The 20% clawback on the sale of entitlements without land will be lifted in 2023 and 2024.

The new trading of entitlement rules, revealed by the Irish Farmers Journal last November, will “provide an opportunity for payment entitlement holders to exit farming, due to retirement or personal circumstance”, the Department said in the CAP strategic plan.

The sale of entitlements without land will be subject to a “clawback” of 20% in 2025, meaning 20% of the number of entitlements sold.

In an example, the Department has said that if a farmer sells 50 entitlements at €100 each, the buyer will receive 40 entitlements at €100 each.

To be considered as a sale of entitlements with land, 1ha of land must be sold per entitlement, it said.

Ten entitlements will be relinquished to the National Reserve. The Department plans to value entitlements at €158.68 per activated entitlement.

Ireland is to also implement a new clawback percentage of 10% on entitlements when over 80% of the entitlements are leased out for less than five years.

This will apply unless the Department determines an instance of force majeure, exceptional circumstances or if the Department is satisfied that it has been done for internal administrative reasons, where control of those entitlements is still under the original lessor.