The Young Farmers’ Payment (YFP) rate has continued to decline as more new entrants join the scheme. Last week, DAERA confirmed that the payment rate for 2018 would be £46.32/ha.
The scheme’s budget is set at 2% of the NI regional ceiling, which equates to €6.57m. During the first year of the YFP in 2015, 1,857 successfully applied and received a top-up of €81.28/ha on up to 90ha.
The payment rate dropped to €60.53/ha in 2016 as 452 more new entrants joined, and then fell to €58.55/ha last year with 348 more successful first-time applicants.
In euro terms, the 2018 YFP rate of €51.77/ha represents a 36% reduction since the start of the scheme. However, this has been partially offset by weakening of sterling against the euro following the EU referendum vote.
In sterling terms, the £46.32/ha rate this year is 22% lower than the £59.44/ha payment rate in 2015.
Future increase
Successful YFP applicants can receive the top-up for up to five years and with the biggest proportion of scheme participants joining in 2015, most YFP recipients are due to receive final payments next year.
Those that joined the scheme after 2015 and are still eligible for payments after 2019, can therefore expect payment rates to increase in 2020 to closer to the maximum rate, which is 25% of the NI regional entitlement average (around €82.5/ha).
Brexit adds uncertainty to this, however DAERA did indicate in the recent document on future NI agricultural policy that the YFP will continue for eligible applicants after the UK leaves the EU.
“It is reasonable that those accepted into the YFP up to and including 2019 should continue to receive this payment for the period for which they are eligible (up to five years),” the document reads.
BPS rate
Meanwhile, a marginal change in the exchange rate used for converting EU direct payments from euro to sterling in 2018 means total payments to NI farmers will be £0.61m lower than last year.
The average exchange rate for September is used for converting payments, and stood at €1=£0.89281 this year, which compares with the rate of €1 = £0.89425 used in 2017.
Read more
Young farmers' payment changed again in NI
More money for young farmers in Northern Ireland following rule change
The Young Farmers’ Payment (YFP) rate has continued to decline as more new entrants join the scheme. Last week, DAERA confirmed that the payment rate for 2018 would be £46.32/ha.
The scheme’s budget is set at 2% of the NI regional ceiling, which equates to €6.57m. During the first year of the YFP in 2015, 1,857 successfully applied and received a top-up of €81.28/ha on up to 90ha.
The payment rate dropped to €60.53/ha in 2016 as 452 more new entrants joined, and then fell to €58.55/ha last year with 348 more successful first-time applicants.
In euro terms, the 2018 YFP rate of €51.77/ha represents a 36% reduction since the start of the scheme. However, this has been partially offset by weakening of sterling against the euro following the EU referendum vote.
In sterling terms, the £46.32/ha rate this year is 22% lower than the £59.44/ha payment rate in 2015.
Future increase
Successful YFP applicants can receive the top-up for up to five years and with the biggest proportion of scheme participants joining in 2015, most YFP recipients are due to receive final payments next year.
Those that joined the scheme after 2015 and are still eligible for payments after 2019, can therefore expect payment rates to increase in 2020 to closer to the maximum rate, which is 25% of the NI regional entitlement average (around €82.5/ha).
Brexit adds uncertainty to this, however DAERA did indicate in the recent document on future NI agricultural policy that the YFP will continue for eligible applicants after the UK leaves the EU.
“It is reasonable that those accepted into the YFP up to and including 2019 should continue to receive this payment for the period for which they are eligible (up to five years),” the document reads.
BPS rate
Meanwhile, a marginal change in the exchange rate used for converting EU direct payments from euro to sterling in 2018 means total payments to NI farmers will be £0.61m lower than last year.
The average exchange rate for September is used for converting payments, and stood at €1=£0.89281 this year, which compares with the rate of €1 = £0.89425 used in 2017.
Read more
Young farmers' payment changed again in NI
More money for young farmers in Northern Ireland following rule change
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