Cut in clawback on sale of entitlements in bid to fund National Reserve
A cut in the amount of clawback applied to the sale of Basic Payment Scheme entitlements without land, has been announced.
It is understood the move is in a bid to encourage the level of sales and provide additional funding for the recently announced National Reserve.
In 2016 the sale of entitlements without land was subject to a clawback of 50pc of the number of entitlements sold.
Last week, the Minister of Agriculture, Michael Creed commented “based on the experience of the level of sales of entitlements without land in 2016, I believe that a reduction in the level of claw-back to 20pc is appropriate for 2017 and will assist farmers in future business planning”.
Following recent consultation between the Department and the Direct Payments Advisory Committee, comprising members of the main farming bodies and agricultural advisory and education providers, the Minister has decided that the level of clawback on the sale of entitlements without land in 2017 should be cut to 20pc.
The proceeds arising from the implementation of clawback are used to replenish the National Reserve fund.