{"id":1995,"date":"2021-08-16T21:15:29","date_gmt":"2021-08-16T21:15:29","guid":{"rendered":"http:\/\/legalblog.ie\/?p=1995"},"modified":"2021-10-25T18:35:53","modified_gmt":"2021-10-25T18:35:53","slug":"single-farm-payment","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/single-farm-payment\/","title":{"rendered":"Single Farm Payment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Single_Farm_Payment_2005\" title=\"Single Farm Payment 2005\">Single Farm Payment 2005<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Entitlements\" title=\"Entitlements\">Entitlements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Eligible_Land\" title=\"Eligible Land\">Eligible Land<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Special_Entitlements\" title=\"Special Entitlements\">Special Entitlements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Entitlements_per_Hectare\" title=\"Entitlements per Hectare\">Entitlements per Hectare<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Concession_Consolidation\" title=\"Concession &amp; Consolidation\">Concession &amp; Consolidation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#National_Reserve\" title=\"National Reserve\">National Reserve<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#New_Entrants\" title=\"New Entrants\">New Entrants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Sale_or_Lease\" title=\"Sale or Lease\">Sale or Lease<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Annual_Applications\" title=\"Annual Applications\">Annual Applications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/single-farm-payment\/#Sale_Clawback\" title=\"Sale &amp; Clawback\">Sale &amp; Clawback<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Single_Farm_Payment_2005\"><\/span>Single Farm Payment 2005<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European Commission&#8217;s mid-term review of the CAP agenda was the subject of negotiation over several years. \u00a0Ultimately, in 2003, the Council of Ministers agreed to a \u00a0fully decoupled Single Payment Scheme. The livestock premia and arable aid schemes which formerly applied were decoupled from production so that entitlement was no longer linked to the extent of production.<\/p>\n<p>The following former schemes were replaced by the Single Payment Scheme in 2005. \u00a0A dairy premium was introduced which was decoupled from milk production in 2005 and added to the Single Payment Scheme.<\/p>\n<p>The purpose of decoupling production from the payment was to enable farmers to focus on market requirements rather than on compliance with the requirements of particular schemes.<\/p>\n<p>Around 26,000 farmers are paid an average of \u20ac10,000 per annum under the scheme in Ireland.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Entitlements\"><\/span>Entitlements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Generally, the SPS applies to farmers who actively farmed during the years 2000, 2001 and 2002 and were paid livestock and\/or arable aid premia in those years and who continue to farm in 2005.\u00a0 The payment is based on the average number of animals or hectares on which payments were made in the reference years. Farmers were entitled to claim on the basis of circumstances beyond their control that their entitlement should be based on reference years other \u00a0than the above three years<\/p>\n<p>The entitlements are established for a farmer who farmed during the relevant period. \u00a0Each farmer was obliged to submit a valid area aid application and apply for the Single Payment Scheme in 2005.\u00a0 In order to claim support,each farmer had to establish an eligible hectare of land for each entitlement. \u00a0If a farmer established a hundred entitlements but held 70 hectares he is paid only on 70 hectares.\u00a0 The gross number of entitlements were reduced by up to 3 percent to create a national reserve to be spent on rural development matters.<\/p>\n<p>The principal condition of entitlement is the maintenance of holdings in good environmental and agricultural condition and compliance with the statutory management requirements. There is no obligation to work the land.<\/p>\n<p>A holding must be at least\u00a0 0.3 hectares and used for agricultural activities.\u00a0 Payments under the first scheme continue until \u00a02013.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Eligible_Land\"><\/span>Eligible Land<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Eligible land includes forage area, arable area and set aside. From 2008, this includes areas under potatoes, fruit and vegetable. Forestlands may be eligible in the future.<\/p>\n<p>Farmers in receipt of disadvantaged area payments must maintain minimum stocking levels per hectare for three months.<\/p>\n<p>There are requirements for the country as a whole, not to significantly reduce the area under permanent pasture. \u00a0However, in practice, a significant increase in the national tillage area would have a marginal effect on permanent pastures.<\/p>\n<p>Standard entitlements have been established by the vast majority of tillage and livestock farmers who claimed for the reference this period and receive direct payments. \u00a0The overall value is based on the average amounts received for livestock and arable premium in the reference years subject to deductions.<\/p>\n<p>Farmers who claimed arable aid in excess of 15.13 hectares in any year were obliged to put 10 percent into set-aside. Special set-aside entitlements could be claimed.<\/p>\n<p>The set-aside obligation no longer applies. Provided that they continue to drawdown set-aside entitles, they were obliged to declare sufficient land eligible for set-aside.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Special_Entitlements\"><\/span>Special Entitlements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Special condition entitlements are those established by farmers who receive direct payments but had little, no land or relatively a small number of eligible hectares so that a unit value would have exceeded \u20ac5,000 per hectare.\u00a0 In this case, the payments during the reference period to the extent that they would exceed \u20ac5,000 per hectare are deemed special entitlements. \u00a0They are treated differently and subject to conditions including that at least 50 percent of the agricultural activity exercised in the reference period must be maintained in livestock units.<\/p>\n<p>If the special entitlements are transferred the transferee may continue the obligations of continuity of production undertaken in order to receive the payment or have a eligible hectare for each payment entitlement.\u00a0 Special entitlements may be converted into standard entitlements if the eligible land is declared in respect of them.<\/p>\n<p>After 2006, a scheme of compensation for sugar beet growers was incorporated into the single payment scheme. \u00a0Growers are granted entitlements in accordance with acreage grown in the reference years 2001, 2002 and 2004.\u00a0 The value is determined by the average contractual tonnage during the reference period divided by the number of hectares multiplied by the rate of compensation per ton. \u00a0This establishes a sum for entitlements.<\/p>\n<p>Certain farmers may be eligible for payment entitlements from the national reserve.\u00a0 See below.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Entitlements_per_Hectare\"><\/span>Entitlements per Hectare<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Entitlements attach to the farmer rather than the land.\u00a0 However, a hectare is required for each entitlement which need not necessarily be the same as that farmed in the reference year.\u00a0 A single payment application must be made in each year and declared by 31st May.\u00a0 The land must be maintained in good agricultural and environmental condition in the period 1st April to 31st December.<\/p>\n<p>The hectares declared must be available in the period April to December of the relevant year.\u00a0 The land may be owned rented in or leased in.\u00a0 It must be maintained as agricultural land during this period. \u00a0If land is being used at any point during the nine-month period for non-agricultural purposes, such as afforestation, it is excluded.<\/p>\n<p>There is provision for consolidation or stacking entitlements. \u00a0This may apply where the number of acres farmed during the reference period is no longer available. \u00a0In this case, the entitlements may be surrendered to the national reserve in exchange for a lower number of entitlements with a higher unit value.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Concession_Consolidation\"><\/span>Concession &amp; Consolidation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The farmer must continue to have at least 50 percent of the number of entitlements allocated. He may apply for the concession provided he continues to have at least 50 percent. \u00a0The concession is not available if the land has been disposed off by way of sale other than a sale to a public authority for non-agricultural use.<\/p>\n<p>The following are eligible for the concession.<\/p>\n<ul>\n<li>farmers who have afforested some of their land since the beginning of the period.<\/li>\n<li>farmers who have disposed of land to a public authority for non-agricultural use.<\/li>\n<li>farmers who have leased land during the reference period, but the rental agreement has expired.<\/li>\n<li>farmers whose land has been reduced due to participation in a farm waste management scheme.<\/li>\n<\/ul>\n<p>Certain entitlements may not be consolidated including<\/p>\n<ul>\n<li>set-aside entitlements.<\/li>\n<li>special condition entitlements,<\/li>\n<li>entitlements acquired by purchase or lease of land.<\/li>\n<\/ul>\n<p>A farmer who has fewer hectares than those declared in the reference years may not consolidate.<\/p>\n<p>Entitlements cannot be leased or transferred except by way of inheritance, for five years from the year of allocation.\u00a0 The farmer must use the entitlements himself each year for a period of five years.<\/p>\n<p>Forestry may be an attractive option as farmers may receive the forestry premium and single payment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"National_Reserve\"><\/span>National Reserve<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Certain categories of persons are entitled to allocation from the national reserve. Farmers who inherit lease or receive a holding free of charge or for nominal consideration where it was leased to third-parties during the reference period.<\/p>\n<p>The farmer from whom the land is obtained must have retired or died prior to May 2005.\u00a0 The land must be acquired free of charge or for a nominal amount by inheritance, permanent transfer or lease for a minimum period of five years.<\/p>\n<p>Where the applicant has entitlements, whose value is less than the regional average they may be topped up to the regional average subject to conditions including that<\/p>\n<ul>\n<li>land is declared under single payment application form.<\/li>\n<li>the applicant is required to submit a copy of the lease confirming the land was leased to a third-party during the reference period and<\/li>\n<li>land must have been declared by the third-party under his area aid application.<\/li>\n<li>proof of the acquisition of the land or the five-year lease must be given.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"New_Entrants\"><\/span>New Entrants<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A new entrant is a farmer who did not pursue agricultural activity in his own name or at his own risk in the five years preceding the commencement of new activities.<\/p>\n<p>Applicants must furnish details of their age farm income, non-farm income and qualification. \u00a0New entrants who&#8217;ve leased or rented land were eligible for allocation provided they could demonstrate a genuine commitment to farming.<\/p>\n<p>The lease agreement must have been in place prior to submission of the 2008 area aid application. The land must have been declared on each of the previous year&#8217;s applications.<\/p>\n<p>Copies of the leases or rental agreements must be furnished.<\/p>\n<p>Other evidence is required for new entrants including<\/p>\n<ul>\n<li>evidence of income tax return.<\/li>\n<li>total off-farm income not exceeding certain levels.<\/li>\n<li>total income of the applicants not exceeding certain levels for chosen year of declaration.<\/li>\n<li>applicants under 35 must have obtained certain qualifications in farming or completed a Teagasc approved course of at least 180 hours.<\/li>\n<li>applicants over 35 must have at least five years practical experience in farming.<\/li>\n<li>the maximum allowance is \u20ac10,000, although in practice, has not exceeded half this amount.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Sale_or_Lease\"><\/span>Sale or Lease<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Entitlements may be leased but must be accompanied by an eligible number of eligible hectares. The lease must be in place before the closing date for the annual application.\u00a0 The number of entitlements may \u00a0not be higher than the number of hectares being leased.<\/p>\n<p>Entitlements may be sold or transferred with or without the land, subject to conditions.\u00a0 Entitlements may be sold with the land.\u00a0 Set-aside entitlements require the purchaser to continue to set aside land and must claim the set-aside entitlements first.<\/p>\n<p>Entitlements may be sold without the land if the farmer has \u00a0used 80 percent of all entitlements in the previous year.\u00a0Entitlements may be sold with the land at any time. The farmer who wishes to sell entitlements and has not activated at least 80 percent of his entitlements in a calendar year, must first surrender unactivated entitlements to the national reserve.<\/p>\n<p>Entitlements may be sold without land if the farmer activates at least 80 percent of entitlements in any one year.\u00a0 If he does this, he may sell 100 percent of entitlements.\u00a0 Entitlements received from the national reserve are not saleable for five years.<\/p>\n<p>Where an \u00a0entire holding is sold, the transferor is no longer entitled but the transferee may succeed to the entitlement. \u00a0A transfer of entitlement form should be completed and filed with the Department of Agriculture.\u00a0 Where the application has been made and all the conditions complied with before the transfer, the payment is made to the transferor.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Annual_Applications\"><\/span>Annual Applications<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Annual applications may be made online. \u00a0Maps must be submitted with applications showing the boundaries of each land and parcel.\u00a0 A new plot must be identified and numbered.<\/p>\n<ul>\n<li>There is a national ceiling for Ireland for each year.\u00a0 \u00a0The national reserve is a percentage of this ceiling designed to cater for situations where<\/li>\n<li>farmers were disadvantaged by reason of an interruption or change during the reference period.<\/li>\n<li>farmers who made investments in the period 2000-2003 which result in increased production capacity. \u00a0This may include purchase of long-term lease of land.<\/li>\n<li>farmers who sold their milk quota into our restructuring scheme in that period and convert it to a farming sector for which a direct payment would have been payable in 2000 to 2002.<\/li>\n<\/ul>\n<p>Modulation involves a reduction in the single payment by a set percentage in each year from 2005. Up to 80 percent of the funds generated through modulation are retained for spending in rural development measures within Ireland.\u00a0 Rural development measures may be introduced in the area of food quality and animal welfare standards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sale_Clawback\"><\/span>Sale &amp; Clawback<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The sale of entitlements is only permitted where at least 80 percent of entitlements have been used in 2005.\u00a0 Claw backs apply to sales as follows.<\/p>\n<ul>\n<li>sale of entitlement without \u00a0land 30 percent;<\/li>\n<li>sale of entitlement with lands where part of the holding is held, 5 percent;<\/li>\n<li>sale of entitlements with an entire holding, 2.5 percent.<\/li>\n<\/ul>\n<p>No claw back applies \u00a0to<\/p>\n<ul>\n<li>transfer of entitlements by gift or gift within families or inheritance.<\/li>\n<li>lease of entitlements, rental agreements in respect of entitlements.<\/li>\n<li>sale of entitlements to new entrants with qualifying age, income and educational qualifications.<\/li>\n<li>sale of entitlements without land where the farmer used at least 80 percent of entitlements in 2005 and did not apply to consolidate and is\u00a0 selling entitlements not used in 2005.<\/li>\n<\/ul>\n<p>Each entitlement is equal to one eligible hectare of land. Each parcel is allocated a unique land parcel number (LPIS) which is a reference area.\u00a0 Where land is acquired from a predecessor at the relevant reference number must be obtained and entered in the application form.\u00a0 All parcels of land within the holding must be declared.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-1995\" data-postid=\"1995\" class=\"themify_builder_content themify_builder_content-1995 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Single Farm Payment 2005 The European Commission&#8217;s mid-term review of the CAP agenda was the subject of negotiation over several years. \u00a0Ultimately, in 2003, the Council of Ministers agreed to a \u00a0fully decoupled Single Payment Scheme. The livestock premia and arable aid schemes which formerly applied were decoupled from production so that entitlement was no [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[94],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/1995"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=1995"}],"version-history":[{"count":4,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/1995\/revisions"}],"predecessor-version":[{"id":2066,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/1995\/revisions\/2066"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=1995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=1995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=1995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}