Stacking Entitlements

Ashill5

I know that this may have been covered already but just need a bit of advice.
I have a farm leased a bit away from me and the 5year lease is out next year and have bought out the entitlements off the owner at the start of the lease and was just wondering if I will be able to stack these entitlements on my own ground mfrom next year on as I was thinkimng of downsizing as I have a full time off farm job.

Timmaay

We had to stack entitlements this year, I think the only thing was we had to have been farming sufficient land for those entitlements during the reference years, which was the case with us. I'm not positive about next year, other than its going area based, and I did a quick calculation that even if I was to rent back an equivalent amount of acres to what I lost this year it would make feck all difference to my payments over the next few years.

jimmy G M

Yes, you can effectively stack your entitlements next year.
Next year, the entitlements you claim this year (less reductions) will be payable on the amount of hectares you farm next year 2015 or last year 2013 which ever is the lower area. This means that you can effectively reduce the amount of land you farm and still have the same monetary entitlement amount. (less reductions)

Bear in mind though that if your entitlement amount per hectare is higher than the national average, you will have your entitlement payment reduced by more than would happen if you kept on all the land and had a lower average payment per hectare.

Check out your local, friendly, agricultural advisor for more info.

Username John

jimmy G M wrote: »

Bear in mind though that if your entitlement amount per hectare is higher than the national average, you will have your entitlement payment reduced by more than would happen if you kept on all the land and had a lower average payment per hectare.

Check out your local, friendly, agricultural advisor for more info.

Thanks jimmy - just one question on what you said above.

I thought that once entitlements were less than 700 they wouldn't reduce, except for the 5% reduction once you go over 5k total payment.

Is this right?

paddysdream

Username John wrote: »

Thanks jimmy - just one question on what you said above.

I thought that once entitlements were less than 700 they wouldn't reduce, except for the 5% reduction once you go over 5k total payment.

Is this right?

No.700 (I think)is the max value any entitlement can be worth in 2019.Afraid once you exceed 250 or so per entitlement(net in 2015) you will see a cut each year.Ok on those from 250 to 300 or so this will be miniscule.Same as regards those less than 250.Further away you are from this average then the more of an increase you will get.

Simply put, its the sum of money(net) you receive in 2014 less the cuts for national reserve,young farmers ,etc(about 8% in total(I think!) divided by the amount of hctares you farmed either in 2013 or 2015 (whichever is lesser).This gives you your new starting entitlement and then it depends where on the scale of increases and decreases you fall.
Your old pre 2015 entitlement figures then become history.

Think the farmers journal had a table showing roughly how people would fair out from 2015 to 2019 depending on their starting position

paddysdream

Ashill5 wrote: »

I know that this may have been covered already but just need a bit of advice.
I have a farm leased a bit away from me and the 5year lease is out next year and have bought out the entitlements off the owner at the start of the lease and was just wondering if I will be able to stack these entitlements on my own ground mfrom next year on as I was thinkimng of downsizing as I have a full time off farm job.

Example;(assuming all figures are net values)
Your own farm 30 hectares with 300 per entitlement.
Leased farm 15 hectares with 200 per entitlement

You get 12k net this year on 45 hectares.
In 2015 you bring about 11k net to the table
Divide this by 30 hectares as this is all you claim on in 2015
Therefore your new starting entitlement value for the scheme is 366 or so.
You then need 30 hectares each year to activate these ie your home farm.

Not well explained but you should get the idea.
Depending on where this"stacking" puts you in 2015 will mean you will see an increase decrease or no change in the following years.
Also Coveney in his infinite wisdom decided to bundle in the sheep grassland payment into your payment .So add this in at the start if it applies.

Well the above is my understanding of it anyways.Always open to correction

benjydagg

paddysdream wrote: »

No.700 (I think)is the max value any entitlement can be worth in 2019.Afraid once you exceed 250 or so per entitlement(net in 2015) you will see a cut each year.Ok on those from 250 to 300 or so this will be miniscule.Same as regards those less than 250.Further away you are from this average then the more of an increase you will get.

Simply put, its the sum of money(net) you receive in 2014 less the cuts for national reserve,young farmers ,etc(about 8% in total(I think!) divided by the amount of hctares you farmed either in 2013 or 2015 (whichever is lesser).This gives you your new starting entitlement and then it depends where on the scale of increases and decreases you fall.
Your old pre 2015 entitlement figures then become history.

Think the farmers journal had a table showing roughly how people would fair out from 2015 to 2019 depending on their starting position

To arrive at max €700/ha in 2019, the nett value in 2014 would need to be approx €1,100/ha.