Michael Healy-Rae (Kerry South, Independent)
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199. To ask the Minister for Agriculture, Food and the Marine if a farmer buys a farm in 2014 with entitlements and stock on it and they claim area aid on their own farm in 2013, can that farmer increase the new entitlements from 2015 onwards even though they did not have them in 2013. [9874/14]

Simon Coveney (Cork South Central, Fine Gael)
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Any farmer who received a direct payment in 2013 (Single Payment, Grassland Sheep Scheme, Burren Life Scheme, Beef Data Scheme) has an automatic allocation right under the Basic Payment Scheme in 2015. As the farmer in question did receive a direct payment in 2013 he holds an allocation right and will establish entitlements on his original farm.

The value of entitlements to be established in 2015 will be based on a percentage of the total value of entitlements held by the farmer in 2014. Any entitlements which the farmer in question purchases in 2014 will be combined with the value of the entitlements he currently holds and will be carried forward for the calculation of his entitlements in 2015.

The number of entitlements that will be established in 2015 for any farmer is based on the number of hectares the farmer declares in 2013 or 2015, whichever is less.

If the farmer in question purchases land and entitlements under the 2014 scheme year, he will benefit from receiving payment on those entitlements in that scheme year. However while the value of those entitlements will be carried over to 2015, he would not benefit from holding additional hectares. Entitlements would not be established on the purchased hectares and in 2015 the farmer would hold a small number of high value entitlements along with surplus land.

If however the purchase of the land and entitlements takes place after the closing date for the 2014 Scheme year, then the seller may enter into a Private Contract Clause with the buyer whereby he transfers both the land and the corresponding entitlements for the 2015 scheme year. The entitlements would be established in the account of the seller and would then be transferred to the buyer who would benefit from them under the 2015 scheme year and subsequent years.

To enter into such an agreement, the seller/lessor must have an ‘allocation right’ and must be an active farmer in 2015. The purchaser/lessee must be an active farmer.