Frustrating, complex, anxious, undecided, panic, delays, liability – these are some of the words that NI Agricultural Consultants’ Association (NIACA) members are using to describe this years’ Single Application Form (SAF) and the new CAP reforms.

Last year, SAFs were online on the 3 March, but this year a completely new format went online on St Patrick’s Day. However, it will be the end of the month before farmers receive a hard copy of their SAF and guidance notes in the post.

Training from DARD for NIACA members has also been delayed. It was supposed to start on 2 February, but didn’t actually take place until last week.

It does mean, however, that NIACA members are ready to get underway with online submissions.

Of the 11,751 forms completed online in 2014, a total of 7,734 were completed on behalf of farmers by agents. The target set by DARD is for 50% of forms to be completed online by 15 May 2015.

Meeting published targets has not been helped by continual delays from DARD in getting guidance booklets and the SAF out to farmers.

As an example, the most important booklet for arable farmers and those wanting information on greening has still to be published.

This should have been available back in autumn when growers were starting to plant winter crops. They could now find themselves on the wrong side of the crop diversification limits.

Despite this, CAFRE crop advisers should be commended for giving good advice to farmers on the limited knowledge that is available.

Information

At each of the DARD meetings I have attended in recent weeks, new information has been made available. From the outside it does look as if DARD is making up the rules as they go along.

One example is the young farmers’ payment where the young farmer has to be head of holding, no more than 40 years of age and hold a Level 2 qualification to be eligible for the top-up payment.

If all the information and rules had been available back in autumn, I believe less young farmers would have attended the college courses.

Those who do apply for the top-up must provide a statement from a qualified independent accountant confirming that the young farmer receives at least 50% of the profits (or losses) of the business. Every young farmer and their family should seriously consider the implications of the young person becoming head of holding.

Each case should be discussed with an accountant – in many of the cases put to NIACA members the tax implications are likely to outweigh the benefits of a top-up payment.

Active farmer

An issue that has been to the fore over the last few months is the definition of an active farmer. Quite simply, if you don’t know what an active farmer is, then you definitely aren’t one.

The rules are clear. You either have to actively farm the land and claim the Basic Payment Scheme, or you let the land in conacre and take the conacre rent. You cannot get both, as you did in the past.

This is simple and a landowner with the old basic entitlement at €78.33 will only receive an average of approximately £40/year/acre over the next seven years, while at the same time receiving no conacre rent. Is it economic sense to become an active farmer just to receive £40/acre when not farming and letting the land brings in far more in conacre?

Some landowners who want to farm part-time would be advised to consider consolidating their entitlement value on a smaller area (at least 3ha) and let the rest in conacre. In my opinion, too many landowners are being ill-advised by people who don’t understand the rules. They are actually strangling the genuine farming community and limiting the amount of land available to rent.

Landowners who think they are active farmers and claim the Basic Payment Scheme will have to prove to DARD they not only are carrying on an agricultural activity, but it is a genuine agricultural business. DARD will want to know what the agricultural business was in previous years and how has it changed in 2015.

Another reason often cited for being an active farmer is inheritance tax and agricultural property relief. This should be discussed with an independent accountant who can advise on the tax exemptions and if inheritance tax is an issue. If the land is let in conacre and being farmed by the tenant, then the landowner on his death may be exempt from inheritance tax.

Version

For those who do want to complete a SAF this year, note that this is a completely new version with a different format – fields will be pre-printed in numerical order rather than owned, conacre and leased.

NIACA agents will be under severe pressure to have all their clients’ forms completed by 15 May, so farmers who use NIACA agents must start doing their homework immediately, especially if they have lost conacre and have managed to obtain different land. They also need to check their maps, and only claim the eligible areas (this has not changed from previous years).

Also check greening requirements around Ecological Focus Areas (EFAs) and crop diversification. In particular, some dairy farmers who have grown whole crop or maize in the past could get caught by the rules around greening.

As this is a critical year for establishing entitlements and with the delays and uncertainties, we would like to see DARD pursue the possibility with the European Commission of extending the date for submitting the 2015 SAF beyond 15 May.