Paul Connaughton (Galway East, Fine Gael)
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657. To ask the Minister for Agriculture, Food and the Marine under new single farm payment rules if a farmer decides in 2015 to lease entitlements do they retain ownership of them or lose them completely; and if he will make a statement on the matter. [19107/14]

Simon Coveney (Cork South Central, Fine Gael)
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Where a farmer leases a portion of his agricultural land prior to the closing date for the 2015 scheme year and for a period that includes the 2015 scheme year, the farmer may enter into a Private Contract Clause with a lessee whereby he leases out along with the land the corresponding entitlements that will be allocated to him on the land in question. The new entitlements will be established in the account of the lessor in 2015 (based on his reference points) and will then be transferred to the lessee for the period of the lease. Ownership of the entitlements remains with the lessor and upon expiry of the lease both the land and the entitlements revert to the lessor.

For the first year of the new Scheme in 2015, it is not possible to lease entitlements without land.

To enter into such a Private Contract Clause, the lessor must have an ‘allocation right’ (i.e. eligible to receive a direct payment in 2013), he must meet the definition of an ‘active farmer’ in 2015 and submit a valid Basic Payment Scheme application in 2015 whereby he establishes at least one entitlement for his own use. The lessee must meet the definition of ‘active farmer’ in 2015 and submit a valid application under the Basic Payment Scheme in 2015.