Clawbacks on the sale of entitlements are to be dropped from 50% to 20%, it was announced on Thursday.

The cut is in the amount of clawback applied to the sale of Basic Payment Scheme entitlements without land.

In 2016, the sale of entitlements without land was subject to a clawback of 50% of the number of entitlements sold.

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The Minister for Agriculture Michael Creed said that “based on the experience of the level of sales of entitlements without land in 2016, I believe that a reduction in the level of clawback to 20% is appropriate for 2017 and will assist farmers in future business planning”.

Low numbers last year

The decision to reduce the 50% clawback was made following a recent consultation between the Department of Agriculture and the Direct Payments Advisory Committee, comprising members of the main farming bodies and agricultural advisory and education providers.

There were very low numbers of entitlements transferred by sale without land in 2016 due to the 50% clawback rule.

The proceeds arising from the implementation of clawback are used to replenish the National Reserve fund, the Department said.

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Attention turning to entitlement use in 2017