Damien English (Meath, Fine Gael)
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Question 125: To ask the Minister for Agriculture and Food her plans to develop the Teagasc service provided to farmers; and if she will make a statement on the matter. [6789/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Teagasc the agriculture and food development authority, was established under the Agriculture (Research, Training and Advice) Act 1988. Its function under the Act is to provide research, training and advisory services for the agri-food sector. Teagasc is governed by an 11-member authority. The chairman and five ordinary members are appointed by the Minister and the remaining five members are appointed by the Minister following nominations from designated organisations: IFA, ICMSA, ICOS, Macra na Feirme and Teagasc unions.

Teagasc has 1,360 permanent staff, comprising advisers, teachers and research scientists with appropriate supporting services. These are complemented by 250 contract staff, as well as teaching staff in the private agricultural and horticultural colleges. Teagasc staff carry out their functions from more than 90 locations.

Teagasc's operating budget for 2005 amounts to over €155 million. Advisory services make up the biggest budget item — 35% of expenditure, followed by production research, 32%, training programmes, 19%, and food research, 13%. My Department's provision to Teagasc for capital and non-capital purposes in 2005 amounts to €123 million. The amount for non-capital purposes is €118.5 million and for capital development purposes the allocation is €4.5 million. By any standards these are substantial resources and are a clear indication of the Government's continuing commitment to supporting Teagasc activities.

It is the responsibility of the Teagasc authority to prioritise activities and allocate its funding accordingly. This it has done over the years in accordance with the needs of clients, EU and Government policy and industry needs. I am satisfied that in doing so it has provided a first class service to Irish farmers.

In the short term Teagasc will have to reconfigure its programmes in response to the fundamental changes in agriculture arising out of the single payment. The authority is however already well accustomed to tailoring its programmes to meet the changing requirements of the agri-food sector. Its annual programme of activities is developed in consultation with the key stakeholders in the sector many of whom are represented on the authority. Recently it has undertaken more strategic planning initiatives, the Teagasc 2000 review and the three-year strategy required under the strategic management initiative. A new review of its training and education programmes has recently got under way.

I am satisfied that Teagasc is well placed to face the future and to continue to provide the innovation and technology transfer for the sustainable development of agriculture, the food industry and rural communities in the years ahead.

Pádraic McCormack (Galway West, Fine Gael)
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Question 126: To ask the Minister for Agriculture and Food her plans to provide greater support for small farmers; and if she will make a statement on the matter. [6801/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am keenly aware of the need to make available appropriate supports for small farmers. In this regard, as the Deputy is no doubt aware, small farmers benefit from all of the supports, within the legal framework of the European Union, administered by my Department.

One of the areas where this is possible is the rural environment protection scheme, REPS. The latest version of the scheme was introduced in June 2004. In addition to an average increase of 28% in payment rates, payment of €200 per hectare is also provided for the first 20 hectares, and €175 per hectare for the next 20 hectares, and for further payment digression thereafter.

Under the CAP rural development plan 2000-2006 compensatory allowances payable in the disadvantaged areas moved from a payment per animal to a payment based on area. Under the new area based scheme, farmers in the disadvantaged areas with a minimum stocking density of 0.15 livestock units per hectare can qualify for payment on up to 45 hectares of land. At present, approximately 99,800 farmers qualify for payments totalling €231 million annually. This represents an average payment of €2,315 compared with an average payment of €1,523 under the old headage schemes. The smaller farmer has clearly benefited under the new scheme which will continue in its present format for 2005 and 2006.

Details of new criteria for designation of disadvantaged areas from 2007 onward have recently been received from the European Commission and are being examined in detail by my Department. I have signalled to the Commission the sensitivity of this issue to Ireland in order to ensure that the new criteria do not reduce in any way the benefits of the compensatory allowance scheme.

Under the milk quota restructuring programme, which I announced before Christmas, small farmers again receive particular consideration in that producers with a quota of less than 350,000 litres will be able to purchase twice the amount available to larger producers in the same co-op area. Moreover, younger farmers with less than 350,000 litres will have priority access to a further 25% of the pool.

In the milk quota appeals tribunal hardship scheme for 2004-05, priority is being given to applications from small-scale producers. In addition, support is available to eligible farmers under the farm assist scheme, administered by my colleague, the Minister for Social and Family Affairs.