BISS Entitlements (formerly known as BPS)

                   ENTITLEMENTS NOW AVAILABLE FOR PURCHASE or LEASE       
  

Basic Income Support for Sustainability (BISS ) (previously known as BPS Entitlements) CAP 2023-2027

 

Entitlements will be sold or Leased at a multiple or percentage of the NEW BISS 2023 net unit value.

It has been confirmed by DAFM that the 2027 value of entitlements will the same as the 2026 rate.

 

 BISS Entitlements can be Purchased or Leased for the following reasons:

1. If you have more eligible land than entitlements

2. If you have eligible land rented, leased or purchased

3. BISS Entitlements can be leased or purchased and activated on eligible lands that you intend to plant trees on.

 
 4. To increase your BISS by upgrading your present entitlements.
       
 5 .To generate an asset for the future in  2023-2027 and probably further years.

        

ADVANTAGES  FOR LEASING ENTITLEMENTS IN 2023 :

1:THE COST OF LEASING ENTITLEMENTS IS A TAX DEDUCTIBLE EXPENSE, WHEREAS BUYING ENTITLEMENTS IS AN ASSET AND NOT TAX DEDUCTIBLE.

2:A FARMER LEASING IN ENTITLEMENTS WILL ONLY HAVE TO COME UP WITH A PERCENTAGE OF THE YEARLY PAYMENT INSTEAD OF A MULTIPLE OF THE YEARLY PAYMENT IF HE WERE TO BUY THEM.

3: IF FOR SOME REASON A FARMER HAS LESS ELIGIBLE HECTARES IN FUTURE YEARS , HE DOES NOT HAVE TO LEASE IN ENTITLEMENTS AGAIN.

 

REASONS  FOR LEASING OUT ENTITLEMENTS IN 2023 :

 A: AN EXAMPLE WHY A FARMER WOULD LEASE OUT ENTITLEMENTS IN 2023

FARMERS RENTING EXPENSIVE LAND NEED TO LOOK AT LEASING OUT THEIR ENTITLEMENTS AT A PERCENTAGE OF THE YEARLY PAYMENT.

THE PERCENTAGE WILL DEPEND ON THE UNIT VALUE OF THE ENTITLEMENT. THE HIGHER THE UNIT VALUE, THE HIGHER THE PERCENTAGE RATE WILL BE.

TO DISCUSS FURTHER PLEASE CONTACT : JOSEPH NAUGHTON,

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

EMAIL:  This email address is being protected from spambots. You need JavaScript enabled to view it.

  

A FARMER IS RENTING LAND AT €500 per hectare (c.€200 per acre) TO ACTIVATE ENTITLEMENTS WORTH €250 PER HECTARE(c.€100 per acre)

IN OTHER WORDS IT IS COSTING THE FARMER €250 TO ACTIVATE EACH ENTITLEMENT

IF THE FARMER LEASES OUT HIS ENTITLEMENTS HE NEED NOT WORRY ABOUT INSPECTIONS AND GET A PERCENTAGE OF HIS YEARLY PAYMENT UPFRONT.

THE PERCENTAGE WILL DEPEND ON THE UNIT VALUE OF THE ENTITLEMENT. THE HIGHER THE UNIT VALUE, THE HIGHER THE PERCENTAGE RATE WILL BE.

 

B: ANOTHER EXAMPLE WHY A FARMER WOULD LEASE OUT ENTITLEMENTS IN 2023

A FARMER CAN LEASE or RENT OUT HIS ENTITLEMENTS AND LAND SEPARATELY, ON A YEARLY BASIS.

THERE ARE A LOT MORE FARMERS LOOKING TO RENT OR LEASE LAND WITHOUT ENTITLEMENTS THAN THERE ARE FARMERS LOOKING TO RENT OR LEASE LAND WITH ENTITLEMENTS.

I HAVE A LARGE NUMBER OF FARMERS LOOKING TO LEASE IN ENTITLEMENTS  

 

C: ANOTHER EXAMPLE WHY A FARMER WOULD LEASE OUT ENTITLEMENTS IN 2023

A FARMER MAY NOT BE ABLE TO ACTIVATE ALL OF HIS ENTITLEMENTS IN 2023 AND HAS THE OPTION OF LEASING OUT ANY NUMBER OF ENTITLEMENTS.

IF A FARMER DOES NOT ACTIVATE ALL HIS ENTITLEMENTS 2022 & 2023, THE ENTITLEMENTS NOT ACTIVATED WILL BE LOST TO THE NATIONAL RESERVE WITH NO COMPENSATION TO THE FARMER.

REASONS WHY A FARMER MAY NOT BE ABLE TO ACTIVATE ALL HIS ENTITLEMENTS WOULD BE :

1:IF HE SOLD LAND AND DIDN'T SELL THE ENTITLEMENTS WITH IT

2:IF HE LOST RENTED LAND

3: IF THE AREA OF ELIGIBLE LAND WAS REDUCED AFTER AN INSPECTION

4: IF THEY SOLD SITES

5: IF BUILDINGS OR ROADWAYS WERE ERECTED ON THEIR LAND

 

 CONTACT US ON  09096 46046/ 09096 31630 or  087 2348705 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to DISCUSS YOUR OPTIONS

 

 

 

REASONS FOR LEASING OUT BISS ENTITLEMENTS FOR 1 YEAR, SEPARATE TO LAND THAT IS LEASED OUT ON A LONG TERM 

  • THERE IS A MUCH GREATER DEMAND FOR LAND WITHOUT ENTITLEMENTS  IE: LAND WITHOUT ENTITLEMENTS MAKES MORE MONEY PER ACRE
  • THE OWNER OF THE BISS ENTITLEMENTS CAN LEASE OUT THE BISS ENTITLEMENTS SEPARATE TO THE LAND.
  • IF HE DOES SO, THE OWNER OF THE BISS ENTITLEMENTS NEED NOT WORRY WHETHER THE LEASEE WILL HAND OVER THE BISS PAYMENT
  • THE LEASEE SHOULD RECEIVE BISS PAYMENT IN OCT- DECEMBER  (THERE IS NO GUARANTEE THAT THE FARMER LEASING IN ENTITLEMENTS WILL GET 100% PAYMENT)
  • THE OWNER OF THE ENTITLEMENTS AS A RULE WILL GET THE % PAYMENT IN THE SUMMER INSTEAD OF OCT-DECEMBER WHICH MAY HELP WITH CASH FLOW

  • THERE IS GREAT FLEXIBILITY LEASING OUT BISS ENTITLEMENTS 1 YEAR AT A TIME.

    IT GIVES THE OWNER OF THE BISS ENTITLEMENTS THE OPTION TO SELL THEIR BISS ENTITLEMENTS IN FUTURE YEARS..

    IT ALSO MEANS THAT THE OWNER OF THE BISS ENTITLEMENTS CAN ACTIVATE THE BISS ENTITLEMENTS THEMSELVES ON DIFFERENT LAND IF CIRCUMSTANCES CHANGE NEXT YEAR.

Did you know?

POINTS TO TAKE NOTE OF

1:One advantage to Leasing over buying is that LEASING is a tax deductible expense, whereas buying is not tax deductible.

(this should be confirmed with your accountant)

2;There is no roll over of entitlements which means that any entitlement unused for two consecutive years will be lost to the National Reserve.

   Therefore  it is vitally important any entitlements that cannot be activated, for any reason, within the two year period should be leased out or sold otherwise they will be lost to the National Reserve without any compensation to the owner of the entitlements.

3:Entitlements sold in 2023 are NOT subject to claw-back under the new CAP rules, some exemptions apply. 

   Please seek advise from your Agricultural Consultant

4: Terms and conditions and Transfer of Entitlement on-line application will open in February for 2023, please contact us for further information.

CONTACT US ON  09096 46046/ 09096 31630 or  087 2348705 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to DISCUSS YOUR OPTIONS

 

Disclaimer: Joseph Naughton Auctioneer its employees or officials, accept no liability for any errors or omissions in the information provided

or for any loss or damage occasioned to any person as a result of using the information provided. The information contained 

should not be taken as constituting legal advice. 

 

       

There is NO clawback on the sale of entitlements in 2023

This means that a farmer can sell up to 100% of their entitlements without any claw-back or loss to the national reserve.

In 2023 It will be possible for farmers to sell and purchase entitlements

In some circumstances it may be a good idea to sell any small number of entitlements that cannot be activated instead of Leasing them out.

The BISS unit value of entitlements in 2023 will be approx 62% of the value of the entitlements in 2022

 

 

   NOTICE 2023 Transfer of Entittlements On Line Application 

ALL APPLICATIONS MUST BE SUBMITTED ON-LINE 

IT WILL NOT BE POSSIBLE TO TRANSFER ENTITLEMENTS BY WAY OF LEASE OR SALE  WITHOUT BEING REGISERED ON AGFOOD.IE

IT WILL NOT BE POSSIBLE FOR A FARMER TO PURCHASE OR LEASE IN ENTITLEMENTS WITHOUT BEING REGISTERED ON AGFOOD.IE

 

ALL APPLICATIONS MUST BE SUBMITTED ON-LINE BY THE TRANSFEROR AND ACCEPTED ON-LINE BY THE TRANSFEREE BEFORE THE 15TH MAY 2023

THIS IS ONLY THE APPLICATION AND THE TRANSFER HAS TO BE PROCESSED BY THE DEPT OF AGRICULTURE BEFORE THE FUNDS CAN BE RELEASED TO THE HERD OWNERS

 

 

   LATEST INFORMATION RE LEASING ENTITLEMENTS IN 2023

 

In order to receive a payment on leased in entitlements , the herd owner must be registered on AGFOOD.IE 
 
The application has to received on-line by the Dept of Agriculture before the 15th May 2023
 
This means the herd owner must select Joseph Naughton as Entitlement Transfer Facilitator (ETF) to accept the transfer of entitlements application before the 15th May 2023
 

 

 

 

https://cap-calculators.apps.rhos.agriculture.gov.ie/payments

This calculator is made available for guidance only. By using this calculator, you agree that Joseph Naughton Ltd and his staff shall not be held responsible in law in relation to the content, information, output or conclusions arising from the use of this calculator by any party. The information contained in this calculator is provided as an aid to farmers in understanding the calculation of entitlement values and the results should not be regarded as providing definitive entitlement values for the period 2023-2026.

 

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

 

EMAIL  This email address is being protected from spambots. You need JavaScript enabled to view it.                                                                                                                                                                                                              

IMPORTANT NOTICE

PLEASE ONLY SELECT JOSEPH NAUGHTON AS ENTITLEMENT TRANSFER FACILITATOR (ETF) TO LEASE OUT OR SELL  ENTITLEMENTS  AFTER SPEAKING TO HIM .

NO RESPONSIBILITY WILL BE TAKEN BY JOSEPH NAUGHTON TO LEASE OUT OR SELL ENTITLEMENTS  WITHOUT PRIOR CONSENT GIVEN BY HIM TO DO SO.

THE SYSTEM SET UP BY THE DEPARTMENT OF AGRICULTURE ONLY SHOWS THE NAME AND HERD NUMBER, IT DOES NOT SAY IF A FARMER WANTS TO LEASE OUT OR IN OR SELL OR BUY OR NUMBER OF ENTITLEMENTS OR UNIT VALUE 

ALL THESE DETAILS MUST BE GIVEN TO JOSEPH NAUGHTON BY THE HERD OWNER OR AGRICULTURAL CONSULTANT IN ORDER FOR THE TRADE TO BE PROCESSED ON-LINE BEFORE THE DEADLINE OF MAY 15TH 2023

 

                                       

Details of how to select Joseph Naughton Auctioneer as ETF
 
Log on to your agfood.ie and click on Direct Payments tab on left side of screen
 
Top left beside home tab click on applications
Select transfer of entitlements applications
 
brings you to screen with create transfer key, to right of this another green key to authorise/select agent to transfer entitlements on your behalf...click on this
 
select ETF ......type in Joseph Naughton 00005
 
screen will pop up with in & out
 
select number of entitlements IN =(If you are taking in entitlements into your herd by lease or purchase)
 
                                            OUT =(If you are leasing or selling entitlements out of your herd number)
 
below that select add
You should see "you have authorised Joseph Naughton to transfer entitlements on your behalf."

         

 

Declan McEvoy IFAC Discussing Capital Gains Tax on the farm.

"A common view is that the rate of Capital Gains tax is 33%. This is correct , however there is another rate of Capital Gains Tax at 10% known as Entrepreneur's Relief "

This tax rate can apply to Farmers as well as other individuals. While Farmers do not usually class themselves as business people/ entrepreneurs, once they are carrying on a trade they are able to avail of this relief.

In order to qualify for the relief , the following must apply:

1. What one disposes of must be a qualifying business asset which covers farming as well as other sole traders & companies.

2. The business asset is an asset which has been used for the purpose of the business.

3. You must have owned the asset for a continuous period of 3 out of the last 5 years.

Please contact IFAC or your own accountant to see if selling your entitlements will qualify for this reduced relief

 
 

 

 
All Farmers who leased IN entitlements in 2022 with Joseph Naughton Auctioneer  MUST NOTE  that the 2022 entitlement lease ended on  31/12/22
 
 
A  2023 application to Transfer entitlement must be submitted to the Dept of Agriculture on-line before 15th May 2023
 
PLEASE MAKE CONTACT WITH JOSEPH NAUGHTON AUCTIONEER AS SOON AS YOU HAVE DECIDED TO LEASE IN ENTITLEMENTS IN 2023
 
THE SOONER THE APPLICATION IS MADE THE BETTER
 

OFFICE: 09096 46046 or 090960 31630   MOBILE: 087 2348705  

EMAIL  This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Re 2023 Basic Income Support for Sustainability (BISS )

BISS ENTITLEMENTS THAT WERE NOT ACTIVATED IN 2022 MUST BE ACTIVATED IN 2023 OR THEY MAY BE LOST TO THE NATIONAL RESERVE WITH NO COMPENSATION TO THE OWNER OF THE ENTITLEMENTS.

THESE BISS ENTITLEMENTS CAN BE ACTIVATED BY LEASING THEM OUT OR SELLING TO AN ACTIVE FARMERS IN 2023

IT IS VERY IMPORTANT THAT ALL FARMERS ENSURE THAT ALL THEIR BISS ENTITLEMENTS ARE ACTIVATED IN 2023

FARMERS WILL RECEIVE STATEMENT ON THEIR BISS APPLICATION FORM NOTIFYING THEM OF ENTITLEMENTS NOT ACTIVATED IN 2022. THESE ENTITLEMENTS MUST BE ACTIVATED BY WAY OF LEASE OR LAND FOUND TO ACTIVATE THEM IN 2023 OR THEY WILL BE LOST TO THE NATIONAL RESERVE IN 2023 WITH NO COMPENSATION TO THE FARMER.

 

 

Disclaimer: Joseph Naughton Auctioneer its employees or officials, accept no liability for any errors or omissions in the information provided

or for any loss or damage occasioned to any person as a result of using the information provided. The information contained 

should not be taken as constituting legal advice. 

 

       
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