Farmers are able to transfer Entitlements with or without land however they should be aware that there are various conditions and rules that need to be adhered to.
Transfers of Entitlements must be done using an RLE1 form and the RPA must be given at least six weeks notice prior to the transfer taking place. The latest date that the RPA can receive an RLE1 form to effect transfer of Entitlements for 15th May 2007 is therefore 2nd April 2007. An important rule that Fisher German are encountering , especially where retiring farmers are selling their farms and then their Entitlements is at the effective date of transfer both the transferor and the transferee have to meet the definition of being a ‘farmer’. The transferor can not be a farmer if he has no farm!
Where a transfer of land and Entitlements is taking place, the land must be accompanied by an equal number of hectares eligible for the Single Payment Scheme. This will be one transaction for both the land and the Entitlements. In the case where Entitlements are transferred without land eighty percent of the Entitlements allocated, must have been activated for payment in one year, if this is not the case a transfer can still take place but the Entitlements that have not been activated will need to be surrendered to the National Reserve.
Where changes of occupation occur, the RPA, until recently required notification, but have recently seen sense and no longer require this.
An RLE1 form can also be used to change FVP authorisations from set-aside Entitlements to normal Entitlements if circumstances permit. For further details please contact richard.sanders@fishergerman.co.uk
