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

Under the current rural development regulation and subsequent amendments under the omnibus regulation, member states are required to change the approach to the designation of land under the areas of natural constraints scheme. To date, my Department had been identifying eligible areas using a range of socio-economic indicators such as family farm income, population density, percentage of working population engaged in agriculture and stocking density. From 2019, eligible areas must instead be designated using the following list of biophysical criteria, namely, low temperature; dryness; excess soil moisture; limited soil drainage; unfavourable texture and stoniness; shallow rooting depth; poor chemical properties; and steep slope. This process has now been completed and in recent weeks I have published details of the outcome and completed a series of consultation meetings with key stakeholders.

The outcome of the review project can be summarised as follows. The vast majority of land that was eligible under the existing scheme will remain eligible under the new approach. Some 700 townlands that would have previously been eligible are not eligible under the new designation. Farmers impacted financially by this change will receive a degressive phasing out payment in 2019 and 2020. More than 2,000 townlands will now be eligible under the new approach and will be eligible to receive a payment for the first time in 2019.

These changes to the 2019 scheme require a formal amendment to Ireland's rural development programme. This process is now under way to allow the 2019 ANC scheme to open for applications early next year. A separate appeals process with an independent chair is being put in place and I will make an announcement on this matter shortly.

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