CAP entitlements are key for farm tenants

The Tenant Farmers Association has stressed the importance of ensuring that farm tenants are not disadvantaged through reallocation of payment entitlements in the Common Agricultural Policy Reform process.

"It has long been a concern that vital support payments to agricultural producers can become capitalised into land values and land rents. The current entitlement system within the CAP mitigates this to some extent."

"However, the TFA is concerned that an agreed CAP reform package might cause entitlements to be reallocated or abandoned altogether which could spell disaster for the tenanted sector" TFA Chief Executive George Dunn said.

The current proposals from the European Commission provide for the allocation of new entitlements for direct payments based on claims made in 2014 for individuals who have also made claims under the existing direct payments scheme in 2011.

"If the current European Commission proposals remain unchanged we could see a significant number of tenants losing out on vital support payments. Given that there is currently a workable entitlements system in place it must be an option for EU Member States to simply allow for those entitlements to carry forward into the new regime post its proposed beginning in 2014," said Mr Dunn.

"Failing that EU Member States must be able to limit the extent that individuals can claim new entitlements to the claims that they made in 2011 subject to individuals being able to acquire eligibility in freely agreed contracts if they have purchased or taken on land between 2011 and the start of the new regime."

"This will avoid the sort of land banking that was characteristic before the introduction of the Single Payment Scheme in 2005 when there was speculation as to how it would be implemented," said Mr Dunn.

"Tenant farmers would also be protected by two further measures. Firstly, restricting support payments to those who were able to meet the definition of "active farmer" which would include only those individuals in occupation of land, who are taking the entrepreneurial risk and in day-to-day management control of the agricultural activities on the land. Secondly, setting a maximum limit on the amount of payments that can be received by an individual. This second proposal is currently part of the Commission’s plans and the TFA would support a limit of €300,000," said Mr Dunn.