Young Farmer
Scheme/top-up
The Young Farmer Scheme payment is 25% of the national average payment per hectare multiplied by the number of entitlements activated by the applicant, subject to a maximum of 50ha.
Successful applicants receive payment under the Young Farmer Scheme for a maximum of five years, dated from the year of setting up the holding. This initiative needs to be activated within the first five years of active farming.
To qualify as a “young farmer” you must:
Be participating in the Basic Payment Scheme in the year you submit an application.Be no more than 40 years of age during the calendar year in which you submit an application under the Basic Payment Scheme.Be setting up an agricultural holding for the first time or have set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application.Applicants will also be required to have successfully completed a recognised agricultural education course giving rise to an award at FETAC Level 6 or its equivalent. A successful applicant will receive payment for a maximum of five years.
Comment: This scheme is expected to continue in the next CAP. It was worth 2% of all direct payments in the last CAP at €24m.
The conditions are at the national Government’s discretion in relation to the maximum 50ha and its funding.
Under the National Reserve, applicants who meet the criteria of young farmer or new entrant with a gross off-farm income of less than €40,000 are eligible for an additional allocation of entitlements on eligible land for which they held no entitlements, and/or a top-up to the value of existing entitlements held by them, where those entitlements are below the national average.
To qualify as a ‘young farmer’ for this scheme you must also:
Be setting up an agricultural holding for the first time or have set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application. Not have had any agricultural activity in your own name and at your own risk in the five years preceding the start of the present agricultural activity.Submit an application for the Basic Payment Scheme no later than two years after the calendar year in which you completed the agricultural activity.Applicants must have successfully completed a recognised agricultural course giving rise to an award at FETAC Level 6 or its equivalent.
The allocation of entitlements and the top-up is subject to a maximum of 90 ha.
Allocation of new entitlements is on the basis of one entitlement for one hectare of eligible land on the BPS application for which the applicant holds no entitlements.
Successful applicants who already hold existing owned entitlements with a value below the national average value receive a top-up whereby the value below the national average qualifies for a top-up to the value of these entitlements.
The value of entitlements allocated from the National Reserve and the value to which existing entitlements are increased, are fixed at the national average value of payment entitlements in the year of allocation.
Comment: The National Reserve is also expected to continue in the next CAP. It was worth €32m in the past CAP. There is scope for leniency on the €40,000 income limit and 90ha maximum. During the current transition period between CAPs, €3m was taken from the Young Farmer Scheme and transferred to the National Reserve to meet demand. The CAP deal just agreed sees a current Pillar I allocation of a minimum of 3% of direct payments going to these young farmer schemes. Macra and many young farmers want to see this increase to 4% of the overall budget.
Targeted Agriculture Modernisation Schemes (TAMS)
There is 20% additional funding available for young farmers under TAMS, which equates to 60% funding overall for projects completed under this scheme.
Many feel that the additional funding percentage under TAMS shouldn’t be limited for young farmers as projects come with a funding ceiling as part of its conditions.
At national level, there is potential to increase this to 80% funding for young farmers under the next CAP.
TAMS currently is the only support for young farmers in Pillar II.
Potential under Pillar II
Business startup grant
Formerly known as installation aid, this initiative was cut during 2008/2009 economic downturn.
It was worth up to €15,000 for a young farmer.
A once-off startup grant could help many in joining the sector.
Ireland is in the minority in Europe in not having this grant with potential to offer funding up to €100,000.
Succession
There is potential for a range of initiatives to be created around succession.
Schemes are needed to incentivise older generations to step back. This would offer ambition around generational renewal.
Financial instrument
Give young farmers the option to borrow through the Rural Development Programme (RDP) as an alternative to banks.
Young farmers are most exposed to market failure when it comes to obtaining loans from banks.
Money from the RDP could potentially be aligned with TAMS.
Young Farmer
Scheme/top-up
The Young Farmer Scheme payment is 25% of the national average payment per hectare multiplied by the number of entitlements activated by the applicant, subject to a maximum of 50ha.
Successful applicants receive payment under the Young Farmer Scheme for a maximum of five years, dated from the year of setting up the holding. This initiative needs to be activated within the first five years of active farming.
To qualify as a “young farmer” you must:
Be participating in the Basic Payment Scheme in the year you submit an application.Be no more than 40 years of age during the calendar year in which you submit an application under the Basic Payment Scheme.Be setting up an agricultural holding for the first time or have set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application.Applicants will also be required to have successfully completed a recognised agricultural education course giving rise to an award at FETAC Level 6 or its equivalent. A successful applicant will receive payment for a maximum of five years.
Comment: This scheme is expected to continue in the next CAP. It was worth 2% of all direct payments in the last CAP at €24m.
The conditions are at the national Government’s discretion in relation to the maximum 50ha and its funding.
Under the National Reserve, applicants who meet the criteria of young farmer or new entrant with a gross off-farm income of less than €40,000 are eligible for an additional allocation of entitlements on eligible land for which they held no entitlements, and/or a top-up to the value of existing entitlements held by them, where those entitlements are below the national average.
To qualify as a ‘young farmer’ for this scheme you must also:
Be setting up an agricultural holding for the first time or have set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application. Not have had any agricultural activity in your own name and at your own risk in the five years preceding the start of the present agricultural activity.Submit an application for the Basic Payment Scheme no later than two years after the calendar year in which you completed the agricultural activity.Applicants must have successfully completed a recognised agricultural course giving rise to an award at FETAC Level 6 or its equivalent.
The allocation of entitlements and the top-up is subject to a maximum of 90 ha.
Allocation of new entitlements is on the basis of one entitlement for one hectare of eligible land on the BPS application for which the applicant holds no entitlements.
Successful applicants who already hold existing owned entitlements with a value below the national average value receive a top-up whereby the value below the national average qualifies for a top-up to the value of these entitlements.
The value of entitlements allocated from the National Reserve and the value to which existing entitlements are increased, are fixed at the national average value of payment entitlements in the year of allocation.
Comment: The National Reserve is also expected to continue in the next CAP. It was worth €32m in the past CAP. There is scope for leniency on the €40,000 income limit and 90ha maximum. During the current transition period between CAPs, €3m was taken from the Young Farmer Scheme and transferred to the National Reserve to meet demand. The CAP deal just agreed sees a current Pillar I allocation of a minimum of 3% of direct payments going to these young farmer schemes. Macra and many young farmers want to see this increase to 4% of the overall budget.
Targeted Agriculture Modernisation Schemes (TAMS)
There is 20% additional funding available for young farmers under TAMS, which equates to 60% funding overall for projects completed under this scheme.
Many feel that the additional funding percentage under TAMS shouldn’t be limited for young farmers as projects come with a funding ceiling as part of its conditions.
At national level, there is potential to increase this to 80% funding for young farmers under the next CAP.
TAMS currently is the only support for young farmers in Pillar II.
Potential under Pillar II
Business startup grant
Formerly known as installation aid, this initiative was cut during 2008/2009 economic downturn.
It was worth up to €15,000 for a young farmer.
A once-off startup grant could help many in joining the sector.
Ireland is in the minority in Europe in not having this grant with potential to offer funding up to €100,000.
Succession
There is potential for a range of initiatives to be created around succession.
Schemes are needed to incentivise older generations to step back. This would offer ambition around generational renewal.
Financial instrument
Give young farmers the option to borrow through the Rural Development Programme (RDP) as an alternative to banks.
Young farmers are most exposed to market failure when it comes to obtaining loans from banks.
Money from the RDP could potentially be aligned with TAMS.
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