Tony Killeen (Clare, Fianna Fail)

I thank the Deputy for raising this important matter and welcome the opportunity to participate in the debate.

Ireland is currently experiencing a period of economic turbulence, stemming from both international and domestic factors, and the context for this year's budget differed considerably from the majority of those of the past 15 years. The priority in preparing the 2009 Estimates for the Department of Agriculture, Fisheries and Food was to focus available resources on the measures that allow us to maintain and grow the productive capacity of the agri-food sector. The 2009 Estimates provide over €1.8 billion for the Department. This, when combined with EU funding of €1.4 billion, means that total expenditure in 2009 will amount to over €3.2 billion. Even with a provision on that scale, however, difficult choices had to be made between competing demands. It was in these circumstances that it was necessary to suspend the young farmers' installation aid scheme and the early retirement from farming scheme for new applicants.

The young farmers' installation aid scheme was introduced in June 2007 under the aegis of the rural development programme for 2007-13. It provided a higher grant level of €15,000, an increase of 58%, to farmers between the ages of 18 and 35 years who set up in farming for the first time on or after 1 January 2007. The principal requirements of the scheme were that applicants must generate a minimum of five production units from farming at the time of first setting up or within 12 months of that date; fulfil, within two years of first setting up on the farm the educational requirements of the scheme; submit and complete a business plan; obtain title or leasehold title to at least 15 hectares of eligible lands in less-favoured areas or 20 hectares in other areas; and have not more than €50,000 in non-farm income in a designated tax year.

Since the launch of the young farmers' installation scheme in June 2007, some 941 applications have been received under the scheme and 357 payments made totalling €5.355 million. The Minister has confirmed on a number of previous occasions that all commitments entered into under the scheme, up to and including 14 October 2008, will be honoured by the Department.

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