Subsidy entitlements and new entrant to farming.

[essexpete]

Good morning
Asking on behalf of a potential new entrant to farming. I do not claim anything so not familiar withe process or terminology.
The FBT does not come with any entitlements. Is it worth purchasing entitlements with the thought the subsidies may end/change within the next year or two?
Is there any indication what might be available going forward from the end of the existing payments system and would a farmer have to already be in the system to enter a replacement subsidy system? I hope that makes sense.
Peter

 

[Frank-the-Wool]

Good morning
Asking on behalf of a potential new entrant to farming. I do not claim anything so not familiar withe process or terminology.
The FBT does not come with any entitlements. Is it worth purchasing entitlements with the thought the subsidies may end/change within the next year or two?
Is there any indication what might be available going forward from the end of the existing payments system and would a farmer have to already be in the system to enter a replacement subsidy system? I hope that makes sense.
Peter

Yes to buying entitlements as long as they cost less than one years return.
You need a Crystal ball to work out what will happen in the future but if you can do public good whatever they decide it is then you may receive some money.
However if it is good arable land then I would concentrate on growing a crop and forget the hassle!

 

[Flower Power]

Good morning
Asking on behalf of a potential new entrant to farming. I do not claim anything so not familiar withe process or terminology.
The FBT does not come with any entitlements. Is it worth purchasing entitlements with the thought the subsidies may end/change within the next year or two?
Is there any indication what might be available going forward from the end of the existing payments system and would a farmer have to already be in the system to enter a replacement subsidy system? I hope that makes sense.
Peter

If your friend is a completely new entrant to farming, ie they've not been in control of an agricultural business before they can apply for entitlements from the National Reserve (BPS) no need to buy any. Of course it's too late for 2020 but could apply next year.

 

[Formatted]

The new entrant top up still exists, you can claim up to 100ha of free entitlements and have 20% extra on your BPS.

 

[Flower Power]

The new entrant top up still exists, you can claim up to 100ha of free entitlements and have 20% extra on your BPS.

You don't get a top up as a "new" farmer. That's for 'young' farmers and is an additional 25% per entitlement up to a maximum of 90. There is no limit to the number of entitlements you can get. 1 entitlement for each eligible hectare of land you declare minus the number of entitlements you already hold.