Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank Deputy McConalogue for raising this issue. I am very aware of the importance of the areas of natural constraints, ANC, scheme which issues annual payments in excess of €200 million to more than 95,000 farmers. The ANC scheme has always been recognised as a very important support for rural society and farmers across the country who farm constrained lands. In light of the importance of the scheme, A Programme for a Partnership Government included a commitment to provide an additional €25 million for the scheme in 2018. I am pleased to confirm that this commitment was delivered in budget 2018 and that, subject to the European Commission’s approval of an amendment to Ireland's rural development programme, this new funding will be available for payment under the 2018 ANC scheme.

A number of different options were available in deciding how this additional funding was to be divided.  I was conscious of the need for money to be targeted at those farmers on lands with higher levels of constraint. With this in mind and having considered the views of stakeholders, I have decided to distribute the additional €25 million as follows: €13 million will be allocated to the mountain type land category; €9 million will be allocated to the more severely handicapped category; and €3 million will be allocated to the less severely handicapped category. These allocations will have the effect of increasing the current payment per hectare rates across all land categories. Those farming on what is known as mountain type land will see their payment increase from €109.71 to €135 on the first 10 ha and from €95.99 to €112 on remaining hectares up to a maximum of 34 ha. Farmers with land categorised as more severely handicapped lowland will see an increase from €95.99 to €104 per hectare up to a maximum of 30 ha, and those with less severely handicapped lowland will see an increase from €82.27 to €88.25 per hectare up to a maximum of 30 ha. I am satisfied that these increased payment rates are consistent with the underlying logic of the scheme, where the highest level of support is targeted at those who are faced with the highest level of constraint on their land. These changes must now be formally agreed with the European Commission by way of an amendment to our rural development programme. My officials have initiated this process, with a view to introducing these new rates for payment in 2018.

See this speech in context