New ACA president Tom Dawson broadly welcomed the recent announcements by the Department of Agriculture on the 2015 Basic Payments Scheme but called for greater clarity on the tax implications.
“We broadly welcome the decision by the Minister for Agriculture that the value of entitlements held by farmers in 2014 will form the basis for the calculation of the value of their entitlements under the new Basic Payment Scheme in 2015.”
However he noted: “The nitty gritty still has to be worked out. The department have given a broad outline of how farmers who have their entitlements leased out will be dealt with. But more clarity is needed particularly in the area of revenue implications.
“More clarity is required from the Department of Agriculture and the Department of Finance on the complete structure for the transfer of entitlements.”
Dawson also stressed there is time pressure in this regard. “We need to now the complete structure by the 1 May particularly in the case of 100 per cent leased entitlements.”
He highlighted: “The fact there is not clarity on this issue is stopping leases being put through. The owners are not willing to go into agreements until the uncertainty is cleared up.
“We understand that the minister has a lot done on this issue, but the nitty gritty still needs to be cleared up.”
He noted that both parties to leasing arrangements should seek good advice in this area particularly if they are worried about the impact of Common Agricultural Policy Reform.
Meanwhile it is understood the GLAS scheme is likely to open for applications in October. The department is believed to be doing significant work on the large workload associated with this new scheme. It is also understood applications for the new TAMS II scheme will be open to applications before the end of the year.
Pictured: Paud Evans of the Department of Agriculture, Tom Dawson, new ACA President, Paul Dillion of the Department of Agriculture, and agri consultant Mike Brady