Farm Assist payments to help struggling farmers
The amount of Farm Assist available depends on your circumstances: it’s determined by your farm profits and your family circumstances.
The payment is calculated in a similar way to Jobseekers Allowances, with any profits generated by the farm being deducted from the gross payment.
Where the farm is generating no profits, then, a single farmer with no children could receive up to €188 per week in Farm Assist.
In contrast, a married farmer with two young children and whose spouse is not working could potentially receive up to €372.40 per week, assuming the farm is not generating profits.
As a rule of thumb, if the farm profits average €100 per week, then the Farm Assist payment is reduced by this amount.
If the farm profits are €200 per week, then, in the example above, a single farmer will not receive any Farm Assist, because the farm profits are above the maximum Farm Assist level.
There were some recent changes since April 2013, as a result of Budget 2012/2013, which have negatively affected the calculation of the amount payable, from the point of view of potential claimants. In simple terms, the payment calculations are in line with other means-tested social welfare payments.
A farmer can apply for Farm Assist at their local Social Welfare Office using a form called Farm 1. A social welfare officer calculates the amount of farm profits by working out the farm income and farm expenses.
The welfare officer will base their calculations on the previous year’s accounts and tax returns, but should also take into account the current year’s results.
Many cattle, suckler and sheep farmers will find themselves in a loss position for the first five months of this year, and for some, it’s unlikely these farms will generate any profit for the remainder of the year.
If applying for Farm Assist, it is important that a farmer draws the social welfare officer’s attention to the current year as opposed to basing the calculation entirely on 2011 or 2012 accounts.
It is also important the farmer should request a copy of the calculation carried out by the social welfare officer at the time of the calculation.
For those who feel the need for a little bit of support, you could consider inviting your accountant or agricultural advisor to attend the social welfare meeting.
In making the calculations, the social welfare officer disregards the first €2,540 of REPS, AOES or Special Area of Conservation payments, as well as 50% of the remaining income from these payments.
Most off-farm income, including conacre or leasing rental income, is taken into account, and deducted in arriving at your net payment.
Similarly, off-farm employment income for yourself or your spouse is also taken into account in arriving at your weekly income calculation.
However, the first €20 per day — up to a maximum of €60 per week — is ignored, as well as a portion of the employment income earned above these levels.
A farmer does not need to be penniless before applying for Farm Assist, indeed the first €20,000 of savings are ignored in calculating a farmer’s entitlement to support, thereafter a farmer is deemed to have a weekly income from their savings which is taken into account in calculating your overall income.
Where the farm is entirely let out, either by conacre or by lease, then, Farm Assist is not available, given that the individual is not a farmer.
For those farmers aged over 66, Farm Assist is also not available, but in most cases, these farmers will already be in receipt of a State Pension.
Since 2007, farmers who are in receipt of Farm Assist are still required to pay PRSI when filing their tax return, in particular where the farm profits are more than €5,000 per year.
Even where farm profits are below this level, it may be beneficial to make voluntary PRSI contributions, in order to keep your PRSI record intact, which can be important for qualifying for the State Pension in years to come.
If you qualify for Farm Assist, you may also qualify for other benefits, such as fuel allowance and a medical card.
As Farm Assist is a means-tested social welfare payment, it is likely that any improvements to your circumstances may impact on your Farm Assist payment — and should be notified to the social welfare case worker.
