Pádraic McCormack (Galway West, Fine Gael)
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Question 48: To ask the Minister for Agriculture and Food the plans she has to provide greater support for small farmers; and if she will make a statement on the matter. [14016/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am keenly aware of the need to make available appropriate supports for small farmers. In this regard, small farmers benefit from all of the supports, within the legal framework of the European Union, administered by my Department. One of the areas where this is possible is the rural environment protection scheme. The latest version of the scheme was introduced in June 2004. In addition to an average increase of 28% in payment rates, payment of €200 per hectare is also provided for the first 20 hectares, €175 per hectare for the next 20 hectares and further payment digression thereafter.

Under the CAP Rural Development Plan 2000-2006, compensatory allowances payable in the disadvantaged areas moved from a payment per animal to a payment based on area. Under the area based scheme, farmers in the disadvantaged areas with a minimum stocking density of 0.15 livestock units per hectare can qualify for payment on up to 45 hectares of land. Approximately 99,800 farmers qualify for payments totalling €231 million annually. This represents an average payment of €2,315 compared with an average payment of €1,523 under the old headage schemes. The smaller farmer has benefited under the new scheme, which will continue in its present format for 2005 and 2006.

The EU Commission's proposal for the post-2006 rural development framework provides for the reclassification of disadvantaged areas. The suggested new methodology would be based on natural conditions, notably soil and climatic factors. The socioeconomic criteria taken into account to designate the current eligible areas will no longer apply. At meetings of the Council of Ministers, I have stressed that this is an extremely important and sensitive issue. Other member states have also adopted a similar position. I will continue to seek a solution that is equitable and in Ireland's interests. I cannot be definitive as to the shape of that solution, since negotiations are still in progress.

With regard to the dairy sector, under the milk quota restructuring programme which I announced before Christmas, small farmers again receive consideration, in that producers with a quota of less than 350,000 litres will be able to purchase twice the amount available to larger producers in the same co-operative area. Moreover, younger farmers with less than 350,000 litres will have priority access to a further 25% of the pool.

Additional information not given on the floor of the House.

Priority was given to applications from small scale producers under the milk quota appeals tribunal hardship scheme for 2004-05. Under the single payment scheme, there is provision for modulation whereby a reduction of up to 5% is made in each farmer's entitlement to fund certain rural development measures. However, this money will be refunded in respect of the first €5,000 of each farmer's single payment. The result is that up to 45% of Irish farmers — essentially those in the smaller category — will not be affected by modulation. In so far as it is possible, therefore, support is provided under my Department's schemes, for smaller farmers. Support is also available to eligible farmers under the farm assist scheme, administered by my colleague, the Minister for Social and Family Affairs.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I thank the Minister for her reply. Given that farmers with less than 20 livestock units are not eligible for grant aid under the current structure, it will be difficult for them to survive. Does the Minister accept farmers in counties such as Cavan and Monaghan who went into pig and poultry production on small acreage are not eligible either while mushroom producers are in serious difficulty?

I thank the Minister and the Minister of State, Deputy Brendan Smith, for their efforts to designate the remainder of County Monaghan as disadvantaged. It proves the Minister's predecessor ignored the issue and failed to deliver. I pay tribute to both of them.

John Browne (Wexford, Fianna Fail)
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The poor farmers in Wexford were left out again.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I refer to the Teagasc office in Bailieboro, which is to close. How can small farmers survive if advice is not available within 20 or 30 miles of their homes? This is unacceptable and cannot be tolerated. If small farmers are to remain in business, they must be given realistic grant aid and advice regarding alternatives to generate income outside farming. If that is not done, the industry will change dramatically in the next five years.

Mary Coughlan (Donegal South West, Fianna Fail)
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People in my county used to be envious of Deputy Crawford's county when it came to intensive farming. I agree there are serious issues in the pig and poultry sectors. We have met everyone involved, including local authority officials, public representatives and the farming organisations, and we are working together on a partnership basis to address these issues. The Minister of State, Deputy Browne, and myself are examining alternative methodologies to reduce costs in these sectors.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I have been saying that for 12 years but nobody will listen.

Mary Coughlan (Donegal South West, Fianna Fail)
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We are all listening. Mushroom producers have been through a difficult time in recent years. While the number of producers has reduced, the output is still good. We are anxious to maintain and develop the industry. We have provided support and investment and Bord Bia has done a great deal of work to promote the industry.

Deputy Naughten wants commercial farmers to be looked after while Deputy Crawford is looking out for small farmers. There are a few large farmers in his constituency. New methods must be developed to support different farmers. REPS has been helpful for small farming enterprises. With regard to alternatives, we have debated why farmers are not going into organic farming, despite the significant money being made available in this area, which is not being taken up. Free range farming also presents a significant opportunity. It is almost as easy, if not cheaper, than organic farming. Members should visit the farmers in County Louth who have taken up free range farming. They have done well and they achieve higher prices for their products. We must think outside the box.

The Teagasc office issue is a kick for touch job. The issue has been raised and the three Ministers will meet Teagasc representatives in this regard. However, the issue must be examined in a pragmatic, sensible way. Will we approach this in a professional manner or will we leave the service as it has been for the past 40 or 50 years? Teagasc's advisory service is superb but a first class service, including an outreach facility, must be provided while working with farmers. Many Teagasc employees go out and about to talk to farmers and they are very much part of the community. A number of issues arise regarding the closure of offices, which are politically sensitive. We will examine them but the Teagasc board makes the decisions, not the Department.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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It is ridiculous. Teagasc is short of money.

Mary Coughlan (Donegal South West, Fianna Fail)
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Teagasc has plenty of money. A more modern approach to farming must be taken and this can be reflected in many ways. The smaller farmer could be as adept as the larger farmer at adopting the new approach. The Department's role in providing support will be examined. We will also examine the way in which the role of Teagasc will change because farming has changed. The three Ministers will discuss these issues with the Teagasc board in the next fortnight.