Mick Wallace (Wexford, Independent)
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Question 34: To ask the Minister for Agriculture; Fisheries and Food in relation to payments, if he will give a guarantee that all inspections be completed, processed and cleared in order to deliver payments on schedule within the Charter of Rights and that disadvantage area payments will be paid in mid-September and single farm payments advanced on 16 October; in a year of significantly higher costs if he will guarantee that all payments due will be made to farmers by year end; and if he will make a statement on the matter. [17619/11]

Simon Coveney (Cork South Central, Fine Gael)
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The single farm payment forms a significant part of the annual income of the farming community in Ireland. It is clear that the timing of this payment is extremely important to farmers, particularly those farmers with low farm incomes. It is also important in the current difficult financial circumstances where farmers, like other sectors in the economy, are finding it difficult to access credit.

The answer to the Deputy's question is "Yes". I issued a press release earlier stating we have been successful along with other member states in lobbying the Commission to facilitate the early payment of 50% of the moneys under the single farm scheme on 16 October. Farmers will receive 50% of their payments in mid-October rather than having to wait another few months for reasons the Deputy can outline. There have been many problems with drought in Europe this year and there are specific problems in Ireland relating to credit and cash flow. Ireland along with a number of other countries made the case to the Commission that it should facilitate early payments of the single farm payment this year and we have been successful. Only an hour ago, I issued a press statement to that effect.

Mick Wallace (Wexford, Independent)
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I thank the Minister. Are the agri-environmental options scheme, AOS, payments included? Some are still due from last year. Is it true that the EU funds 50% of these payments and the Exchequer must make up the remainder? Farmers are wary because if all the payments are not made this year, there is a fear that the Exchequer may be under even more pressure next year. If farmers do not get the payments this year, they are worried they may not get them next year.

Simon Coveney (Cork South Central, Fine Gael)
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The single farm payment is in a different category. The money for this does not come under my expenditure ceiling. The scheme is 100% funded by the Union and it is paid every year. Normally we make a case for an early payment of a portion of the money. Sometimes we are successful and other times we are not. We were successful this year in securing early payment of 50% of the money, which is good.

Farmers are right to be frustrated that they have not received their AOS payments for the final three months of last year because they should have had them by now. Since taking office, I have worked hard to find out what is the blockage. They are likely to get the outstanding payments from last year at the end of July or the beginning of August. That is not the first time I have said this. I have outlined this to the farming organisations, which are also frustrated about this. We are trying to put in place systems to ensure payments can be made as early as possible.

The Deputy is correct that we will be under much more pressure next year in the context of expenditure and, therefore, we are trying to finalise as many payments as possible this year, not only under environmental schemes but also under other grant-aid schemes. For example, if we grant-aid developments on farms under the targeted agricultural modernisation scheme, TAMS, we will seek to get that money spent this year.

Mick Wallace (Wexford, Independent)
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Does the Minister agree small farmers are the most reliant on these payments? The State has taken the least care of them over the years. We have been much better at looking after large milk farmers rather than small farmers who are more reliant on these payments.

Simon Coveney (Cork South Central, Fine Gael)
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We need to look after both. The big guy will deliver the targets we are setting for ourselves in providing the volumes of milk we need for infant formula, cheese, yoghurts, liquid milk and other products and that is just in the dairy sector. Small farmers are also important. They are the backbone of rural Ireland and, in many cases, they provide quality beef to factories because they deal with suckler herds. It is my job, therefore, to ensure small farmers can stay in business and large farmers, who have the capacity to expand and deliver growth, are encouraged to do so. It is about trying to do both.