Entitlement Transfers

There has been an update on the ‘Active Farmer’ declaration with respect to entitlement transfers.  The person receiving entitlements must be an ‘Active Farmer’.  Previously it had been thought that, where a farmer completed the ‘Active Farmer’ test for the 2015 application, this would last for the entire year i.e. until 31^st December 2015.  Any transfers with an effective date of transfer up until this date would be possible, but transfers made after this date would need a new ‘Active Farmer’ declaration.  However, the RPA has now confirmed that the 2015 ‘Active Farmer’ declaration will continue until May 16^th 2016 as long as there has been no change in circumstances. 

If there has been a change in circumstance between 1^st January  and 16^th May 2016 it should be possible to complete a stand-alone ‘Active Farmer’ declaration to re-qualify.  This stand-alone declaration can also be used for any new claimants for 2016.  A paper form will be available, but an online declaration should also be possible (see below).   Note that the ‘Active Farmer’ requirement is for the entire scheme year i.e. until 31^st December.  Therefore, if circumstances changed before this date claimants should beware, as this could invalidate their 2015 claim.

Although an RLE1 form can be used now to transfer entitlements, from February it should be possible to lease and permanently transfer entitlements online.  If it works as planned, the new online tool ought to be a lot quicker and easier.  You will be able to see the number of entitlements held, select the number to be transferred and enter the recipient’s details, confirmation is expected to be almost instantaneous.  If possible, it may be preferable to wait until the online tool is available or at least until the 2015 Entitlement Statement is available.  Statements will not be sent out until February; unfortunately until then claimants will not have confirmation of the number of entitlements held.  If it is not possible to wait, it should be realtively easy to workout how many are held.  Firstly, check the number of entitlements that might have been been lost via the 2015 excess entitlement rule (compared claimed area and entitlement numbers).  Then account for any entitlements which may have been transferred in or out since the 2014 claim and any which might have been leased and now reverted back to the lessor.