Low income farmers are not locked out of State pension schemes. As with all other persons, farmers can avail of the State Pension (Contributory) scheme if they have sufficient PRSI contributions. People on low incomes, including farmers, may alternatively qualify for the State Pension (Non-Contributory) (SPNC), which is a means-tested pension, financed by the Exchequer, and paid at up to 95% of the maximum rate of the SPC. The Farm Assist scheme was introduced in 1999 to provide income support for low income farmers. It replaced the Smallholders’ Unemployment Assistance payment and did not entail any payment of self-employed PRSI contributions. Recipients who had previously paid Class S social insurance contributions could, at that time, pay voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions to do so. Since 1st January 2007, the exemption from Class S PRSI has been removed and those self-employed persons receiving Jobseeker’s Allowance or Farm Assist are subject to Class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more. Many low income famers qualify for the non-contributory State pension on this basis.Low income farmers, on Farm Assist who don't, on reaching age 66, qualify for the contributory pension can take the option to retain the Farm Assist rate of payment if that is higher than any amount that they would get on the non-contributory, or means tested, pension.
There are approximately 5,100 farm assist claims in payment at present. Recipient numbers have been falling in recent years, partly due to the rising age profile of the customer base. There are approximately 21% of current recipients aged 62 and over who will reach pension age in the next 4 years. The numbers on the scheme are also dependent on the level of farm income.
The Department is currently finalising a technical review of the means test disregards for the Farm Assist Scheme, in line with a commitment under the Programme for Government and in 'Our Rural Future, Rural Development Policy 2021 – 2025'. Any changes to social welfare supports, are considered in a budgetary context in view of the overall improvements to social welfare supports. I hope that this clarifies matters for the Deputy.
