Farmers are being urged to consult with their advisors in advance of making an application to the Basic Income Support for Sustainability (BISS) scheme.
The scheme, which replaces the Basic Payment Scheme (BPS) in the new Common Agricultural Policy (CAP), opened for applications this week.
Welcoming the opening of the scheme, Ifac said that the scheme focuses on climate action and helping to improve the environment, and features an increased level of support for young farmers.
Philip O’Connor, Ifac’s head of farm support, said: “We are very pleased that the application system is now open for farmers and in particular that the support for young farmers has been bolstered in this scheme.
“The deadline for the scheme is early summer but the key thing, especially if you are planning to change the structure of your business or you have done so already – a big decision for any farmer – is to make sure you speak to your advisor now,” O’Connor added.
He said farmers “need to ensure they are getting the right advice, that all paperwork is in order, and as always that you are very clear about all the conditions of the scheme before you apply”.
“With rising input costs front of mind for three quarters of Irish farmers…this enhanced scheme will help support farm families now and into the future,” O’Connor commented.
Some of the main issues for farmers to be mindful of in relation to BISS, according to Ifac, is as follows:
- Do not transfer your herd number or BISS to a registered partnership before deciding with your accountant/solicitor who exactly is in the partnership;
- Do not transfer your herd number to a registered partnership or joint names if you have applied and have not been granted approval for a Targeted Agricultural Modernisation Scheme (TAMS) grant or the Agri Climate Rural Environment Scheme (ACRES). You must seek prior approval from these schemes before making the change;
- BISS must always be transferred to the new entity before May 29;
- Farmers should be aware of the taxation or legal issues of moving a herd number to joint names without setting up either a registered or unregistered partnership.
According to Ifac, a properly planned partnership such as a registered or unregistered farm can assist in the farm transfer and succession process; enhance profitability and work-life balance; reduce income tax; secure 50% stock relief, and a potential double ceiling for the new TAMS III capital grant.