Farm Assist

Rules

The means test takes account of virtually every form of income but assesses it in different ways and disregards various amounts. Different rules apply to income from farming and other forms of self-employment, income from certain schemes such as the Rural Environmental Protection Scheme (REPS), income from employment and income from property and capital.

Farm income and other income from self-employment

Farm income and other income from off-farm self-employment is assessed at 70% (down from 100% since March 2017), with additional annual disregards of €254 for each of the first two children and €381 for the third and other children. (The disregards for dependent children are applied first and 70% of the balance is assessed.)

Your income from farming is assessed as gross income that you, your spouse, civil partner or cohabitant may be expected to receive minus any expenses you incur to earn that income. Your income from the previous 12 months is used to assess your likely future earnings. However, it is not simply assumed that your previous year’s earnings will be repeated the following year as farmers can have significant variations in income from year to year.

When you apply for Farm Assist, a social welfare inspector will call to see you and ask to see various documents. For example, accounts prepared for tax purposes, creamery returns, cattle registration cards, details of headage payments and area aid. They will also want information on the sale of crops, cattle, milk and other produce. The inspector will then assess the costs actually and necessarily incurred in connection with the running of the farm. These costs may include rent, annuities, the cost of inputs like feed and fertiliser and the depreciation of farm machinery. Labour costs are taken into account, with the exception of the labour of the farmer and their spouse, civil partner or cohabitant. You are entitled to receive a copy of this farm income calculation.

If you or your spouse, cohabitant or civil partner has other income from self-employment, this is also assessed, taking into account the costs incurred in the business. The income from farming and other forms of self-employment is added together and the costs involved are deducted.

You may be liable to pay Class S contributions on your income from self-employment.

Income from farm schemes and direct payments

Payments from certain farm schemes, for example, the Rural Environmental Protection Scheme (REPS), the Agri-Environmental Options Scheme (AEOS), the Special Area of Conservation (SAC) or the Green Low-Carbon Agri-Environment Scheme (GLAS) are treated as follows:

• The first €5,000 per year of payments is disregarded then
• 50% of the balance is also disregarded
• Expenses incurred in complying with these measures are deducted

And

• The balance is assessed as means.

You can find a full list of farm schemes that qualify for the disregard on gov.ie.

Under the Direct Payment system, a farmer’s payment can be a combination of payments under 4 separate schemes. These are the Basic Payment Scheme (BPS), the Greening Payment, the Young Farmer’s Scheme (YFS) and Aid for Protein Crops. Direct payments do not get the above disregards.

Income from leasing of land

If you have leased part of your land, the income from the leasing is assessed in full. It is not included in the assessment of income from farming as described above.

If you have leased all of your land, you are not eligible for Farm Assist.

Income from employment

Your income from a job is assessed. Your assessable weekly earnings (gross income less PRSI, union dues and superannuation fees) are usually assessed on the basis of the 13 weeks before you claim. Not all of your income is taken into account. €20 per day (up to a maximum of €60) is deducted from your assessable weekly earnings and then 60% of the balance is assessed as weekly means.

Any income from an occupational pension is assessed in full. If you have seasonal work, you are assessed on your earnings only during the period you are actually working.

Your spouse, civil partner or cohabitant's income from employment is assessed in the same way (€20 per day with a maximum of €60 is deducted and 60% of the balance is assessed as weekly means).

People who were getting Farm Assist before 26 September 2007 and who were still in payment on 26 September 2007 may be assessed differently.

Capital

Income from capital includes property, savings and investments. If you own property that you are not personally using, or you have investments or any other form of capital, the value is assessed, using a special formula. You may or may not be getting an income from the property or investment.

The value of capital is assessed as follows:

• The first €20,000 of the capital is disregarded
• €20,000 to €30,000 is assessed at €1 for every €1,000
• Next €10,000 is assessed at €2 per €1,000
• Excess of €40,000 is assessed at €4 per €1,000

The assessment only applies to units of €1,000. Therefore, all amounts should be rounded down to the nearest €1,000. For example, if you have €38,400 in the bank, the first €20,000 is disregarded, €10,000 is assessed at €1 per €1,000, which is €10 and the remaining €8,000 is assessed at €2 per €1,000, which is €16 per week. So, your income from capital is €26 per week.

Property you do not use

If you don't use your farm and as a result have no income from it, an assessment of its value to you is still made. The farm is effectively treated as capital.

Your home

Your home is not taken into account in the means test unless you get an income from it.

Total means

Your means from all sources are added together to get a total weekly means. You will be paid the difference between your total assessed weekly means and the maximum rate of Farm Assist that you could get if you had no means (including increases for adult and child dependants).