Shane McEntee (Meath East, Fine Gael)

It will be recalled that on foot of commitments given in the 2012 budget significant savings needed to be found in my Department's expenditure for 2012, part of which it was decided should come from the funding assigned to the disadvantaged areas scheme, with the budgeted expenditure under the 2012 scheme being reduced from €220 million to €190 million.

Rather than simply apply an across the board cut to the rates payable or reduce the maximum payable area as a means of achieving these savings, the Minister decided that real efforts should be made to focus the scheme on those farmers who are most actively contributing to achieving its aims, namely, ensuring continued agricultural land use, thereby contributing to the maintenance of viable rural communities, maintaining the countryside and promoting sustainable farming systems which take account of environmental enhancement measures.

The changes to the 2012 scheme, which are subject to the approval of the European Commission as part of the amendments submitted by my Department to the 2007–2013 Rural Development Programme, are as follows. In the first instance, an applicant is required to have met in 2011 a stocking density of 0.3 livestock units per forage hectare for three consecutive months. However, specific provision is being made for those farmers who had a stocking density of less than 0.3 livestock units per forage hectare in 2011 where that lower stocking density was as a result of adherence to lower stocking by agri-environmental measure such as a commonage framework destocking plans, rural environmental protection schemes, REPS, or agri-environment options scheme, AEOS.

All applicants, whose stocking density was below 0.3 livestock units per forage hectare in 2011 will be formally written to and given the opportunity to apply for a derogation on the grounds that his or her participation in one of the above measures resulted in the lower stocking density. The principles of force majeure , exceptional circumstances will also be provided for in the process and provision will also be made for new entrants to farming. While the minimum stocking density remains at 0.15 livestock units per forage hectare, the retention period is increased to six months. In addition, the stocking density is calculated over the 12 months of the scheme year. Again, there will be a continued recognition of farmers who will not meet the minimum stocking requirement due to the impact of agri-environment measures, including the NPWS review, which has established stocking densities for all commonages, rural environmental protection schemes, REPS and agri-environment options scheme, AEOS.

Additional Information not given on the floor of the House.

With the intention of favourably targeting those farmers who are farming exclusively in disadvantaged areas, it is proposed that farmers, whose holdings consist of land situated in disadvantaged and non-disadvantaged areas will be considered to be in a better position from a farming viewpoint than those farming exclusively in disadvantaged areas. Therefore, it is proposed that where part of an applicant's land is declared disadvantaged and his or her main holding is in a non-disadvantaged area, a digressive rate of aid under the scheme will be payable. This digressive payment does not affect applicants whose main holding is in a disadvantaged area. This proposal is regarded as fair in that the greater proportion of less favoured areas land in the holding, the greater the level of payment.

While horses will no longer be eligible for the stocking density calculation, equine breeding enterprises will continue to be eligible on the basis of the contribution they make to the local economy. Equine breeding enterprises are defined as follows: an applicant must, in the first instance, be an equine - horse-donkey - breeder and have bred a foal from a mare registered as on the applicant's holding in 2011, in either 2009, 2010 or 2011, which was registered in a Stud Book approved by the Department of Agriculture, Food and the Marine, with pedigree recorded - sire and dam.

Furthermore, the premises of all who meet this criteria must be registered with the Department of Agriculture, Food and the Marine, in accordance with S.I. No. 8 of 2012, Diseases of Animals Act 1966 (Registration of Horse Premises) Order 2012.

Where these criteria are met, the following equines will then be eligible for inclusion in the stocking density calculation for the 2012 scheme - all equines aged one year to five years - aged using 1 January - registered in the name of the applicant and maintained on his or her holding; breeding mares registered as having been on the applicant's holding in 2011, that have bred an appropriately registered foal in 2009, 2010 or 2011. Where the applicant's main holding-residence is situated in a non-DAS area, land situated more than 80 km from an applicant's main holding is not eligible under the 2012 scheme.

As many applicants will increase their farming activity during 2012 to ensure adherence to the new requirements and others will apply for and be eligible for a derogation on the grounds I outlined earlier, it is not possible to indicate the number of applicants that will be affected by the changes.

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