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Finalising the project /Rights to produce and to subsidy, CAP /Transfer of rights to produce and rights to premium
Transfer of rights to produce and rights to premium

In order to benefit from premiums for the maintenance of herds of suckling cows (PMTVA) and ewe-goat premiums (PBC), a farmer must obligatorily hold rights to premium, whether definitive or temporary (i.e. allocated only for the current campaign).
 
It is possible to transfer rights between producers.
For 2006, an important change to ewes and goats premiums comes into application. Goats’ premiums will be totally released and ewes premiums by 50%. The released part will be integrated into the right to single payment (DPU) according to the conditions defined in the CAP reform.
The PMTVA remains 100% attached.
Consequently, transfer mechanisms remain unchanged for ewes premiums and the PMTVA, but no longer apply to goats premiums.

Contact your local ADASEA advisors to find out more about the best possible rights transfers or applications for new rights!

Transfers of rights during “sale – takeover” of a farm

Sale - takeover of a farmis performed during full transfer of a farm (including transfer between spouses). This is the case with which you will probably be faced in your project to set up in France.

Conditions to be met:
  • Take over the whole of the farm, that is to say the entire surface area (except possibly 1 hectare), the buildings and the herd,
  • Continue with rearing of suckling cows and/or ewes.

The seller must not have reduced the surface area of his farm by more than 50% over the past 6 years and by more than 15% over the past 3 years.

Application for sale-takeover of a farm is made on special ADASEA form. It is done jointly by the seller and the person taking over the farm, before transfer.

Contact local Safer and ADASEA advisors to ensure that your project meets Sale – Takeover of a farm conditions!


Transfers of definitive premium rights by the county reserve

The application for definitive rights to premium

If you wish to take over a farm which does not have, or no longer has rights attached to production (Ewes premium, PMTVA): you can make an application for rights.

Files should be collected from the DDAF or the ADASEA and handed in to the ADASEA of the county in which the farm is situated. Unless regulations change, applications should be submitted before 31st October for ewes and before 30th November for suckling cows for the following year (for example before 30th November 2005 for the 2006 campaign).

They are then studied by the County Agricultural Orientation Commission.
Allocations are defined according to rights available in the county reserve and to chosen priorities.

Contact local advisors (ADASEA) in advance in order to assess the availability of rights in the county in which the farm is situated!
Remember too to contact SAFER which sometimes has bonus rights to allocate to candidates it installs.

Offer of definitive rights

This is for breeders who no longer use all or some of their rights. The offer enables them to transfer them to the county reserve, 85% of them are the object of compensation (0.50 € per “ewe” right and 10 € per "suckling cow" right in 2004).

NB! A producer cannot offer his rights if he has benefited from an allocation of definitive rights free of charge over the previous three campaigns.

Files for definitive rights should also be set up with the ADASEA.
 
They can be drawn up year round, but must be registered before 31st October for ewes rights and before 30th November for suckling cows rights in order to be effective for the forthcoming campaign.


Transfers of temporary rights to premium by the county reserve

In parallel, it is also possible to request for offer temporary rights to premium (for one year). Temporary transfers happen at the same time and on the same forms as the application for premium.


Some rules covering the use of rights

A producer must use at least 90% of his rights every year. Rights offered on a temporary basis are deemed to be used.

- Temporary transfer cannot be permanent, after of loan period of a maximum of 3 years, the producer can no longer lend his rights for the next two years.  

- In case of allocation of definitive rights free of charge from the reserve, no right can be transferred over the next three campaigns, whether on a temporary or definitive basis. In case of failure to comply with usage rules, unused rights will be allocated to the reserve, without compensation.


Access to rights to produce

Rights to produce are tools that ensure control over production.

A distinction must be made between:
  • Production references or quotas (dairy and beet) which, if exceeded, lead to serious penalties.
  • Rights to aid (rights to premiums in the beef and sheep meat sector) which, if exceeded, do not lead to penalties but result in the farmer having to produce without aid.

To set up in dairy production, it is essential to have a production reference. A young person setting up generally benefits from the seller’s reference.  

If it happens that this reference is insufficient to guarantee the new farmer a decent income, an additional reference can be requested from the County Agricultural Orientation Commission which may grant it, or not, depending on dairy availabilities and current regulations.


Transfer of rights to produce

For more information contact local advisors.

All these conditions are given for information only; to find out if your application is eligible, do not hesitate to contact local advisors at ADASEA who are directly involved in rights transfers.
 
Contact your local ADASEA advisors or Chambers of Agriculture



 

 

NB! A request for rights is not a request for premium: the premium application period is set for January for sheep and between 1st March and 15th June for suckling cows (unless regulations change).


For further details on the rules for applying for and obtaining premiums, consult the web site of the Ministry of Agriculture.


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