The National Reserve Scheme, designed to encourage young people into farming, reopened for applications earlier this week.

The scheme has a total funding pot of €5m.

Some 6,000 young farmers applied for the previous tranche of the scheme in 2015, but due to a budgetary deficit the scheme failed to open for applications in 2016.

In February, the Minister for Agriculture announced that funding would be provided for a National Reserve Scheme in 2017.

These monies were made available through a ‘linear cut’ to the value of all Basic Payment Scheme entitlements.

What is the National Reserve Scheme?

The scheme, the Department states, will allow successful applicants to be eligible for an allocation of entitlements on land for which they hold no entitlements.

It can also be used to top up the value of existing entitlements, held by applicants, where such entitlements have a value below the National Reserve [national] average.

The number of top-ups available to each applicant will be limited and will depend on the total number of applications to the scheme.

Successful applicants who hold leased entitlements that have a value below the National Reserve [national] average will also qualify for a top-up to the value of these leased entitlements.

This top-up shall remain for the duration of the lease.

GLAS

Am I eligible?

To be eligible under the Young Farmer category of the National Reserve, an application must meet a number of conditions.

Eligibility criteria:
  • S/he has submitted a valid 2017 Basic Payment Scheme application under a herd number, on which the applicant is included.
  • S/he is aged no more than 40 years of age at any time during the calendar year in which s/he first submits an application under the Basic Payment Scheme.
  • S/he has successfully completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent by May 15, 2017.
  • S/he is setting up an agricultural holding for the first time or has set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application.
  • Has a gross off-farm income that does not exceed €40,000 in one of the tax years 2015 or 2016.

The scheme is also open to applicants farming in a joint herd number, a registered farm partnership or a company. However, applicants farming in such groups must meet a number of specific requirements.

To be eligible, at least one person farming in the herd number, partnership or business must meet the definition of young farmer.

dairy young farmers

That young farmer must exercise effective and long-term control, either solely or jointly, within the group in terms of decisions related to the management, benefits and financial risks of the group.

Control is demonstrated as follows:
  • The young farmer’s name is on the herd number.
  • The young farmer’s name is on the bank account used for the purposes of the receipt of payments under the Basic Payment Scheme.
  • In the case of companies only, the young farmer must be a Director and minimum 20% shareholder in the company
  • All persons who participate in the group must complete a National Reserve/Young Farmers Scheme Declaration form confirming that the young farmer has effective control, either solely or jointly with the other members of the group. 

Can new entrants apply to the scheme?

New entrants to farming can also apply to the National Reserve Scheme.

These applicants must have submitted a valid 2017 Basic Payment Scheme application under a herd number on which he/she is included.

The applicant, the Department says, must also have commenced the present agricultural activity in the 2015 calendar year or any later year.

Additional conditions:
  • S/he did not have any agricultural activity in his/her own name and at his/her own risk in the five years preceding the start of the present agricultural activity.
  • S/he has successfully completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent by May 15, 2017.
  • Has a gross off-farm income that does not exceed €40,000 in one of the tax years 2015 or 2016.

Where a herd number that is registered on behalf of a group applies under the ‘new entrant’ category, all persons in control of the group must meet all conditions of the ‘new entrant’ category – with the exception of the educational requirement.

Form

At least one of the persons in control of the group must have successfully completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent.

In the case of a group which commences its agricultural activity in 2015 or later, all persons in control of that group must not have engaged in any agricultural activity in their own name and at their own risk, or have had control of another legal entity engaged in such agricultural activity, in the five years preceding the start of the agricultural activity of the applicant.

How do I apply?

Applications under the National Reserve and Young Farmer Scheme must be submitted on or before May 15, 2017.

Applications can be submitted through the Department’s website. Click here for a full list of terms and conditions