This is a subscriber-only article
Farm Assist (FA) is a means-tested payment for low-income farmers. To qualify for FA, you must be a farmer, be farming the land in the State, be aged between 18 and 66 and satisfy a means test. Farmers who have income from another source such as other self-employment or insurable employment may still qualify for a payment under FA.
It is not necessary for you to own the land you farm to be eligible. However, if you lease or rent your land to another person you are not eligible.
Budget 2022 – rates of Farm Assist
From January 2002, the maximum weekly rate of FA will be increased by €5 (from €203 to 208), with proportional increases for qualified adults.
The additional spouse/partner rate is €134.70 (increases by €5 from 1 January 2022). The weekly rate for a qualified child will increase by €2 (for a dependent child under 12), from €38 to €40. It will increase by €3 from €45 to €48 for children aged 12 years and over.
Means test
To qualify for this scheme, your means must be below a certain threshold as determined by Social Welfare. Your means include any income or property you have (excluding your family home), and any other assets that you earn any income from.
When you apply for FA (on completion of form Farm 1 available at your local Intreo office), a Social Welfare inspector will visit your home and examine all of your farm income and expenditure documentation. Your income from farming is assessed as gross income that you, your spouse, civil partner or cohabitant may be expected to receive minus any expenses you may incur to earn that income.
Your income from the previous 12 months is used to assess your likely future earnings. It will not be assumed that this will be the same each year, as farmers have significant variations in income year to year. Hence, a complete review for farm assist will take place each year.
Income from farm schemes and direct payments
Payments under the Rural Environmental Protection Scheme (REPS), the Agri-Environmental Options Scheme (AEOS), Green Low-Carbon Agri-Environment Scheme (GLAS) or Special Area of Conservation (SAC), is assessed separately from other farm income. The first €2,540 per year of these payments is disregarded, with 50% of the balance also being deducted. Any expenses incurred in complying with these measures are also deducted. The balance is then assessed as means.
Dear Money Mentor,
I am a low-income sheep and beef farmer and I think I might qualify for FA. I have never applied before as I also had an off-farm part-time job, which has now ended. I got a small redundancy.
I am married with two children, 13 and 14 years old. I know there will be a lot of form filling and information required. Any advice would be welcome.
Michael
Margaret writes
Hi Michael
You should contact your local Social Welfare office to obtain the form Farm 1, which will need to be fully completed. Once you return this form completed, a social welfare inspector will visit your home, and ask to see various documents to assess your means. These documents can include documents like your payslip from your precious part-time job with details of the redundancy you received.
From your farming business, items such as accounts prepared for tax purposes, cattle registration cards, details of any income from farm schemes and direct payments (eg Basic Payment Scheme, the Greening Payment etc) will all be required. Details of any sales will be required and details of all costs incurred, such as feed, fertiliser.
If you have any means from investments and savings, the first €20,000 is disregarded as income from capital. Anything above €20,000, a formula is applied – for example, if it’s between €20,000 and €30,000, this would be assessed at €1 for every €1,000, as value of income (€10). This assessed income will be accounted for in your overall ‘calculation of means’ as determined by Social Welfare. Your home is not taken into account in the means test unless you earn an income from it. Your means from all income sources are calculated to get a total of weekly means.
Within the FA rates, the maximum weekly personal rate is €203, and €134.70 for an adult dependant. These rates will increase by €5 per week as of from 1 January 2022. The rate applicable is €45 for any child over 12 years old. Your assessed means per week, will be deducted from these rates to arrive at the farm assist applicable for your individual circumstances.
You are entitled to receive a copy of the farm income calculation.
FA is not subject to income tax or USC. However, you are not exempt from paying PRSI on any farm profits.
Kind regards,
Margaret
SHARING OPTIONS: