Tom Fleming (Kerry South, Independent)
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Question 31: To ask the Minister for Agriculture; Fisheries and Food when 2010 agri environment options scheme payments will be made; and when will he get agreement on the proposal made to EU Commission last year to increase the natura agri environment options scheme payment from €75 per hectare to €150 per hectare. [12826/11]

Simon Coveney (Cork South Central, Fine Gael)
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I have a long reply. I will read out the final paragraphs as it will be of interest to Deputy Fleming.

When the agri-environment options scheme was launched last year the intention was to increase the rate for designated land from €75 per hectare, as originally announced, to €150 per hectare. My Department has been in discussion with the Commission with a view to obtaining approval for this proposal. However, given the current financial constraints and the overall funding limits which have been introduced in the national recovery plan and to ensure that as many applicants as possible can be accepted into the scheme, I have decided that the rate for designated land will be €75 per hectare.

At that time, a second request was made to allow farmers in agri-environment options schemes to increase the amount of nitrogen they may put on meadow grass. This request was put to me again at a meeting with representatives of the Irish Farmers' Association this morning. We will examine the issue and I hope to be able to give a more welcome and satisfactory answer on the issue of nitrogen and meadow grass. We will not be in a position to accommodate concerns on increasing the payment under the agri-environment options scheme from €75 to €150 per hectare.

Tom Fleming (Kerry South, Independent)
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While I understand the Minister is constrained by the national finances and, in particular, the terms of the IMF-EU agreement, his response is most disappointing in light of the widespread optimism that payments under the agri-environment options scheme would increase from €75 to €150 per hectare. Participants in the scheme are the custodians of the land. Their family farms are, by and large, located in disadvantaged areas. It is great that such farms are still viable and making a contribution to society and rural communities.

Michael Kitt (Galway East, Fianna Fail)
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Does the Deputy have a question?

Tom Fleming (Kerry South, Independent)
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I ask the Minister to reconsider his decision given that participation in the scheme will cost money for farmers in special areas of conservation and special protection areas. His decision will act as a major disincentive to participation in future schemes. If we are to incentivise young people in rural areas to remain on the land to make their living, it must be reconsidered.

Simon Coveney (Cork South Central, Fine Gael)
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While I concur that the decision is disappointing, I had to make choices on the agri-environment options scheme because it was launched without financial provision being made for it in the budget. We had to create a budget for the scheme and faced a choice in this regard. We could increase the payment for the designated areas from €75 to €100 per hectare which would have cost approximately €4 million per annum and required us to reduce the number of successful applicants for the agri-environment options scheme. However, only so much money is available. This year, €25 million has been made available in each of the next five years to fund 2011 applications to join the scheme.

The Deputy is correct that it is difficult to incentivise farmers to continue to keep sheep and cattle on marginal land and they must be supported. For this reason, such farmers are first in line to join the agri-environment options scheme this time around.

Many people have suggested that the number of applications for the agri-environment options scheme is low. To clarify the matter, approximately 7,000 applications have been made under the scheme. At least 6,000 applications have been received to date and it is estimated that once applications are received from various offices, the total number of applications for the new scheme will be approximately 7,000. I want to ensure all applications are accepted. If I were to increase the payment for the relevant designated area from €75 to €150 per hectare, the decision would have implications for other small farmers in need of support who cannot join the scheme despite being located in Natura areas and special areas of conservation. The problem I have is that I must make choices in the context of an expenditure ceiling in my Department. That is the reason for my decision.