Back in 2014 there were around 38,000 claimants for single farm payment in NI.

That big number was the result of a system put in place back in 2005, which effectively allowed every landowner to claim a relatively small area payment.

But as the next major CAP reform approached in 2015, it became clear that the direction of travel was towards flat rate payments – productive farmers would lose out massively in favour of landowners.

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In the end, the department made it clear to landowners that direct payments could only be legitimately claimed by active farmers from 2015 onwards.

Most landowners dropped out, leaving around 24,000 claimants.

However, we all know there are those who continue to claim payments while doing little to no productive farming – the system does not exist to support them.

Historic

In a further attempt to ensure money only goes to active farmers, DAERA has implemented an ‘historic years’ exercise, where those without livestock and crops in 2020 and/or 2021 are not eligible to claim the new Farm Sustainability Payment (FSP).

Around 1,900 received letters from DAERA last year indicating they would have to sell their entitlements by 15 May 2026 or they will be lost.

For those selling entitlements, there would still be high demand, as new land eligibility rules allow farmers to claim entitlements on rushes, scrub, etc. this year.

There is over 45,000 additional hectares of land that can be claimed in 2026.

However, the historic years exercise only applies in 2026, so in theory, next year these landowners can buy entitlements and claim again.

Rather than going to the open market, it creates the temptation to do a private deal with a tenant that involves selling entitlements this year and buying them back in 2027.

That said, all claimants will still have to meet eligibility criteria for FSP in 2027 – just what those criteria are in practice, is not totally clear at this stage, but either way, the criteria will be easiest to meet by those who actually farm the land.