Last updated 13/2/15
REQUIREMENTS FOR REGISTERING
OF FARM PARTNERSHIPS
(The basis for these Requirements will be given legal effect once the Statutory Instrument is signed)
A.
ADMINISTRATION OF THE REGISTRATION PROCESS
1. The Department of Agriculture, Food and the Marine, will establish and maintain The Register of
Farm Partnerships. Teagasc will take a leadership role in the promotion of farm partnerships and
in the training of industry professionals. Teagasc will also be the primary agency responsible for
the research and development of Farm Partnerships.
2.
Definitions:
‘farming’ means the production, rearing or growing of agricultural products including
harvesting, milking, breeding animals and keeping animals for farming purposes;
‘agricultural holding’ means a unit consisting of at least 3 hectares of useable agricultural land
containing all the production units managed by the farmer on his/her holding. For exclusive
pig/poultry enterprises or horticultural enterprises the agricultural holding can consist of at least
1 hectare;
‘farm assets’ means land, buildings, livestock, machinery, entitlements;
‘farmer’ means a natural or a legal person who owns, or who is lessee of, an agricultural holding
in the State and is carrying out an agricultural activity on that agricultural holding;
‘farm hub’ means the area of the farm containing the farmyard and/or farm buildings which acts
as the operational centre of the holding;
‘off farm income’ means income earned in employments outside the working of the farm
partnership, as evidenced in a P60 or certified accounts;
‘production unit’ means the land parcels or buildings where the various farming activities are
carried out on the agricultural holding;
‘the Minister’ means the Minister for Agriculture Food and the Marine.
‘useable agricultural land’ means the total area of land under crops, pasture, forestry or rough
grazing available for use by the farmer.
B.
FARM PARTNERSHIPS
1.
A Farm Partnership shall consist of at least two people, one person from category (i) below and
one or more person(s) from categories (i) or (ii):
(i)
A farmer who has been farming in his or her own right for two years preceding the date
on which the partnership is established; and
(ii)
A person with an appropriate agriculture qualifications® whose contribution to the farm
partnership entitles him/her to at least 20% of the profit sharing arrangement; and, if
over 41 years of age on date of registration, has an annual off farm income of less than
€40k.
®
See Department website for list of appropriate agriculture qualifications.
Other persons, aside from those described in categories (i) and (ii) above, for example, coowners, family members or a person with or without land who wish to make an investment may
also be registered as participants in the partnership but will not have access, in their own right,
to EU and State support scheme benefits, that may accrue to membership of the Farm
Partnership Register.
2.
A person may not, at any one time, be a partner as a natural person and as a shareholder or
director in a company that is a partner in the same Registered Farm Partnership. Similarly, at any
one time a person may not be a shareholder or director in more than one company that are
partners in the same Registered Farm Partnership.
3.
The Department will assign a unique Farm Partnership Reference Number to each partnership.
This number should be used as the scheme application number for all applications for
Department of Agriculture, Food and the Marine support schemes. However it is important to
note that, for animal disease control and traceability reasons, the District Veterinary Office will
continue to assign one or more herd numbers to the participants in the partnership.
C.
APPLICATION FOR REGISTRATION AS A FARM PARTNERSHIP
1.
Applications for registration should be sent to the Farm Partnership Registration Office,
Department of Agriculture, Food and the Marine, Floor 3C Agriculture House, Kildare Street,
Dublin 2.
2.
The following items should accompany all applications:
(i)
a copy of a legally binding written Farm Partnership Agreement which shall be in
accordance with the specimen farm partnership agreement as developed by Teagasc. The
Farm Partnership Agreement should contain, as a minimum, the following information:
i. the name and tax reference number of the Farm Partnership as registered with
the Revenue Commissioners;
ii. the address at which the Farm Partnership records, books and other documents
are to be retained;
iii. the name, addresses and herd numbers of all the partners in the Farm
Partnership;
iv. the PPS Number of each partner, (Company Tax Number for incorporated
partners);
v. the commencement date of the Farm Partnership;
vi. the profit sharing ratio;
vii. LPIS Numbers of each of the production units being included in the partnership
viii. the term of the Partnership Agreement;
ix. clear dissolution procedures for either (a) exiting the Partnership; or (b)
withdrawal of registration;
x. clear procedures in the event of the death of one or more of the partners.
(ii)
File Plans, Copy Folios and LPIS No.’s of each applicant’s agricultural holding, showing
proof of ownership or proof of leasing, and clearly identifying the production units to be
made available to, or excluded from, the partnership, and a copy of leases (stamped
where appropriate) for all leased lands;
(iii)
Evidence from a financial institution stating the account through which all Partnership
transactions will be carried out; and
(iv)
D.
Evidence of agriculture qualifications where required.
CONDITIONS OF REGISTRATION
1.
The partnership agreement must cover a minimum term of five years. However, an application
may be made to the Department, in cases of force majeure or other duly justified cases, for an
exemption from the minimum term.
2.
Subject to the exceptions listed below, all parties to this farm partnership agreement must
submit all of their agricultural holdings and farming assets in to the farm partnership; and those
additional agricultural holdings and assets acquired during the period of the partnership
agreement.
3. However, subject to the agreement of the Minister, the following production units may be
excluded or withdrawn from the partnership:
(a) those used solely or primarily for the purpose of pig, poultry, mushroom, forestry,
bloodstock, intensive horticultural cropping, on-farm milk processing or fuel/electricity
generation enterprises, where such enterprise has been excluded by agreement from
the partnership;
(b) those which are the subject of a Compulsory Purchase Order; and
(c) those lands which are leased out to another user.
Notwithstanding the above, other production units and/or assets may be excluded from the
partnership if the Minister is satisfied that, in the context of the registration process and the
circumstances of the partnership, the exclusion of these production units and/or assets would
not constitute sufficient cause to remove the partnership from the register.
4. A person may not be involved, either as a Category (i) or (ii) partner, in more than one Registered
Farm Partnership at any one time.
5. A farm partnership may not consist of more than 10 partners through a combination of
categories (i) and (ii) personnel.
6. All agricultural payments accruing from the State must be paid to the farm partnership’s bank
account.
E.
OPERATION and COMPLIANCE
1. Every five years the Partnership shall apply to the Minister for a certificate of registration,
effective from the expiry of the previous certificate.
2. The Minister must be notified within 21 calendar days of any intended alteration to the
Partnership Agreement, including changes to the area of land; the legal status of the partners; or
changes to the profit sharing ratio.
3. An amended Farm Partnership Agreement must be submitted, with the changes included.
4. The partners in the Partnership agree that no liability shall attach to the Minister arising out of
the registration of the partnership, or from any provisions contained in the Partnership
Agreement.
F
CO-OWNERSHIP OF AGRICULTURAL LANDS FORMING PART OF A FARM PARTNERSHIP
1. Where a proposed partner in a Registered Farm Partnership is a co-owner of a holding, an
exemption should be obtained from the Minister by the co-owners who do not wish to be partners
in the Farm Partnership. (This provision does not apply to commonages shareholders.)
G.
DISTANCE BETWEEN PARTNERSHIP MEMBERS
1. A Registered Farm Partnerships cannot be formed between independent holdings whose hubs
are in excess of 50kms apart. Applicants may apply to the Minister for a derogation in
exceptional circumstances
H.
CERTIFICATES OF REGISTRATION
1.
Where the Department is satisfied that it is appropriate to place a farm partnership on the
Register it shall issue a Certificate of Registration, which will contain the assigned Farm
Partnership Registration Number to be used for payment applications.
2.
A Certificate of Registration will be granted for a maximum period of five years subject to no
changes occurring in the original agreement;
3.
The Certificate of Registration will be issued to the registered address of the Partnership;
4.
A Registered Farm Partnership may not benefit from State or EU supports provided for such
partnerships until a Certificate of Registration has been issued by the Department;
5.
Where a Registered Farm Partnership is removed from the Register a copy of the Notice of
Removal will be sent to all of the partners involved.
I
COMPLIANCE CHECK
1.
Each Registered Farm Partnership will be required to submit a copy of their Form 1 (Firms)
Partnership Tax Return on an annual basis. This form, which indicates that the Partnership
continues to be in existence, also indicates the distribution of profits. This distribution will be
checked to ensure that it complies with the profit sharing ratio as set out in the Farm Partnership
Agreement submitted to the Department.
2.
In addition each Registered farm partnership will be required to submit a copy of the P60 or
audited farm accounts for each category (ii) partners who has reached their 41st Birthday
Department of Agriculture, Food and the Marine
February 2015.