Forestry and the Basic Payment Scheme (BPS) 2020
A FEW weeks to go before this year’s BPS deadline of 15 May! Make sure to submit your BPS application in time. Especially if you also have forestry on the farm: quite often forestry payments ánd BPS payments can be combined. The following questions and answers explain how both schemes can be combined. Can I draw down BPS payments on my forestry land? Yes, once a number of BPS requirements are met:
The land to be planted was declared on a 2008 SPS application The declared land was eligible for SPS in 2008
The area must have given a right to payment under the 2008 Single Payment Scheme
The land was planted in any year since 2008, or will be planted in 2020
Watch a video explaining how forestry interacts with BPS on www.teagasc.ie/forestry.
Must the land be in my name?
The BPS applicant’s name must appear on both the herd number and forestry contract number for the forest to be considered BPS-eligible. This also applies to members of the same family. This is an important detail to consider during farm or land transfers.
Do I have to continue farming part of my land?
Until last year, a farmer had to continue farming at least 10% subject to a minimum area of 3 ha. This does not apply anymore in 2020. The same also applies to forests planted prior to 2020.
Therefore, if a farmer planted 90% of his/her land in any year between 2009 and 2019, s/he is not required to comply with the previous 3 ha / 10% retention rule in order to continue claiming BPS entitlements on forested land. This means that the farmer could plant the remainder in 2020 and claim the full BPS for this eligible forestry land if s/he wishes.
Should I assume the total eligible area has been included on the pre-printed BPS form?
It is really important to check the pre-printed statement of land and maps and ensure the correct claimed area is included in the BPS application for all eligible forestry parcels. If the Maximum Eligible Area (MEA) and/or claimed area are pre-printed as 0 for any eligible forestry parcel, this will need to be changed to the appropriate area to ensure eligibility for that forestry parcel.
Amendments to 2020 BPS applications may be made online up to 31 May 2020. Late amendments will be accepted online up to 9 June 2020 but with a penalty.
In terms of planting some land, what does this mean to me money-wise?
Outside of drawing down the annual BPS payment on eligible land, a farmer could receive an additional forestry payment of between €510 to €680 per hectare for 15 years, depending on the land type and the tree species planted. The cost of establishment and early maintenance will generally be covered by the afforestation grant. In most cases, this means that there will be no cost to the farmer in establishing his/her new forest.
How can planting land benefit my BPS application? Land that met all SPS requirements in 2008 but was red-lined at a later date because of encroaching scrub may be considered for establishing a grant-aided forest as well as BPS entitlements, provided that all forestry and BPS requirements continue to be met. If in any doubt, seek clarity from the DAFM’s BPS Section in advance of planting.
You can consider the planting of eligible land you purchased or inherited. Such land may also be eligible for a BPS payment provided it meets all eligibility criteria.
You may buy an existing forest and use it to activate purchased entitlements; provided all BPS eligibility requirements are met, the forestry contract number is valid and in the name of the applicant and the applicant is eligible for forestry premium payments in the BPS scheme year in question.
If you received entitlements from the National Reserve, you may plant part of your holding and use eligible forestry to activate these entitlements.
Where can I get further information?
It is very important that you get independent and objective advice before deciding on a permanent land use change. Farmers plant forests for numerous reasons such as guaranteed income, long-term investment, pension fund, biodiversity, landscaping and (potentially) reducing the workload on the farm. Teagasc foresters provide advice on forestry matters to all landowners. Their contact details can be found at www.teagasc.ie/forestry.
This article is only a very brief introduction to the very complex Basic Payment Scheme. So the advice -as per usual- is: read the small print and double-check your facts. It is your money!