Charlie McConalogue (Donegal, Fianna Fail)
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6. To ask the Minister for Agriculture, Food and the Marine the status of the ANC review with regard to redesignation using a set list of biophysical criteria; if the new approach must be introduced from January 2019; if mapping of all current ANC lands has been completed; the actions that have been completed to date by officials; the actions that remain outstanding; the timeframe for remaining actions; when the final ANC data will be submitted to the European Commission in 2018; and if he will make a statement on the matter. [31071/18]

Charlie McConalogue (Donegal, Fianna Fail)
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I want to ask about the current position of the review of the areas of natural constraint scheme, which we are obliged to undertake along with all other countries across the EU. Obviously, we are aware a one-year extension was granted last year in order to supply the maps and to introduce the new review system. We would appreciate hearing the current position and the timeline from here on.

Michael Creed (Cork North West, Fine Gael)
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Under EU regulations, less favoured and disadvantaged areas were to be replaced by newly designated areas of natural constraint, ANCs, from 2018, with eligible areas being designated using a set list of biophysical criteria such as soil drainage, texture and slope. However, as part of legislative amendments at EU level, a proposal was made to extend the 2018 deadline to 2019 on an optional basis. This proposal has been approved at EU level, along with a number of other regulatory changes in what is referred to as the “omnibus proposal”.

My Department has commenced work on this project and relevant technical experts are currently working on analysing the data in regard to the new biophysical criteria. In addition to the technical work on the biophysical criteria, the regulation allows for two linked processes designed to enable further targeting of support under the scheme. These processes are called fine-tuning and the identification of areas of specific constraint. The three processes are under way in parallel to each other and once complete will provide the basis for the identification of eligible areas in the ANC scheme from 2019 onwards.

In order to progress this work, my Department is in ongoing communication with the European Commission in regard to the accepted parameters and technical aspects of the project. Any change to the ANC scheme on foot of this process will require formal agreement with the European Commission via an amendment of Ireland's rural development programme 2014-20.

Charlie McConalogue (Donegal, Fianna Fail)
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I take it from the Minister's response that there is no prospect of a further delay being sought by the Minister or by others at European level in the coming months and that the process is expected to be completed by 1 January next year. With regard to the where the Department is at, have the maps been fully completed? I would have thought they would be complete, given we were originally working towards a deadline of the start of the current year. From the information the Minister currently has to hand, will he give us an update in regard to the impact the new biophysical criteria are having on those areas that are currently designated?

There are two key concerns coming from the farming community. First, those who are currently availing of the ANC payment are very concerned that they would continue to avail of it. Second, those who have particularly high constraints on their land are keen to ensure there is a proper payment that reflects the type of constraint they have to deal with in their farming. What options is the Minister considering with regard to the fine-tuning of the specific constraints? Will the idea of output and productivity of land play any role in regard to designation?

Michael Creed (Cork North West, Fine Gael)
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On the latter point, designation primarily has to do with the biophysical criteria. The Deputy asked whether we are looking for an extension. I am not at this stage contemplating a further extension. The obligation is to have this finalised so that, when farmers make their application for the 2019 basic payment scheme, this is all concluded.

The Deputy made a point about payment for constraint, which is very important. As he will be aware, rather than taking a scatter-gun approach when we had an additional €25 million to allocate in this year's budget, we made a focused application our priority in order that those who have the most constraint will benefit the most from it.

Charlie McConalogue (Donegal, Fianna Fail)
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Can we have further detail on the Minister's position with regard to what specific constraints he is considering currently and the criteria for those? In addition, will the issue of the productivity and output of land be a factor in regard to whether an area qualifies for ANC payments?

As part of the Fianna Fáil delegation to Brussels this week, Deputy Cahill and I met with members of the Directorate-General for Agriculture and Rural Development, which is dealing with the overall ANC criteria, for a discussion in this regard. We expressed some concerns, for example, where drained land has improved in terms of output and productivity as a result of the effort of farmers, that there would be capacity to ensure farmers are not penalised for the efforts they have put in and will continue to put in. The other issue discussed was what happens in other countries where, for example, poor land is producing grapes and wine and is productive in that sense. We certainly got the impression that output and productivity will be a factor and may form part of this process. Obviously, farmers want clarity. Is it a factor that will be considered here at domestic level? Will the Minister clarify whether it is under consideration?

Michael Creed (Cork North West, Fine Gael)
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I should have said at the outset that my ambition is to try to ensure that those who have a payment retain the payment and that those who would have felt aggrieved, given a number of pockets of the country felt aggrieved with the previous process, can find a solution in this context. That is not an easy objective but it is my opening position.

The Deputy asked about areas with specific constraints. Areas can be designated as eligible for payment under the scheme on the basis of a combination of biophysical criteria, to which we alluded earlier, meeting certain thresholds where one criterion on its own has not lead to the area being designated as eligible, or of a case being made that eligibility for the scheme is necessary to conserve or improve the environment, maintain the countryside, preserve the tourism potential of the area or protect the coastline. Those are the kinds of specific constraints that can be invoked to retain or include somebody in the refinement process.

Charlie McConalogue (Donegal, Fianna Fail)
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Will productivity and output play a role?

Michael Creed (Cork North West, Fine Gael)
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It does not make any reference to it.