Minister Coughlan announces abolition of the claw-back on sales of Single Payment Entitlements

The Minister for Agriculture and Food, Mary Coughlan T.D., today announced that she has decided to abolish the claw-back on the sale of Single Payment Entitlements with immediate effect.

The EU regulations governing the transfer of Single Payment entitlements provide that the Member State may apply a claw-back in respect of entitlements sold (with or without land) in order to replenish the National Reserve. The claw-back provision which is non-mandatory has been applied in Ireland in 2006 and 2007 with a maximum rate of 30% in 2006 reduced to 15% in 2007.

"In practice, the total value of entitlements arising from the claw-back is proving to be quite limited and doesn't justify the cost of administration associated with the whole system. The abolition of the claw-back is a further move to simplify the process of transferring entitlements for farmers and administrators alike. No claw-back will be applied to sales of entitlements (with or without land) for the 2008 and subsequent scheme years" said the Minister.

19 June, 2007

Date Released: 19 June 2007