BPS Entitlements

Trades for 2018 are now being processed by the Department of Agriculture. If you leased out or sold your entitlements in 2018 you will receive a letter on-line or in the post. Please forward that letter to this office by email or post or whattsapp in order that we can send out payment to you.

Any questions please call us on 0909646046   

Postal Address: Joseph Naughton Auctioneer

Ballinasloe Enterprise Centre,

Creagh Road, Ballinasloe, Co Galway

Whatsapp : 0872348705

Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

If you have not received your letter , you can contact the Department of Agriculture on 0761- 064430 

 

                                                                                                          

                                                                                                      IMPORTANT NOTICE

PLEASE ONLY SELECT JOSEPH NAUGHTON AS ENTITLEMENT TRANSFER FACILITATOR TO LEASE OUT OR SELL  ENTITLEMENTS IN 2018 AFTER SPEAKING TO HIM .

NO RESPONSIBILITY WILL BE TAKEN BY JOSEPH NAUGHTON TO LEASE OUT OR SELL ENTITLEMENTS IN 2018 WITHOUT PRIOR CONSENT GIVEN BY HIM TO DO SO.

THE SYSTEM SET UP BY THE DEPARTMENT OF AGRICULTURE ONLY SHOWS THE NAME AND HERD NUMBER, IT DOES NOT SAY IF A FARMER WANTS TO LEASE OUT OR IN OR SELL OR BUY OR NUMBER OF ENTITLEMENTS OR UNIT VALUE.

ALL THESE DETAILS MUST BE GIVEN TO JOSEPH NAUGHTON BY THE HERD OWNER OR AGRICULTURAL CONSULTANT IN ORDER FOR THE TRADE TO BE PROCESSED ON-LINE BEFORE THE DEADLINE OF MAY 15TH 2018  

                                                                                           NOTICE 2018 Transfer of Entittlements On Line Application 

ALL APPLICATIONS MUST BE SUBMITTED ON-LINE IN 2018

IT WILL NOT BE POSSIBLE TO TRANSFER ENTITLEMENTS BY WAY OR LEASE OR SALE IN 2018 WITHOUT BEING REGISERED ON AGFOOD.IE

IT WILL NOT BE POSSIBLE FOR A FARMER TO PURCHASE OR LEASE IN ENTITLEMENTS IN 2018 WITHOUT BEING REGISTERED ON AGFOOD.IE

 

ALL APPLICATIONS MUST BE SUBMITTED ON-LINE BY THE TRANSFEROR AND ACCEPTED ON-LINE BY THE TRANSFEREE BEFORE THE 15TH MAY 2018.

THIS IS ONLY THE APPLICATION AND THE TRANSFER HAS TO BE PROCESSED BY THE DEPT OF AGRICULTURE BEFORE THE FUNDS CAN BE RELEASED TO THE HERD OWNERS

 

The 2018 transfer of entitlements by the Dept of Agriculture is now open 

ALL TRANSFER OF ENTITLEMENTS WILL BE ON-LINE IN 2018, THERE WILL BE NO PAPER FORMS AVAILABLE.

IF YOU ARE NOT REGISTERED ON AGFOOD.IE PLEASE CONTACT THIS OFFICE FOR INFORMATION AND ANY ASSISTANCE REQUIRED.

 

If you did not use all your entitlements in 2017 you will have to lease out or sell them in 2018 or they will be permanently lost to the National Reserve in 2018

 
PLEASE MAKE CONTACT WITH JOSEPH NAUGHTON AUCTIONEER AS SOON AS YOU HAVE DECIDED TO LEASE IN ENTITLEMENTS IN 2018.
 
THE SOONER THE APPLICATION IS MADE THE BETTER

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

EMAIL  This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 
The clawback on the sale of entitlements is to REMAIN AT 20% IN 2018

The cut is in the amount of claw-back applied to the sale of Basic Payment Scheme entitlements without land.

In 2018 It will be possible for farmers to sell and purchase entitlements

In some circumstances it may be a good idea to sell any small number of entitlements that cannot be activated instead of Leasing them out.

LATEST INFORMATION RE LEASING ENTITLEMENTS IN 2018.

 

In order to receive a payment in 2018 on leased in entitlements , the herd owner must be registered on AGFOOD.IE 
 
The application has to received on-line by the Dept of Agriculture before the 15th May 2018
 
This means the herd owner or his agent must log into AGFOOD.IE and accept the transfer of entitlements application before the 15th May 2018
 
It will not be possible to accept the entitlements into a herd after the 15th May 2018

 

 
All Farmers who leased IN entitlements in 2017 with Joseph Naughton Auctioneer  MUST NOTE  that the 2017 entitlement lease ended on  31/12/17
 
 
a  2018 application to Transfer entitlement must be submitted to the Dept of Agriculture on-line before 15th May 2018.
 
PLEASE MAKE CONTACT WITH JOSEPH NAUGHTON AUCTIONEER AS SOON AS YOU HAVE DECIDED TO LEASE IN ENTITLEMENTS IN 2018.
 
THE SOONER THE APPLICATION IS MADE THE BETTER
 

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

EMAIL  This email address is being protected from spambots. You need JavaScript enabled to view it.

 
Farmers are entering the third year of the Basic Payment Scheme (BPS) payment mechanism for the period 2016 to 2019. Questions are starting to arise about changes to the two-year use-it-or-lose-it entitlement rule with some farmers in a use-it-or-lose-it situation. 

Payment must be claimed on each entitlement in 2016 or 2017. If not, as it stands, entitlements will be lost to the national reserve. This is said to be adding life into the rental market in some areas at an earlier stage this year, with some farmers keen to move early and be in a position to claim the entitlements themselves rather than have to explore the option of leasing.

Entitlements can be claimed by the applicant or can be claimed through a lease or rental arrangement. Where entitlements were transferred for one year through a short-term arrangement, it is important to note that they will revert to the owner for the 2018 scheme year.

It is also important where entitlements were leased out in 2017 to ensure that they were activated, ie the transferee must declare 1 ha of land to support each entitlement. This takes place between the transferor and the transferee and the Department has no role in these agreements on entitlement usage.

TO DISCUSS FURTHER PLEASE CONTACT : JOSEPH NAUGHTON,

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

EMAIL  This email address is being protected from spambots. You need JavaScript enabled to view it.

The Department of Agriculture has confirmed there will be a National Reserve available to new and young farmers in 2018.

Who can apply?

The National Reserve will provide entitlements for two categories of farmers by priority:

  • Young farmers: BPS applicants under 40 years of age in 2018 who started farming in the last five years.
  • New entrants to farming: BPS applicants who started farming since 1 January 2015 and did not farm in their own name previously.

 

The Department will make the full terms and conditions of the National Reserve and application forms available online

Re 2018 Basic Payment Scheme Entitlements 

BPS ENTITLEMENTS THAT WERE NOT ACTIVATED IN 2017 MUST BE ACTIVATED IN 2018 OR THEY WILL BE LOST TO THE NATIONAL RESERVE WITH NO COMPENSATION TO THE OWNER OF THE ENTITLEMENTS.

THESE BPS ENTITLEMENTS CAN BE ACTIVATED BY LEASING THEM OUT TO ACTIVE FARMERS IN 2018 

IT IS VERY IMPORTANT THAT ALL FARMERS ENSURE THAT ALL THEIR BPS ENTITLEMENTS ARE ACTIVATED IN 2018.

FARMERS WILL RECEIVE STATEMENT ON THEIR BPS APPLICATION FORM NOTIFYING THEM OF ENTITLEMENTS NOT ACTIVATED IN 2017. THESE ENTITLEMENTS MUST BE ACTIVATED BY WAY OF LEASE OR LAND FOUND TO ACTIVATE THEM IN 2018 OR THEY WILL BE LOST TO THE NATIONAL RESERVE IN 2018 WITH NO COMPENSATION TO THE FARMER.

REASONS FOR LEASING OUT BPS ENTITLEMENTS SEPARATE TO LAND ON A LONG TERM LEASE (5 TO 15 YEARS) IN 2018:

  • THERE IS A MUCH GREATER DEMAND FOR LAND WITHOUT ENTITLEMENTS  IE: LAND WITHOUT ENTITLEMENTS MAKES MORE MONEY PER ACRE
  • THE OWNER OF THE BPS ENTITLEMENTS CAN LEASE OUT THE BPS ENTITLEMENTS SEPARATE TO THE LAND.
  • IF HE DOES SO, THE OWNER OF THE BPS ENTITLEMENTS NEED NOT WORRY WHETHER THE LEASEE WILL HAND OVER THE BPS PAYMENT
  • THE LEASEE SHOULD RECEIVE BPS PAYMENT IN OCT- DECEMBER  (THERE IS NO GUARANTEE THAT THE FARMER LEASING IN ENTITLEMENTS WILL GET 100% PAYMENT)
  • THE OWNER OF THE ENTITLEMENTS WILL GET THE % PAYMENT IN THE SUMMER INSTEAD OF OCT-DECEMBER WHICH MAY HELP WITH CASH FLOW
  • THERE IS ONLY 2 YEARS CONFIRMED PAYMENT ON BPS ENTITLEMENTS SO THE DEPARTMENT OF AGRICULTURE CAN ONLY PROCESS THE BPS ENTITLEMENTS FOR 2 YEARS 
  • THERE IS GREAT FLEXIBILITY LEASING OUT BPS ENTITLEMENTS 1 YEAR AT A TIME.

    IT GIVES THE OWNER OF THE BPS ENTITLEMENTS THE OPTION TO SELL THEIR BPS ENTITLEMENTS IN FUTURE YEARS..

    IT ALSO MEANS THAT THE OWNER OF THE BPS ENTITLEMENTS CAN ACTIVATE THE BPS ENTITLEMENTS THEMSELVES ON DIFFERENT LAND IF CIRCUMSTANCES CHANGE NEXT YEAR.

BPS Entitlements can be Purchased or Leased for the following reasons:

1. If you have more eligible land than entitlements

2. If you have eligible land rented, leased or purchased

3. BPS Entitlements can be leased or purchased and activated on eligible lands that you intend to plant trees on.

 
 4. To increase your BPS by upgrading your present entitlements.
       
 5 .To generate an asset for the future in 2018 to 2019 and probably further years.

        

ADVANTAGES  FOR LEASING ENTITLEMENTS IN 2018 :

1:THE COST OF LEASING ENTITLEMENTS IN 2018 IS A TAX DEDUCTIBLE EXPENSE, WHEREAS BUYING ENTITLEMENTS IS AN ASSET AND NOT TAX DEDUCTIBLE.

2:A FARMER LEASING IN ENTITLEMENTS WILL ONLY HAVE TO COME UP WITH A PERCENTAGE OF THE YEARLY PAYMENT INSTEAD OF A MULTIPLE OF THE YEARLY PAYMENT IF HE WERE TO BUY THEM.

3: IF FOR SOME REASON A FARMER HAS LESS ELIGIBLE HECTARES IN 2019 , HE DOES NOT HAVE TO LEASE IN ENTITLEMENTS AGAIN.

 

REASONS  FOR LEASING OUT ENTITLEMENTS IN 2018 :

 A: AN EXAMPLE WHY A FARMER WOULD LEASE OUT ENTITLEMENTS IN 2018

FARMERS RENTING EXPENSIVE LAND NEED TO LOOK AT LEASING OUT THEIR ENTITLEMENTS AT A PERCENTAGE OF THE YEARLY PAYMENT.

ONE OPTION FOR FARMERS RENTING EXPENSIVE LAND TO ACTIVATE THEIR ENTITLEMENTS ON IS THEY CAN LEASE OUT THEIR ENTITLEMENTS AT A PERCENTAGE OF THE YEARLY PAYMENT. 

THE PERCENTAGE WILL DEPEND ON THE UNIT VALUE OF THE ENTITLEMENT. THE HIGHER THE UNIT VALUE, THE HIGHER THE PERCENTAGE RATE WILL BE.

TO DISCUSS FURTHER PLEASE CONTACT : JOSEPH NAUGHTON,

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

EMAIL:  This email address is being protected from spambots. You need JavaScript enabled to view it.

  

A FARMER IS RENTING LAND AT €500 per hectare (c.€200 per acre) TO ACTIVATE ENTITLEMENTS WORTH €250 PER HECTARE(c.€100 per acre)

IN OTHER WORDS IT IS COSTING THE FARMER €250 TO ACTIVATE EACH ENTITLEMENT

IF THE FARMER LEASES OUT HIS ENTITLEMENTS HE NEED NOT WORRY ABOUT INSPECTIONS AND GET 55% to 72% OF HIS YEARLY PAYMENT UPFRONT

THE PERCENTAGE WILL DEPEND ON THE UNIT VALUE OF THE ENTITLEMENT. THE HIGHER THE UNIT VALUE, THE HIGHER THE PERCENTAGE RATE WILL BE.

 

B: ANOTHER EXAMPLE WHY A FARMER WOULD LEASE OUT ENTITLEMENTS IN 2018

A FARMER CAN LEASE or RENT OUT HIS ENTITLEMENTS AND LAND SEPARATELY, ON A YEARLY BASIS.

THERE ARE A LOT MORE FARMERS LOOKING TO RENT OR LEASE LAND WITHOUT ENTITLEMENTS THAN THERE ARE FARMERS LOOKING TO RENT OR LEASE LAND WITH ENTITLEMENTS.

I HAVE A LARGE NUMBER OF FARMERS LOOKING TO LEASE IN ENTITLEMENTS  

 

C: ANOTHER EXAMPLE WHY A FARMER WOULD LEASE OUT ENTITLEMENTS IN 2018

A FARMER MAY NOT BE ABLE TO ACTIVATE ALL OF HIS ENTITLEMENTS IN 2018 AND HAS THE OPTION OF LEASING OUT ANY NUMBER OR EVEN A FRACTION OF AN ENTITLEMENT.

IF A FARMER DOES NOT ACTIVATE ALL HIS ENTITLEMENTS IN 2017 OR 2018, THE ENTITLEMENTS NOT ACTIVATED WILL BE LOST TO THE NATIONAL RESERVE WITH NO COMPENSATION TO THE FARMER.

REASONS WHY A FARMER MAY NOT BE ABLE TO ACTIVATE ALL HIS ENTITLEMENTS WOULD BE :

1:IF HE SOLD LAND AND DIDN'T SELL THE ENTITLEMENTS WITH IT

2:IF HE LOST RENTED LAND

3: IF THE AREA OF ELIGIBLE LAND WAS REDUCED AFTER AN INSPECTION

4: SELLING SITES

5: BUILDINGS OR ROADWAYS

 

 CONTACT US ON  09096 46046/ 09096 31630 or  087 2348705 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to DISCUSS YOUR OPTIONS

 

1. 2016 was the first year that Basic Payment Entitlements could be leased without land to anywhere within the Republic of Ireland.

2. There is no roll over of Entitlements which means that any Entitlement unused for two consecutive years will be lost to the National Reserve with no compensation to the farmer.

3. Entitlements sold in 2018 are subject to a claw-back under the new CAP rules, some exemptions apply.

4.Entitlements can be sold or leased to free up capital to purchase other assets.

5. Entitlements can be leased or sold where a farmer is retiring from farming.

6. Entitlements can be leased or sold where a farmer has sold land and will not be farming in 2018

Did you know?

 

POINTS TO TAKE NOTE OF:

1:One advantage to Leasing over buying in 2018 is that LEASING is a tax deductible expense, whereas buying is not tax deductible.

(this should be confirmed with your accountant)

2;There is no roll over of entitlements which means that any entitlement unused for two consecutive years will be lost to the National Reserve.

   Therefore  it is vitally important any entitlements that cannot be activated, for any reason, within the two year period should be leased out or sold otherwise they will be lost to the National Reserve without any compensation to the owner of the entitlements.

3:Entitlements sold in 2018 are subject to claw-back of 20% under the new CAP rules, some exemptions apply. 

   Please seek advise from your Agricultural Consultant

4: Terms and conditions and Transfer of Entitlement Forms are soon available, please contact us for further information.

CONTACT US ON  09096 46046/ 09096 31630 or  087 2348705 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to DISCUSS YOUR OPTIONS

 

Disclaimer: Joseph Naughton Auctioneer its employees or officials, accept no liability for any errors or omissions in the information provided

or for any loss or damage occasioned to any person as a result of using the information provided. The information contained 

should not be taken as constituting legal advice. 

 

       

 Listen to MIDWEST RADIO INTERVIEW With Joseph Naughton Auctioneer 

Broadcast Time          Wednesday 2nd April 2014 from 10pm to 11pm. 

 

Listen to Joseph Naughton being interviewed by Gerry Murphy of Teagasc for Midwest Radio's weekly farming programme dealing with all matters agricultural (presenter/producer Michael Neary).  Listen to Joseph answer questions about recent developments around Single Farm Payment Entitlements and leasing Entitlements. 

 To listen go to /http://www.midwestradio.ie then go to schedule, them Farming Matters with Michael Neary and download programme.