John Perry (Sligo-Leitrim, Fine Gael)
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Question 379: To ask the Minister for Agriculture and Food further to the early farm retirement if she will honour her commitment regarding entitlement and the way in which same will affect farmers in ERS 1; if farmers including offspring who take over the farm of the retired farmer can apply to the national reserve for entitlements; if so, if same still stands; and if she will make a statement on the matter. [3868/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department was aware, from an early stage in the negotiations leading to the introduction of the single payment scheme, of the possible implications for retired farmers who had leased their holdings. In so far as it proved possible in the context of the EU regulations governing the single payment scheme, and following lengthy discussions with the European Commission, provision was made under the rules of the single payment scheme to address some of the concerns of retired farmers.

As participants in the 1994 scheme of early retirement from farming had retired before the start of the reference period in 2000, they are not in a position to claim entitlements under the single payment scheme. However, following agreement with the European Commission, a special category has been included in the national reserve for farmers who inherit or otherwise receive land free of charge or for a nominal sum from a farmer who retired or died before 16 May 2005 where the land in question was leased to a third party during the reference period. This will benefit the family members of retired farmers who decide to take up farming. Only landholders actively engaged in farming can receive entitlements from the national reserve. A separate category, category A, has been included in the 2005 national reserve application form to cater for this group, and I hope to apply similar arrangements under the 2006 and subsequent years' national reserve.