Bernard Durkan (Kildare North, Fine Gael)
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263. To ask the Minister for Social Protection the definition of a farm under the social welfare code, with particular reference to eligibility for a means tested social welfare payment for those owning a non-viable portion of land. [15497/17]

Leo Varadkar (Dublin West, Fine Gael)
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The primary support my Department offers farmers is the farm assist scheme which is a means tested scheme for farmers on low incomes. To qualify for the scheme a person must satisfy the means test and be engaged in farming. The 2017 Revised Estimates for my Department provide for expenditure of approximately €83 million on the farm assist scheme.

Social welfare legislation defines a farmer as a person engaged in farming, farming farm land including commonage, which is owned, and used for the purposes of husbandry, is leased, and used for the purposes of husbandry, or does not form part of a larger holding and is used for the purposes of husbandry. Husbandry is defined as the working of the land with the object of extracting the traditional produce of the land. This can include the cultivation of crops or trees (forestry) and the keeping of livestock and poultry. There is no definition of a farm in social welfare legislation and there is no minimum acreage requirement.

It is not sufficient for a person simply to own a farm of land to qualify for farm assist. The legislation prescribes that the claimant himself/herself must be engaged in farming. Therefore, a person who owns a farm of land, but leases, lets or rents out the entire holding does not satisfy this condition and so cannot qualify for farm assist.

In assessing means for social assistance payments such as jobseeker’s allowance, account is taken of the income and the value of property, including capital, of the claimant and their spouse or partner. Social welfare legislation provides that the yearly value of property, including capital, owned but not personally used or enjoyed is assessable for means testing purposes. In such cases, the current market value of the property or land is established (having regard to local property prices) as well as the amount of any outstanding mortgages, if any. The balance (market value less outstanding mortgage) is assessed as capital as follows: an initial amount (€20,000 for most social assistance schemes) is disregarded; amounts between €20,000 and €30,000 are assessed at €1 per €1,000; amounts between €30,000 and €40,000 are assessed at €2 per €1,000; and amounts over €40,000 are assessed at €4 per €1,000.

However, it is important to note that capital assessment does not include property which is being personally used or enjoyed by the claimant such as the family home where they reside or a premises or a farm of land used by the claimant in carrying out a business.

Where a person is farming their land, the assessment of means, including for farm assist, is designed to reflect the actual net income from farming and looks at gross income, less allowable expenses necessarily incurred. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation.

In Budget 2017 I introduced new measures in relation to the assessment of means for farm assist. Since 8 March 2017, farm income is now be assessed at 70%, down from 100%, with an additional annual means disregard of €254 for each of the first two children and €381 for the third and subsequent children also introduced. It is estimated that this will cost €8.5 million in 2017. All existing farm assist recipients currently assessed with means will have their payments adjusted to take into account the changes in Budget 2017. As also announced in Budget 2017 Farm Assist recipients have also benefitted from the 85% Christmas Bonus paid December last and the €5 per week increase in the weekly rates of payment.