The 2016 Basic Payment Scheme (BPS) will open for applications next week.

The most important application of the year unlocks billions of euro worth of payments for farmers under the BPS and greening scheme, as well as the Area of Natural Constraints (ANC) scheme and many other area-based schemes under Pillar II.

As normal, online applications will open first, with application packs sent out to farmers in March. The closing date is set to be Monday 16 May.

The big push this year will be to get more farmers to apply online, with a target of getting close to 100% online in 2017.

A successful focus by the Department has seen online applications rise dramatically to 90,000 in 2015.

It still leaves over 40,000 farmers sending in paper applications that have to be scanned and digitised before they can be processed.

Sending in online applications is a win-win for the farmers and the Department.

For farmers, it greatly reduces the potential of errors and speeds up payment. It is more efficient for the Department and reduces the resources needed to scan paper applications.

Up to 4,600 farmers who applied for GLAS online will be targeted to submit their BPS applications online this year.

The Department is also considering doing an information roadshow to give one-to-one technical assistance at workshops around the country to help farmers make the transition to online applications.

Checks

The Department looks set to introduce preliminary checks this year as part of simplification.

This would see the Department check applications and contact farmers if an error is identified. The farmer could make changes without penalties.

This has the potential to speed up the processing of payments later in the year.

The first step for farmers is to register for the online system on www.agfood.ie. Alternatively, you can get your adviser to register you online, but you will have to sign a form for the adviser.

Remaining payments

The Department continues to make its way through the remaining payments.

The latest figures show another 220 farmers paid late last week, with another payment run over the weekend paying 171 farmers.

The total number now paid under BPS is 123,385 farmers, with a total of €1.115bn.

It means just 1,000 farmers have still to be paid at this stage.

While the individual farmers might feel aggrieved, this figure is only slightly up on previous years; not bad considering the significant amount of work involved in implementing a completely new system in 2015.

ANC

The amount paid out under Areas of Natural Constraint has gone over €200m, with 94,203 farmers now paid. With another 3,000 to 4,000 farmers expected to be paid, the final figure could be over €206m – significantly more than in previous years.

National Reserve

Applications under the National Reserve and Young Farmers Scheme continue to be processed.

Over 450 applications where partnerships are involved were cleared for payment this week.

There is still a significant number of applications held up where farmers have not replied fully to requests for additional information.

Over 800 farmers who applied to the National Reserve had not responded fully, while 700 farmers who applied to transfer entitlements have also to respond with additional information.

The Department continues to try to contact these farmers to send in the information to enable their application to be processed.

Trading entitlements

There is strong demand reported for leasing of entitlements without land.

The new option is proving popular due to the 50% clawback on entitlements sold without land in 2016.

Auctioneer Joe Naughton has done a range of deals, with entitlements worth €250/ha leased for 50% of the value and higher value entitlements worth over €600/ha making 67% of the value.

Helen McGee of HMG Entitlements is also seeing a strong demand, with prices varying from 40% to 70% of the value of the entitlements, depending on their value. These prices will likely come down if more entitlements come on to the market for lease.

This is the first year that farmers can lease the entitlements without land and some farmers who own entitlements are looking to go into longer term leases on the entitlements, although some farmers have made the decision to lease from year to year in the hope that the clawback will be reduced or removed in future years.