The Basic Income Support for Sustainability (BISS) payment is based on the number of hectares farmed and the number and value of payment entitlements held. Farmers receive an allocation of payment entitlements for their farm under BISS. The initial allocation of payment entitlements in 2023 is equal to the number held at the end of the 2022 scheme year. A farmer must declare at least one hectare of eligible farmland for each payment entitlement to qualify for their full payment. The number of payment entitlements each farmer holds, and their values, vary depending on various factors such as:
• payment rates received under previous direct payment schemes
• adjustments each year to move values towards the national average
• any allocations received from the National Reserve
Convergence
Under BISS, there is a process of convergence towards national average payment entitlement values. The convergence process involves gradually narrowing the width of the band of payment entitlement values by moving each closer to the average. Lower payment entitlement values are gradually increased in value, while those above the average gradually decrease.
Usage rule
All payment entitlements must be used at least once every two years. Any payment entitlement that remains unused for two years in a row will revert to the National Reserve. As 2023 is the start of a new CAP scheme, all payment entitlements are in year 1 of usage. No payment entitlements will be surrendered through usage in 2023.
Please see here for more information on usage of payment entitlements
General Information relating to the usage of Payment Entitlements
Usage of Entitlements
Download link for Download View the file ViewFarmers can choose to transfer payment entitlements to another farmer. It has been possible for farmers to transfer payment entitlements since their introduction in 2005. Payment entitlements are a monetary asset and under BISS and they can be transferred with or without land. The number of transfer of entitlement applications submitted has been increasing annually.
Transferring payment entitlements allows farmers to adapt to their individual needs on an annual basis by changing their payment entitlement position. Transferring payment entitlements may increase or decrease the number of payment entitlements held by a farmer, subsequently raising or lowering their payments and ultimately leading them further away from the historic reference points.
BISS payment entitlements may only be transferred to an active farmer in the same member state, except in the case of inheritance or anticipated inheritance (gift). The farmer making the transfer and farmer receiving the transfer must apply to transfer payment entitlements by completing an online Transfer of Entitlements application.
Types of Transfer
The methods for transferring payment entitlements are:
• scission (division of an Unregistered Farm Partnership).
• merger (forming an Unregistered Farm Partnership)
• change of Legal Entity
• change of Registration Details of Herd Number
Leased or rented payment entitlements will revert to the farmer making the transfer at the end of the relevant scheme year - this is not considered a form of transfer. Payment entitlements may not be transferred more than once in a scheme year, unless by way of inheritance or gift.
'Clawback’ rule
Previously, if payment entitlements were sold without land there was a “clawback” of 20% of the number of payment entitlements sold. This has been removed temporarily. Therefore, there will be no clawback of payment entitlements applied to any transfer of payment entitlements for 2023 or 2024.
Transfer dates
The effective date of transfer of payment entitlements in all cases is the closing date, usually 15 May each year. However, if the entire holding or ownership of a herd number is transferred between the date of application for BISS and 31 May, the farmer receiving the transfer must agree to take on the responsibilities of the farmer making the transfer regarding the conditions of the relevant BISS Scheme year by completing a Declaration of Undertaking Form (see below).
The Declaration of Undertaking Form must be completed by both the farmer making the transfer and farmer receiving the transfer and must be submitted online along with the Transfer of Entitlements application. The farmer receiving the transfer must meet the conditions for granting the aid and honour the undertakings given by the farmer making the transfer and, if otherwise in order, payment of that year’s BISS Payment will issue to the farmer receiving the transfer. If the entire holding or ownership of the herd number changes after 31 May, the Basic Payment for that year will issue to the farmer who made transfer for that scheme year, it will issue to the farmer receiving the transfer from the year after.
Withdrawing an application
To withdraw a Transfer of Entitlements application a completed Transfer of Entitlements Application Withdrawal Request form (see below) must be uploaded by both the farmer making the transfer and the farmer receiving the transfer before the application is processed.
Transfer of payment entitlements by groups
Transfer of payment entitlements applications may be submitted by groups such as joint herd number, a registered or unregistered partnership, or a company. Documents and information submitted in support of applications made by such groups are submitted with the consent of, and are available to, all members of the group and authorised agents acting on behalf of the group.
