Michael Moynihan (Cork North West, Fianna Fail)
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Question 4: To ask the Minister for Agriculture; Fisheries and Food his views that the option to use 2011 as the basis year for eligibility under the new common agricultural policy would be preferable to 2014; and if he will make a statement on the matter. [28023/11]

Simon Coveney (Cork South Central, Fine Gael)
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I have the relevant reference. There has been much concern, particularly among farmers involved in leasing. Last year approximately 17% of the farmed land in Ireland was leased, on either short-term or long-term leases. That is a significant portion of farmland and that 17% of leased land is often very high quality, productive farmland.

Many rumours have been coming from Brussels and elsewhere to the effect that the Commission's proposals, to be published next Wednesday, will have 2014 as the reference year for future single farm payment. That has caused much concern because when a reference year is set for a future date it impacts on land mobility and rental markets. Obviously people will want to maximise the holding they are farming in a reference year. I have repeatedly made the case to the Commission - as have my officials and they did so as recently as earlier today at the G5 - that it must reconsider the position. The idea of setting a reference year in the future could contribute to warping the rental and leasing market for land in a way that would not be either anticipated or desired. This is something we need to prevent.

The Commission has redrafted sections of the proposal it is due to bring forward next week to try to take account of some of the issues we have raised with it. I have my doubts with regard to whether it will change the 2014 reference year. It will probably retain that as the reference year. However, I am of the view that it will include new elements and paragraphs to try to reassure those who had entitlements in 2010 and 2011 that they will also have such entitlements after 2014. We must wait and see what happens next week but I encourage people not to jump to conclusions until the proposal is published next Wednesday.

Michael Moynihan (Cork North West, Fianna Fail)
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The concern among members of the farming community is that people will seek to maximise their entitlements. In such circumstances, the price for rental land would rise to such an extent that it would be unsustainable. In the drive to maximise their payments, this could cause farmers to make decisions that would have a detrimental effect on their businesses. I welcome the Minister's comments to the effect that he and his officials have contacted the Commission in respect of the 2014 reference year. Do I take it that 2014 is still in the mix or are the reports which were leaked last week and which indicated that the reference year had reverted to 2011 accurate?

Simon Coveney (Cork South Central, Fine Gael)
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The honest answer is that we do not know. To use the Deputy's terminology, it is certainly still in the mix. We have been involved in conversations on a fairly regular basis with the Commission at official level. We have very good relations with the Commission and it listens to what we have to say. Ireland is one of the key players in CAP from a policy point of view. Because agriculture is so important to the Irish economy, the Commission takes us very seriously. We have made a strong case to the Commission urging it to be cautious in the context of the original leak which indicated that 2014 would be the base year. We have asked it to try to take account of our concerns and it stated that it would endeavour to do so.

We have also lobbied several governments in respect of this issue and encouraged them to express their concerns to the Commission. To a certain extent, this has worked. At least two other governments have expressed concern on this issue. I do not want to become involved in speculation on how the Commission will respond. I have an idea as to how it might proceed but it would be irresponsible of make any remarks which might get the rumour mill going again. I would rather wait to see what emerges next week. We have made our case very strongly and let us see how the Commission responds. We can deal with the consequences when the published document emerges.