Paul McGrath (Westmeath, Fine Gael)
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Question 320: To ask the Minister for Agriculture and Food the reason there is a reduction in the amount of beef premium to be granted in 2005; and the level of cutback envisaged. [7687/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Under the special beef premium scheme, Ireland has a regional quota of 1,077,458 animals. Animals which are counted towards this quota are those submitted under the first age and bull category. While there is no quota for second age animals, where the regional quota in respect of first age and bull category is exceeded the level of reduction must also be applied to second age animals.

Given the ending of the scheme on 31 December 2004 with the advent of the single payment scheme on 1 January 2005, farmers availed of their final opportunity to submit animals for premium. Including those animals submitted for premium during the period for receipt of late applications, which finished on 25 January 2005, a total of 1.388 million animals were submitted under the first age and bull category.

It is expected, however, that the number of quota animals found eligible for premium and that must, therefore, be included in the calculation of the breach of quota, will be less than this figure. It is evident that many farmers applied in respect of animals which were ineligible, while others will exceed the stocking density limit and will not be paid for the animals in excess of this limit.

Following discussions with the farming bodies in late 2003, it was decided that any overshoot reduction would not apply to the first 25 animals submitted by individual farmers. This means that any farmer who applied in respect of 25 animals or less would not suffer any reduction and that all others farmers will be exempt in respect of their first 25 animals from any reduction.

In excess of 2.407 million animals were submitted for premium under the 2004 scheme, with in excess of 920,000 being applied upon during December alone. Processing of these applications is ongoing with a view to establishing the exact quota position as soon as possible.