S.I. No. 116/1974 - European Communities (Retirement of Farmers) Regulations, 1974.

S.I. No. 116 of 1974.

EUROPEAN COMMUNITIES (RETIREMENT OF FARMERS) REGULATIONS, 1974.

I, TOM FITZPATRICK, Minister for Lands, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), hereby make the following regulations:

1. These Regulations may be cited as the European Communities (Retirement of Farmers) Regulations, 1974.

2. These Regulations shall come into operation on the 1st day of May, 1974.

3. ( a ) The Irish Land Commission shall have and enjoy all such powers as are necessary or expedient for the purpose of carrying out the Farmers' Retirement Scheme, 1974, which provides for the measures necessary for compliance by the State with Council Directive No. 72/160/EEC of 17 April, 1972¹ and which is set out in the Schedule to these Regulations.

¹ OJ No. L 96/9, 23.4.72 (OJ SE 1972 (II) )

( b ) The acquisition of land by the Irish Land Commission and the disposal of that land by the Irish Land Commission under the Farmers' Retirement Scheme, 1974, shall be excepted matters for the purposes of section 12 of the Land Act, 1950 (No. 16 of 1950).

SCHEDULE

FARMERS' RETIREMENT SCHEME 1974

Definitions

Article 1.

IN THIS SCHEME—

( a ) a "farmer whose main occupation is farming" means a person who is the owner or, where land is occupied, the occupier of a holding of agricultural land and who has shown to the satisfaction of the Land Commission that he

(i) has worked in agriculture on that holding for a period of at least five years immediately prior to making application for an annuity and/or premium;

(ii) has devoted during this period at least 50% of his working hours to work in agriculture on that holding;

(iii) has derived from work in agriculture on that holding during this period at least 50% of his earned income

and

(iv) has owned or occupied that holding continuously for a period of 5 years prior to the date of application;

( b ) "holding" means all the land owned or occupied by an applicant or applicant and spouse;

( c ) "agriculture" shall include dairying, livestock (including pigs and poultry) production, the cultivation of grass and tillage crops and the growing of horticultural crops;

( d ) an "approved development plan" means a plan formulated under Article 8 of Part II of the scheme for the implementation of Directive No. 72/159/EEC dated 17 April, 1972, of the Council of the European Communities concerning the modernisation of farms which is submitted by a farmer to the Department of Agriculture and Fisheries and which has been approved by that Department;

( e ) farmers who are more than 50% disabled are those who (on the date of the application for an annuity and/or premium) by reason of physical illness, injury or infirmity are unable, in the opinion of the Land Commission (confirmed where necessary after a medical examination by a doctor nominated by them) to carry out the normal duties of a working farmer and unlikely in the foreseeable future to be able to do so;

( f ) "earned income" means, in relation to any individual—

(i) any income which is immediately derived by the individual from the carrying on or exercise by him of his trade, profession or vocation, either as an individual or, in the case of a partnership, as a partner personally acting therein

and

(ii) any income arising in respect of any remuneration from any office or employment held by the individual

and

(iii) any income from any property which is attached to or forms part of the emoluments of any office or employment held by the individual, but does not include any income of the individual's spouse;

"earned income from agriculture" means the revenue of the farm business including any net inventory changes and farmhouse consumption less all appropriate charges and expenses including remuneration of capital;

( g ) "the Land Commission" means the Irish Land Commission.

Qualified Applicants

Article 2.

The financial benefits of this scheme may be granted only to the following who apply for them—

( a ) a farmer whose main occupation is farming on a holding not exceeding the equivalent in the opinion of the Land Commission of 45 statute acres of good all-purpose agricultural land.

This limit, however, can be exceeded

(i) where, in the opinion of the Land Commission, such holding is particularly suitable and required for the provision of additional land for farmers in the same locality whose approved development plans confirm that such extra land is needed and other suitable holdings are not at that time available for purchase or leasing for this purpose;

or

(ii) where the applicant can prove to the satisfaction of the Land Commission that his earned income from the holding is significantly lower than the earned income derivable from a farm of 45 acres of good agricultural land under normal methods of husbandry and management;

( b ) a farmer whose main occupation is farming and who is disabled as defined in Article 1 (e), regardless of the size of his holding;

( c ) a widow who is the owner of agricultural land regardless of the size of the holding for whom farming has become her main occupation through the death of her husband provided that she or she and her late husband between them have worked in agriculture on that holding for at least the previous 5 years;

( d ) an owner who has owned the holding continuously for the previous five years and an occupier of the same holding as provided for in Article 5.

Financial Features of the Scheme

Article 3.1.

Persons qualified under Article 2 (a), 2 (b) or 2 (c) above who comply with the conditions specified in Article 4 will if under 55 years of age at the date of the approval of the application be eligible for a premium calculated in accordance with Article 6 which shall be paid by the Land Commission.

Article 3.2.

Persons qualified under Article 2 (a), 2 (b) or 2 (c) above who comply with the conditions specified in Article 4 will if 55 years of age or over at the date of the approval of the application be eligible for a premium calculated in accordance with Article 6 which shall be paid by the Land Commission,

and

an annuity as set out in Article 7.1 which shall be paid by the Land Commission.

Conditions to be satisfied

Article 4.

A person qualified under Article 2 (a), 2 (b) or 2 (c) must

( a ) sell or lease for a minimum period of twelve years his/her holding to a farmer/farmers whose approved development plans provide for the acquisition of additional land, subject in all cases to the approval of the Land Commission and compliance with any conditions which the Land Commission may prescribe

or

( b ) sell his/her holding direct to the Land Commission

and

( c ) undertake to discontinue agricultural activity leading to the marketing of agricultural products and not to hold, take or lease or otherwise acquire any holding of agricultural land or to employ any other person in agricultural activity and to abide by such other conditions as the Land Commission may prescribe. In the case of a married applicant this undertaking must also be given by the spouse.

Owners and Occupiers

Article 5.

In the case of applicants qualified under Article 2 (d) the following conditions will apply:

(1) the owner whose holding conforms to the requirements specified in Article 2 (a) must dispose of the holding in accordance with Article 4 (a) or 4 (b) and comply with the conditions in Article 4 (c) and the occupier must vacate the holding and thereafter comply with the conditions set out in Article 4 (c);

(2) the owner will be eligible for a premium as provided for in Article 6;

(3) the occupier if 55 years of age or over will be eligible for an annuity as provided for in Article 7.1.

The Premium

Article 6.

The premium payable to persons qualified under Article 2 (a), 2 (b), 2 (c) or 2 (d) will be

( a ) 10% of the purchase money subject to a maximum of £1,500

or

( b ) twice the annual lease rent subject to a maximum of £3,000.

The Annuity

Article 7.1.

The amount of the annuity under the Scheme will be £600 for a married person whose spouse is alive or £400 for a single person, widow or widower.

Article 7.2.

All annuities granted under this Scheme will be paid for the lifetime of the qualified person.

Article 8.

In the event of the death of a married applicant under the Scheme the surviving spouse will be paid an annuity of £400 by the Land Commission.

Article 9.

The amount of the annuity will be determined by the marital status of the person qualified under Article 2 (a), 2 (b), 2 (c) or 2 (d) at the time of completion of the sale or lease proceedings but this amount may be varied to take account of subsequent changes in the marital status of the qualified person provided that the annuity payable to a qualified person is not reduced.

Article 10.

In the case of a holding owned or occupied by more than one person, only one annuity will be payable to the person or persons as determined by the Land Commission.

Article 11.

An annuity will not be payable to a person qualified under Article 2 (a), 2 (b), 2 (c) or 2 (d) whose holding has been reduced by more than 15% of its area (except where part or parts of the holding were acquired in the public interest by the State, local authority or statutory body) in the three years preceding the submission of an application.

Article 12.

A farmer who is in process of implementing an approved development plan under the Farm Modernisation Scheme will not save in exceptional circumstances be eligible for either a premium or an annuity or both.

Article 13.

The annuity may be increased from time to time as may be necessary to take account of any increase in the Consumer Price Index.

Article 14.

The annuity shall be payable monthly in arrear commencing on the first day of the second month following the completion of the sale or lease proceedings.

Purchase of land by Land Commission

Article 15.

(1) Where land is sold to the Land Commission under this Scheme the agreed price will be payable in cash but it will be open to the vendor to opt for a life annuity as provided for in Article 16.

(2) Land purchased by the Land Commission under this Scheme may be disposed of by it in a manner and for a purpose specified in Article 5 of Council Directive No. 72/160/EEC of 17 April, 1972.¹

¹ OJ No. L 96/9, 23.4.72 (OJ SE 1972 (II) )

Life Annuity

Article 16.

Beneficiaries under the Scheme who have reached 55 years of age and who sell their lands to the Land Commission may, if they so wish, and in lieu of the payment in cash of the whole or part of the purchase price and premium be granted a life annuity in accordance with Regulations to be made by the Minister for Lands with the consent of the Minister for Finance.

Suitability of lands

Article 17.

Where a person or persons apply for the benefits of this Scheme, the Land Commission must be satisfied that the applicant's holding is suitable for the purposes of structural reform, afforestation, recreational activities, public health or other public purposes before the application is granted.

Retention of Residence

Article 18.

Persons qualified under Article 2 (a), 2 (b), 2 (c) or 2 (d) who are prepared to sell or lease their holdings under the provisions of this Scheme shall if they so decide be allowed to retain ownership of and remain in occupation of a dwellinghouse on the holding together with an area of accommodation land not exceeding two acres. Where the holding is being sold to the Land Commission the house and the accommodation land will, if the owner, or the occupier with the consent of the owner, wishes to continue to reside therein be excluded from the transaction.

Title

Article 19.

Where a person qualified under Article 2 (a), 2 (b), 2 (c) or 2 (d) who elects to dispose of his/her holding under this Scheme is not the registered owner of the holding in question the Land Commission may, at their discretion, provide a grant not exceeding £100 for the purpose of resolving title difficulties.

Vendors Costs and Expenses

Article 20.

Where a holding is sold under this Scheme to the Land Commission, the costs and expenses of the vendor in relation to the sale, when taxed or agreed, will, if the vendor so requests at the time of closing or within one month thereafter, be paid by the Land Commission. In default of agreement with the Land Commission the amount of the costs and expenses will be ascertained on taxation and the Land Commission will be entitled to oppose.

Special Provisions

Article 21.

The benefits of this Scheme will not become payable to a person who proposes to lease or sell his holding to a farmer with an approved development plan which provides for the acquisition of additional land until he has furnished such evidence in relation to the transaction as the Land Commission shall require.

Article 22.

Where a farmer benefiting under this Scheme or the spouse of such a farmer fails to comply with the conditions in Article 4 (c) then any annuity referred to in Article 7 being paid will cease and proceedings will be instituted for recovery of any payments already made by way of such an annuity or premium.

Article 23.

Applicants for an annuity under the provisions of this Scheme must produce satisfactory evidence of age to the Land Commission.

Article 24.

The Land Commission may, from time to time, require the recipient of an annuity under this Scheme to furnish to them a certificate of a registered medical practitioner or a solicitor or a bank manager or a member of the Garda Síochána not below the rank of sergeant that he and where relevant, his spouse, is alive and the Land Commission may withhold payment pending the furnishing of such certificate.

Article 25.

The decision of the Minister for Lands in all matters relating to this Scheme, other than the acquisition of land by the Land Commission and the disposal of that land by the Land Commission, shall be final.

Article 26.

This Scheme may be cited as the Farmers' Retirement Scheme, 1974.

GIVEN under my Official Seal, this 30th day of April, 1974.

TOM FITZPATRICK,

 Minister for Lands.

EXPLANATORY NOTE.

These Regulations introduce a Scheme of financial aids as provided for in Council Directive No. 72/160/EEC for certain categories of farmers retiring from farming.