Paudge Connolly (Cavan-Monaghan, Independent)
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Question 405: To ask the Minister for Agriculture and Food if a special hardship fund will be set up for farmers who did not qualify for small farm payments and whose entitlement from force majeure or national reserve were minimal as a result of a very low DED average; and if she will make a statement on the matter. [16427/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The position is that the Single Payment Scheme is applicable to farmers who actively farmed during the 2000 — 2002 reference period, who were paid Livestock Premia and/or Arable Aid in one or more of those years and who continued to farm in 2005. The gross Single Payment established for farmers is based on the average number of animals and/or the average number of hectares (in the case of Arable Aid) on which payment was made during the reference period. The Single Payment established for individual farmers therefore reflects the level of farming activity and premia draw-down during the reference period.

Certain farmers whose premia draw-down during the reference period did not reflect their normal farming activity because of exceptional circumstances were able to avail of Force Majeure whereby their Single Payment was based on the year or years when the exceptional circumstances did not apply rather than on the three-year average. In addition, special measures were in place for farmers who commenced farming for the first time during the reference period.

Their Single Payment was based on either a two year average if they commenced farming in 2001 or based on payments received in 2002 if they commenced farming in that year. The DED average value of entitlements was not a factor in determining the level of Single Payment established for farmers.

Insofar as the National Reserve is concerned, the regulations require that allocations made to successful applicants under category D (new entrants to farming after 31 December 2002) must not have the effect of increasing the value of any existing entitlements above the regional average value of entitlements. Similarly, the value of any new entitlements allocated to this category must be no greater than the regional average value of entitlements. In Ireland's case it has been decided that the regional average value of entitlements will be the District Electoral Division (DED) average.

The question of priority categories for the 2006 National Reserve will be decided in due course. Depending on available resources I will give consideration to catering for certain "hardship" type cases who were unable to avail of any of the existing Single Payment measures.