Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Farming Entitlements Advice

  • 30-06-2013 7:43pm
    #1
    Registered Users, Registered Users 2 Posts: 49


    Hi All,

    I'm looking for some advice from the farming community out there.

    Basically I've recently purchased a small piece of land (25 acres) which was neighbouring my home place. I'm wondering what entitlements I am entitled to on this land. Also the home place is currently leased on a year to year basis and I am thinking of taking it over, Would I also be able to claim entitlements on that land also?

    Also my father who retired from farming had a herd number but hasn't been using it as the land has been leased for a long time. Would it be possible for him to transfer that herd number to me or would I have to apply for my own?

    Any advice greatly appreciated!


«1

Comments

  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Contact your local Erad dept of Ag office. Quote your fathers herd number and request a change of name and reactivation of same. Depending on your finances, you should buy entitlements for single farm payment. These are going to give you an income, subject to compliance with rules, up to 2019. You will have to farm the land yourself, you cannot claim aid AND lease the land out to someone else. I am involved in dept of Ag.


  • Registered Users, Registered Users 2 Posts: 49 SirustheVirus


    Thanks Benjy,

    How does the payments for these entitlements generally work? Is it so much an acre or does it depend on where you are based in the country etc?


  • Registered Users, Registered Users 2 Posts: 1,183 ✭✭✭nashmach


    Given the changes coming down the tracks I would advise you to get a copy of last week's Farmer's Journal and give it a good read.

    As you were not farming in 2011, you will not automatically be entitled to the new version of entitlements going forward in 2015.

    Proceed with caution, it is very early days yet and anyway you will get nothing this year now so sit tight and keep abreast of the news over the next six months or so.


  • Registered Users, Registered Users 2 Posts: 950 ✭✭✭ellewood


    benjydagg wrote: »
    Contact your local Erad dept of Ag office. Quote your fathers herd number and request a change of name and reactivation of same. Depending on your finances, you should buy entitlements for single farm payment. These are going to give you an income, subject to compliance with rules, up to 2019. You will have to farm the land yourself, you cannot claim aid AND lease the land out to someone else. I am involved in dept of Ag.

    This is the last thing to do - when everything else is in place do it then, not before - once you have herd no transfrerred you are an active farmer in dept eyes - so wait till everything else is in place and you can apply to the national reserve then if not you could loose out on nat reserve.


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    ellewood wrote: »
    This is the last thing to do - when everything else is in place do it then, not before - once you have herd no transfrerred you are an active farmer in dept eyes - so wait till everything else is in place and you can apply to the national reserve then if not you could loose out on nat reserve.

    National reserve? €145 + 25% in 2019? That won't buy the straw to bed any stock bought. Buy €400/ha entitlements in January for twice their value. Minimum 200% return in 6 years.
    I'm not an adviser. I'm a partime farmer.
    Make your own minds up lads 'n' lassies.


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 1,998 ✭✭✭farawaygrass


    how or where do you go about buying entitlements? thanks


  • Registered Users, Registered Users 2 Posts: 181 ✭✭Vandy West


    benjydagg wrote: »
    National reserve? €145 + 25% in 2019? That won't buy the straw to bed any stock bought. Buy €400/ha entitlements in January for twice their value. Minimum 200% return in 6 years.
    I'm not an adviser. I'm a partime farmer.
    Make your own minds up lads 'n' lassies.

    If you buy in Jan 14 and you did not claim sfp in 13, will the entitlements become worthless in 15, unless your a new entrant.
    There will be some serious math needed to figure out if you would be better to buy or try to qualify as new entrant. Will depend on what is agreed for ireland later this year.


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Vandy West wrote: »
    If you buy in Jan 14 and you did not claim sfp in 13, will the entitlements become worthless in 15, unless your a new entrant.
    There will be some serious math needed to figure out if you would be better to buy or try to qualify as new entrant. Will depend on what is agreed for ireland later this year.

    My understanding is that entitlements will NOT become worthless. Under the new system, entitlements may be leased without land, opening up a whole new market of trading.


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    how or where do you go about buying entitlements? thanks

    Trading usually starts February. Ends on 15th May.
    Adverts will appear in back pages. Have a look at the Dept site and down load transfer forms. Application forms are already available for 2014. All entitlements have individual values. Look at farm entitlements.ie for an idea of 2013 values. I deal with HMG entitlements in Kells Meath.


  • Registered Users, Registered Users 2 Posts: 328 ✭✭newholland mad


    benjydagg wrote: »
    Trading usually starts February. Ends on 15th May.
    Adverts will appear in back pages. Have a look at the Dept site and down load transfer forms. Application forms are already available for 2014. All entitlements have individual values. Look at farm entitlements.ie for an idea of 2013 values. I deal with HMG entitlements in Kells Meath.

    ±1 delt with HMG several times excellent service realy knows her stuff


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 6,343 ✭✭✭bob charles


    benjydagg wrote: »
    My understanding is that entitlements will NOT become worthless. Under the new system, entitlements may be leased without land, opening up a whole new market of trading.

    can anyone confirm this?


  • Registered Users, Registered Users 2 Posts: 1,183 ✭✭✭nashmach


    All this talk of entitlements and trading is completely worthless for now with no package agreed completely for 2015.

    Even buying for just one more year for 2014 is questionable too with no one knowing what will happen.

    Tread carefully.


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    nashmach wrote: »
    All this talk of entitlements and trading is completely worthless for now with no package agreed completely for 2015.

    Even buying for just one more year for 2014 is questionable too with no one knowing what will happen.

    Tread carefully.

    And get as much independent advice as possible. We know this much: active farmers must have submitted at least one hectare for SFP in 2013.
    Your future payment will be determined by the amount of money you draw down in SFP in 2014.
    That money will be divided by the amount of hectares claimed by you in 2013 OR 2015 whichever is the lesser.
    This gives you your entitlement value/ha. going forwards. Depending on the value of your €/ha you will be getting an increase or a decrease annually to 2019. Farmers that have large €/ha entitlements due to historic reasons OR purchasing them, will suffer up to 30% cuts, i.e. 5% less per year.

    These are the facts. Greening/young farmer/coupling and penalties have to be decided yet. New entrants will be winners. And they should be in my opinion. So any new entrants should sit down and do a cash flow analysis from 2014 to 2019 AFTER the rules are clarified in the Autumn. Will the 25% top up be on purchased entitlements?? I don't know. But I think it should be.


  • Registered Users, Registered Users 2 Posts: 43 ulleJ1


    I am currently farming on a very small scale - 5 hectacres with very low value entitlements the past 4 years.

    I am thinking of renting my neighbours farm of 40 hectacres in February 2014, I intend to purchase 40 high value entitlements (e.g 500 euro each) to make this profitable.
    Could anyone tell me if this might be worth while as Im afraid I might not be able to use these entitlements in 2015?

    Under the new scheme (2015)the lesser area you claim for in 2013 or 2015 will be taken and divided by the payment you get in 2014....
    If this is the case my 5 hectacres from 2013 will be selected, and my payment from 2014 which will be 40 x 500 = 20,000).
    So this means I will have 5 entitlements worth 4,000 each making up my payment of 20,000.
    This seems to be a ridiculously high value of entitlement! It doesnt seem right?

    Could anyone tell me if Im correct or not in my understanding of this situation??
    Replys greatly appreciated


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    ulleJ1 wrote: »
    I am currently farming on a very small scale - 5 hectacres with very low value entitlements the past 4 years.

    I am thinking of renting my neighbours farm of 40 hectacres in February 2014, I intend to purchase 40 high value entitlements (e.g 500 euro each) to make this profitable.
    Could anyone tell me if this might be worth while as Im afraid I might not be able to use these entitlements in 2015?

    Under the new scheme (2015)the lesser area you claim for in 2013 or 2015 will be taken and divided by the payment you get in 2014....
    If this is the case my 5 hectacres from 2013 will be selected, and my payment from 2014 which will be 40 x 500 = 20,000).
    So this means I will have 5 entitlements worth 4,000 each making up my payment of 20,000.
    This seems to be a ridiculously high value of entitlement! It doesnt seem right?

    Could anyone tell me if Im correct or not in my understanding of this situation??
    Replys greatly appreciated
    That hopefully will be clarified in November by the minister. But as it stands that is what is proposed.
    The catch is that all the land you farm, regardless of the amount of entitlements, has to be farmed to the same rules, even though you will only have 5 entitlements.


  • Registered Users, Registered Users 2 Posts: 1,217 ✭✭✭Viewtodiefor


    benjydagg wrote: »
    My understanding is that entitlements will NOT become worthless. Under the new system, entitlements may be leased without land, opening up a whole new market of trading.

    Say you had entitlements of 350 claimed this year. Could you sell these in January and buy ones worth 800 and claim on these for next 6 years?


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Say you had entitlements of 350 claimed this year. Could you sell these in January and buy ones worth 800 and claim on these for next 6 years?

    That's my understanding. Trading has started. Forms are on Dept website.
    Just remember, the higher value ones will be subject to larger cuts. Rumoured to be 30% by 2019 in equal increments each year.
    I still think the dearer ones make sense.


  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    Would it be madness to take out a loan to buy higher value entitlements? I wouldn't do anything until the CAP here is finalised. Or would a person even be able to get a loan for buying entitlements.

    AFAIK at the moment mine will rise from SFA to something like €140 by 2019 :rolleyes:


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Would it be madness to take out a loan to buy higher value entitlements? I wouldn't do anything until the CAP here is finalised. Or would a person even be able to get a loan for buying entitlements.

    AFAIK at the moment mine will rise from SFA to something like €140 by 2019 :rolleyes:

    Banks will lend to buy entitlements, I am told. Same as a stocking loan. €140 in 2019 will still be SFA.


  • Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭paddysdream


    My understanding of the new scheme is as follows;

    Take your net payment from this year(2013),then deduct 8% approx(and another 6%, 8%, etc if coupling is introduced) and divide this figure by the amount of hectares you claimed for in either 2013 or 2015 whichever is the lesser.
    This will give you your new entitlement per hectare amount.

    For example;
    Someone farming 40 hectares at the moment and with a gross SFP of 15k(375 per hectare) will get approx. 13800(345 per hectare) this year after modulation etc.
    Then take off the 8%(1104) for national reserve ,young farmers etc.
    This leaves about 12700 before coupling or 11600 with coupling.
    So now you have a new starting point(assuming area farmed remains the same) of either;
    317.50 per hectare without coupling.
    290 per hectare with 8% coupling.

    Assuming that the minister uses the approximation method then the above payment will be cut very little over the 5 years.
    Prob. 5 or 10 percent at the most.
    The idea is like a tax system ie taking an average Irish payment of somewhere around 250 per hectare then the further you move above this figure then the higher a cut you will receive each year till 2019 and the further below 250 you start at then the higher a percentage increase you will receive each year.

    Have to have a minimum payment of about 150 (60% of national average) on every hectare by 2019

    Talks of a cap on per hectare payments of somewhere in the region of 650 but not many will be affected by this after taking into account of all the cuts.

    Think you have to farm all the hectares each year ie if you start with 40 (owned ,leased etc) in 2015 then you will have to farm that amount each and every year or not get the full amount that year.

    30% of our basic payment will consist of a greening element.In the example above ,you would be getting a total payment of say 12700 which would consist of 8890 basic payment and 3810 in greening.

    All the above is just as I understand it and am open to correction.


  • Advertisement
  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    Had a quick chat with our county chairman last night, his view was no one could say yet what will happen if a person like me would want to buy entitlements.


  • Registered Users, Registered Users 2 Posts: 7,201 ✭✭✭amacca


    What happens to someone farming but wasn't allowed get entitlements?

    submitted a question to dail through local td about it years ago and was told then couldnt have them as land was not leased for a nominal value or something - told them could have the lease amended to change what it was leased for to no avail

    I now own the land and applied to national reserve to no avail.......I thought when this new thing comes around It was a level playing pitch for all active farmers and I could just apply based on the acreage I have or the numbers of cattle I was farming in whatever the reference years are going to be etc and get into the system ......... Didn't know it was just going to be another closed shop! - pretty ****ing pissed off here if it is a case of all the guys who had entitlements before holding on to them (even at a reduced rate) and no one else being able to get anything unless they have them passed on to them or they buy them........why cant it be a level playing pitch and everyone who is farming can apply and get a share of the pot....the big operators would still get a larger share based on acreage or headage....why so ****ing arcane and complicated? ...trying to get a straight answer or figure out wtf is going on with this is like trying to swim through treacle.

    I do have a small disadvantaged area payment (which they havent paid me yet - not my fault I'm told as I've done everything right but some company is redigitizing boundaries - ffs) - thats hardly classed as an entitlement to allow me to get into the new system is it?


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    No.
    The only option open to you is to buy or lease entitlements. And if my guess is correct, they could exceed three times face value this year 2014, to buy. You can of course continue to farm without subsidies if you wish.
    If you do the sums, you will be better off long term reducing cattle numbers and buying entitlements.

    This is only my personal opinion, I am NOT a financial consultant. I'm a farmer.


  • Registered Users, Registered Users 2 Posts: 7,201 ✭✭✭amacca


    benjydagg wrote: »
    No.
    The only option open to you is to buy or lease entitlements. And if my guess is correct, they could exceed three times face value this year 2014, to buy. You can of course continue to farm without subsidies if you wish.
    If you do the sums, you will be better off long term reducing cattle numbers and buying entitlements.

    This is only my personal opinion, I am NOT a financial consultant. I'm a farmer.

    hmmmm......so closed shop basically, what about all this malarkey about wanting new entrants/young trained farmers etc.......its more than a bit rich imo


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    If you are under 40 and have started farming within the last 5 years, the rumour is you will get something for nothing. There are a lot of young trained farmers entering farming. Colleges can't cope with the numbers.


  • Registered Users, Registered Users 2 Posts: 7,201 ✭✭✭amacca


    benjydagg wrote: »
    something for nothing

    I know what you mean....but...

    In terms of farming I've been trying to compete on anything but a level playing pitch for the last 3 years ....... It wouldn't in my opinion be something for nothing at all.......it would just be a going partway to addressing a severe imbalance - a lad next to me is on an excess of 70k (and fair play to him he works hard for it) but on the other hand I couldn't even get into the system because for one reason the parents made a mistake in leasing the homeplace to me for market value rather than leasing it at something ridiculous like a euro a year...... Now I may not work as hard as the man next door - but its fair to say I do put in hours also and deserve some fraction, certainly more than a big fat zero if there is a cake there to be divided and even an ounce of fairness in the process that goes about dividing it up.


  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    benjydagg wrote: »
    And if my guess is correct, they could exceed three times face value this year 2014, to buy.

    Twice the price I was advised to even consider buying them at :eek:

    If that comes true it will scupper my purchase plan.


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    amacca wrote: »
    I know what you mean....but...

    In terms of farming I've been trying to compete on anything but a level playing pitch for the last 3 years ....... It wouldn't in my opinion be something for nothing at all.......it would just be a going partway to addressing a severe imbalance - a lad next to me is on an excess of 70k (and fair play to him he works hard for it) but on the other hand I couldn't even get into the system because for one reason the parents made a mistake in leasing the homeplace to me for market value rather than leasing it at something ridiculous like a euro a year...... Now I may not work as hard as the man next door - but its fair to say I do put in hours also and deserve some fraction, certainly more than a big fat zero if there is a cake there to be divided and even an ounce of fairness in the process that goes about dividing it up.

    Amacca,
    The minister asked for input from all interested parties. The new rules are being decided as we speak, and will be announced (hopefully) by month's end. You may be lucky and get entitlements as you have been actively farming. But they will be small. Maybe €150/ha if any at all.
    Pm me at any stage with your farm details and I'll give you my considered opinion.


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Twice the price I was advised to even consider buying them at :eek:

    If that comes true it will scupper my purchase plan.

    Conmaicne,

    I have heard many times from farmers that Teagasc advised them not to buy in 2010 as the current system was being abolished.
    I have met farmers who were told by Teagasc that the couldn't sell surplus entitlements. Some of these farmers lost €000s as the entitlements reverted back to Dept.
    Auctioneers told me in 2012 that I was paying too much when I paid 2.2 times for entitlements.

    Put simply, there are 6 years in the new scheme.
    Spend 3 times value for €700/ha entitlements.
    Total cost 310% including costs.
    Returns
    2014 100% of value
    2015 95% of value
    2016 90% of value
    2017 85% of value
    2018 80% of value
    2019 75% of value

    In anyone's terms that's profit.

    I'm not an advisor, all thoughts are my own.


  • Closed Accounts Posts: 2,142 ✭✭✭rancher


    benjydagg wrote: »
    Conmaicne,

    I have heard many times from farmers that Teagasc advised them not to buy in 2010 as the current system was being abolished.
    I have met farmers who were told by Teagasc that the couldn't sell surplus entitlements. Some of these farmers lost €000s as the entitlements reverted back to Dept.
    Auctioneers told me in 2012 that I was paying too much when I paid 2.2 times for entitlements.

    Put simply, there are 6 years in the new scheme.
    Spend 3 times value for €700/ha entitlements.
    Total cost 310% including costs.
    Returns
    2014 100% of value
    2015 95% of value
    2016 90% of value
    2017 85% of value
    2018 80% of value
    2019 75% of value

    In anyone's terms that's profit.

    I'm not an advisor, all thoughts are my own.

    If you put that €2200 on a six year loan, repayments...€450/yr (just guessing) so you're quids in....or are you????
    But can you claim it against tax, I don't think so. So between income tax and repayment, it could cost €650/ha.
    I wouldn't be sure of this so we'll have to wait for Iakill.


  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    benjydagg wrote: »
    Conmaicne,

    I have heard many times from farmers that Teagasc advised them not to buy in 2010 as the current system was being abolished.
    I have met farmers who were told by Teagasc that the couldn't sell surplus entitlements. Some of these farmers lost €000s as the entitlements reverted back to Dept.
    Auctioneers told me in 2012 that I was paying too much when I paid 2.2 times for entitlements.

    Put simply, there are 6 years in the new scheme.
    Spend 3 times value for €700/ha entitlements.
    Total cost 310% including costs.
    Returns
    2014 100% of value
    2015 95% of value
    2016 90% of value
    2017 85% of value
    2018 80% of value
    2019 75% of value

    In anyone's terms that's profit.

    I'm not an advisor, all thoughts are my own.

    What are you funding the theoretical purchase with? In my case it would be bank loan, if they'd approve it.

    Out of the %'s you've mentioned I would need to take out repayments and account for any tax implications.

    Maybe I have it arse over head...

    Borrow €2100 (3x face value €700ha)

    2014 €700
    2015 €665
    2016 €630
    2017 €595
    2018 €560
    2019 €525
    Total €3675 - €2100 face value = €1575 - whatever the banks cut on the loan is ? /6 to average out over the term.

    Forget the interest for a second, cos I don't know what it is.

    €1575 which would be profit, so let's say a farmer wanted 20k SFP (for arguments sake) in 2019. He'd have to purchase 70 entitlements at €700, x 3 times face value.

    But that doesn't account for interest or tax.

    Or do I really have that arse about face?


  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    Going on Ranchers repayment figure of 450/year, the profit dwindles to €975, not €1575 (I think, I'm **** at maths).

    Going to attempt the 20k figure at that number......


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    In most cases it's taken as a stocking loan. I cut back on the amount of stock I own, and brought in cattle on B&B for the summer.

    Everyone's idea will be different. But in 2019 those entitlements won't just vanish. The next change is up to 2026. The next generation can work that one out.
    Remember, Tax is also paid on SFP, but if we worried about tax, interest, depreciation etc, none of us would farm.
    I've done my cash flow analysis and it makes sense to me. SFP is cash flow guaranteed (subject to compliance).
    It's the first thing a bank manager asks nowadays, "what's your SFP and does your wife work".


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Going on Ranchers repayment figure of 450/year, the profit dwindles to €975, not €1575 (I think, I'm **** at maths).

    Going to attempt the 20k figure at that number......

    Look at it as an asset. I only got a D in pass maths. But I can use excel.

    Everyone's idea will be different. But it is a better guarantee for a living than buying a bull weanling for €1000 selling for €1800 and losing money which is what some guys are at.


  • Advertisement
  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    Right, or maybe wrong....

    -450 bank repayment & -assumed increasing % reduction of 5%/year (not taking into account ANY type of tax)

    2014 €700 becomes €250
    2015 €665 becomes €215
    2016 €630 becomes €180
    2017 €595 becomes €145
    2018 €560 becomes €110
    2019 €525 becomes €75
    Total €3675 becomes €975

    I think it's way too much risk for the reward :confused:


  • Closed Accounts Posts: 4,701 ✭✭✭moy83


    Right, or maybe wrong....

    -450 bank repayment & -assumed increasing % reduction of 5%/year (not taking into account ANY type of tax)

    2014 €700 becomes €250
    2015 €665 becomes €215
    2016 €630 becomes €180
    2017 €595 becomes €145
    2018 €560 becomes €110
    2019 €525 becomes €75
    Total €3675 becomes €975

    I think it's way too much risk for the reward :confused:

    If you are going to buy them could you buy lower value entitlements and hope they go up in value closer to the national average ?


  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    moy83 wrote: »
    If you are going to buy them could you buy lower value entitlements and hope they go up in value closer to the national average ?

    I'm not sure is the most honest answer I can give you Moy lol, confused.com at the moment.


  • Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭paddysdream


    benjydagg wrote: »
    Conmaicne,

    I have heard many times from farmers that Teagasc advised them not to buy in 2010 as the current system was being abolished.
    I have met farmers who were told by Teagasc that the couldn't sell surplus entitlements. Some of these farmers lost €000s as the entitlements reverted back to Dept.
    Auctioneers told me in 2012 that I was paying too much when I paid 2.2 times for entitlements.

    Put simply, there are 6 years in the new scheme.
    Spend 3 times value for €700/ha entitlements.
    Total cost 310% including costs.
    Returns
    2014 100% of value
    2015 95% of value
    2016 90% of value
    2017 85% of value
    2018 80% of value
    2019 75% of value

    In anyone's terms that's profit.

    I'm not an advisor, all thoughts are my own.

    Can I ask how you are working out those returns?
    Havent bought or sold any entitlements so unsure how it works.
    Would I be correct in assuming that 700 face value entitlements are counted before modulation etc?
    If so then its 700 less 12% ie 616 of a net payment.Then commission and does a percentage have to be returned to the Dept. on purchases/sales?
    After 2015 you will loose at a minimum 8% of the net value(more if coupling) plus entitlements at that high a value will see more severe cuts than those of a lesser value.


  • Registered Users, Registered Users 2 Posts: 181 ✭✭Vandy West


    Right, or maybe wrong....

    -450 bank repayment & -assumed increasing % reduction of 5%/year (not taking into account ANY type of tax)

    2014 €700 becomes €250
    2015 €665 becomes €215
    2016 €630 becomes €180
    2017 €595 becomes €145
    2018 €560 becomes €110
    2019 €525 becomes €75
    Total €3675 becomes €975

    I think it's way too much risk for the reward :confused:
    If your paying tax at 20% then 3675 is reduced by 720 and your 975 is reduced to 255.
    Also your borrowing capacity will be reduced for little reward.
    And if your looking for any soc welfare money don't think they will take your loan repayments into a account.
    Have no entitlements myself hoping Will get some thru national reserve, but seems like they would start at 25 and increase up to 150 over the six years, which would give a return of 525.


  • Advertisement
  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    Vandy West wrote: »
    If your paying tax at 20% then 3675 is reduced by 720 and your 975 is reduced to 255.
    Also your borrowing capacity will be reduced for little reward.
    And if your looking for any soc welfare money don't think they will take your loan repayments into a account.
    Have no entitlements myself hoping Will get some thru national reserve, but seems like they would start at 25 and increase up to 150 over the six years, which would give a return of 525.

    Yeah, the news just gets better don't it.

    Herself is good with figures, reckons I'd be liable for 33% capital gains tax on the 975 profit.

    Will do more looking into it but borrowing for €700/ha at 3 times face value doesn't look like it's adding up from my position.


  • Closed Accounts Posts: 2,142 ✭✭✭rancher


    I'm not sure is the most honest answer I can give you Moy lol, confused.com at the moment.

    Some farmers will have idle money and investing in entitlements would be way better than leaving it in the bank, but I can't believe they're worth three times face value


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Yeah, the news just gets better don't it.

    Herself is good with figures, reckons I'd be liable for 33% capital gains tax on the 975 profit.

    Will do more looking into it but borrowing for €700/ha at 3 times face value doesn't look like it's adding up from my position.

    My figures are based on the worst case scenario. Entitlements less than €600/ha may get Very little cuts. So for €400/ha entitlements you may get 95% each year and they may only cost 2 times value. Market will dictate.
    Capital gains is only charged on selling entitlements if a profit is made.


  • Closed Accounts Posts: 6,543 ✭✭✭Conmaicne Mara


    rancher wrote: »
    Some farmers will have idle money and investing in entitlements would be way better than leaving it in the bank, but I can't believe they're worth three times face value

    Some will, I was working on the borrowing side of the argument.
    benjydagg wrote: »
    My figures are based on the worst case scenario. Entitlements less than €600/ha may get Very little cuts. So for €400/ha entitlements you may get 95% each year and they may only cost 2 times value. Market will dictate.
    Capital gains is only charged on selling entitlements if a profit is made.

    Initially I had been thinking of 300-400 range of value on that very basis.

    Will have to wait and see what the lay of the land will be once it's sorted what's going to happen.


  • Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    Whatever you decide to do lads, always leave a percentage of the farm area without entitlements. e.g. If you have 40ha show all the land obviously, but maybe use 39 entitlements. This should avoid any penalties on over claims as has happened to 000's of farmers this year.
    If you sell some of your original entitlements, you are liable to capital gains. They are treated the same as shares. The income from using them is farm profit.


  • Registered Users, Registered Users 2 Posts: 18 X20DTL


    Hi all,

    I was just searching for some info on entitlements, I own about 26acres which has not been farmed by myself with the last 15 or so years so I no longer have a herd number and as I'm gone from the whole process with over a decade then I assume there are no entitlements on the land as I was not farming in the years that were used to assess farm income for the purposes of entitlements.
    My question is thus, is it possible to check if my land has been submitted by another for the purposes of claiming entitlements?
    Is there an on-line map or something like that where I could check if someone is drawing down entitlements unknown to me?

    Curious?


  • Registered Users, Registered Users 2 Posts: 2,868 ✭✭✭Ten Pin


    X20DTL wrote: »
    My question is thus, is it possible to check if my land has been submitted by another for the purposes of claiming entitlements?
    Is there an on-line map or something like that where I could check if someone is drawing down entitlements unknown to me?

    Curious?

    They would need to have proved ownership or have a lease agreement with the owner.

    You could contact your local DVO and see if the land has any currently active associated herd number. If it has then someone has been claiming it.


  • Registered Users, Registered Users 2 Posts: 2,537 ✭✭✭J.O. Farmer


    X20DTL wrote: »
    Hi all,

    I was just searching for some info on entitlements, I own about 26acres which has not been farmed by myself with the last 15 or so years so I no longer have a herd number and as I'm gone from the whole process with over a decade then I assume there are no entitlements on the land as I was not farming in the years that were used to assess farm income for the purposes of entitlements.
    My question is thus, is it possible to check if my land has been submitted by another for the purposes of claiming entitlements?
    Is there an on-line map or something like that where I could check if someone is drawing down entitlements unknown to me?

    Curious?

    That's a strange query if I understand it correctly. You don't seem to want to submit the land yourself but you seem concerned someone else may be claiming on the land.
    The thing is entitlements are not directly linked to land. 1 hectare is needed to activate 1 entitlement each year. However the entitlements can be activated on any land anywhere in the country though only 1 entitlement per hectare. Entitlements can also be bought and leased.
    Your not using the land but is anybody else under some rental/lease agreement. If you have it leased out I think the leasee would probably submit it regardless of entitlements so as to account for the livestock if any being present there.


  • Registered Users, Registered Users 2 Posts: 18 X20DTL


    That's a strange query if I understand it correctly. You don't seem to want to submit the land yourself but you seem concerned someone else may be claiming on the land.
    The thing is entitlements are not directly linked to land. 1 hectare is needed to activate 1 entitlement each year. However the entitlements can be activated on any land anywhere in the country though only 1 entitlement per hectare. Entitlements can also be bought and leased.
    Your not using the land but is anybody else under some rental/lease agreement. If you have it leased out I think the leasee would probably submit it regardless of entitlements so as to account for the livestock if any being present there.

    Yes you are right, I am not looking to claim anything on the land and as I mentioned in the query I am gone from farming it so it's not a money thing for me, just that someone said to me I should check it out to see if someone is mapping it for their entitlements. No, I currently do not have it leased out so technically i haven't given anyone permission to claim against but when that someone suggested I check it out I think he might have been giving me a hint, you know what I mean


  • Registered Users, Registered Users 2 Posts: 734 ✭✭✭longgonesilver


    Is the land completely idle so?


  • Advertisement
Advertisement