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HomeFarming News‘Significant additional penalty’ for young farmers who fail CISYF inspections
Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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‘Significant additional penalty’ for young farmers who fail CISYF inspections

The DAFM (Department of Agriculture, Food and the Marine) will select at least 5% of applicants to the new CISYF (Complementary Income Support for Young Farmers), the Young Farmers’ Scheme successor, for on-farm inspections, according to Eddie Forde.

Since 2020, as per EU regulations, the YFS has had an inspection rate of 10% to ensure that young farmer participants are complying with the scheme’s terms and conditions.

Under the previous scheme and new CISYF, the applicant must demonstrate financial and managerial control of the holding, solely or jointly.

A higher payment rate and stricter penalties for inspection failures are among the primary differences between the CISFY – as highlighted in this news article on That’s Farming – and the YFS.

During the DAFM’s recent webinar on new CAP schemes 2023-2027, which took place on Monday, March 14th, Eddie Forde explained the inspection protocol:

“When the inspector calls, the young farmer has to be interviewed and demonstrate knowledge of the day-to-day applications of the holding.”

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“They could be asked, at the last trip to the mart, what animals were bought or sold or what the most recent transaction at the merchants was and so on.”

“The inspector will then examine the transactions and will expect to see the young farmer’s name on the invoices and receipts and the bank account of the holding that supports those transactions.”

Additional penalty

Where an applicant fails the inspection, no scheme payment is made, but in addition, from 2023, there is a significant additional penalty in place, he outlined.

“The penalty is going to be equivalent to the amount that the applicant would have received had they been eligible.”

“When are you talking up to a max of 50ha and around €175/ha, on average, you could easily have a payment of €8,500-€9,000.”

“If the young farmer fails the inspection, that penalty will apply and will be re-couped the following three years.”

“It is something to be mindful of as it is a significant penalty if the young farmer cannot demonstrate control.”

Moreover, an applicant may not withdraw from the scheme in the event of receiving notification of an inspection of being notified of irregularity by the DAFM.

Forde reminded viewers that failure at inspection increases the risk of selection for further inspection in subsequent years.

CISYF VS YFS

He then summarised the main elements of the old YFS and new CISFY:

YFS under old CAP:

  • Under 40 at the time of first application;
  • Set up in 5 years preceding first application;
  • Completed Level 6 agricultural education course;
  • Submit valid BPS application;
  • Payment rate of approximately €67 per activated entitlement (max 50) for 5 years.

CISYF under new CAP:

  • Under 40 at the time of first application;
  • Set up in 5 years preceding first application;
  • Completed Level 6 agricultural education course;
  • Submit valid BISS application and be entitled to payment under BISS;
  • Significant increase in payment rate to average of approximately €175/ha (max 50) for 5 years.

Read more farming news on That’s Farming

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