For many Department of Agriculture farm schemes, the levels of off-farm income of applicants play a key role in the eligibility and approval process.
One of the schemes where off-farm income is important is the National Reserve.
The process of deciding objective criteria for the 2015 National Reserve was carried out in consultation with the Direct Payments Advisory Committee which includes members of the main farming bodies and advisory services.
After consultation with this Committee, and in the context of the limited funding available to the National Reserve, it was decided that an off-farm income limit of €40,000 would be applied to all applicants.
The corresponding off-farm income limit under the Single Payment Scheme National Reserve was €30,000.
Applicants under the Basic Payment Scheme National Reserve have the flexibility of choosing either of the two most recent tax years, whichever is more advantageous.
What is off-farm income?
Off-farm income refers to the portion of farm household income obtained off the farm, including non-farm wages and salaries, pensions, and interest income earned by farm families.
For joint applicants under the National Reserve, the gross off-farm income of all persons named on the herd number is taken into consideration.
In determining the level of off-farm income earned by an applicant under the National Reserve, certain Department of Social Protection payments are deemed reckonable.
Included
- Jobseekers Allowance
- Jobseekers Benefit
- Pre-Retirement Allowance
- Supplementary Welfare Allowance
- Jobseekers Benefit and Short-Term Enterprise Allowance
- Maternity Benefit.
- Retirement pensions resulting from State employment or other employment are reckonable as off-farm income under the National Reserve.
Excluded
The Department of Social Protection ‘State Pension’, including Widow’s, Widower’s or Surviving Civil Partner’s Pension, is excluded from the calculation to determine off-farm income.
The National Farm Survey 2009 estimates that 39% of farm holders had an off-farm occupation. Most of the farmers with off-farm jobs were classified as part-time (in terms of labour input on farm) and had combined farm and non-farm earnings of €31,100.