Joe Carty Tarpey & Associates Agricultural Consultants Ardrahan Co.Galway
Changes to SPS 2015 • 2014 is the Final Year of the Single Payment Scheme • All existing entitlements will expire on 31st Dec 2014
• Modulation deduction no longer applies. • A linear reduction will apply in 2014 – 10.5% Your entitlement value will be reduced by this and will be paid in full. Note this if purchasing entitlements.
Basic Payment Scheme New Scheme will be known as the Basic Payment Scheme Annual Application One Entitlement per eligible hectare of land Entitlements transferrable. (Can be leased without land) National reserve
Main Changes • Convergence – The value of Entitlements will change from year to year. • No Consolidation • Entitlements unused for 2 years lost to National Reserve • No ‘Rotation’ of Entitlements • Basic Payment + ‘Greening’
Basic Conditions • Actively Farming • GAEC
• Minimum activity on Marginal Land – to be defined • 2013 Gateway Clause – Farmers who received SPS, Grassland Sheep Scheme, Burren Life Scheme, Dairy Efficiency in 2013
• Non Entitlement Holders (Scottish Derogation) - providing they can demonstrate they were actively Farming in 2013
Calculating Number of Entitlements • Percentage of 2014 payment divided by your 2013 or 2015 eligible area, whichever is the lower. • Additional Land in 2014 or 2015 will have no impact on the number of your entitlements • Less land in 2015 than 2013 will result in a lower number of Entitlements and will alter their Unit Value. • Status of Leased Entitlements to be clarified.
Value of Entitlements •
Percentage of 2014 payment divided by 2013 or 2015 eligible area = Initial Unit Value
•
Percentage of 2014 payment will be based on Value of Entitlements owned in 2014.
•
Grassland Sheep Scheme to be integrated into Payment calculation
•
Convergence – by 2019 Minimum value of Entitlement will be 60% of the average. Minimum €150 – Average €250
•
By 2019 no payment will exceed €700 per ha (Basic + Greening)
Impact on Various Entitlement Values Basic Payment + Greening 2013
2014
2015
2016
2017
2018
2019
% Change
€0 €250
€0 €30 €60 €90 €119 €149 €225 €213 €214 €215 €215 €216
-4%
€300
€270 €255 €254 €254 €253 €253
-6%
€350
€315 €294 €290 €286 €282 €278 -10%
€450
€405 €373 €362 €351 €341 €330 -17%
€700
€630 €569 €541 €514 €486 €459 -24%
Young Farmers Scheme • Top up for Young Farmers – Under 40, Level 6 Fetac, Established within previous 5 years. 2015 optimum year to establish.
• 25% of National average per hectare • Payment on a maximum of 50 hectares • Maximum of five years
Greening • All Farmers subject to Greening • Payment calculated as a percentage of BPS
• Meet the requirement for Greening if 75% of the eligible area is grassland • No issues with Ploughing and Reseeding except for Natura areas. • Crop diversification – Under 10ha Arable – Exempt » 10 – 30ha’s = 2 crops » 30 ha’s + = 3 crops
G.L.A.S Green, Low Carbon Agri-Environmental Scheme • Max Payment €5000 -maybe
• May have to be Targeted
increased to €7000 in “areas of particular natural constraint
• Prepared by Approved Advisor • NMP
• Training Courses • Core Actions +Menu System
• Funding for up to 50,000 Farmers • 30,000 Farmers will have exited Reps 4 by years end
• Loss of REPS type payment may be more significant than SPS changes in Western Counties
Inspections • Targeted • No notice for Ground Eligibility, Animal Welfare and Feed Hygiene • Most Penalties still relate to Tagging, Registration & Registers • Fertiliser Plan required on all holdings • Exiting Reps is not a Licence to remove Hedges and Features
Land Eligibility • Massive LPIS review underway by Department under the threat of EU fines • Department admits that some errors have occurred on “red lining” areas • Appeal – You can appeal a decision you may have previously accepted • Appeals involving scrub will be ground Inspected • Cases of larger areas will be dealt with first. • If appeal is ongoing by May 15th – Use reference areas. Do not increase. • Independent access to Plots
General • Be careful regarding Land Reclamation and Drainage • Don’t be tempted to build sheds without Planning Permission if required • Make an appointment with your Advisor to check the implications of new Schemes
• Succession Planning • Farm Safely