Farmers receive an allocation of entitlements for their farm under the Basic Payment Scheme
. Each entitlement the farmer holds must be linked to a hectare of farmed land to qualify for payment. Farmers can choose to transfer entitlements to another farmer. Entitlements are a monetary asset and under the Basic Payment Scheme they can be transferred with or without land.
The number of entitlements each farmer holds, and their values, vary depending on various factors such as:
payment rates received under previous direct payment schemes
adjustments each year to move values towards the national average
How to qualify for entitlement transfer
Basic Payment Scheme Entitlements may only be transferred to an active farmer in the same member state, except in the case of inheritance or anticipated inheritance (gift). The farmer making the transfer and farmer receiving the transfer must apply to transfer entitlements by completing an online Transfer of Entitlements application.
The sale of entitlements without land is subject to a “clawback” of 20% of the number of entitlements sold. For example, if 50 entitlements at €100 each are sold, the buyer would receive 40 entitlements at €100 each. To be considered as a sale of entitlements with land, one hectare of eligible land must be sold per entitlement and declared on the 2020 Basic Payment Scheme application by the farmer receiving the transfer. Entitlements may be leased with or without land.
Leased or rented entitlements will revert to the farmer making the transfer at the end of the relevant scheme year. The reversion of entitlements on expiry of a lease or rental agreement is not considered a form of transfer. Entitlements may not be transferred more than once in a scheme year, unless by way of inheritance or anticipated inheritance.
The effective date of transfer of entitlements in all cases is the closing date of 15 May 2020. However, if the entire holding or ownership of a herd number is transferred between the date of application for the Basic Payment Scheme and 31 May 2020, the farmer receiving the transfer must agree to take on the transferor's responsibilities regarding the conditions of the 2020 Basic Payment Scheme by completing a Declaration of Undertaking Form (see below).
The Declaration of Undertaking Form must be completed by both the farmer making the transfer and farmer receiving the transfer and must be submitted online with the Transfer of Entitlements application. The farmer receiving the transfer must fulfill the conditions for granting the aid and honour the undertakings given by the farmer making the transfer and, if otherwise in order, payment of 2020 Basic payment will issue to the farmer receiving the transfer. If the entire holding or ownership of the herd number changes after 31 May 2020, the 2020 Basic Payment will issue to the farmer who initially made transfer.
Withdrawing an application
To withdraw a 2020 Transfer of Entitlement Application a completed 2020 Transfer of Entitlements Application Withdrawal Request form (see below) must be uploaded by the transferor and farmer receiving the transfer prior to processing of the application.
All entitlements are subject to a two-year usage rule. Any entitlement that remains unused for two consecutive years will revert to the National Reserve. The rotation of entitlements is not available under the Basic Payment Scheme.
Entitlement application by groups
Transfer of entitlements applications may be submitted by groups such as joint herd number, a registered or unregistered partnership, or a company. Documents and information submitted in support of applications made by such groups are submitted with the consent of, and are available to, all members of the group and authorised agents acting on behalf of the group.
Applications for the transfer of entitlements must be made via the Department’s online system during 2020. You must apply online by logging in at www.agfood.ie
. If your login or password are expired and need to be renewed please contact the Department's helpdesk.