Farmers should plant up to half of their holdings

STEPHEN CADOGAN (Irish Examiner Farming, January 20) made a compelling case for farmers to ‘bank’ next December’s single farm payment (SFP) in a separate account marked ‘not to be used for day-to-day farming’.

Mr Cadogan's basic advice is to ensure that on-farm activities are not subsidised from the SFP. He also shares the view that the SFP payment is going to come under pressure sooner or later. Whether that is in 2007 or 2009 is a matter of opinion, but it seems sure to come to an end in 2013.

Mothballing the farm business may well be the answer, but mothballing all of your land is not. There is a short window of opportunity for farmers to improve their income, create a second premium and lock into a tax-free income stream for 20 years.