€25m top-ups to new entrant and young farmer entitlements

Macra has advised young people intending to start farming, or who have recently set up in farming, to plan carefully for the Single Farm Payment National Reserve.

For young farmers and new entrants who have low or no entitlements, it offers entitlements at the national average value of €170, plus greening (total €254).

It is open to farmers aged under 40 who have commenced farming since late May 16, 2010, have off-farm income of less than €40,000, and have agriculture education qualifications (or commence education before late 2016).

Up to 2019 (subject to availability in the reserve), they can apply once-off for entitlements on up to 90 hectares, for all hectares farmed in 2015 that are below the national average of €254 per hectare including greening (€170 basic payment average).

Applications open online in early January, the closing date is May 16, 2015.

All applications must be made online with accompanying/supporting documentation.

Similar criteria apply to the new entrants category, except for the age restriction.

Other categories may be included in the SFP National Reserve for 2015.

Macra will seek to have an ‘old young farmer’ with low level entitlements category included (under 40, commenced farming prior to 2010).

The national reserve is established by taking 3% from the national basic payment ceiling, generating €25m of payment entitlement top-ups for priority allocation to new entrants and young farmers.

IFA National Rural Development Chairman Flor McCarthy said those who commence an educational course by September 2016 can meet the educational requirement, and applicants will have 36 months to complete educational requirements to FETAC level 6 or equivalent.

He said young farmers who qualify for entitlements from the reserve can also benefit from the separate young farmers’ payment of 25% of the national average, for up to five years, based on the number of activated entitlements, up to 50 ha. He said IFA has made a strong case for ‘old young farmers’, farmers with specific disadvantages and force majeure or exceptional circumstances, to be accommodated.

However, ICMSA Deputy President Pat McCormack said many small and medium sized farmers are suffering cuts to fund this scheme, and ICMSA wants a 50ha limit, instead of payments (which he said can be drawn down on conacre, and could effectively be sold the next year), on the first 90ha, which is almost three times the national average farm. At a minimum, the payment should be linked to leased land only, said Mr McCormack.

ICSA rural development chairman Billy Gray welcomed the national reserve announcement.