Seán Kyne (Galway West, Fine Gael)
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I thank the Ceann Comhairle for selecting this issue for the Topical Issue Debate and welcome the Minister of State, Deputy McEntee, who will take it. Next week is the closing date for the single payment forms and there is a certain amount of anxiety in my area of west Galway, in particular in Connemara, in regard to the changes in the stocking rate eligibility for the disadvantaged areas scheme, that is, the increase from 0.15 to 0.3 livestock units per hectare. I have explained to many people at IFA meetings and elsewhere that there is an appeals mechanism and that for areas of Connemara and for farmers in Connermara who are farming commage land, SAC or other designated land and, indeed, environmentally sensitive land that a lower stocking rate will be allowed, that is, lower than the 0.3 livestock units per hectare. Will the Minister of State provide that reassurance to farmers in Connemara that this appeals mechanism is there?

In terms of a time line, I am concerned that applications from farmers caught between the 0.15 and 0.3 livestock units per hectare will be left and that it will be Christmas before they receive payments. They need to be fast-tracked in some way over the summer to ensure these delays do not take place in the autumn.

Last Thursday my constituency colleague, Deputy Ó Cuív, made comments that what should have happened to save money was that certain dairy farmers should have been excluded from eligibility for the disadvantaged areas scheme. He said large dairy farmers but he did not specify what he meant by "large". There are no dairy farmers in Connemara but there are many in east Galway and the eastern part of west Galway in good farming areas such as Athenry, Carnmore, Oranmore, Turloughmore and Claregalway. I am hugely concerned that this is Deputy Ó Cuív's view. Dairy farmers should be reassured that the Minister, Deputy Coveney, the Minister of State, Deputy McEntee, and this Government will protect those farmers in terms of receiving their disadvantaged areas scheme payments.

Shane McEntee (Meath East, Fine Gael)
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I thank the Deputy for raising this issue and if there is any question I cannot answer, I will come back to him. The changes to the rules governing the 2012 disadvantaged areas scheme have recently been published by my Department. I can also confirm that booklets outlining the terms and conditions of the 2012 scheme are being issued to all farmers with DAS-designated land. However, as these proposals have yet to be approved by the EU Commission, they may be subject to change. That said, however, it should be appreciated that should this prove to be the case, the changes will not impose any additional obligations on farmers in 2012.

In so far as the specific issue of the stocking rates and the appeals mechanism, as mentioned by the Deputy, is concerned, I can confirm that the requirements under the 2012 scheme are as follows. In the first instance, an applicant is required to have met a stocking density in 2011, for three consecutive months, of 0.3 livestock units per forage hectare. Thereafter, while the minimum stocking density remains at 0.15 livestock units per forage hectare for 2012, the applicant must meet the minimum stocking requirement for six consecutive months during the scheme year. In addition, the applicant is also required to meet an annual stocking density average of 0.15 livestock units per forage hectare, which will be calculated over the 12 months of the scheme year.

However, specific provision is being made for those farmers who had a stocking density less than 0.3 livestock units per forage hectare in 2011 where that lower stocking density was as a result of adherence to a lower stocking requirement of an agri-environmental measure such as a commonage framework de-stocking plan, the rural environmental protection scheme or the agri-environment options scheme. All applicants whose stocking density was below 0.3 livestock units per forage hectare in 2011 will be written to formally by my Department and given the opportunity to apply for a derogation on the grounds that his or her participation in one of the above measures resulted in the lower stocking density. The principles of force majeure-exceptional circumstances will be provided for in the process. Provision will also be made for new entrants to farming. This process will be commenced as soon as the EU Commission makes a formal decision on the proposed changes to Ireland's rural development programme, including the disadvantaged areas scheme.

An increasing number of applicants under the scheme have discontinued cattle or sheep farming, but have continued to benefit from aid under the scheme by grazing some horses on their land. It is proposed that horses will no longer be eligible for the stocking density calculation on the basis that these applicants' contribution to the rural economy is minimal. However, equine breeding enterprises will continue to be eligible on the basis of the contribution they make to the local economy. My officials have engaged with horse industry representatives and have agreed on criteria that will mean that those equine breeding enterprises, irrespective of their size, that are making a valuable contribution to the local economy will continue to receive support.

It is widely recognised that the disadvantaged areas scheme is an important one, as the total area designated as disadvantaged is almost 75% of Ireland's total land area. From an economic perspective, the scheme is particularly significant and contributes to the support of in excess of 100,000 farm families, whose ability to farm is restricted by the physical environment and, in particular, the impact of the prevailing wet, cold climate conditions.

The budgeted expenditure under the 2012 scheme will be reduced from €220 million to €190 million. To achieve this €30 million saving, it is proposed to introduce specified changes to the scheme's eligibility criteria for 2012. The savings will be achieved without the need to reduce the existing rates of aid and, in addition, there will also be no reduction in the maximum area payable, that is, 34 hectares.

The proposed changes are designed to ensure that the payments under the scheme are focused on farmers who farm exclusively in disadvantaged areas, make a significant contribution to the maintenance of a viable rural community and contribute to the enhancement of the environment. My firm intention is that the aid should be focused on those farmers whose farming enterprises are situated exclusively in less favourable areas and who are making a significant contribution to achieving the objectives of the scheme.

Seán Kyne (Galway West, Fine Gael)
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I thank the Minister of State for his comments and I welcome the decision not to reduce the rate of payment or the qualifying hectares for the scheme. In 2009, the last Government reduced payments to all farmers under the disadvantaged areas scheme and many farmers in Connemara with large hectarages of poor quality land endured reductions of more than €1,000.

I also welcome the Minister of State's remark that farmers will be written to formally by his Department and given an opportunity to apply for derogations on the grounds that their participation in one of the measures in question resulted in lowering their stocking rates. It is important that this be done as soon as possible. The sooner they are written to and told that they can apply for derogations because of restrictions under commonage framework plans or the rural environment protection scheme, REPS, or because they farm in sensitive areas, the sooner they can submit their responses and the more likely it is that their payments will issue in the autumn without delay and in time with payments to other farmers.

Shane McEntee (Meath East, Fine Gael)
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I have little to say in response. The Minister and I are committed to encouraging and paying farmers to farm. The stocking rate will make a difference to the amount of stock that farmers can carry and to the environment itself. That there are few animals in some of the areas to which the Deputy referred has caused problems, for example, forestry and gorse fires. The proposed changes will help. In terms of the CAP proposals, we want to get our way, look after farmers who want to farm and protect those in less advantaged areas.