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Department of Agriculture and Food - Dispute about New Entrant Application

Year Concluded: 2006

Complaint Details:

A farmer from County Meath applied to be accepted as a New Entrant for the Single Farm Payment Scheme. In doing so, he asked the Department to exclude the reference years 2000 and 2001 as he would have gained financially if those years were not used for calculating his entitlements. He applied for the exclusions on the basis that he was not engaged in farming during those two years. He also had problems during this period in obtaining a herd number because of difficulties with the lease on the farm he had bought. He also attributed those problems to the Department. Having examined this aspect carefully, I considered that the problem with that particular aspect lay with the complainant and I told him as much. His major concern was, however, that the Department refused to accept the exclusion of the years 2000 and 2001.

The Department said that the years 2000-2001 could not be excluded for the purposes of the Single Farm Payment as the complainant had applied for Area Aid in those years. In the Department's view, the fact that the complainant had applied for Area Aid meant that he was engaged in "farming activity" during the period in question.

When I examined the files I discovered that the complainant had applied for Area Aid in 1999. This is a prerequisite for anyone wishing to farm. In his application he indicated that he had land available to farm. The use of the land was described as "Grass" at the time. He had no stock or other activity listed. The Department had advised my Office at an early stage that the complainant had, in its view, commenced "farming activity" when he applied for Area Aid. It quoted Articles 37(2) and 42(3) of Commission Regulation 1782/2003 to support its position.

However, the complainant claimed he was not engaged in agricultural activity during 2000-2001 but the Department would not accept this. In fact, he was working as a publican. My Office expressed the view that an Area Aid application was, in reality, a precondition to entering farming and was not, of itself, proof of actual agricultural activity. During discussions with my Office the Department claimed that the complainant had admitted that he was actually farming by virtue of the fact that his Area Aid application indicated that he was "growing grass" in the field that he had leased. My Office did not accept that growing grass could reasonably be construed as being engaged in "agricultural activity".

If necessary, my Office was prepared to refer the matter to the European Commission in order to clarify the meaning of "farming activity". However, following discussions, the Department asked for an assurance from the complainant that he had no income in the reference period from farming. He was able to confirm this.

On this basis, the Department agreed to accept him as a New Entrant and excluded the years 2000-2001. The financial difference was very significant. He was granted an annual entitlement of €10,000 for the duration of the scheme (2005-2112). Provided he stays farming, my Office's intervention will mean a difference of approximately €60,000 to him over the period in question.

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