqualifying farmers from receiving an allocation of entitlements under the Scottish Derogation.
Farmers who were not eligible to receive a direct payment in 2013, and consequently have no automatic ‘allocation right’ (as in condition 1 above), will be allocated entitlements provided that in the claim year 2013 they grew fruit or vegetables. Farmers who fall into this category may purchase entitlements in 2014 if they so wish and the value of such entitlements would carry forward on their behalf to the 2015 Scheme.
Note: A minimum area of one hectare on which such fruit and vegetables were grown in 2013 will be applied.
A number of changes may occur to a holding between the time when a farmer establishes an ‘allocation right’ (15 May 2013) and when new entitlements will be established for the holding in 2015. The following outlines the implications of some of these changes for establishing entitlements under the new Scheme.
The basic principle that will govern all of these changes is that the allocation right transfers with the land. If the original farmer did not hold an allocation right, then the transfer of that farmer’s land does not confer an allocation right on the transferee.
beneficiary is entitled to claim the number and the value of entitlements in 2015 corresponding to
the number of hectares transferred under the same conditions as the farmer originally managing the
holding. The ‘allocation right’ transfers with the holding (including land) to the beneficiary and gives
the beneficiary the right to establish entitlements.
Farmers who are farming as a company should declare this on their 2014 Single Payment Scheme application.
In the case of the sale of a part of a holding which takes place after 15 May 2014 and prior to the closing date for the 2015 scheme year, the seller may transfer the corresponding entitlements to be allocated to him for the land in question. The entitlements will be established in the account of the seller (based on the seller’s reference points) and will then be transferred to the buyer.
To enter into such an agreement, the seller must have an ‘allocation right’ (i.e. he was eligible to receive a direct payment in 2013), he must meet the definition of ‘active farmer’ in 2015, he must submit a 2015 Basic Payment Scheme application and he must establish at least one entitlement for his own use in 2015. The purchaser must meet the definition of ‘active farmer’ in 2015 and must submit a valid application under the Basic Payment Scheme in 2015.
Sale before 15 May 2014
Where a person entered into the sale of part of a holding prior to 15 May 2014 a Private Contract Clause cannot be used.
In this case the value of the entitlements would be transferred permanently to the buyer in 2014 who would then carry forward their value to the 2015 Scheme (presuming the buyer is eligible to participate in the Basic Payment Scheme). However the land which is transferred to the buyer would not be included in the calculation of the number of his entitlements in 2015 as he is limited by the 2013/2015 rule. Essentially he would end up with higher value entitlements based on the number of hectares declared in 2013 and the land which he purchased would not be covered by entitlements.
Impact of the Sale of an Entire Holding Including Entitlements
A person who sells his entire holding including entitlements after the 15 May 2014 and prior to the closing date for the 2015 scheme year would not be permitted to enter into a Private Contract Clause as he would not meet the definition of ‘active farmer’ in 2015 and would not establish entitlements in his own right. If a person entered into such an agreement during this timescale he would not be able to establish entitlements in 2015 and the value of entitlements associated with the holding under the current Single Payment Scheme would be lost to both parties.
In the case of the lease of part of a holding which takes place prior to the closing date for the 2015
scheme year and which covers a period that includes the 2015 scheme year, the lessor may lease out along with the land the corresponding entitlements that will be allocated to him on the land in question. The entitlements will be established in the account of the lessor (based on the lessor’s reference points) and will then be transferred to the lessee for the period of the lease. Such a Private Contract Clause can be used to recognise an existing lease under the Single Payment Scheme and carry it forward to the Basic Payment Scheme.
To enter into such an agreement, the lessor must have an ‘allocation right’ (i.e. eligible to receive a direct payment in 2013), he must meet the definition of an ‘active farmer’ in 2015 and submit a valid Basic Payment Scheme application in 2015 whereby he establishes at least one entitlement in his own right. The lessee must meet the definition of ‘active farmer’ in 2015 and submit a valid application under the Basic Payment Scheme in 2015. The lease agreement must cover a period that includes the closing date for the 2015 scheme year, i.e. the lessee must have possession of the land and declare that land for the 2015 scheme year.
Impact of the Lease of an Entire Holding
A person who leases out his entire holding prior to the closing date for the 2015 scheme year would not be permitted to enter into a Private Contract Clause as he would not meet the definition of ‘active farmer’ in 2015 and would not establish entitlements in his own right. If a person entered into such a lease agreement during this timescale he would not be able to establish entitlements in 2015 and the value of entitlements he holds under the current Single Payment Scheme would be lost.
Where a farmer sells or leases part of his holding, he may also transfer an ‘allocation right’ for the transferred land to the purchaser/lessee . Such a Private Contract Clause is only relevant where the buyer/lessee does not already hold an allocation right of his own.
The transferred ‘allocation right’ will apply only to the number of hectares which have been purchased or leased in and allows the purchaser/lessee to establish entitlements in 2015 on that land. It does not give an allocation right for any other land held by the purchaser/lessee.
To enter into such an agreement, the seller/lessor must have an ‘allocation right’, he must meet the
definition of an ‘active farmer’ in 2015 and submit a valid Basic Payment Scheme application in 2015 whereby he establishes at least one entitlement in his own right. The purchaser/lessee must meet the definition of an ‘active farmer’ and must submit a valid application in 2015 under the Basic Payment Scheme.
Priority under the National Reserve is given to persons who qualify either as ‘young farmers’ or as ‘new entrants’.
The National Reserve will be used both to allocate new entitlements on land that is free of entitlements and to give a top-up to the value of existing entitlements whose value is below the national average entitlement value.
See ‘National Reserve’ on page 31 for conditions of eligibility.
In addition to the conditions noted above, each of the schemes has its own additional conditions for eligibility.
