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Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
Does the new cap fit   birketts format - v3 with pictures - 25 03 2014 (5743425 1)
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Does the new cap fit birketts format - v3 with pictures - 25 03 2014 (5743425 1)

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  • 1. DOES THE NEW CAP FIT? A CASE STUDY James Dinwiddy, Birketts LLP 25 March 2014
  • 2. Page 2 • Joe and Ben Farmer are co-owners of 800 hectares. They farm 700 hectares in hand and let 97 hectares to a neighbour called Mrs Sprout (due for renewal). The remaining 3 hectares are let to Ms Toggi. • Joe and Ben are also buying another 300 hectares from a neighbour. • Joe and Ben grow spring and winter wheat, barley, rape and beans. • Joe and Ben have an old written partnership agreement but Ben is thinking of retiring and Joe’s son Harry (also a farmer) may join the business. • Harry has a small holding of 20 hectares but is keen to do more. He turned 33 on 11 February 2014 and may want to join his father in the partnership. • Angular Water own 70 hectares of grassland surrounding a nearby reservoir – currently grazed under a grazing licence.
  • 3. Page 3 Transfer of entitlements when Joe and Ben are buying the additional land. • As you were! – sale and purchase agreement should: • allow for the transfer of the specified amount of entitlements; • ensure cross compliance; • cover submission of the RLE1 form; • contain indemnities for any loss or reduction in the amount of entitlements transferred; • Degressivity – reduction in basic payment
  • 4. Page 4 Mrs Sprout’s FBT • include clause in renewal FBT allowing tenant to use the entitlements whilst in occupation and to transfer them back to the landlord at the end of the term.
  • 5. Page 5 Ms Toggi’s FBT • Ms Toggi only rents 3 ha which is below the minimum eligible area threshold of 5 ha. • will therefore no longer be able to claim. • sell entitlement before end 19 October 2014
  • 6. Page 6 Crop diversification • Joe and Ben’s in hand land – must grow three different crops. This could be the wheat, rape and beans. • They will need to have 5% of their land under EFA. • Cropping licence v FBT
  • 7. Page 7 Crop diversification • Harry’s Land – only needs to grow 2 crops because within the 10-30 ha band.
  • 8. Page 8 Young Farmers Scheme and business restructuring • Harry could qualify as a young farmer and obtain the top-up payment on the land he owns. • What if he became a partner in his father and uncle’s business? – probably not qualify as not head of holding; • any split of the business would be heavily scrutinised by the RPA.
  • 9. Page 9 “Active Farmer” Angular Water – water works on negative list • Restructure • Sell / let
  • 10. Page 10 THANK YOU

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