Farmers will be eligible for a proposed new Fair Deal scheme once a successor is in place; has been involved in the farm for three of the previous five years; and agrees to continue to farm the land for six subsequent years.
The Cabinet recently approved the the publication of the Nursing Homes Support Scheme (Amendment) Bill 2021 for family farms and businesses.
This will see the financial contributions of family-owned and operated farms, towards the cost of nursing-home fees, capped at three years.
The current situation sees farming families charged 7.5% of the value of their farm annually, for an indefinite period while their family member is in the care of a nursing home.
The Nursing Homes Support Scheme, commonly known as Fair Deal, applied a three-year cap to all other nursing-home residents but for farmers and small-business owners, the cap did not exist, except in the case of sudden illness or disability.
Long deemed an unfair deal for farmers, and indeed small businesses, this new deal will level the field somewhat.
Fair Deal amendment – a priority
Waterford Minister of State for Mental Health and Older People, Mary Butler, told Agriland that this was one of her main priorities when she was appointed in July 2020.
Minister Butler said that she expects to bring the bill before the Dáíl within two weeks’ and that it will go through both houses of the Oireachtas before the summer recess. She added that she hopes to “commence the bill very, very shortly thereafter”.
“This bill originally went before the Cabinet in June 2019, and then for pre-legislative scrutiny in November 2019 to the Oireachtas Committee.
“Unfortunately, it went no further at that time due to the dissolution of the Dáil, the election that followed, and time taken to form a government. But it was one of my priorities,” she said.
“What this means for farmers is that it will put a cap on the value of their assets, their land and farm holding, so that if they are in a nursing home longer than three years, their 7.5% contribution will be capped at three years, the same as everyone else.
“We are trying to make the scheme as fair as possible and I would expect cross-party support for it.”
Retrospective payments?
But, she also expects challenges too. The crux of one such challenge is why the bill doesn’t provide for retrospective payments to be made given the length of time it has taken to get the bill to this stage.
“Unfortunately, we won’t be in a position to look at it retrospectively,” said the minister.
“When this bill goes through the Oireachtas – the Dáil and Seanad – and commences, it will be enacted from that particular date only.
“I have no doubt that the retrospective payment question will be raised on the floor of the Dáil and that is the place where we will debate it and consider amendments and comments. But we won’t be in a position to look at it retrospectively.”
Minister Butler pointed out that she did request a waiver from the Ceann Comhairle to prevent a repeat of the pre-legislative scrutiny procedure.
“If we had to do that again, it would have delayed the bill for another three or four months.”
Succession
Commenting on some of the detail within the bill, particularly the succession component, Minister Butler confirmed:
“The successor must prove that he or she has been involved in the operation of the farm for three of the previous five years.”
These years do not have to be consecutive, however, or on a full-time basis. And, the successor does not have to be a relative.
“But the successor must give a commitment to operate the farm for the following six years. It cannot be let to someone else.”
The Department of Health is working closely with the Health Service Executive and the Department of Agriculture, Food and the Marine to finalise the operational guidelines for compliance for successors, according to Minister Butler.
Importantly, however, there will be a provision for the successor to change within that six-year period.
“And I have been told that there will be at least one check over the six years to ensure compliance,” said Minister Butler.
Sale of assets
Minister Butler said she is currently working on another amendment with Minister for Housing, Local Government and Heritage, Darragh O’Brien.
This relates to the potential sale of the family assets while a person is availing of nursing-home care under Fair Deal.
The various complexities of this amendment are still being worked on, according to Minister Butler.
Reaction
Reaction to the new Fair Deal scheme has been mixed, with president of the Irish Cattle & Sheep Farmers’ Association, Dermot Kelleher, calling for retrospective payments to be made.
“It is an absolute scandal that the resolution to the Fair Deal Scheme has been dragged out for so long. The three-year cap was approved by the Government in 2019 and any calculation of the three years should apply from back then and it should be of retrospective benefit to families who exceed the three years in the period 2019 to date.”
Fianna Fáil TD for Tipperary, Jackie Cahill said:
“By introducing a three-year cap on financial contributions based on farm or business assets, these legislative amendments will finally make the Fair Deal fairer and more accessible to farming families and small-business owners.”
Caroline Farrell of the Irish Farmers’ Association Farm Family said that while the update is welcome, the IFA will be examining the detail of the legislation.
About Fair Deal
The Fair Deal scheme has been in operation since 2009 and as of December 31, 2020, there were 22,755 people participating at an annual cost of just over €1 billion.
Participants contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets.
The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment.