David Rankin, chairman of the Northern Ireland Agricultural Consultants Association advises every farm business to carefully consider the implications of the new Young Farmers’ Scheme.
The letter recently sent from DARD advises businesses that the Young Farmer Scheme, the Basic Payment Scheme and the Greening Payment in 2015 will replace the Single Farm Payment, which has been available since 2005.
The Young Farmers’ Scheme provides a ‘top-up’ payment to the Basic Payment.
Mr Rankin says that the scheme should not be regarded as a system to get an extra payment (estimated to be approximately €84/ha, up to an estimated maximum of €7560/year) but it is a ‘top-up’ to encourage the next generation to take over the business.
The Eligibility Criteria for the Young Farmers’ Scheme is:
1. That you have established and activated payment entitlements under the Basic Payment Scheme (to be eligible for the BPS in 2015 the business must have activated SFP entitlements to the value of at least €100 in 2013, or avail of the private contract clause, or receive an award as a new entrant or young farmer from the Regional Reserve, or have never held SFP entitlements and can provide evidence of agricultural production activity on 15 May 2013)
2. That you are no more than 40 years of age in the first year of application (doesn’t have to be 2015)
3. That you are ‘head of the holding” (see below)
4. That you have at least a Level II qualification in agriculture (or a related subject containing a farm business management module)
5. The EU legislation is very clear in it’s definition of a Young Farmer – a young farmer has to exercise effective and long term control over the business in terms of decisions related to management, benefits, and financial risks either solely or jointly together with other farmers.
Discussions should now take place within the family business, in conjunction with a solicitor, accountant or bank manager, as under the Young Farmer Scheme they will be the next generation taking over the business. Even discussing it with a member of NIACA could be beneficial.
Mr Rankin feels that businesses with young farmers need to carefully consider all the implications of applying for the Young Farmer Scheme and whether it is in their interest to change the head of the holding.
Saying all this, DARD still have to clarify the definition of ‘head of holding’, the date a young person joined the business, partnerships, multi-member businesses and what evidence will be needed to prove that a young farmer is head of the business.
New Entrants
If someone intends applying to the Regional Reserve for Basic Payment Scheme Entitlements as a New Entrant or a Young Farmer they will also need at least a Level II qualification in agriculture (or a related subject containing a farm business management module).
Young farmers will also have to meet the same requirements as under the Young Farmers’ Scheme in terms of age and the head of holding.
A new entrant is a person who commenced their agricultural activity in the 2013 calendar year, or any later year, and who submits an application for the Basic Payment Scheme and the Regional Reserve not later than two years after the calendar year in which they commenced their agricultural activity and who in the five years preceding the start of their agricultural activity, did not have any previous agricultural activity in their own name and at their own risk or did not have the control of a business exercising an agricultural activity.
Educational Qualifications
If you do not have the required Level II qualification, CAFRE will provide an accredited training course during the forthcoming autumn and winter.
If you are thinking of applying for the Young Farmers’ Scheme and/or as a new entrant or Young Farmer to the Regional Reserve and that you might meet the eligibility criteria but do not have at least a Level II qualification in agriculture (or a related subject containing a farm business management module) you may wish to enrol on the CAFRE course.
Applications can be made online or an application form can be downloaded from the CAFRE website. Alternatively, you can have an application form posted to you by contacting CAFRE on 028 94426770. The closing date for applications is Friday 29 August at 4.00pm.
It should be noted that acceptance onto the CAFRE training course, does not, in any way, imply that you meet the eligibility criteria of the Young Farmers’ Scheme or the Regional Reserve.
(Source – Farming Life – 26/08/2014)