Q&A: Only actively engaged qualify for farm scheme

Farm Assist

Rules governing qualification for Farm Assist scheme.

At the end of April, there were 7,421 recipients of a farm assist payment.

The farm assist scheme was introduced in 1999 to provide income support for low income farmers.

It replaced the former smallholders’ unemployment assistance payment.

There have been many changes in the scheme over the years, the most recent being disregards of farm and off-farm income from self-employment last March.

How is income from different sources assessed for Farm Assist? I do some contracting as well as farming and my spouse works part-time. We have two children.

According to the Citizens Information Board, the means test for Farm Assist takes into account virtually every type of income you may have, but it assesses different income in different ways.

Your income from farming and other self-employment (like contracting) is assessed as the gross income that you or your spouse may be expected to receive, less any expenses you incur to earn that income.

From March 8, 2017, €254 of the income each year is disregarded for each of your two children (it would be €381 for a third or subsequent child). 70% of the balance is assessed (it was 100% up to March, 2017).

Payments under rural environmental schemes such as GLAS and SAC are assessed separately from other farm income. €2,540 is deducted from the total amount of all these payments each year and 50% of the remainder is disregarded.

Expenses incurred in complying with these environmental measures are then deducted, and the balance is assessed as means.

Income from an occupational pension, or leasing of land or milk quotas, is assessed in full.

Capital (including any property that you do not live in) is assessed using the formula applied to means-tested social welfare payments.

If you have an off-farm job, €20 per day (up to a maximum of €60 per week) is deducted from your assessable weekly earnings and then 60% of the remainder is assessed as weekly means.

Your spouse’s income from employment is assessed in the same way.

If you have seasonal work, you are assessed on your earnings only during the period you are actually working.

What is the procedure for Farm Assist applicants?

When you apply for Farm Assist, a social welfare inspector will visit you and ask to see various documents. The inspector will then assess the costs incurred in running the farm. You are entitled to receive a copy of this farm income calculation.

How many get Farm Assist?

Those getting the payment numbered 11,162 in 2012; 10,303 in 2013; 9,809 in 2014; 8,790 in 2015; 7,838 in 2016; and 7,421 as of the end of April, 2017.

Who can get Farm Assist?

To qualify for the scheme a person must satisfy the means test and must be engaged in farming.

Social welfare legislation defines a farmer as a person engaged in farming, farming farm land including commonage, which is owned, and used for the purposes of husbandry, is leased, and used for the purposes of husbandry, or does not form part of a larger holding and is used for the purposes of husbandry.

Husbandry is defined as the working of the land with the object of extracting the traditional produce of the land. This can include the cultivation of crops or trees (forestry) and the keeping of livestock and poultry.

It is not sufficient for a person simply to own a farm of land to qualify for farm assist. The legislation prescribes that the claimant himself/herself must be engaged in farming.

Therefore, a person who owns a farm of land, but leases, lets or rents out the entire holding does not satisfy this condition and so cannot qualify for farm assist.

How is property, including capital, owned but not personally used or enjoyed, assessed in means testing?

The current market value of the property or land is established (having regard to local property prices) as well as the amount of any outstanding mortgages, if any.

An initial amount (€20,000 for most social assistance schemes) is disregarded; amounts between €20,000 and €30,000 are assessed at €1 per €1,000; amounts between €30,000 and €40,000 are assessed at €2 per €1,000; and amounts over €40,000 are assessed at €4 per €1,000.