Tom Neville (Limerick County, Fine Gael)
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461. To ask the Minister for Agriculture, Food and the Marine if additional funding is available to young farmers in addition to the 60% grant for those that are in partnership with their parents on the family farm; and if he will make a statement on the matter. [5388/18]

Michael Creed (Cork North West, Fine Gael)
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The Young Farmers Capital Investment Scheme, one of a suite of 7 measures under the Targeted Agricultural Modernisation Scheme II (TAMS II), was launched under the Rural Development Programme 2014-2020 and is co-funded under the European Agricultural Fund for Rural Development (EAFRD).  The objective of the Schemeis to provide an incentive to young farmers to upgrade their agricultural buildings and equipment by providing them with an increased level of support to meet the considerable capital costs associated with the establishment of their enterprises, and to facilitate the Tillage Sector to develop a targeted and precise approach focusing on environmental dividends, efficiency and growth and improve competitiveness and contribute to the improvement of agricultural incomes.

Subject to meeting the Terms and Conditions of the scheme, grant aid will only be paid on approved, completed and eligible expenditure and shall be paid at the rate of 60% up to the applicable maximum investment ceiling of €80,000 per holding. In the case of an application by two or more eligible partners in a partnership registered on the Department’s Register of Farm Partnership the maximum eligible investment ceiling shall be increased to €160,000. Applications from Joint Ventures are not eligible for grant aid under the Scheme, except in the case of applicants who both meet the eligibility criteria.  Where a registered farm partnership contains one qualifying young farmer grant-aid will be paid at 60%, subject to all qualifying conditions being met, on the first €80,000 and 40% on the remaining balance.The Scheme came into operation as and from 28 May 2015 and will close for receipt of applications on 31 December 2020.

EU Regulation 1307/2013 provides for the establishment of a National Reserve. One of the two mandatory priority categories National Reserve is ‘Young Farmer’.  For the purposes of the ‘young farmer’ priority category of the National Reserve a young farmer is defined as follows:

- must be aged 40 or less in the year in which s/he first submits an application under the Basic Payment scheme;

- must be setting up an agricultural holding for the first time in his/her own name or has set up such a holding during the five years preceding the first submission of the BPS application;

- must have submitted a valid BPS application in the year of application to the National Reserve.

Successful applicants must also hold a recognised agricultural educational qualification at FETAC Level 6 or equivalent and have an off-farm income of not more than €40,000 in either of the two most recent tax years.

Successful applicants under the National Reserve can receive an allocation of new entitlements from the National Reserve on the basis of one entitlement for one hectare at the National Average value of entitlements. Applicants who already hold existing entitlements which are below the national average value can receive a top-up whereby the value of those entitlements will be increased to the national average value.  It expected that a final decision on a National Reserve for 2018 will be taken shortly.

The Young Farmers Scheme is a separate scheme that provides for an additional payment to young farmers based on eligible activated entitlements. Payment under the scheme is a flat rate payment issued to eligible applicants and is paid per activated entitlement, subject to a maximum of 50. This scheme operates each year from 2015 to 2019 and will shortly be open for submission of applications under the 2018 scheme year. The definition of a young farmer for the purposes of the Young Farmers Scheme is the same as that which applies to the young farmer priority category of the National Reserve.  While the same agricultural educational qualification requirement also applies, there is no off-farm income threshold applicable under the Young Farmers Scheme.