Basis Payments Scheme for farmers explained!

The Basic Payment Scheme replaces the present Single Farm Payment for farmers and here Macra outlines what it is and how it will work.

In simple terms your Basic Payment Scheme entitlement will be based on the amount of money you were entitled to in 2014 (monetary value) and the lesser of the land area submitted in 2013 and 2015 (base area). Your unit value (payment per hectare) will be the monetary value divided by the base area.

Whether your unit value is above or below the national average will determine whether your payment will fall or rise over the years and to what degree.
What you have submitted in 2013 and your monetary value are outside your control, but what you do in 2015 still is, possible action

Reduce your base area if land is not available to you, by excluding land you are not sure of having over the coming years this will stack your entitlements so you will not be chasing land to draw down your full payment.

2015 is a Basic Payment Scheme reference year so careful consideration is important.

Young Trained Farmers (Fetac level 6 or equivalent and under 40) and new entrants (trained but not yet commenced farming or commenced farming since 2013) subject to certain criteria will qualify for payments from the national reserve whether farming alone or in a registered partnership.

Basic Payment Scheme

  • 2013 SFP application established entitlement (40 Ha)
  • 2014 entitlement value determines base monetary value (€20k)
  • 2015 application activates the new payment, new base area will be the lower of land submitted in 2013 and 2015 (2015 45Ha)
  • New Basic Payment unit value is base monetary value divided by base area(20k / 40 Ha = 500)
  • 2016 onwards, for full Single Payment drawdown

– Submit and Farm base area (40 Ha)
– Greening and Cross Compliance
– Basic Payment unit value changes + or – (500 will be minus)

Basic Payment Scheme – New Entrants

  • National Reserve (New Entrants and Young Farmers)
  • New entrants must never have farmed before
  • Young farmers can have recently started farming
  • No age limit for new entrants, active farmer, off farm income limits, have afarming qualification, exact rules not finalised
  • Qualify for a base monetary value from the National Reserve (approx €250 per Ha)

Young Farmers Scheme (25% young farmer top up)

  • green cert and under 40
  • 25% SFP top up
  • max 50Ha and/or 3k
  • Qualify whether farming alone (own herd number, land etc) or as part of a registered partnership or formalised share farming arrangement.

This information is from Macra na Feirme.

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