Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Essentially, there is going to be an installation aid scheme through the CAP. It was designed and advocated for by Ireland at the start. We wanted young farmers under the age of 40 years to get a top-up payment on the single farm payment, which we had agreement on last week. Up until last week it was going to be voluntary in countries but we secured agreement that it would be mandatory. A young farmer in Ireland will get a 25% top-up on a single farm payment. We need to decide how that 25% is calculated, whether it is 25% of the average farm payment in Ireland and the same for everyone or whether it is 25% of a young farmer's single farm payment.

My personal preference would be for it to be 25% of the average payment in the country in order that each young farmer would get the same level of top-up. Otherwise, the 25% top-up for the person who inherits a very high single farm payment would be much higher than that for a person who inherits a very low single farm payment and I consider this to be unfair.

However, members will have a chance to discuss this when discussing the Common Agricultural Policy. Essentially, the installation aid thinking now centres on the CAP because I do not have the money to introduce another expensive installation aid scheme. As to whether a retirement scheme will be introduced to complement an installation aid scheme, my Department must consider whether we can afford to do that in the rural development programme. In the future, there will be less money available in the rural development programme than is the case at present and consequently, there will be many competing interests for that money. For the Deputy's information, the Commission undertook some research to assess the best way of effecting generational change in farming and of getting young farmers into agriculture. The Commission considered the benefits of encouraging early retirement and of encouraging young people coming into farming and found the installation aid type of approach was much more effective than was a retirement scheme type of approach. This is the reason I have advocated for it.