There are a number of conditions that you must meet, from a financial and managerial control perspective, if you are farming in a group under the CIS-YF (Complementary Income Support for Young Farmers).
That is according to drystock advisor, Enda Maloney, who highlighted requirements under the Young Farmers’ Scheme successor’s terms and conditions, during the second episode of Teagasc Mayo’s one-hour spring webinar, which focused on new direct payments.
He outlined that a young farmer in a joint herd number, RFP (Registered Farm Partnership) or a company, for example, will be considered eligible for CISYF if they meet a raft of conditions set out by the DAFM.
Managerial and financial control conditions:
- At least one person in the group must meet the definition of a young farmer and have their name on the herd number to draw down young farmer top-ups;
- Young farmer must exercise effective long-term control within the group in terms of farm-related decisions, financial decisions, risks, benefits;
- Young farmer’s name must be on the receiver’s bank account – If it is just your parent’s or parents’ names on the bank account, you must be added to this, and proof must be uploaded by ag advisor to DAFM’s system. Prove transactions – as per note listed below
- All members of the group must complete a declaration form confirming that the YF has effective control in the group, and this must be signed by a solicitor.
Maloney then outlined how to demonstrate financial and managerial control of holding, solely or jointly:
- Young farmer’s name must be on invoices, receipts, and on the bank account used for all transactions of the farm business;
- At the online application state, applicants must submit the following documents containing the young farmer’s name in respect of a farm business-related transaction within the holding;
- Transaction invoice – bank statement showing receipts for day-to-day farm-related goods purchased – Cattle, sheep and fertiliser, for example, purchased, livestock sold, ect.
According to Maloney, at least 5% of CISYF applications will be audited annually, which is no different from the previous YFS, as outlined below:
- Young farmer interviewed;
- Young farmer required to demonstrate knowledge of operation’s day-to-day operation – know what is occurring on the farm – Common area where YS fail inspection if they are unaware of farm operations;
- Examination of farm business transactions to show young farmer’s name on invoices, receipts and bank account of holding;
- Failed inspection = no scheme made that year + penalty will apply equivalent to the amount the applicant would have received if eligible – For example, if a YF was eligible for a top-up of €3,000 if they fail the inspection, the penalty equates to circa €6,000;
- Failure at inspection increases the risk of selection for further inspection.
Maloney continued: “A lot of young farmers that come into my advisory office are usually joining on a joint herd number with their mother or father or a company if in dairying, for example, or a Registered Farm Partnerships.”
“Nearly every one in five fails the inspection. But, if people are away and do not have time to devote to the farm, maybe hold off for a few years to get your herd number and work on the farm yourself.”
- New applicants must submit an application online via the CISYF;
- YFS candidates can apply for a roll-over into CISYF – scheme application based on the remainder of their 5-year term of eligibility;
- Applicants for whom there has been a change of registration to the herd number must submit an application online via the separate NR/CISYF facility on agfood.ie – “For anyone going into a joint herd number with a mother or a father, you must get entitlements transferred from the single name into joint names, and that must be done with your advisor at the BISS application stage.”
- Online-only applications;
- iNet: Platform for correspondence from DAFM;
- Agent (your ag advisor ) associated with applicant will receive an e-mail to advise that correspondence is available;
- Applicants will receive an SMS to advise correspondence available. Applicants must contact their advisor if they receive a text to upload a document that the DAFM requires.
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