Mary Upton (Dublin South Central, Labour)
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Question 196: To ask the Minister for Agriculture and Food if her attention has been drawn to reports that a small number of wealthy landowners are receiving payments of more than €10,000 per year under the single farm payments scheme; her views on whether it is appropriate that some farmers receive large payments of this size from public funds when other farmers are facing such a struggle to survive; if she will seek any review of the system to ensure that payments are directed towards those who most need them; and if she will make a statement on the matter. [26443/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The agreement on the mid-term review of Agenda 2000 reached at the Council of Agricultural Ministers on 26 June 2003 was a balanced one, which addressed Ireland's principal objectives. Among these objectives were the preservation of the financial benefits achieved under the Agenda 2000 agreement and the establishment of a policy framework that will allow farmers and the agri-sector the flexibility to adapt to evolving consumer and market demands and international circumstances. The financial envelope provided for each member state represented the average value of livestock and arable aid premia paid in the member state during the three year reference period 2000-2002 calculated at 2002 rates of payment. I am particularly pleased that the 2002 rate of payment was used to calculate the single payment as this was the highest rate payable under the Agenda 2000 agreement.

The result of the negotiations represented a very satisfactory outcome for Ireland with the achievement of significant improvements on the original proposals. In particular the proposed automatic degression of direct payments by a level of up to 13% was withdrawn. The removal of this particular provision meant a saving of some €420 million for Ireland over the lifetime of the agreement. The compromises agreed was to allow the Council to review, from 2007 onwards, the financial situation annually if budget deficits arise.

Under the agreement, member states were allowed to implement the single payment scheme using the so-called historic model or a variation of that model. Following widespread consultation with farmers and other interested parties, Ireland opted to implement full decoupling with effect from 2005 using the historic model. This means that the single payment scheme is applicable to farmers who actively farmed during the reference years 2000, 2001 and 2002, who were paid livestock premia and-or arable aid in one or more of those years and who will continue to engage in an agricultural activity in 2005. The gross single payment entitlement for each farmer represents the average number of animals and-or the average number of hectares, in the case of arable aid, on which payments were made in the three reference years.

The overall agreement also allows for a review of the single payment scheme to take place in 2009.