Paul Kehoe (Wexford, Fine Gael)

I thank Senator Daly. I apologise on behalf of the Minister for Agriculture, Food and the Marine, Deputy Coveney, who is unable to be here.

In order to make the necessary savings under the 2012 disadvantaged areas scheme, DAS, in view of the reduction in budgeted expenditure from €220 million to €190 million, technical adjustments must be made to the scheme's criteria. These changes will ensure that aid payments are focused on farmers whose farming enterprises are situated exclusively in DAS areas and who are making a significant contribution to achieving the objectives of the scheme, which are defined in the governing EU legislation as follows: to ensure continued agricultural land use and thereby contribute to the maintenance of a viable rural community; to maintain the countryside; and to maintain and promote sustainable farming systems, taking particular account of environmental protection measures. However, rather than simply applying an across-the-board cut to the rates payable or reducing the maximum payable area as a means to achieving these savings, the Minister decided that real efforts should be made to focus the scheme on those farmers who are most actively contributing to achieving the aims of the scheme. Making technical adjustments to the scheme criteria ensures that the aid payment is focused on farmers whose farming enterprises are situated exclusively in less favoured areas and who are making a significant contribution to achieving the objectives of the scheme.

Any analysis of the scheme must take into account the impact of the various enterprises on the local economy. As is clearly evident, the main benefits arise from beef rearing, dairying and sheep breeding enterprises. There are an increasing number of applicants under the scheme who have discontinued livestock - that is, cattle or sheep - farming but continue to benefit from aid under the scheme by grazing some horses on their land.