Almost 2,000 farmers are set to lose out on their 25% top-up payment this year through the Young Farmers Scheme (YFS).

The YFS is capped at a five-year payment limit and roughly 20% of scheme recipients have reached this limit. The situation has arisen due to the extension of the existing CAP for at least one year.

Macra na Feirme estimates the farmers will lose out on €6m worth of payments this year and is pushing for flexibility for funding for young farmers in other areas.

Macra president Thomas Duffy is calling for other measures, such as an increase in the current TAMS ceiling.

“This fall-off in eligible young farmers will impact on other schemes also, in particular TAMS which young farmers were more likely to take up than the general farm community, using €112m of the total allocation of €260m to invest,” Duffy said.

He continued by saying, ultimately, while efforts had been made to retain the €6m in generational renewal, it still represented a loss in terms of Government spending on young farmers.

In Ireland where less than 5% of farmers are under 35, Duffy also warned that the current situation where existing CAP schemes were being extended would be off-putting to new entrants.

He said they would become fearful of falling into a new “forgotten young farmer” category when the next CAP was introduced.

The YFS provides a 25% top-up on a young farmer’s existing entitlements and the Minister for Agriculture Charlie McConalogue has signed off on the National Reserve which increases payments on farmland with low or no entitlements.

However, the estimated €3m needed for National Reserve funding will come from the €6m young farmers have lost out on this year – meaning that no additional funding is being provided for generational renewal.