Thomas Pringle (Donegal South West, Independent)

I refer to the announcement yesterday of the agri-environment options scheme, AEOS, scheme for 2011 and this is to be welcomed. However, there is great disappointment within the farming community at the cap placed on the expenditure and entry into the scheme. The Minister for Agriculture, Fisheries and Food, Deputy Simon Coveney, has announced the scheme for 8,000 applicants with an expenditure limit of €25 million. Given that the average payment to farmers under last year's scheme was €4,200, this means that to have a scheme equivalent to last year would require funding of over €33 million. Farmers can now expect to have the amount of funding allocated per successful applicant to be reduced significantly to meet the budgeted target, a reduction of over €1,000 per applicant.

It is expected that 11,000 farmers nationally will come out of REPS 3 this year. With only 8,000 places available, very few farmers with marginal land in disadvantaged areas will qualify for entry. Based on this allocation, the scheme will barely provide for farmers with land in commonage, SACs and SPAs. In County Donegal alone, 840 farmers will be coming out of REPS this year and a further 1,040 next year. Many farmers in areas of Donegal, from Killybegs through Dunkineely, Donegal town to Laghey, will have little hope of gaining entry to this new scheme. This will mean they will suffer a significant drop in income support. The REPS and AEOS schemes are environmental protection schemes but as well as protecting and enhancing the environment REPS have in particular become vital in supporting farm families, as will the agri-environment options scheme, AEOS.

The schemes have also contributed to the local economy by providing income to local traders and suppliers where farmers have sold supplies in their local community to enhance their farms. The consequence will be depressed demand in the local economy and with the subsequent loss to the State in VAT and income tax returns. I fail to see, when 50% of the funding comes from the EU to support this scheme, why the Government could not find sufficient revenue to support a scheme with at least as much funding and access as the AEOS from 2010.

During the election campaign, Fine Gael candidates all over the country gave cast iron guarantees to farmers and IFA representatives that the AEOS would be protected and continue in the same form as existed at the time. Farmers took these promises in good faith and now feel a sense of betrayal when just a few short weeks into government, the new AEOS has been significantly reduced. They are very worried when they read the press release from the Minister's office, which states: "Due to the diminishing resources available to the Department in the coming years the Minister confirmed that significant savings would have to be achieved across a wide range of schemes and services in the 2012 Vote for his Department". Farmers should be worried because based on this announcement there will be greater reductions in available schemes for farmers. In the case of County Donegal, with 1,040 farmers coming out of REPS next year, there will be little hope of an adequate scheme for them to apply to. The closure of REPS by the previous Government and now the reduction of the AEOS will undermine confidence and will hit vulnerable less profitable cattle and sheep farmers. Farmers need a stable replacement scheme and not be left wondering what cuts will be made in coming years.

Farmers have to question the Government's commitment to Food Harvest 2020 and the role the Government foresees for the farming sector in the economic revival of rural areas. Food production and security should be an essential part in the overall strategic interests of the country but this reduction in supports and, as the Minister has indicated, further reductions next year and onwards, will leave farmers wondering where rural Ireland stands in the Government's plans.

See this speech in context