Farm Support Scheme
Farm Support
A number of schemes are available to clients through our member firms
- Single Payments Scheme
- Horticultural Scheme
- REPS Scheme
- Organics Scheme
- Farm Improvement Scheme
- Sow Housing Scheme
ACA FARMERS HANDBOOK 2010
GENERAL FARM SUPPORTS & INCENTIVES
The EU Single Payment Scheme replaced the Arable Aid and Livestock Premia
Schemes in 2005. Whereas the schemes it replaced were largely production based the
Single Payment Scheme is area based and is not tied to production. While payment
was originally scheduled to continue until 2013 a review is currently under way. This
review has come to be known as the ‘CAP Health Check’ and may have a significant
bearing on the Single Payment Scheme.
“HEALTH CHECK” OF THE COMMON
AGRICULTURAL POLICY
On 20 November 2008 the EU agriculture ministers reached a political agreement on
the Health Check of the Common Agricultural Policy. Among a range of measures,
the agreement abolishes arable set-aside, increases milk quotas gradually leading up
to their abolition in 2015, and converts market intervention into a genuine safety net.
It was also agreed to increase modulation, whereby direct payments to farmers are
reduced and the money transferred to the Rural Development Fund. This will allow a
better response to the new challenges and opportunities faced by European
agriculture, including climate change, the need for better water management, the
protection of biodiversity, and the production of green energy. Member States will
also be able to assist dairy farmers in sensitive regions adjust to the new market
situation.
DIRECT AID SYSTEM
On the direct aid system the commission will look at ways to make the system
simpler and more efficient for farmers. To do so, Member States will be given the
opportunity to change their implementation models by moving towards a flatter rate
of aid. The linkage between the payments farmers receive and the farmers’
obligations in the areas of environment; public, animal and plant health; and animal
welfare will also be made clearer for farmers. It also intended that the direct aid
scheme should be adjusted to provide for the possibility of using public support in
the case of natural disasters and animal and plant diseases.
MARKET INSTRUMENTS
The Commission has also focused on the existing market support tools. Intervention
– the public buying of surplus production – is planned to revert to its original
purpose as a real safety net. The set aside obligation was regarded as being obsolete
and has been abolished. Milk quotas will expire in April 2015. In order to ensure an
ppropriate transition for producers, a gradual increase in quotas between now and
then is set down.
RURAL DEVELOPMENT POLICY – MODULATION
The commission perceives certain challenges facing the industry in future years that
were not as pronounced in 2003. These challenges include the increased need for
management of production risks, fighting climate change, more efficient
management of water, making the most of the opportunities offered by bioenergy
and the preservation of biodiversity. Adjusting the CAP to meet these challenges will
cost money and it is considered that the best way of meeting them is through Rural
Development policy. Accordingly it is proposed to increase the transfer of direct
payments to the Rural Development budget by 8%. This will impact on the Single
Farm Payment but current proposals favour ‘progressive modulation’ whereby
additional modulation payments will only apply above certain payment thresholds.
Nevertheless many farmers are facing increased modulation deductions. Modulation
on 2009 payments amounted to 7%, an increase of 2%. Additional modulation of 4%
will be applied to payments that are greater than €300,000. Previously modulation
was applied to the entire payment and a refund was later issued to reflect the
exemption from modulation on the first €5,000. As and from 2009, modulation was
no longer applied to the first €5,000 of the SPS payment and hence no refund will
issue. The rate of Modulation will increase in the coming years as follows: 8% in
2010, 9% in 2011 and 10% in 2012.
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THE EU SINGLE PAYMENT SCHEME
LAND USE AND STOCKING UNDER SINGLE PAYMENT
Eligible land includes forage area, arable area and set aside. From 2008 onwards
land under potatoes and fruit and vegetables is included. Lands which are afforested
are also eligible since 2009 but subject to certain conditions, see page 48. A farmer is
not obliged to actually stock or till the land but the land will have to be maintained in
good agricultural and environmental condition. It will be possible for a farmer to sell
hay or silage ‘on the stem’ to another farmer or, if a farmer so chooses he may
simply ‘top’ the grass on an ongoing basis and carry no stock what so ever.
However, where he/she is in receipt of Disadvantaged Area payments he/she is
required to maintain a minimum stocking level of 0.15 livestock units per hectare for
three months. A farmer may opt to till the land and grow corn but there is a
requirement under the agreement that there is no significant reduction in the area
under permanent pasture in Ireland. An increase of 50% in the national tillage area
would only lead to a 5% reduction in permanent pasture. Accordingly, it is unlikely
that this requirement will have any effect on farmers wishing to till some or all of
their farms. It should also be noted that where a farmer opts to grow corn it is not
necessary for the land to be ‘eligible land’ as defined for the purposes of receiving
arable aid. There are a number of general conditions applicable to farmers
participating in the scheme as follows;
w Farmers must keep their land in good agricultural and environmental
condition. In broad terms this condition covers all aspects of good land
management.
w Farmers must observe Statutory Management Requirements which include
- conservation of wild birds
- protection of ground water against pollution
- protection of the environment, especially soil, where sewage sludge is used
- protection of water against pollution caused by nitrates from agricultural
sources. See Nitrates Action Programme page 257
- compliance with identification and registration of animals
- conservation of natural habitats of wild flora and fauna.
DIFFERENT TYPES OF ENTITLEMENTS
There are five different types of entitlements
Standard Entitlements: These were established by most farmers i.e. livestock
and/or tillage farmers who farmed during the reference period and who received
direct payments. The number of entitlements is based on the average number of
hectares of land farmed in the three reference years 2000 to 2002. The overall value
of the entitlements is the average amount received in livestock and arable premiums
in the three reference years subject to certain deductions as set out hereunder.
Set Aside Entitlements:
Farmers are no longer obliged to set aside land in order to draw down payment on
what were known as set aside entitlements. It is no longer a requirement therefore to
declare land as set-aside. With effect from 2009, set-aside entitlements have been
converted to standard entitlements, retaining their original value. Arable land may of
course be claimed as Green Cover, Fallow or Regeneration if this best suits the
applicant’s farming practice.
Entitlements subject to Special Conditions:
These are entitlements established by farmers who received direct payments during
the reference period but had no land or had a relatively small number of eligible
hectares and a large Single Payment that would have resulted in the unit value of
each entitlement exceeding an upper limit of €5,000. An example of this is a farmer
with 10 hectares but whose gross Single Payment amounts to €75,000. A division of
that €75,000 by the 10 hectares gives a unit value of €7,500 for each entitlement. As
the maximum unit value of each entitlement is set at €5,000, the entitlements will be
established as follows : 10 Standard Entitlements @ €5,000 each and 5 Special
Entitlements @ €5,000 each.
The Special Entitlements are subject to the following conditions :
A) that the farmer maintains at least 50% of the agricultural activity exercised
in the reference period expressed in Livestock Units. This means, for
example, if all his/her Single Payment resulted from the Slaughter Premium
in the reference years, he/she would have to continue to slaughter 50% of
the number of animals that were used to establish his/her Single Payment
calculated pro rata to the number of special entitlements.
B) If he transfers all those Special Entitlements, the transferee may undertake to
continue the obligations in relation to the continuity of agricultural
production entered into by the seller/lessor in order to receive the Single
Payment, or, have an eligible hectare for each payment entitlement.
C) In the case of a partial transfer of Special Entitlements, the transferee must
have an eligible hectare for each payment entitlement in order to draw
down payment.
Special entitlements can be converted to standard entitlements if the applicant
declares his or her eligible land.
Sugar Beet Entitlements:
Following the reform of the Sugar Regime in 2006 a scheme of compensation for
growers was devised for incorporation into the Single Payment Scheme. Growers
are allocated payment entitlements in accordance with the acreage grown and their
average contracted tonnage during the years 2001, 2002 and 2004, which are the
reference years in this context. In general growers received one payment entitlement
for each hectare of Sugar beet grown on average during the reference years.
Table 1.1 Rate of Sugar Beet Compensation
Year Compensation Rate Rate for additional Total Amount per
per Contracted Amount made available Contracted Tonne
Tonne in the Single Payment
Scheme National Ceiling
for Ireland
2009 €13.63 €1.29 €14.92
2010 €13.63 – €13.63
2011 €13.63 – €13.63
2012 €13.63 – €13.63
The value of that payment entitlement will be determined by the average contracted
tonnage during the reference years divided by the number of hectares and multiplied
by the rate of compensation per tonne. The rate in 2010 of €13.63 per tonne will
mean that a producer who averaged 19 tonnes per acre of contracted tonnage during
the reference years will receive €258.97 per entitlement. As for standard
entitlements, a farmer will be required to farm one hectare of land for each
entitlement claimed but it is possible to make an application to consolidate Sugar
Beet entitlements with standard entitlements
National Reserve Entitlements:
Certain categories of Farmers may be eligible for receipt of payment entitlements
from the National Reserve. See page 50.
THE RELATIONSHIP OF ENTITLEMENTS WITH LAND
Entitlements are not attached to land but rather to the farmer for whom they are
established. However a hectare of land is required for each Entitlement held but not
necessarily the same land from year to year or indeed the same land that was farmed
in any of the three reference years. A Single Payment application continues to be a
requirement every year in order to receive payment and the land declared on the
form as being part of the applicants holding on 31st. May must be maintained in
good agricultural and environmental condition for the period 1st. April to the 31st.
December.
THE SINGLE DATE RULE
To claim the direct payment under the 2010 Single Payment Scheme, all of the
hectares of land declared by you to support your claim (owned, rented-in and leased
-in) must be available to you for a period that includes 31 May 2010 and must be
maintained as “agricultural land” for the period 1st April to the 31st. December
2010. Farmers should also be aware that as the person declaring the land on your
Single Payment application, they will be held responsible for any non-compliance
with the statutory management requirements under cross compliance or any failure to
maintain the lands declared in good agricultural and environmental condition
whether this non-compliance was attributable to you or attributable to the person
from whom or to whom the land declared was transferred in the period 1 April 2010
to 31 December 2010, for example, where a standard conacre arrangement expires at
the end of November, 2010. If you know that some of the land available to you on 31
May 2010 will be used for non-agricultural purposes for whatever reason within the
calendar year, such as the transfer of a house site or extending the farmyard etc., this
land has to be excluded from your Single Payment Scheme application.
CONSOLIDATING (STACKING) ENTITLEMENTS
The Single Payment Scheme acknowledges the fact that in certain situations farmers
may no longer have access to the area of land in subsequent years which they had in
the reference years. Under the provisions of the EU Regulation a Member State may
now make use of its National Reserve in order to consolidate (stack) payment
entitlements for certain categories of farmers on the actual number of hectares of
land farmed. This entails surrendering the original entitlements to the National
Reserve in exchange for a lower number of entitlements with a higher unit value.
The overall value of the Single Payment is not affected. The farmer must declare
all of the hectares available to him/her each year and the total number of
hectares declared must be equal to at least 50% of the number of entitlements
allocated to him/her including Sugar Beet and Set-aside entitlements. The
farmer may apply for the concession in any year provided that he/she continues
to satisfy the 50% rule. Applications to have entitlements consolidated (stacked)
will be accepted at the time of lodging the Single Payment applications. It should be
noted that the concessions relating to consolidating entitlements cannot be applied to
any farmer who declares fewer hectares than entitlements because he/she disposed of
land by way of sale or lease other than sale of land to a public authority for
non-agricultural use. The following categories of farmers should be eligible for the
concession:
The reduction in the number of hectares declared in the 2010 SPS
Application must have arisen as a result of one or more of the following measures:
w The acquisition of land by a Public Authority for non-agricultural purposes
(this will include, for example, lands compulsorily purchased for road
development etc but does include lands sold for private development).
w Lands leased-in during all or part of the reference period (2000-2002) where
the lease agreement has expired or will expire and land parcels in question are
not declared on your 2010 SPS application.
w Lands rented-in during all or part of the reference period where the rental
agreement has expired or will expire and land parcels in question are not
declared on your 2010 SPS application.
w Lands lost subject to buildings under the Scheme of Investment Aid for Farm
Waste Management.
Where a farmer benefits from this concession all of his/her consolidated payment
entitlements will be regarded as having come from the National Reserve. The
following points should be noted in regard to consolidation;
w Applications for consolidation of entitlements as a result of hectares lost
under the measures outlined above can only be considered if these hectares
were used to establish your entitlements during the reference period.
w The land lost must also be equal to or greater than the difference between the
number of entitlements allocated to you less the eligible hectares declared on
your 2010 Single payment application and must be as a result of one of the
measures eligible for consolidation listed above.
w The number of hectares declared in the 2010 Single Payment Scheme
application form must be less than the number of entitlements held by you.
w The number of eligible hectares declared by you on your 2010 Single
Payment Scheme application must be at least 50% of the number of
entitlements allocated to you, including any additional entitlements allocated
to you in respect of the Sugar Beet compensation.
w Farmers who were granted additional entitlements as a result of the Sugar
Beet Reform in 2006 can apply to have their entitlements consolidated.
However the land must have been used to establish their entitlements and
must be accounted for under one of the measures outlined above.
w Where an ENTIRE holding has been transferred by way of gift or
Inheritance, the farmer who acquires, or will acquire, the land and
entitlements from a farmer who was in receipt of direct payments during the
reference period, can apply to consolidate his/her entitlements.
w If a farmer permanently disposes of owned land that he declared during the
reference period and has not replaced this land with an equivalent number of
hectares, the calculation of consolidated entitlements will be based on the
lands disposed of as well as the land declared on the 2010 SPS application
form.
w If a farmer permanently transfers out (by way of sale/gift/inheritance) an
equal number of entitlements and hectares, this land will be excluded from
the calculation for consolidation in 2010, however the 50% rule will be based
on the original entitlements allocation plus additional entitlements allocated
in respect of the Sugar Beet reform. Supporting documentation may be
required to prove disposal of equal number of land and entitlements to
same herdowner.
w Special Condition entitlements cannot be consolidated.
w As Set-aside entitlements have been converted into standard entitlements,
they are now eligible for consolidation in 2009.
w A farmer who acquires lands and entitlements by way of purchase/lease
cannot consolidate the purchased/leased entitlements.
w Additional entitlements allocated from the National Reserve are not eligible
for consolidation
Note: The 5-year restriction on the transfer of National Reserve entitlements,
including Consolidated entitlements, is abolished with effect from 1 January 2009.
Example: Stacking of Entitlements
A farmer runs a 150 hectare farm, he owns 50 hectares and rents in 100 hectares.
This land was declared on area aid applications during the reference period. He has
acquired 16 Sugar Beet entitlements and already had 150 standard entitlements. In
2008 the lease for the 100 hectares expired and he can no longer lease it so he
intends to consolidate (stack). As he now has 176 entitlements he will need a
minimum of 88 hectares to draw his full entitlements so he needs to rent/lease in or
buy 38 hectares and this will bring his hectares up to 50%.
FORESTRY AND SINGLE PAYMENTS
Forestry remains an attractive option under The Single Payment Scheme in that it
offers farmers the option to plant some of their land, receive the Forest Premium and
also receive their Single Payment. It should be noted that under the Single Date
Rules it is not currently permissible to plant lands until after December 31st. With
effect from 1 January 2009, land which will be afforested in 2009 and subsequent
years will continue to be eligible to draw down an SPS payment in 2009 provided
that land meets the following requirements:
w The land to be afforested was declared on the previous year SPS application
form;
w The applicant who declared that land on the previous year SPS form was paid
under that year Single Payment Scheme;
w The land to be afforested was eligible to draw down an SPS payment in the
previous year
w The afforested land meets all the requirements of the Afforestation Grant and
Premium Scheme, FEPS or the Native Woodland Establishment Scheme;
Eligible Forestry parcels that are declared on SPS applications to activate
entitlements will also be subject to cross-compliance requirements.
FARM RETIREMENT AND THE SINGLE PAYMENT
Farmers who retired either prior, during or subsequent to the reference years may
have certain options and restrictions as follows;
w Sons or daughters of Farm Retirement Scheme participants who had their
farms leased out during the reference period are catered for under category.
w Where a retired person who farmed during the reference years and received
direct payments has now leased his land whereby the lessee has activated the
relevant entitlements, these entitlements revert to him at the end of the lease
period and he will have the option to sell or gift them without land.
CROSS COMPLIANCE
The Department of Agriculture, Fisheries and Food has responsibility to ensure that
the required level of cross compliance inspections is carried out and for applying
sanctions. In general the rate of on-farm inspection required for cross-compliance is
1% of those farmers applying under the Single Payment Scheme. However, at least
5% of farmers must be inspected under the Animal Identification and Registration
requirements of Cross Compliance for cattle and 3% for sheep as these levels are
prescribed under the relevant Regulations. To facilitate checks and on-farm
inspections, farmers must co-operate with Department staff, reply to all queries and
provide any documentary evidence that may be requested in relation to their Single
Payment Scheme application. Failure to do so may lead to loss of aid. If an on-farm
inspection cannot be carried out through the fault or action of the applicant the
application shall be rejected. Where the Department determines that force majeure
applies payment shall issue. Under Cross Compliance requirements, a farmer
receiving direct payments must respect the various statutory management
requirements set down in EU legislation on the environment, food safety, animal
health and welfare, and plant health and must maintain the lands in good agricultural
and environmental condition (GAEC).
Soil Organic Matter under Cross Compliance
Under GAEC farmers must “maintain soil organic matter levels through appropriate
practices”. If a parcel has been under tillage cropping continuously for 6 years or
more, you must ensure through soil sampling that organic matter levels are
maintained through the use of appropriate farming practices. Where organic matter
levels are depleted (< 3.4% organic matter) it may be necessary, depending on soil
type, to adopt farming practices that will restore organic matter levels in the soil.
Compliance with this requirement will be checked in the course of cross compliance
inspections. The Department will communicate with applicants who have applied on
such parcels on their SPS application in areas identified as potentially having low
levels of organic matter. These applicants must determine the percentage soil organic
matter levels in 2010 and where found to be less than 3.4%, remedial action
appropriate for the soil type must be undertaken. Further information in relation to
soil organic matter and the appropriate remedial actions if required is available from
Cross Compliance Farm Advisory Service advisors and from the Department of
Agriculture, Fisheries and Food web site at www.agriculture.gov.ie. A listing of
Cross Compliance Farm Advisory Service advisors is also available on the
Department’s web site.
Soil samples must be taken in a manner consistent with Teagasc guidelines.
One sample must normally be taken for every 4 Ha. However where soil type,
cropping history and fertiliser treatment is similar, the sample area may be increased
to a maximum of 8 Ha. i.e. a minimum of one sample for every 8 Ha. The resultant
soil analysis must be made available on request.
DEDUCTIONS FROM PAYMENT
The value of entitlements established will be subject to certain reductions as follows:
w a reduction of up to 3% from each single payment to establish a National
Reserve.
w a 7% reduction for modulation – Modulation is a process whereby funds are
diverted from the Single Payment Scheme to Rural Development measures.
The main Rural Development Measures currently operating in Ireland are;
Disadvantaged Areas Compensatory Allowance, Early Retirement Scheme,
REPS and Forestry.
w a percentage reduction from each single payment will apply, but only if the
sum of individual entitlements exceeds Ireland’s financial ceiling of €1,322
million.
The following table sets out the amounts which a farmer in a non disadvantaged area
with a calculated entitlement of €26,000 should receive.
Table 1.2 Calculation of net entitlements after deductions
2010
€
Gross Value 26,000
National Reserve Deduction 780
Modulation Deduction 1,820
Net payment 23,400
% Reduction 10%
THE NATIONAL RESERVE
The Single Payment Scheme National Reserve, which is drawn from deductions
from the annual payment which farmers receive, caters for the allocation of payment
entitlements to certain categories of farmers. From 2009 onwards National Reserve
entitlements are treated in the same way as Standard Entitlements with some minor
exceptions. However in general entitlements received from the National Reserve
may be sold, leased or otherwise transferred. The following terms and conditions
govern such allocations;
w Farmers who receive new entitlements from the National Reserve must
comply with a two year usage rule, i.e. if entitlements were received in 2009
and not used, they have to be used in 2010, otherwise the unused reserve
entitlements will be returned to the National Reserve.
w Farmers who receive entitlements from the National Reserve in 2010 may not
transfer them until 2011
w Where it is shown that the applicants is not complying with, or has not
complied with, these terms and conditions, any reserve entitlements allocated
to him/her will be withdrawn and returned to the National Reserve.
CLAWBACK
From 2008 onwards the clawback for the National Reserve on sales of entitlements
no longer applies.
CATEGORIES ELIGIBLE FOR ALLOCATIONS
Category A
Farmers who inherit, lease or otherwise receive a holding free of charge or for a
nominal consideration (not greater than €100 per hectare), where that holding was
leased to a third party during the reference period (2000–2002). The farmer from
whom the holding is obtained must have retired or died before 16th May 2005. Any
farmer who acquired a holding or part of a holding free of charge or for a nominal
consideration, from a farmer who died or retired before 16th May 2005 where the
holding was leased to a third party’s) during all or part of the reference period 2000
to 2002, may be eligible to receive a number of entitlements from the 2009 National
Reserve. The number of entitlements to be allocated under this category may not
exceed the number of hectares acquired and declared on the 2010 Single Payment
application for which the applicant does not already hold entitlements. The following
conditions apply;
w The land acquired must be declared on the 2009 Single Payment application
form.
w The applicant will be required to submit a copy of the lease confirming that
the land was leased to a third party during some or all of the reference period
and, where appropriate, the land must have been declared by the third party
on his/her area aid application in the year(s) in question.
w The applicant will be required to submit a copy of the legal document/lease
showing that he/she has taken over the land, either on a permanent basis or on
foot of a lease, which must be for a period of at least 5 years.
w Land acquired that was leased out to the third party for one or two of the
reference years will attract a pro rata entitlement.
w Land acquired prior to the 1st January 2000 does not qualify under this
category.
Category B
This covers new entrants to farming after 15 May 2008. A New Entrant is defined as
a farmer who did not, pursue any agricultural activity in his/her own name or at
his/her own risk in the five years immediately preceding the commencement of the
new agricultural activity. Applicants under this category are required to furnish
details of their age, farm income, off-farm income (if any) and details of any farming
qualifications held (see below). The following conditions apply;
w The number of entitlements to be allocated to successful applicants under
Category B may not exceed the number of eligible hectares declared on the
2010 Single Payment application for which the applicant does not already
hold single payment entitlements.
w The overall value of entitlements allocated shall not exceed €10,000.
w Where leasing or renting land, lease/rental agreement must have been in place
prior to submission of the 2010 Single Payment application and the
leased/rented land must have been declared on the 2010 Single Payment
Scheme application.
w Applicants may be required to furnish copies of the relevant lease/rental
agreements.
w An applicant may only qualify once under the New Entrant category of the
National Reserve.
w The applicant must be at least 18 years of age on 1 January 2010. A copy of
the applicant’s birth certificate must accompany the application form.
w The applicant must furnish evidence of his/her farm income as returned to the
relevant Tax Authority for income tax purposes for either year ended 31
December 2008 or year ended 31 December 2009 and the total off-farm
income of the applicant must not exceed €30,000 while the total income must
not exceed €40,000.
w Applicants who are under 35 years of age on 1 January 2010 must have
obtained the (a) Vocational Certificate in Farming (formerly The Green Cert);
or (b) a higher farming qualification, or (c) have at least 3 years practical
experience in farming AND have satisfactorily completed a Teagasc
approved course in farming of a minimum duration of 180 hours.
w Applicants who are over 35 years of age on 1 January 2009 must hold the
qualifications at (i) above OR have at least 5 years practical experience in
farming.
LEASING ENTITLEMENTS
It is possible to lease entitlements but only where they are accompanied by an
equivalent number of eligible hectares. Leases will need to be in place before the
closing date for receipt of applications under the Single Payment Scheme for 2010
and will be considered as a lease of the entitlements with land, provided:
w A clause is included in the lease agreement indicating that the farmer intends
to lease the land along with the appropriate number of Single Payment
entitlements. The number of entitlements may not be higher than the number
of hectares being leased.
w The lessee applying for Single Payment attaches a copy of the lease
agreement to the application.
On expiry of the lease contract, the entitlements will revert to the lessor who may use
them himself or he may renew the existing lease contract or continue to lease them
with the land to another farmer or can be sold provided that 80% have been used in
one scheme year.
SELLING OR TRANSFERRING ENTITLEMENTS
Entitlements may be sold or transferred with or without land to another farmer
subject to certain conditions.
SALE OF ENTITLEMENTS WITH LAND
Entitlements may be sold with land. If Set-aside entitlements are sold with land, the
purchaser must undertake to continue the obligations to the set-aside land and must
claim those set-aside entitlements before any other entitlements.
SALE OF ENTITLEMENTS WITHOUT LAND
Farmers can sell entitlements without land and the 80% usage rule applicable up to
2009 has been abolished. The effective date of transfer of entitlements in all cases is
the 15th May 2010.
TRANSFER OF THE ENTIRE HOLDING
Transfer of a holding means the sale, lease or any similar type of transaction in
respect of the production unit concerned. Where an entire holding is transferred from
one farmer to another after the transferror has lodged a Single Payment Scheme
application and conditions for granting the Single Payment concerned have been
fulfilled, no payment can be made to the transferor. The aid applied for by the
transferor can be granted to the transferee the transferee must agree to succeed to the
responsibilities of the transferor by completing a Declaration of Undertaking
(SPS/UND). This form must be completed by both the Transferor and Transferee
and must be accompanied by a Transfer of Entitlement form (SPS/TE). The
transferee must supply any evidence of the transfer requested by the Department and
must also fulfil the conditions for granting the aid and honour the undertakings given
by the transferor. The holding transferred will be considered as a separate holding
and will not be combined with any existing holding held by the transferee for the
year in which the transfer occurs. Where a Single Payment Scheme application is
lodged and all the conditions for granting the Single Payment have been fulfilled by
the transferor before the entire holding is transferred, the Single Payment will be
granted to the transferor. The transferred holding will be considered as a separate
holding for the year of the transfer.
PROCEDURES FOR NEW APPLICANTS
New applicants who wish to apply for the Single Payment and related schemes in
2010 should ensure that they have a valid Herd Number or, if not, should
immediately request a herd number. Application should be made to the Department’s
local Veterinary Office. Details of the new Herd Number should be submitted to the
Single Payment Unit as soon as it is available.
BLANK FORMS
Blank 2010 SPS application forms are available for new applicants from the
Department’s website at www. agriculture.gov.ie
ACQUIRING ENTITLEMENTS
A specific application form for the Transfer of Entitlements, including transfer by
inheritance, along with the detailed rules can be had from www.agriculture.gov.ie
INSPECTION
New applicants may be subject to an inspection by the Department in order to
establish that, among other things, they are operating a farming business that is
separate and independent from that of any other SPS applicant and the business was
not established to artificially create conditions with a view to obtaining advantages
under any of the relevant schemes.
MAPS
New applicants are obliged to submit a map (or maps) with their 2009 single
payment scheme application, outlining clearly the boundaries of each land parcel /
plot. Where the unique Land Parcel Identification System Number (LPIS No.) is not
available, enter the plot details on the 2009 SPS application form numbering them
Plot 1, Plot 2 etc. Identify any new plot by outlining it carefully on either an
Ordnance Survey map or a Land Registry map or a Land Parcel Identification
System map, also numbering them Plot 1, Plot 2, etc on the map. Mark the maps with
your name, address and herd number if available. If the map is part of a Land
Registry or Ordnance Survey map, they should also be marked with the Ordnance
Survey sheet number and the townland in which the parcel is located.
SUPPORTING DOCUMENTATION
New applicants are required to furnish, if so requested, proof that they are operating
a separate business viz: documentary evidence of entitlement to farm the land
declared; receipts in the applicant’s own name for purchases, sales or agricultural
services related to the business; farm accounts/ tax returns in the applicant’s own
name; any other evidence requested.
ON FARM CHECKS AND CONTROLS
In general, the rate of on-farm inspection required for cross-compliance is 1%,
however, at least 5% of applicants must be inspected under the Animal Identification
and Registration requirements of Cross Compliance. In addition to cross compliance
checks, it is a requirement to carry out standard eligibility checks to verify that the
actual area claimed in the Single Payment Scheme application form corresponds to
the area held by the farmer and to ensure there are no overlapping claims, or
duplicate claims. Checks will also be required to confirm that the lands declared for
set-aside purposes are maintained in accordance with the provisions of the EU
Regulations and that the set-aside obligations are observed. It will also be necessary
to verify that the land used to draw down entitlements only contain permitted crops.
TAXATION TREATMENT OF ENTITLEMENTS
Payments received under the Single Payment Scheme will be subject to income tax
in same way as subsidies are. Proceeds from the sale of entitlements will be subject
to Capital Gains on the entire sum as the entitlements will be deemed to have no base
cost unless of course they were purchased from another farmer. The purchase of
entitlements is a capital acquisition and as such is not allowable against income tax.
ONLINE REGISTRATION AND SFP APPLICATION
Farmers can now register with the Department to gain access to an internet based
service that will enable them do the following on line;
w Submit 2010 Single Farm payment Application.
w View maps of their land parcels and Area Aid applications from 2001
onwards,
w View details of payments received since 2001 onwards
w Calf Birth Registration facility;
w Herd Profile Inquiry, which gives details of animals in the herd on CMMS, as
well as movements in and out of the herd;
w Compliance Certificate facility, which allows for online application for a
CMMS compliance certificate, required for certain animal movements
The service is free and registration can be done on-line through the Department’
website at www.agriculture.gov.ie or by ringing 1890 252118. If you apply for the
service you will be sent a unique number (PIN) that will enable you to access your
details on the Departments website.
ELECTRONIC TRANSFERS OF FUNDS
All scheme payments, including the Single Payment Scheme, to farmers must be
made into a Bank Account with effect from 16 October 2008. You can have
payments credited directly to an account in any Bank or Building Society. A small
number of Credit Unions can also be used. If you change your Bank Account you
must notify Direct Credit Section, Department of Agriculture, Fisheries and Food,
Farnham St., Cavan in writing immediately. You will know when the payment is
made when the Department issues you with a remittance note through the post with
confirmation of the payment. This remittance will also detail what the payment is for.
SCHEMES REQUIRING SINGLE PAYMENT
APPLICATION
Farmers intending applying for any of the following schemes must make a Single
Payment application:
w Single Payment Scheme
w Disadvantaged Area Compensatory Allowance Scheme
w Afforestation Premium & Grants Scheme
w Energy Crops Scheme
w Dried Fodder Scheme
w Proteins Premium Scheme
w Rural Environmental Protection Scheme (REPS)
w Scheme of Investment Aid for Farm Waste Management
w Scheme of Investment Aid for the Improvement of Dairy Hygiene Standards
w Scheme of Investment Aid in Alternative Enterprises
w Early Farm Retirement Scheme ( in suspension)
w Installation Aid Scheme (in suspension)
w Bio – Energy Establishment Grant Scheme
w National Energy Premium Scheme
w Organic Farming Scheme
w Uplands Sheep Payment
w Suckler Welfare Scheme
APPLICATION DATE
The deadline for the 2010 applications will be May 15th. unless otherwise
determined by the Minister
LATE LODGEMENT
A penalty of a 1% loss of payment applies for each working day that the application
is late. After 25 calendar days a total loss of payment applies.
AMENDMENTS
Amendments are permitted for a certain period following the submission deadline.
The permitted period will be in the region of two weeks and will be set out in the
2010 application form. A separate SPS Amendment Form is available and should be
used for this purpose. Only one amendment form may be submitted.
ADDITIONAL LAND
If new land has been acquired or additional land has been rented the farmer should
endeavour to obtain the Land Parcel Identification Number for that parcel from the
previous applicant along with the gross area. Failing that, an original Ordnance
Survey or Land Registry map should be submitted, identifying the parcel concerned.
These new plots or blocks must be clearly defined on the map and should be
numbered individually.
PENALTIES
Where the area found on inspection is greater or less than the area declared on the
area aid form the following penalties will apply, except in the case of force majeure:
w Where an over declaration of areas occurs but is less than 3% or 2 hectares,
there is no penalty but payment is based on the number of hectares found.
w Where an over declaration of areas occurs that is greater than 3% or 2
hectares and less than 20% there is a penalty of twice the number of hectares
over declared.
w if the difference found is more than 20% then no payment will issue.
EXCEPTIONAL CIRCUMSTANCES (FORCE MAJEURE)
If for certain unforeseen reasons applicants are unable to comply with the conditions
of a scheme they may still be entitled to payment. Such situations might include:
w Long term illness of the applicant.
w Death of the applicant
w A severe natural disaster affecting the farm
w The accidental destruction of livestock buildings on the farm
w An epizootic disease affecting part or all of the farm
If any of the above circumstances arise the Department should be immediately
notified.
____________________________________________________________________
AREA BASED DISADVANTAGED AREAS PAYMENTS
The area based Disadvantaged Areas Compensatory Allowance Scheme is a separate
scheme to the Single Payments System and attracts additional payments.
PAYMENT RATES
Table 1.3: Disadvantaged Area Payments
Category Rate (€) Max. Payment (€)
Mountain-type grazing 109.70 on 1st.10 ha. 3,400
95.99 on next 24 ha.
More Severely Handicapped-lowland 95.99 up to 34 Ha. 3,263
Less Severely Handicapped-lowland 82.27 up to 34 Ha. 2,797
Where farmers have a combination of categories of land they will be paid on the
mountain land firstly, More Severely Handicapped lowland next and Less Severely
Handicapped Areas next.
ENERGY RATE OF AID
An Energy Rate of Aid is also payable on Disadvantaged areas used for the
production of energy crops, subject to a maximum of 10 hectares. Disadvantaged
Areas Scheme applicants will continue to be required to meet the minimum forage
area requirement of 3 hectares with the minimum stocking density requirement of
0.15 livestock units per hectare of forage lands declared.
Mountain type land
An Energy Rate of €76.06 on first 10 hectares or part thereof and €95.99 per hectare
on remaining hectares subject to an overall ceiling of 45 hectares.
More Severely Handicapped (lowland)
An Energy Rate of €64.34 per hectare on up to 45 hectares.
Less Severely Handicapped (lowland) and Areas with Specific Handicaps(Coastal Areas)
Energy Rate of €50.62 per hectare on up to 45 hectares. In the case of common
pastures, allowances per hectare will be paid on percentage share of commonage
used.
CONDITIONS FOR ELIGIBILITY
w be a registered herdowner aged 18 years or over who currently holds a herd
number issued by the Department of Agriculture and Food;
w occupy and farm a minimum of 3 hectares of forage land (including maize
crops) in a designated Disadvantaged Area;
w undertake to remain in farming for 5 years from the first payment of a
Compensatory Allowance;
w comply with Good Farming Practice as set down by the Department in its
booklet “Good Farming Practice”,
w have a minimum stocking density of an average 0.15 livestock units
equivalent/forage hectare in the calendar year preceding the year of
application. See table 1.3A below.
Table 1.3A Livestock Unit Values for Disadvantaged Area Scheme
Type of Animal Livestock Proof which may be required
Unit Value
Cattle over 2 years 1 Herd Register up to date
CMMS compliant
Cattle 2 years or under 0.6 Herd Register up to date
CMMS compliant
Sheep 0.15 Flock Register up to date
Most recent sheep census completed
Equines over 6 months 1 Equine passport in your name
Equines 6 months or under 0.6 Equine passport in your name
Goats 0.15 Herd Register up to date
Most recent sheep census completed
Deer 0.3 Proof of ownership
You must own, possess, hold and maintain for at least three continuous months of
the year the livestock required to maintain the minimum stocking level. You may be
exempted from compliance with the minimum stocking level of 0.15 livestock units
per forage hectare where a REPS plan for your holding requires a lower stocking
level. In such a case the requirement to own, possess, hold and maintain animals for
at least four continuous months of the year will apply to the number of animals per
forage hectare, which is the equivalent in livestock unit values to that lower stocking
level.
SPLIT HOLDINGS
The payment is based on the acreage within the disadvantaged areas regardless of
whether the applicant also has land in a non disadvantaged area.
APPLICATION METHOD
The payment of disadvantaged areas entitlements will be based on the Single
Payment Scheme application.
____________________________________________________________________
DISEASE ERADICATION SCHEMES
The control and eventual eradication of Bovine T.B. and Brucellosis is essential for
the well being and future development of the industry. The eradication schemes
currently in operation have seen substantial revision in recent times and the
following are the main features of the schemes currently in operation:
w annual testing of the national herd and/or designated categories of animals,
with primary responsibility for arranging testing, negotiating terms and
paying for certain tests assigned to farmers.
w follow up and focused strategic additional testing, including the use of blood
testing in certain circumstances.
w a comprehensive programme to expedite the lifting of movement restrictions
on certain herds.
w a comprehensive research programme aimed at preventing the spread of
disease by wildlife.
w improved epidemiology and feedback to farmers.
w continuing research on developing blood tests, vaccines and other
technological tools.
w A national Forum to advise and make recommendations to the Minister on the
operation of the Schemes.
COMPENSATION BASED ON LIVE VALUATIONS
The main features of the live valuation system include:
w valuations are carried out by suitably qualified valuers within prescribed time
scales and by reference to guidelines laid down by the Department.
w A ceiling of €2,800 (inclusive of factory salvage price) applies to payment in
respect of any single animal, except in respect of one pedigree stock bull per
farm where a ceiling of €3,500 (inclusive of factory salvage price) applies.
w Where the farmer or the Department do not accept the initial valuation, they
can appeal to another valuer on the panel. The party making the appeal will
carry the full cost involved which will range from €50 for 1-4 animals, €68
for 5-30 and €84 for 31-50 animals plus an additional €1.00 for any
additional animals above 50.
w If there is no agreement after appeal the matter is referred to an Arbitration
Panel whose decision will be final.
w Following completion of the on-farm valuation process the reactors are
removed from the farm by the Reactor Collection Service on the next
available occasion.
PAYMENTS
To qualify for receipt of payment farmers must submit the following information to
the District Veterinary Office;
w A tax number if payment is over €650
w A Tax Clearance Certificate if payment is in excess of €6,500
w Factory slaughter dockets
w Disinfection certificate
INCOME SUPPLEMENT
An income supplement is payable where disease breakdown results in the removal of
more than 10% of animals in the herd and where depopulation is deemed not
appropriate. Payment is in respect of each animal removed as a reactor from the herd,
subject to a maximum of 100 animals qualifying for payment. Income supplement
eligibility will cease in the event of:
w animals being purchased or moved into a restricted holding. other than a
replacement bull or a bull in a newly established suitable enterprise with the
permission of the DVO.
w the farmer failing to co-operate with veterinary inspectors or authorised
officers in carrying out their duties under the Disease Eradication Schemes.
w Depopulation of the herd being deemed appropriate by the Department.
Table 1.4 T.B and Brucellosis Income Supplement Monthly Rate
Pedigree Non-Pedrigree Transient
Suckler cows €38.09 €38.09 nil
Dairy cows / €25.39 €25.39 nil
Other Animals
DEPOPULATION GRANT
Farmers whose herds are depopulated totally or partially in the interests of disease
control may qualify for Depopulation Grants. Grants are paid for each animal
removed in the depopulation measure and also for those removed as reactors since
the holding was restricted. Payment is made in respect of each month of the rest
period.
Table 1.5: TB depopulation grant rates
Animal Category Maximum payment for 4 Months
Pedigree Non Pedigree
Dairy cows & in-calf heifers, pedigree bulls > 12 mts. €228.55 €228.55
Other cows / in-calf heifers €126.97 €126.97
Other animals nil €76.16
Table 1.6: Brucellosis depopulation grant rates
Animal Category Max. Payment for 4 months)
Standard Rate Standard Rate Plus
Dairy cows & in-calf heifers, €126.97 €228.55
pedigree bulls > 12 months
Other cows / in-calf heifers €126.97 €126.97
Other animals €38.09 €76.18
Note: Depopulation grant rates quoted above represent the maximum available in respect of a
depopulation. Pro rata deductions or increases will be made if the rest period specified after
depopulation is less than or more than 4 months.
HARDSHIP GRANT
The Hardship Grant is designed to assist restricted herdowners where animals have
to be retained and fed while restricted. The eligible period is between 1 November
and 30 April. This grant is payable, once eligibility is accepted as long as the herd
continues to be restricted subject to a maximum of four months. The grant is
intended to facilitate the purchase of fodder. A monthly payment of €38 / Suckler
Cow or €25 / dairy cow or other animal subject to a maximum payment of €250 per
month.
CESSATION OF PAYMENT
Payment will cease in any of the following circumstances:
w De-restriction of herd.
w Supply of any milk for sale.
w Receipt of any off farm income.
w Depopulation of the herd being deemed appropriate by the Department.
w Animals, other than a replacement bull or a bull in a newly established suitable
enterprise, being purchased or moved into a restricted holding with the
permission of the District Veterinary Office.
w The herdowner fails to cooperate with Veterinary Inspectors or other
authorised officers.
APPLICATION PROCEDURE
The onus is on the herdowner to apply for the hardship grant. The completed
application form should be submitted to the District Veterinary Office. Payment will
only apply for the eligible period after receipt of the application form.
BSE COMPENSATION
Herds depopulated as a result of a BSE outbreak are assessed for compensation by a
panel of valuers. It is the valuer’s brief to ensure that a fair compensation is paid to
the herdowner for the depopulated stock. This will be based on the market value of
the animals at the time of depopulation. The Department of Agriculture and Food
valuers will inspect the stock individually and experience to date has indicated that
reasonable and fair values are placed on the stock. It should be noted that this is the
only form of compensation that the affected herdowner will receive. Herd owners are
allowed to restock 30 days after the animals are removed and after the housing and
handling facilities have been thoroughly disinfected.
SUCKLER COW WELFARE AND QUALITY SCHEME
This scheme came into operation on the 1st. January 2008 and will cease on the 31st.
December 2012. The objectives of the Scheme shall be to:
w Enhance welfare standards for animals produced from the suckler cow herd.
w Improve husbandry standards at weaning time leading to reduced illness and
mortality and enhanced health of the National herd.
w Provide education and knowledge building among farmers on best practice in
suckler herd health and welfare.
w Improve the genetic quality of the National suckler herd.
w Improve the competitiveness of the Irish beef industry and the quality of the
beef produced.. Conditions for the Grant of Aid
MEASURES TO BE UNDERTAKEN
Participants must undertake to implement, for the full term of the Scheme, Measures
1 to 6 on all eligible suckler cows and the calves kept on his/her holding. While
payment shall be limited to a maximum of 100 eligible suckler cows, the
requirements of the Scheme apply to all suckler cows, and calves reared by those
cows.
Measure 1 – Calving details
Each calf must be registered using the ICBF Animal Events System. An Animal
Events Book will be issued to each applicant once the application form is lodged. It
will also be possible to record this information using the internet. Details of sire of
calf and calving survey must be recorded in addition to the mandatory calf
registration data for each calf born.
Measure 2 – Disbudding of calves
Veterinary advice is that all calves should be treated with a local anaesthetic when
disbudding. Local anaesthetic may be obtained on prescription from veterinary
surgeons. It is illegal to disbud a calf over 2 weeks old without using a local
anaesthetic. Disbudding of calves must be carried out within 3 weeks of birth, except
where the horn buds do not emerge within this period, or for animals that are
naturally polled. A custom-built calf-dehorning crate should be used to minimise
stress to the calf and for optimum safety to the operator. Date of Disbudding must be
recorded in the Animal Events System.
CastMeasure 3-cast ration of calves
It is not compulsory to castrate all male calves under this Scheme. However, where
calves are going to be castrated, they must be castrated at least four weeks prior to
weaning date, or at least two weeks after the calf has been weaned. It is illegal to
castrate an animal over six months of age without veterinary involvement. Evidence
of completion of this task by a Veterinary Surgeon may be requested by the
Department. It is recommended that castration be undertaken at the earliest possible
age to minimise stress. Date of Castration must be recorded in the Animal Events
System.
Measure 4 – Minimum calving age
The average age of heifers calving for the first time must be 24 months, and in no
circumstances will an animal calving for the first time at less than 22 months of age
be eligible for payment. However, there will be a tolerance, depending on the size of
the herd, for heifers calving for the first time between 22 months and up to 24
months of age.
Measure 5 – Appropriate weaning procedures
The minimum age that a calf can be weaned as part of this Scheme is eight weeks of
age. This Measure is comprised of three different actions:
Meal (concentrates) feeding
Concentrates must be introduced to calves a minimum of 4 weeks before
weaning. The meal shall be of the appropriate quality and standard as
required for calves at weaning time. Meal must be fed in a feeder
appropriate for calves and allow sufficient room for calves to feed. The
daily allowance per animal must be increased over this period until all
animals are eating, on average, 1.0 kg/head/day at weaning. Meal feeding
must be continued through the weaning process for a minimum period of 2
weeks after weaning.
Graduated weaning
Abrupt weaning of all animals at the one time is not permitted. For herds
with more than 10 suckler cows, a gradual weaning procedure must be
followed when weaning, with the following being the procedures permitted;
At pasture: The herd of cows and calves are retained in a properly fenced
field with a good grass supply (or with supplementary forage provided) and
with a concentrate creep for the calves. Calves must be weaned in at least
two separate groups with each group being removed at a minimum interval
of five days. The first group of cows must be removed allowing their calves
to stay with the remaining herd. Another method is to separate cows and
calves by means of a well-powered electric fence (up to three strands may
be needed). After a few days the cows can be taken away to another area.
Again the cows must be weaned in at least two separate groups.
Indoors: Calves are housed in a pen adjacent to the cows with access to
these cows. Calves must be weaned in at least two separate groups with
each group being removed at a minimum interval of five days. The first
group of cows must be removed allowing their calves to stay with the
remaining herd. Cows for culling and those in poor body condition (e.g.
young cows or very old cows) should be weaned first and late calving cows
in good body condition weaned towards the end. Date of weaning must be
recorded in the Animal Events System.
Sales procedure
All animals must have been weaned a minimum of 2 weeks before they can
be sold, or moved from the herd.
Measure 6 – Animal Events Recording
Applicants must complete and submit all the information as required in the Animal
Events system through the ICBF. This also includes all data for each Measure in this
Scheme. This data may be either submitted in paper form by post, or over the
internet. The recording and submitting of animal events information must be
completed according to the schedule set out in the Animal Events System.
Measure 7 – Training and Education
It shall be mandatory for an approved applicant to attend a suitable training course
before reaching the end of their second year in the Scheme. However, a person who
is under 35 years of age on 01 January 2008 and who holds at least a National
Framework of Qualifications (NFQ) Level 6 Agricultural Qualification or equivalent
will not have to complete Measure 7 of the Scheme. Failure to attend within the
period specified may result in third and subsequent years’ payment being withheld
until such time as satisfactory evidence is provided that a training course has been
completed by the beneficiary. If the applicant is unable to attend, a family member
who is actively involved in the management of the Suckler herd may attend the
course. In the case of joint applications either participant may attend the course, but
he or she must attend the whole course.
PAYMENTS
Due to budgetary cuts announced in the 2009 budget, payment which was originally
set at €82 (where the applicant is reporting the animal events online) or €80 (where
animal events are reported manually) per eligible suckler cow up to a limit of 100,
may be reduced by half for the remaining years of the scheme, depending on the
level of participation in the scheme. Furthermore, payments due in respect of 2009,
will not be paid until early 2010. It is permitted to vary the number of cows on the
applicant’s holding from year to year in the Scheme.
GRAIN ASSURANCE SCHEME
The Irish Grain Assurance Scheme (IGAS) has established minimum standards for
growing, handling, storage and transport of grain. This aims to ensure that grain
produced and processed by members of the Scheme meets these standards. It is
owned by the Cereals Association of Ireland (C.A.I.) which comprises of the IFA,
IGFA, Dept of Agriculture, and Teagasc.
Annual membership costs €55 + VAT for up to 100 ha of arable crops and
€100 + VAT for over 100 ha of arable crops and €215 plus VAT for production and
storage. Application forms are available from all participating merchants or from
IGAS, PO Box 7, Athy, Co. Kildare. More information is available at
www.irishgrainassurance.ie
PEDIGREE SHEEP BREED IMPROVEMENT
PROGRAMME
The objective of this programme is to improve growth rates and carcass quality of
pedigree sheep breeds. The programme aims to assist breeders in the identification of
genetically superior animals for pure-breeding and to assist commercial farmers in
the selection of rams for cross breeding. The current fee structure is as set out in
table 1.7.
Table 1.7 Fee structure
Flock Type Rate of Payment
One breed per flock €222 for the first 15 ewes plus €1.90 for each additional ewe
Two breeds per flock €253 for the first 15 ewes plus €1.90 for each additional ewe
Three breeds per flock €285 for the first 15 ewes plus €1.90 for each additional ewe
Full details and application forms can be obtained from: Livestock Breeding Section,
Department of Agriculture & Food, Government Buildings, Farnam St., Cavan. Tel. 049
4368292
RURAL ENVIRONMENT PROTECTION SCHEME -REPS
AGRI-ENVIRONMENTAL PAYMENTS
The REPS 4 programme is currently closed to new applicants but existing REPS 3
and REPS 4 participants will continue to receive payment until their plans expire.
RATES OF PAYMENT
General REPS Programme
€200 / ha. up to 20ha.
€175 / ha. for next 20ha.
€70 / ha. for next 15ha.
€10 / ha. on the remainder.
Natura 2000 commonage and NHA land
€242 / ha. up to 40ha.
€24 / ha. for next 40ha.
€18 / ha. for next 40ha.
€5 / ha. on the remainder.
SUPPLEMENTARY MEASURES ATTRACTING ADDITIONAL
PAYMENTS
Participants may receive additional payment for participation in up to two
supplementary measures as follows:-
w Conservation of Animal Genetic Resources – €234 per livestock unit of thebreed registered with the breed society.
w Traditional Irish orchards – €300 / holding
w Riparian Zones – €850 / ha. (max. 4 hectares).
w LINNET project – 1st. hectare €700 and €400 per ha. for next 2.5 hectares.
w Low-Input Tillage Crops – €370 / ha. (max. 2.5 hectares).
w Minimum-Tillage – €25 / ha. (max. 40 hectares).
w Traditional Sustainable Grazing – €50 / ha. (max. 20 hectares).
w Clover Swards – €30 / ha. (max. 40 hectares).
w Mixed grazing – €50 / ha. (max. 20 hectares).
w Lake Catchments – varying incentives depending on measure.
w Heritage Buildings – 75% grant assistance subject to a maximum investment
of €25,000
w Conservation of wild bird habitat – €100 / ha.
Table 1.9 Penalties for breach of REPS measures
Measures Penalty range
1 Nutrient Management 1-50% depending on breach
2 Grassland Management 1-3% depending on breach
3 Protection of watercourses 1-50% depending on breach
4 Retain Wildlife habitats 1-50% depending on breach
5 Maintain Farm & Field boundaries 1-50% depending on breach
6 Restrict the use of pesticides and fertilisers in 1-3% depending on breach
and around hedgerows, lakes, ponds, rivers and
streams
7 Establish biodiversity buffer strips surrounding 1-50% depending on breach
features of historical and archaeological interest
8 Visual Appearance of Farm & Farmyard 1-3% depending on breach
9 Produce Tillage Crops respecting 1-3% depending on breach
environmental principles
10 Bio-dversity undertaking 1-3% depending on breach
11 Maintenance of farm & environmental records 25-50% depending on breach
12 Natura 2000, NHA & Commonages – non 25-50% depending on breach
compliance with specific site conditions.
PROPOSED NEW AGRI-ENVIRONMENT SCHEME
Proposals for a new agri-environment scheme were submitted to the European
Commission in July 2009 as part of a draft amendment to the CAP Rural
Development Programme 2007–13. Financial support for the scheme will include the
modulation funds secured by Ireland in the recent “Health Check” of the Common
Agricultural Policy. EU Council Regulation 74/2009 requires that schemes supported
by modulation funds address specific “challenges” which include climate change,
renewable energies, water management and biodiversity. The new scheme will
consist of a range of actions from which almost every farmers should be able to find
some that would suit his or her farm and farming system. It will be different from
REPS in that it will not be a whole-farm undertaking. The only obligation applying
to the whole farm will be the obligations attaching to the Single Payment Scheme,
i.e. cross-compliance and the requirement to keep the land in good agricultural and
environmental condition (GAEC). Most of the actions in the proposals that went to
the Commission will be familiar to farmers from REPS 3 and REPS 4 where they
appear as biodiversity options or supplementary measures. It is not yet known when
this proposed new scheme will come into effect or the amount of payment that
farmers will receive.
DAIRY SUPPORTS AND INCENTIVES
MILK QUOTA
National milk production is restricted to the extent of the national milk quota. Each
of the country’s milk purchasers (co-op’s and dairy plc’s) is responsible for applying
a super levy on those producers who exceed their individual quotas after the
reallocation of unused quota. The super levy amounts to 115% of the target price for
milk and is currently €1.6678 per gallon. Following the CAP Mid Term Review and
the Luxembourg Agreement, milk quotas will remain in place until 2014/2015. A
dairy cow premium was introduced in 2004 and became a decoupled payment in
2005. However, quotas still remain in place and remain tied to land other than in
family transfers and production will continue to be restricted to the amount of each
individuals quota size.
Current milk policy regulations are based on European Communities (Milk
Quota) Regulations 2008. S.I. no 227 of 2008 which revokes the national regulations
governing the super levy/milk quota regime – the European Communities (Milk
Quota) Regulations, 2000, as amended – and replaces them with new consolidated
regulations with effect from 1 April 2008. The following section attempts to identify
the principal matters contained in the statutory instruments that may affect quota
holders.
Attachment of quota to land (Regulation 7)
w With a number of exceptions (see below) the quota continues to attach to
land, but may be retained by the farmer in the event of sale of the land.
Accordingly, quota sold with land will no longer have to remain attached to
that land.
w Quota attaches to land used for milk production, i.e. land used for grazing
cows and replacement heifers and land used to grow fodder for same, in the
last quota year in which 90% of the quota was produced.
w Where owned quota has been produced on leased land, the quota will not
attach to that land, and may be attached by the Minister to other land upon
application in writing by the producer.
Permanent transfers of land and quota (Regulation 
Land and quota can be sold by the landowner, or his or her heir but subject to the
condition that in cases where the applicant seeks to transfer lands to which more than
12,500 litres per hectare (1,100 gallons) of quota is claimed to attach per acre,
he/she will be required to seek the Minister’s permission.
Leasing of land and milk quotas (Regulation 9)
Milk quota may only be leased to individuals where it is being leased with land
attached. A person may only lease land with milk quota attached to —
(a) a qualified relative,
(b) a company, in which he or she holds a majority share holding, or
(c) a company in which milk producers hold a majority share holding.
A person who inherits land with milk quota attached may lease it to a
qualified relative of the deceased person.
Purchase of milk quota by lessee (Regulation 10)
Subject to agreement with the lessor, the lessee (provided he is a producer) can buy
out the quota on expiry or earlier termination of the lease subject to the conditions
that he/she;
(a) leases land and the quota attached to that land for at least 12 months,
(b) inherits the lessee’ interest in the lease within the previous 12
months, or
(c) was assigned a lease of land to which quota is attached by the lessee
before 1 April 2000,
Transfer of quota within families (Regulation 11)
A producer is allowed to transfer the quota without the transfer of land to a qualified
relative. A “qualified relative” means a parent, grandparent, spouse, sibling, child,
grandchild, uncle, aunt, nephew or niece or a person related within the same degree
to his or her spouse. Such transfers are no longer confined to a single transaction but
are conditional upon the following:
w the transferee is already a producer
w the transferor must have been a producer in the previous year
w the transfer is definitive i.e. non reversible
Leases associated with the Early Farm Retirement Scheme (Regulation 12)
If a lease of land and quota, approved under a scheme of early retirement from
farming, has reached the end of its term, the lease may be renewed subject to:-
(a) in the case of a lease that was operative before 1 April 2000, a new lease is
signed within 6 months whether or not the lessee is the same, or
(b) in the case of a lease operative on or after 1 April 2000, a new lease is signed
within 6 months and the lessee is the same or is a qualified relative of the lessor,
Renewals of land and quota leases (regulation 13)
Existing land and quota leases may be renewed provided such renewal is within six
months of the date of expiry of the original lease.
Quota attached to land in Less Favoured Areas
The rule that Milk quota is ring fenced within 30 miles in Less Favoured Areas in the
case of land and quota transfers no longer applies.
LEASING TO A LIMITED COMPANY
From the 2008/2009 production year onwards farmers may form a limited company
and lease their quotas along with the lands to which the quota is attached to such
companies. The farmer must be the main shareholder and be an active dairy farmer.
There may be significant tax advantages in forming a limited company (refer to
taxation section of this handbook).
ALLOCATION OF 1% INCREASE IN NATIONAL
MILK QUOTA
As part of the so-called ‘Health Check’ agreement in November 2008, the Council of
Agriculture Ministers agreed to increase Member States’ milk quotas annually by 1
per cent over the period 2009 to 2013. The first of these increases came into effect
on 1 April 2009 with an allocation of three quarters (0.75%) of this increase on a
permanent basis to active milk producers. The remaining 0.25% is being allocated to
new entrants to dairying.
SCHEME FOR THE ALLOCATION OF MILK
QUOTA TO NEW ENTRANTS
Under the terms of the 1% milk quota increase over the period 2009 to 2013 as
referred to above, 0.25% is being allocated to new entrants to dairying. The
following information relates to the 2009/10 scheme and while it is assumed that the
2010/11 scheme will be similar, intending applicants are advised to refer to the
scheme rules when they issue in 2010.
ELIGIBILITY CRITERIA
In order to be eligible for consideration in this scheme, each applicant must:
w satisfy the education and training qualifications.
w have no milk quota, nor have been a producer previously, either in his/her
own name or jointly.
w have/will have a holding comprised of lands owned and/or leased by him or
her.
w have/will have his/her own separate independent herd number in which the
dairy animals are/will be registered.
w have his/her own separate milking and milk storage facilities situated on
his/her holding.
w Submit a 5 year business plan detailing, current resources, capital
expenditure, income and expenditure, stock flow and source and application
of funds for each year of the plan.
The applicant is required to submit with his/her Business Plan, a map of the holding
on which the quota will be produced, and the legal documentation regarding
ownership of lands or in the case of leased lands, the documentation which effected
the land transfer of the holding to him/her. The map must clearly identify the
milking and milk storage facilities that will be used. It should be noted that
satisfying the eligibility criteria does not in itself qualify an applicant for approval.
A rigorous assessment will be carried out to establish the extent to which each
applicant can demonstrate a real and long-term commitment to dairying.
ALLOCATIONS
All successful applicants will be allocated a milk quota of 200,000 litres.
COMMENCING PRODUCTION
A New Entrant who acquires quota under this scheme will be given adequate time to
establish his/her dairy unit. Applicants for the 2009/10 scheme are required to
commence milk production by 1st April 2011 so it can be reasonably assumed that
applicants to the 2010/11 scheme will have until 1st. April 2012 to commence.
CONDITIONS
The following general conditions apply:
w Quota allocated under this scheme is available for use only while the
applicant remains in milk production. If production ceases then the quota
shall be returned to the National Reserve.
w New Entrants benefiting from quota in this scheme may not merge with
another enterprise in any form for a period of 3 years or benefit from the
transfer of quota for a period of 3 years, except through inheritance
following the death of the transferor or offer quota acquired through this
scheme into the Temporary Leasing Scheme.
w If quota acquired under this scheme is produced on leased lands, such quota
shall not, on expiry or earlier determination of the lease agreement, transfer
with the lands.
w Successful applicants who acquire quota under this scheme will be eligible
to apply to purchase additional quota in the Milk Quota Trading Scheme.
w Quota allocated under this scheme may not be transferred, with or without
land, except to the successor of a New Entrant in the event of his/her death
where the successor continues in milk production.
w Successful applicants will be required to submit a financial statement to the
Department at the end of each year. They will also be required to attend
training, facilitated by Teagasc, which will take place over a two-day period
initially and will be followed by a one-day course every 6 months thereafter.
SCHEME FOR THE ALLOCATION OF MILK QUOTA TO
CERTAIN ORGANIC MILK PRODUCERS
Under the terms of the general increase by the European Union milk quotas of
Member States additional quota has been made available to Organic Milk Producers,
subject to certain conditions, as set out below.
ELIGIBILITY
Applicants must have a current organic licence from one of the Organic Certification
Bodies and at the date of application be delivering milk to a recognised Organic Milk
Purchaser, or be involved in direct sales of organic milk products;
ALLOCATIONS
The maximum amount of milk quota to be allocated is 45,000 litres. An applicant
who is already in receipt of national reserve quota as a result of his/her participation
in organic milk production, may only receive additional milk quota under this
Scheme so that the milk quota already held by them and the additional quota
awarded under this Scheme will not exceed a maximum of 45,000 litres;
CONDITIONS
The following conditions apply:
w Milk quota allocated under the Scheme will only be available to recipients
while they remain in organic milk production and continue to supply a
recognised Organic Milk Purchaser or continue producing organic milk
products for direct sale. Where a producer ceases organic milk production the
milk quota allocated under this Scheme shall revert to the National Reserve;
w Where a producer, who has received additional milk quota under this Scheme,
ceases milk production, the milk quota in question shall revert to the National
Reserve except where the producer transfers his dairy enterprise to a
successor by way of inheritance or by a process akin to inheritance (but not
for sale);
w Quota received under this Scheme cannot be sold, transferred or leased and
may not be surrendered under a Temporary Leasing Scheme. Where a
producer sells all or part of his/her milk quota, all quota received under this
Scheme shall revert to the National Reserve.
WHERE TO APPLY
Application forms are available on the Departments website or from the Milk Policy
Division, Department of Agriculture, Fisheries and Food, Agriculture House, Kildare
St., Dublin 2.
MILK QUOTA TRADING SCHEME 2010/2011
During each milk quota year two Milk Quota Trading Schemes are run by the
Department of Agriculture in association with the milk purchasing companies or
co-op’s. The first such scheme generally closes for applications in October and the
second scheme in January.
SELLING MILK QUOTA INTO THE SCHEME
The following are the conditions attaching to the sale of milk quota into the scheme:-
w Farmers may sell part or all of their quota into their Co-op/Dairy but they will
have to cease deliveries by the 31st. March 2010.
w Once a farmer sells into the scheme he/she will not be entitled to be allocated
quota from future schemes.
w Where a farmer wishes to sell quota purchased from the scheme, he may only
sell it back into the scheme from which it originated for a period of three
years. For example, a farmer cannot sell quota (which was purchased from the
scheme) with land for a three year period after purchasing it from the trading
scheme.
w A farmer wishing to sell quota into the scheme must apply by specifying the
quantity on offer and the selling price per litre.
w 30% of the amount offered for sale will be allocated to a priority pool which
will have a maximum price of 6 cent per litre and the remaining 70% will be
offered for sale on the trading exchange. In the event that the quota does
not sell, the 30% will not be returned but the seller will not suffer a
further 30% loss the following year.
PURCHASING QUOTA
Farmers may purchase quota under the scheme from the Co-op/Dairy where they
hold their permanent quota and to which they have made deliveries in the 2009/2010
production year. The following rules and procedures apply:-
w A farmer wishing to purchase must submit an application specifying the
amount they want to purchase and the price they are willing to pay.
w A cheque for payment must accompany the application.
w The maximum quantity that can be purchased is 100,000 litres.
PRIORITY POOL
The priority pool operates in a manner somewhat similar to the Restructuring
Schemes in former years. The maximum price of quota in the 2010/2011 quota year
will be 6 cent per litre and may be less if the ‘equilibrium price’ achieved in that
particular exchange is lower than 10 cent. Access to the priority pool will be granted
to the following priority categories:-
(1) Successors
First priority is granted to a son/daughter of a person who, in certain circumstances,
sold their quota under any of the restructuring schemes between 2003 and 2006 or,
who was no longer entitled to temporary lease and who sold his or her quota under
the 2000, 2001 or 2002 restructuring schemes. Applicants must, at the time of
application have acquired by way of gift or inheritance, the lands to which the
surrendered quota was attached and in the case of young farmers, meet the
educational requirements applicable to new entrants. Such persons may have priority
to purchase up to the equivalent of the amount surrendered.
(2) Lost Land and Quota Leases
The remaining quota after allocation in accordance with 1 above should be available
for allocation to producers who had taken out a land and quota lease before 1 April
2000, which has expired. The net entitlement to quota is based on the following
criteria: Producers whose land and quota leases expired on 31 March 2009 and/or
expired on 31 March 2008, or earlier, on the following basis:
2/3 of milk quota leased with land where the lease expired on 31 March, 2009 and
which has not been or will not be renewed, and/or
1/3 of milk quota leased with land where the lease expired on 31 March 2008 and
where permanent allocations from previous Restructuring or Trading Schemes have
not satisfied the full entitlement arising from the lease, and/or any previous
entitlements arising from land and quota leases that expired on 31 March 2007, or
earlier, and which have not already been satisfied by permanent allocations under
previous Restructuring or Trading Schemes.
Less
(i) additional quota granted to such lessees under the Agenda 2000
Schemes with effect from the 2000/2001 and subsequent milk
quota years (excluding allocations made under the 32 million
litre scheme);
(ii) other allocations (other than temporary) granted to such lessees
from the National Reserve with effect from the 2000/2001 or
subsequent milk quota years;
(iii) any Priority allocations, other than Lost Lease Allocations, from
the 2009/2010 Trading Scheme.
(3) New and recent entrants to dairying
The remaining quota will be divided in the ration 3:2 between new and recent
entrants who are under 35 years on 31 March 2010 and new and recent entrants over
35 years on 31 March 2010. Access to quota expires when the applicant’s total
permanent quota reaches 350,000 litres.
WORKINGS OF THE EXCHANGE
w Offers to sell and bids to buy are submitted to the exchange and a weighted
average of these bids taking account of volume and price bid or sought
determines the ‘initial equilibrium price’ for the exchange.
w Bids to buy that exceed the initial equilibrium price by 40% will then be
removed and the equilibrium price will be recalculated to give the ‘Market
Clearing Price’.
w Bids to buy quota, at on or above the Market Clearing Price, are deemed to
have been purchased at the Market Clearing Price. Bids below the market
clearing price are rejected.
w Offers to sell which are at or below the market clearing price are deemed to
be sold at the market clearing price. Offers to sell which are over the Market
Clearing Price are rejected. .
____________________________________________________________________
TEMPORARY LEASING
Each quota year the Department of Agriculture offers, through the Co-ops, the option
to temporary lease in or out of milk. There are two phases of temporary leasing in the
2009/2010 milk year, June 2009 and a second top up phase in January of 2010. To
be eligible for the January allocation producers must have applied for the June
allocation.
ELIGIBILITY TO TEMPORARY LEASE QUOTA
Producers who wish to offer unused quota into this scheme must have first delivered
a minimum of 20% of their quota for the year in question. However, a producer who
does not deliver the minimum amount or a producer who makes no deliveries at all,
may offer the full amount of unused quota into the Scheme only where they hold a
Ministerial Declaration approving the offer of that amount of quota into the 2009/10
Scheme. Approvals can be granted only in force majeure or other duly justified
cases, where production capacity has been temporarily affected. Quota Holders
who have made no deliveries in 2009/2010 and who do not intend to resume
deliveries in 2010/2011 are not eligible for such approval. Quota holders who have
ceased milk production and failed to sell some or all of their quota in the 2009/2010
Trading Scheme shall be exempt from the requirement to obtain a Ministerial
Declaration and may apply directly to their Co-op. Quota holders who would have
been made dormant on 1st April 2009 as a result of a termination of a lease after 1st
February 2009 shall be exempt from the requirement to obtain a Ministerial
Declaration and may apply directly to their Co-op.
ALLOCATION OF QUOTA
Producers with entitlements in the Successor and Lost Lease Categories of the
2009/2010 Milk Quota Trading Scheme have priority to lease quota in this
Temporary Leasing Scheme.
(i) Successors
For those in the Successor Category, the entitlement in the Temporary Leasing
Scheme is the producer’s entitlement under the 2009/2010 Trading Scheme minus
the quantity of quota purchased from the Priority Pool under that scheme.
(ii) Lost land and quota lease
Producers whose land and quota leases expired on 31 March 2007, 31 March 2008
and/or expired on 31 March 2009 on the following basis:
(a) 2/3rd of the milk quota leased with land where the lease expired on 31
March 2009,
and/or
(b) 2/3rd of the milk quota leased with land where the lease expired on 31
March 2008, less the allocation from the priority pool of the 2008/2009
Trading Scheme,
and/or
(c) 1/3rd of the milk quota leased with land where the lease expired on 31
March 2007 and where permanent allocations from previous schemes
have not satisfied the full entitlement arising from the lease;
Less
(i) the additional quota granted to such lessees under the Agenda 2000
Schemes, excluding the 32 Million Litre Scheme;
(ii) allocations (other than temporary) granted to such lessees from the Milk
Quota Appeals Tribunal’s Reserve with effect from the 2001/2002 and
subsequent milk quota years;
(iii) quantity purchased from the priority pool of the 2009/2010 Milk Quota
Trading Schemes.
PRICE
The price payable in the first stage of 2009/2010 scheme is 2.5 cent per litre
PURCHASING QUOTA
At a time of increasing National Quotas which are not being filled, the question
arises as to whether producers who are anxious to expand should purchase additional
quota or simply continue to produce in excess of their quota. Apart from the risk of
incurring a super levy there is the uncertainty of not knowing what will happen in
2015 following the planned expiry of quotas. Depending on market conditions, it is
anticipated that some form of production supply agreements may apply. The concern
that farmers who were producing well in excess of quota should have is whether
such possible production supply arrangements have a linkage to their former quotas.
Taking both factors into account, producers should at least assess the feasibility of
buying quota. In order to determine what one could pay for quota will depend on a
large number of factors, not least the current level of efficiency and whether
additional land, buildings or labour is required. The first thing that needs to be
established is the current net margin per gallon. In the example set out on table 1.8
the net margin is 4.8 cent per litre which is based on a herd of 75 cows producing
5,000 litres (1100 gallons) per cow with moderate to good levels of efficiency. The
farm has total bank, HP and creditor debt of €100,000 and employs no outside
labour.
Table 1.8:- Determining Net Margin per Gallon
Calculation of Gross Margin per litre cent cent cent cent
Gross Output
Milk price – cent/litre 22.00 24 .00 26.00 28.00
Milk value 22.00 24.00 26.00 28.00
Calf @ €115 (5% mortality) 2.20 2.20 2.20 2.20
Cull cow 1.60 1.60 1.60 1.60
Total Output 25.80 27.80 29.80 31.80
Variable Costs per litre
Concentrates 3.51 3.51 3.51 3.51
Fodder costs 6.30 6.30 6.30 6.30
Veterinary & breeding 2.40 2.40 2.40 2.40
Replacement cost 4.60 4.60 4.60 4.60
Miscellaneous 0.74 0.74 0.74 0.74
Total Variable Costs 17.5 17.5 17.5 17.5
Gross Margin / litre 8.25 10.2 12.2 14.2
Fixed Costs per litre
Bank interest & charges 1.60 1.60 1.60 1.60
Light & heat (farm share) 1.07 1.07 1.07 1.07
General farm repairs 1.07 1.07 1.07 1.07
Machinery Running Costs 1.47 1.47 1.47 1.47
Telephone 0.40 0.40 0.40 0.40
Motor (farm share) 1.20 1.20 1.20 1.20
Insurance 0.75 0.75 0.75 0.75
Accountancy / Advisory 0.43 0.43 0.43 0.43
Interest on Working Capital 0.21 0.21 0.21 0.21
Total Fixed Costs / litre 8.20 8.20 8.20 8.20
Net Profit / litre (before depreciation) 0.05 2.05 4.05 6.05
The scenarios as set out hereunder are based on the following assumptions:-
- Additional buildings will cost €0.26/litre (€1.20 per gallon) repaid over 15 years
- Additional labour will cost €0.44 cent/litre (20 cent per gallon)
- Additional cow cost €0.035/litre (16 cent per gallon) set off over 5 years
- Additional rented land will cost €0.04 cent/litre (19 cent per gallon)
- Fixed overheads as they relate to additional quota amount to 60% of current fixed
overheads due to economies of scale.
Scenario A
No buildings, additional labour cost or rented land required.
Scenario B
Buildings required but no additional labour cost or rented land required.
Scenario C
Buildings and rented land required but no additional labour cost.
Scenario D
Buildings, labour and rented land required.
Table 1.9 Available margin to fund milk quota purchase (milk price @24 cent per litre)
Variable A B C D
Gross Margin per additional litre . €0.142 €0.142 €0.142 €0.142
Fixed Overheads per additional litre @ 60% €0.049 €0.049 €0.049 €0.049
Additional cow cost (set off over 5 years) €0.035 €0.035 €0.035 €0.035
Repay on buildings €0.026 €0.026 €0.026
Rented land €0.041 €0.041
Labour €0.044
Surplus for profit and to repay on quota €0.058 €0.032 -0.009 -0.053
Maximum price that can be paid for 25 C 14 C Nil Nil
additional quota based on 5 year borrowing (cent per litre)
Table 1.9a Available margin to fund milk quota purchase (milk price @28 cent per litre)
Variable A B C D
Gross Margin per additional litre . €0.102 €0.102 €0.102 €0.102
Fixed Overheads per additional litre €0.049 €0.049 €0.049 €0.049
@ 60%
Additional cow cost (set off over 5 years) €0.035 €0.035 €0.035 €0.035
Repay on buildings €0.026 €0.026 €0.026
Rented land €0.041 €0.041
Labour €0.044
Surplus for profit and to repay on quota €0.018 -0.008 -0.049 -0.093
Maximum price that can be paid for 8 C Nil Nil Nil
additional quota based on 5 year borrowing (cent per litre)
CONCLUSION
(1) At a milk price of 24 cent per litre there is scope for purchasing additional quota
where no additional land, buildings or labour is required but only to a maximum of 8
cent per litre.
(2) At a milk price of 28 cent per litre there is scope for purchasing additional quota
where no additional land, buildings or labour is required but only to a maximum of
25 cent per litre. There is minimal scope where buildings only are required but to a
maximum price of 9 cent per litre.
(3) At milk price of 30 cent per litre or lower, purchasing quota is not viable where a
combination of land and/or buildings and/or labour is required
MILK PRODUCTION PARTNERSHIPS
Partnerships between unrelated persons holding milk quotas are permitted subject to
certain conditions. Teagasc are the registration body for milk production
partnerships. Each year a certificate of compliance will be issued which will be valid
for one year and will be renewed annually. Only bona fide partnerships will be
permitted and partnerships cannot be viewed as a form of ‘leasing by the back door’.
The following details are effective since 1st April 2008.
COMPOSITION OF MILK PRODUCTION PARTNERSHIPS
A Milk Production Partnership shall consist of at least one person from category (i)
below and one or more person(s) from any of the categories (i) to (iv).
(i) a milk producer who has produced and delivered milk in each of
the two milk quota years preceding the milk quota year in which
the partnership is established;
(ii) a new entrant(s) with the appropriate qualifications who is
participating with a parent(s);
(iii) other farmers who have been farming in their own right for a
minimum of two years preceding the milk quota year in which the
partnership is established;
(iv) a farm manager, with the appropriate qualifications which may be
amended from time to time), followed by at least three years
employment in farm management.
Other persons aside from those described in categories (i) to (iv) above, for example
spouses, co-owners or family members, may also be registered as participants in the
partnership but will not have access in their own right to milk quota from the Milk
Quota Trading Scheme or the Temporary Leasing Scheme.
APPLICATION FOR REGISTRATION
Each applicant must indicate the category (as set out above) under which they are
applying. The following items should accompany all applications:
w a copy of a written partnership agreement that states the address at which the
milk production partnership records, books and other documents are to be
retained;
w a statement from each existing producer’s Milk Purchaser(s) containing the
producer’s permanent milk quota at the date of execution of the partnership
agreement and details of quota and deliveries over the previous two milk
quota years;
w a map of each applicant’s entire agricultural lands clearly identifying the
location of the lands to be made available to or excluded from the partnership;
satisfactory proof of ownership in the case of owned land and a copy of
written lease(s) for all leased land;
w where appropriate, proof that such lands have been used by the applicant, for
agricultural purposes, in the previous two years (e.g. proof of payment under
the Single Farm Payment Scheme, CMMS Identifier);
w the written approval of the Minister in respect of each herd of bovine animals
to be kept by the proposed partnership of both the herd number and the
keeper;
w the PPS number of each applicant;
w birth certificate for each applicant;
w An application fee of €500;
w evidence from a financial institution stating the account through which all
partnership transactions will be carried out;
w in the case of New Entrants and Farm Managers, evidence of the appropriate
agricultural qualifications;
Applications for registration should be sent to the Dairy Partnerships Registration
Office, Teagasc, Moorepark, Fermoy, Co Cork.
CONDITIONS OF REGISTRATION
w The partnership agreement must cover a minimum term of five years.
w The partners must agree to pool all agricultural lands, assets, entitlements and
quota owned, leased or at their disposal within the State at the time of the
partnership agreement and acquired during the period of the agreement but
excluding:
(i) lands certified by Teagasc as lands which are used solely or
primarily for the purpose of pig, poultry, mushroom, forestry,
bloodstock, intensive horticultural cropping, on-farm milk
processing or electricity generation enterprises, where such
enterprise has been excluded from the partnership by agreement;
(ii) leased lands included in the partnership lands at some time where
the lease expired or was earlier determined and the lease was not
renewed;
(iii) lands in respect of which a public authority possessing compulsory
purchase powers has exercised those powers.
w A new entrant, i.e. farmer or farm manager under 35 years of age, must not
exceed and off farm income limit of €40,000 in each tax year during which
the partnership operates.
w Where a producer under category (i) above consists of more than one person
then each such person must be an individual partner in the partnership.
w A person may not be involved in more than one Milk Production Partnership
at any one time.
ACCESS TO QUOTA FROM THE MILK QUOTA TRADING
SCHEME
Access to quota from the Milk Quota Trading Scheme earlier in Milk Quota Trading Scheme 2010/2011. A new entrant intending to enter partnership with a parent may purchase
quota in the Milk Quota Trading Scheme prior to registration of the MPP. All other
persons entering a MPP who do not qualify for milk quota in their own right must
wait until the Partnership is registered before purchasing quota from the Milk Quota
Trading Scheme. All Regulations involving quota transactions shall apply to each
individual partner within a partnership and may not be availed of by the partnership
itself.
MILK PRODUCTION PARTNERSHIPS AND REPS
Where participants in a partnership satisfy the relevant terms and conditions it is
possible for both parties to participate separately in REPS.
ADVICE AND ASSISTANCE
Entering into a Milk Production Partnership is a very serious matter and deserves
thorough research and consideration. Consult your farm consultant or advisor and
he/she will advise on the suitability of the proposed partnership and will detail the
information to be included in the partnership agreement and will assist in having the
document drawn up and the application submitted. Names of such firms can be
found under “Member Find” on this web site. Application forms and full details of the scheme
can be had from the Farm Partnerships Registration Office, Teagasc, Moorpark,
Fermoy, Co.Cork, Tel 025-42244. e mail: ben.roche@teagasc.ie.
ACA Farmers Handbook 2010
Themocracy