Farming News and Views Sept 2007

With almost four weeks of fine weather and a dramatic increase in cereal prices, coupled with good crop yields, grain farmers’ incomes have increased considerably. Milk prices have also increased, but farmers are complaining that they are not receiving the full benefit of these increases from the processors. Cattle and sheep prices seem to be stagnating, so there is no joy for the majority of farmers in the surrounding area, as sheep and cattle rearing are the mainstay of their farming activities.

Criteria for Transferees for E.R.S.

Transferees are divided into two groups- Installation and non-Installation cases. In cases of Installation aid applicants, the transferee must be less than 35 years of age, have submitted an YFIS 2 form and succeed the transferor as head of the agricultural holding with at least 2Oha (in the non-less favoured areas) or at least 15ha (in less favoured areas) except in the case of intensive enterprises.

In non-installation cases, the transferee must be less than 45 years of age, be farming a minimum of Sha, and enlarge that holding by becoming a transferee. Transferees up to 50 years of age are eligible provided they have been a transferee under ERS] or ERS2.

The holding must be increased to at least 20ha in non-less favoured areas or at least 15ha in the less favoured areas except in case of intensive enterprises. Off-farm income limit- less than €50,0OO — can be the income in the year prior to set up, the year of set up, or the year after set up, whichever is the lesser.

Educational Requirements

If born after 01/01/75, transferees must have a minimum of three years experience in farming and have satisfactory education of 180 hours training. If born before 01/Ol/75, must have 5 years experience in farming.

Impact of State Pension on ERS

A survivor’s pension is not deducted from the ERS pension. In the case of husband/wife owning two separate farms (but farmed together) and where one of the applicants applies on their land, then any state pension payable to the non participating party will not be deducted from their spouses ERS pension.

In the case of joint ownership, it is only the state pension of the ERS applicant that is deducted. Under a joint management application, if either party is eligible for a state pension, or invalidity pension, then that pension is deducted from the ERS. However, IPA has got a concession that if the farm is signed over a year in advance of retiring, the State pension is not deducted. This is particularly relevant where the spouse is younger (over 55 years) than the farmer.

Farmers should consider carefully their position before entering into the ERS , especially where the land is leased. When a farmer takes up the ERS he is no longer deemed to be a farmer, so when he reaches the age of 66 his retirement pension ceases and so also the lease agreement probably ceases. He cannot return to farming as he will not be eligible to participate in any of the other schemes such as the Single Farm Payments, REPS or building grants. If he opts to plant some trees on some of his land, he will only receive a much reduced premium. Of course he can have his lease renewed and enjoy his retirement.

Following representations by IFA, due to the bad summer Weather, the Minister for Agriculture has announced an extension to the slurry-spreading season to October 15th. The cut-off date for new plans drawn up under the REPS 4 scheme is also October 15th. So, all plans must be submitted by that date.