Marian Harkin (Sligo-Leitrim, Independent)
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5. To ask the Minister for Agriculture, Food and the Marine if the proposed reduction to farmers' entitlement values to create the EU eco-schemes fund will be subject to internal convergence. [26984/21]

Marian Harkin (Sligo-Leitrim, Independent)
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I want to ask the Minister if the proposed eco-schemes in the new CAP will be subject to internal convergence and if there will be equality of access and opportunities for all farmers to the schemes. Will farmers get paid for what they do, as distinct from the current greening payment, which is linked to historical entitlements from more than 20 years ago?

Charlie McConalogue (Donegal, Fianna Fail)
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I thank Deputy Harkin for her question. The exact shape of the various provisions under the next CAP are still under negotiation. Until all of those are complete there is not final certainty with regard to the exact level of convergence that will be applied, or the proportion of the direct payments ceiling allocated to eco-schemes.

The general approach agreed by Council last November would see a minimum of 20% of the direct payments ceiling for Ireland dedicated to eco-schemes, while the Parliament is arguing for a higher allocation, as high as 30%. At this point, the exact nature of how that scheme will work is not clear. Equally, it is not clear whether payments from it would be on a per hectare basis additional to the basic income support for sustainability, BISS, or on the basis of cost incurred or income foregone.

In the proposal, there is a prescribed order in which the direct payments ceiling is administered. I will set out the steps involved. The allocation for eco-schemes is deducted from the ceiling. The allocation for the young farmers scheme is deducted from the ceiling. Any other allocations for other interventions are deducted from the ceiling. The remainder then forms the BISS ceiling. Payment entitlement values are assigned from that. After values are assigned, and the average value is determined, convergence can be applied to the entitlement values from that point forward. The eco-schemes are independent of the payment entitlement value.

There is a super trilogue for three days next year between the Commission, the Council and the Parliament. I know that is a process Deputy Harkin is particularly familiar with, having served as an MEP. That will then set the European plan, which we will have to work through and set our own national plan coming out of that to form our own domestic eco-schemes that are consistent with the wider European plan that will be agreed.

Marian Harkin (Sligo-Leitrim, Independent)
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I understand that negotiations are still ongoing, and we have the super trilogues coming up. I am aware of the respective positions of the Council, the Parliament and the Commission. My question to the Minister is about the policy being pursued by the Government. What is Ireland's position in the Council on the eco-schemes? Does he support a flat-rate payment not connected in any way to historical entitlements?

Second, does the Minister expect the eco-schemes to start out at 15% or 20% in the first year and increase perhaps to 25% or even 30% over a number of years? What is his position and that of the Government on those two issues?

Charlie McConalogue (Donegal, Fianna Fail)
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My position at the Council of Ministers has been to maintain a 20% minimum threshold in terms of the eco-schemes. The Parliament is pushing for 30%. It is important that we try to ensure we maintain the basic payment scheme farmers get to support them to produce top quality, healthy and safe food, and also to do that in a way that is consistent with good environmental practice. Within the new CAP a minimum of 20% will go to the eco-schemes. I will be trying to frame them in a way that ensures that while we have eco-schemes and farmers must make a contribution in terms of complying with them, they retain the value of the payments they previously received.

Working within Pillar 2, we will look at putting in place programmes that reward farmers for greater environmental ambition and delivering on biodiversity and climate change initiatives, as well as ensuring it delivers new income streams for them.

Marian Harkin (Sligo-Leitrim, Independent)
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The Minister mentioned a minimum of 20%. What is his range? The Department issued figures recently on the impact of 85% convergence on Pillar 1 payments. He started out with 100% of the payments, comprising 70% for the basic payment and 30% for the greening. However, the figures used to illustrate the impact of 85% convergence only included 70% for the basic payment and the 30% greening was left out. Those figures were completely misleading. I am not saying anybody set out to mislead, but that was the outcome. We must compare like with like. The Department showed that under 85% convergence, everybody would lose or just barely maintain their payments, but that is mathematically impossible, and the Department knows that. Will the Department compare like with like and give all farmers impartial and accurate figures?

Charlie McConalogue (Donegal, Fianna Fail)
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I thank Deputy Harkin. That piece of research was to establish what the value of the entitlement would be. That is what the figures that were set out showed. The value of the entitlement is going to exclude the eco-scheme payment, which will be extracted from the entitlement value in the first place. That is what the research showed.

I agree with Deputy Harkin that it all must be looked at in the round. There will be full and accurate detail and data on this from the Department. There will be full disclosure and full transparency. I accept the point Deputy Harkin makes, but the research was about calculating what the entitlement value would be, which excludes what will happen with the eco-schemes. The eco-schemes payment is to be applied at a flat rate based on compliance with the draft plan on a European level and farmers will apply for that separately. It does have to be looked at in the round and ultimately what counts for farmers is what it means for their income. That is the crucial issue.

Catherine Connolly (Galway West, Independent)
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That is the end of Priority Questions.