17 Mar 2016
Young Farmers & National ReserveScheme Info
Additional payments for new & young farmers
Those who qualify as ‘Young Farmers’ can avail of the Young Farmer Scheme which provides an additional top-up payment to a farmer’s Basic Payment (BPS).
The National Reserve provides a top-up of entitlements or entitlement value for Young Farmers and New Entrants who have an off-farm income of less than €40,000.
Young Farmer Scheme
The Young Farmer Scheme payment is 25% of the national average payment per hectare multiplied by the number of entitlements activated by the applicant, subject to a maximum of 50.
Successful applicants will receive payment under the Young Farmer Scheme for a maximum of five years, dated from the year of setting up the holding.
To qualify for the ‘Young Farmer’ Scheme you must:
- be participating in the Basic Payment Scheme in the year in which you submit an application;
- be aged no more than 40 years of age at any time during the calendar year in which you first submit an application under the Basic Payment Scheme;
- have successfully completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent, or commit to commencing such a course by a particular date;
- be setting up an agricultural holding for the first time or have set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application.
Where a ‘Young Farmer’ undertakes the farming activity as part of a group, e.g. under a joint herd number, a partnership or company, the group will be considered eligible so long as one person in the group meets the criteria of a young farmer and the young farmer exercises effective and long-term control within the group of decisions related to management, benefits, financial risks etc.
A successful applicant will receive payment for a maximum of five years.
The Young Farmers Scheme Payment is calculated as 25% of the national average payment per hectare (based on the national ceiling) multiplied by the number of entitlements activated by the successful applicant, subject to a maximum of 50.
A successful applicant will receive payment for a maximum of 5 years. This is dated from the year of setting up the holding.
Under the Charter of Farmers Rights, the target payment date for the Young Farmers Scheme is December 1st each year for all applications – the Young Farmer Scheme payment will be paid as a complete payment.
5% of applicants under the Young Farmer Scheme will be selected for inspection to ensure compliance with the rules of the scheme. Up to 14 days notice will apply.
Under the National Reserve, applicants who met the criteria of ‘Young Farmer’ or ‘New Entrant’ who had a gross off-farm income of less than €40,000 in either the tax years 2015 or 2016 are eligible for an additional allocation of entitlements on eligible land for which they held no entitlements and/or a top-up to the value of existing entitlements held by them, where those entitlements were below the national average.
To be eligible for the National Reserve you must meet the criteria of ‘Young Farmer’ or ‘New Entrant’ – read full criteria here.
In addition a gross off-farm income limit of €40,000 in either the 2015 or 2016 tax year applies.
Successful applicants under the National Reserve will be eligible for an allocation of entitlements on land for which they hold no entitlements and/or a top-up to the value of existing entitlements held by them, where such entitlements have a value below the national average. The allocation of entitlements and the top-up is subject to a maximum of 90 hectares.
Allocation of new entitlements will be on the basis of one entitlement for one hectare of eligible land on the BPS application for which the applicant holds no entitlements.
Successful applicants who already hold existing owned entitlements with a value below the national average value will receive a top-up whereby the value below the national average will qualify for a top-up to the value of these entitlements.
In the case of a registered partnership, entitlements and/or top-ups to the value of entitlements will be allocated to the herd number within the partnership which the qualifying young farmer holds or is involved in, subject to a maximum of 90 for the entire partnership.
The value of entitlements allocated from the National Reserve and the value to which existing entitlements are increased, will be fixed at the national average value of payment entitlements in the year of allocation.
The target date for payments under the National Reserve is December 1st each year.
Applicants under the National Reserve may be subject to inspection in the form of spot checks or administrative checks to prove eligibility.