While Covid-19 and the vaccine rollout continue to dominate the headlines for all the right reasons, for farmers, Department of Agriculture deadlines still have to be met.
May 17 is one of the most important dates for farmers in the farming year. This is the deadline for declaring the land you are farming in the year 2021 and therefore receive your Basic Payment Scheme (BPS ) monies in Oct/Dec.
BPS is crucial to the financial viability of a lot of farms in Ireland. It can be an incredibly stressful time for farmers if this application is incorrect and monies are withheld next Oct/Dec.
The following are some basic questions farmers should be asking themselves and their Agri advisors before submitting their applications: (1 ) Am I farming more/less land than last year? (2 ) Am I leasing in/out land that wasn’t previously on an application? (3 ) If leasing in/out new land have I leased in/out the BPS correctly with this land? (4 ) Have you bought/sold/inherited/gifted land in the last year – have I transferred in BPS correctly? (5 ) Have I declared all of the land I am farming correctly on my BPS application? (6 ) Have I changed the farming structure – Limited Company, Registered Farm Partnership, Joint herd number? and if so I must transfer BPS to the new structure – Always seek your accountants advise on HOW to transfer BPS, so as not to inadvertently incur taxes and have I declared all of the land correctly in the name of the new business structure?
The best advice I can give farmers at this time when completing a BPS application is as follows: (1 ) Employ a good Agri advisor to help you complete your application. This is money very well spent considering the importance of the payment to the financial wellbeing of the farm; (2 ) If transferring BPS to a new entity (LTD, partnership, joint herd, family member, etc ) please ensure that BOTH your accountant and Agri advisor are aware of what’s happening. One of the most common mistakes with farmers changing business structure is neither accountant nor Agri advisor is aware of what each one is applying for. This can have very serious impacts with BOTH Revenue and the Dept. of Agriculture and could result in significant taxes and losses in BPS if completed incorrectly; (3 ) Give yourself time – do not leave this application until the last minute and complete it on May 17.
In ifac it is standard practice that we consult with our members’ Agri advisors in times of change in the farm to ensure that BPS is not jeopardised in any way, and also ensure no undue taxes are incurred in the change.
This year the Department of Agriculture require all applications to be made online and it is running a nationwide helpline to assist farmers in this regard. Refer to www.gov.ie for more information.
