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SFP entitlements; who can own them?

  • 27-08-2013 6:04pm
    #1
    Roger_007
    Registered Users, Registered Users 2 Posts: 21,886 ✭✭✭✭


    I have recently took early retirement and I was interested in buying a small parcel of land, (15 acres), with the intention of putting it into a biomass crop, either willow or miscanthus. This would be my preference to putting my savings on deposit.
    When I enquired about the SFP entitlements, I was informed by the auctioneer that they belonged to the farmer who currently rents this land and that he would be holding on to these entitlements even though he will no longer be renting the land. Is this allowed?
    Without the SFP I don't think the venture would be viable for me. Is there any way I could get the SFP entitlements? It does not seem right that someone who does not own or farm the land can still collect the SFP for it given that the SFP was supposed to subsidise production.
    Is the world gone mad or is it just me.:confused:


Comments

  • #2
    EI-DKY
    Registered Users, Registered Users 2 Posts: 2 ✭EI-DKY


    It appears that the farmer renting the land used his entitlements on the land you are looking at. SFP entitlements are linked to the farmer and not the land.

    Example: if You had 20 entitlements You need 20 hectares to draw the full value. During the reference years you were renting 5 hectares, the farmer who owns the land sells it, now you must rent another 5 hectares or you loss these entitlements. To claim the payment you must be actively farming the complete 20 hectares ( minimum stocking levels for 12 month period)

    So in answer to one of your points you cannot collect the sfp unless you are activity farming the land.

    1) check if the farm owner has entitlement which he might sell with the land - however with VAT, CGT and entitlement losses to the national reserve this is an unattractive option for sellers.
    2) do your crops comply with the SFP scheme
    3) do not start a venture if its not viable without SFP, grants etc.... These will all change soon! SFP is changing in 2015.


  • #3
    Roger_007
    Registered Users, Registered Users 2 Posts: 21,886 ✭✭✭✭Roger_007


    Thanks for all the info EI. I will make further inquiries.


  • #4
    benjydagg
    Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    It is possible to purchase entitlements. I deal with HMG entitlements Kells Co. Meath.
    Depending on what the minister decides for 2015 to 2019 entitlements, they could be a great investment.
    For example purchasing €400/Ha at twice their value, in 2014, could repay the investment by a minimum of 100% in 6 years. Presuming a 15% cut in the base €400/Ha for the new scheme, for young farmer and greening.

    Nothing is agreed yet.
    I am not a professional adviser.

    This is only my opinion.

    Take professional advice before doing anything.

    As for the Miscanthus.
    I gave up on my crop this year, and will reseed with grass in the spring. Disaster.


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