Since 13 February 2019, letters have been issuing to approximately 11,000 farmers to inform them that their current lease of entitlements has ended and have returned to the original owner.
This is according to figures presented by the Department of Agriculture at a recent Agricultural Consultants Association environmental training day.
If theses farmers wish to lease out their entitlements again, they will have to submit a transfer of entitlement request, which can only be completed through the online facility.
According to figures from the Department, approximately 19,000 transfer of entitlement requests were submitted in 2018, but this has been as high as 30,000 for the previous two years.
Each time the registration details of a herd number is changed, a new entitlement identification number is created, with zero entitlements.
This results in a break in the link between the herd number and the entitlement and requires that a transfer of entitlement application is made.
A transfer of entitlement request is required if a farmer:
Adds or removes a name from a herd number.Forms or dissolves a partnership.Forms of dissolves a company.Or there is a change of registration of the herd number. Use of entitlements
With the Basic Payment Scheme (BPS) now open to applications, over 130,000 farmers are going to make an application to the scheme before 15 May 2019.
Entitlements are what farmers are paid on through the scheme, so it is important that farmers are aware that if they are not used for two consecutive years they are lost to the National Reserve.
If a farmer has unused entitlements for two consecutive years, the lowest value entitlements held by that farmer reverts to the National Reserve in the second year of non-use, regardless of whether they are leased, owned or were previously the subject of a transfer.
Farmers intending to lease out entitlements must be sure that the person taking on the entitlements has sufficient land to activate all the entitlements – they face the prospect of losing them if they do not.
Example
If you have leased in entitlements on a long-term lease, for example, and you lose some of the land you are farming for whatever reason and you do not have enough land to activate your entitlements, then you will lose the lowest value entitlement - whether it is leased or owned.
This could leave a farmer losing their owned entitlement while still keeping the leased entitlement.
With the future payment rates of the BPS uncertain, it is even more important for individual farmers not to lose entitlements to the National Reserve if it can be avoided.
Sale of entitlements
The sale of entitlements without land will be subject to a clawback of 20% of the number of entitlements sold.
For example, if 10 entitlements are sold for €100 each, the buyer would receive eight entitlements worth €100 each.
To be considered as a sale of entitlements with land, one hectare of land must be sold per entitlement and declared on the 2019 BPS application by the buyer.
Since 13 February 2019, letters have been issuing to approximately 11,000 farmers to inform them that their current lease of entitlements has ended and have returned to the original owner.
This is according to figures presented by the Department of Agriculture at a recent Agricultural Consultants Association environmental training day.
If theses farmers wish to lease out their entitlements again, they will have to submit a transfer of entitlement request, which can only be completed through the online facility.
According to figures from the Department, approximately 19,000 transfer of entitlement requests were submitted in 2018, but this has been as high as 30,000 for the previous two years.
Each time the registration details of a herd number is changed, a new entitlement identification number is created, with zero entitlements.
This results in a break in the link between the herd number and the entitlement and requires that a transfer of entitlement application is made.
A transfer of entitlement request is required if a farmer:
Adds or removes a name from a herd number.Forms or dissolves a partnership.Forms of dissolves a company.Or there is a change of registration of the herd number. Use of entitlements
With the Basic Payment Scheme (BPS) now open to applications, over 130,000 farmers are going to make an application to the scheme before 15 May 2019.
Entitlements are what farmers are paid on through the scheme, so it is important that farmers are aware that if they are not used for two consecutive years they are lost to the National Reserve.
If a farmer has unused entitlements for two consecutive years, the lowest value entitlements held by that farmer reverts to the National Reserve in the second year of non-use, regardless of whether they are leased, owned or were previously the subject of a transfer.
Farmers intending to lease out entitlements must be sure that the person taking on the entitlements has sufficient land to activate all the entitlements – they face the prospect of losing them if they do not.
Example
If you have leased in entitlements on a long-term lease, for example, and you lose some of the land you are farming for whatever reason and you do not have enough land to activate your entitlements, then you will lose the lowest value entitlement - whether it is leased or owned.
This could leave a farmer losing their owned entitlement while still keeping the leased entitlement.
With the future payment rates of the BPS uncertain, it is even more important for individual farmers not to lose entitlements to the National Reserve if it can be avoided.
Sale of entitlements
The sale of entitlements without land will be subject to a clawback of 20% of the number of entitlements sold.
For example, if 10 entitlements are sold for €100 each, the buyer would receive eight entitlements worth €100 each.
To be considered as a sale of entitlements with land, one hectare of land must be sold per entitlement and declared on the 2019 BPS application by the buyer.
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