John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Deputy McHugh for raising this important matter, which I am taking on behalf of my colleague, the Minister for Social Protection, Deputy Burton, who cannot be here today.

The farm assist scheme is based on jobseeker's allowance. It was introduced in 1999 to replace the smallholders unemployment assistance for low-income farmers, without the requirement to be available for and genuinely seeking work. Farm assist recipients retain all the advantages of the jobseeker's allowance scheme such as the retention of secondary benefits and access to activation programmes.

The budgetary changes in 2013, which took effect from April 2013, end the more beneficial treatment of farm assist claimants relative to the treatment of other self-employed persons who would be claiming jobseeker's allowance, thereby ensuring greater consistency in the treatment of self-employed persons on both farm assist and jobseeker's allowance. The budget changes increased the amount of means from self-employment which is assessed against the claim from 85% to 100% and discontinued a means-testing disregard for child dependants of claimants.

The headline rates of farm assist are being maintained so farm families with the lowest income will be least affected by these changes. Farm assist remains a flexible payment and farmers experiencing lower levels of income or cashflow problems can ask their local welfare office to review the level of means applying to their claim. The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income and takes into account gross income less any expenses necessarily incurred from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances to ensure the assessment accurately reflects the current situation.

It should be noted that the farm assist means test continues to offer distinct advantages to farmers. For example, payments received under the agri-environment options scheme, AEOS or the special area of conservation, SAC, scheme are assessed separately from other farm income. The first €2,540 of such income is disregarded, 50% of the balance and related expenses are disregarded, with the remainder being assessed as means. In addition, farm assist participants can participate in the rural social scheme which provides additional resources to maintain and improve local amenities and facilities in rural communities. Communities benefit from the skills and talents of local farmers and fisher persons, while participants experience opportunities to improve existing skills or develop new ones and perform valuable work in the community.

The Minister for Social Protection met a delegation from the Irish Farmers Association on 15 May 2013 to discuss a range of issues, including difficulties arising as a result of fodder shortages and the operation of the farm assist scheme generally. Officials from the Department of Social Protection are in ongoing contact with the IFA regarding these issues. The Minister reiterates the statement she made at the meeting with the IFA that farmers currently experiencing financial difficulties as a result of the fodder shortages should apply for farm assist from their local social welfare office. The purpose of the scheme is to provide an income support to farmers who are facing significant difficulties and who may need a helping hand through these difficult periods. The scheme will assist farmers who are experiencing income related problems to continue to farm until their income levels rise in the future.

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