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Agricultural advisors have welcomed a circular letter from the Department of Agriculture clarifying how farmers should prepare for transfers of GLAS contracts before a farm changes hands in a range of situations.
The Department has identified six cases where action is needed to transfer the contract before the successor can take over the farm if they want to continue benefiting from the previous farmer's GLAS payments.
Prior approval
One of them is the death of a GLAS farmer, where the identified successor must receive prior approval from the Department before taking over the deceased farmer's actions and payments. The letter warns of cases where farmers have not made a will – so-called intestates: "Where the deceased died intestate no person can be deemed to be in a position to give the necessary undertakings and the GLAS contract is terminated."
The Department also cautions that it will not be able to transfer the contract to a successor who was not named in the GLAS farmer's will.
Have you a will made?
Vice-president of the Agricultural Consultants' Association Tom Canning said he had faced such situations with his clients, leading to thousands of euros in losses. "The Department cannot guarantee that the transfer won't be challenged," he said. "The first thing I'd say to a farmer when they walk in the door, whether they're 25 or 55, is: 'Have you a will made?'"
Herd owner and partnership
Other situations identified by the Department are changes to the owner of a herd number and the creation or dissolution of a farm partnership.
"The Department has clarified that any change to the GLAS contract must be made before a change of herd owner or the registration of a partnership," said Skibbereen, Co Cork-based advisor Sean O'Mahoney.
"There have been problems when it wasn't done in advance." The Department requires a letter from both the farmers exiting the GLAS contract and the one taking over for approval before changes are made to the herd number or the partnership is registered.
The same applies when an individual farmer forms a company, the Department's letter adds.
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