Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 169: To ask the Minister for Agriculture and Food if she will implement the recommendations of the Joint Committee on Agriculture and Food report on the farm retirement scheme; and if she will make a statement on the matter. [32723/06]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The Joint Oireachtas Committee on Agriculture and Food published its report on the Early Retirement Schemes in February 2005. The report dealt with a range of issues and I responded to it in detail in September 2005. As I explained in this response, certain of the Committee's recommendations are precluded by the EU Regulations under which the current Scheme and its predecessor are operated.

I saw some merit in other aspects of the Committee's report, specifically those relating to income limits and in line with the Joint Committee's recommendations, I have recently increased the off-farm income limit for transferees in the current Scheme from €25,400 to €40,000 and have abolished the income limit for transferors. As this Scheme will close to new applications at the end of December the practical effect of any further changes would be very small.

The Committee paid particular attention to two further issues. One was the implication of decoupling for retired farmers who had leased out land and quota to transferees before or during the Single Payment Scheme reference period. I believe we secured the best deal that we could for people in this situation, in spite of the reluctance of the Commission at the outset. A specific mandatory category was included in the National Reserve arrangements under the Single Payment Scheme. This category caters for farmers who inherited or otherwise received a holding free of charge or for a nominal amount from a farmer who retired or died before 16 May 2005 where the land in question was leased out to a third party during the reference period. Under these arrangements, where a farm reverted to the retired farmer at the end of a lease without any entitlements, the farmer taking it over will have access to the National Reserve. Retired farmers in the current Scheme who farmed during part or all of the reference period and who hold Single Payment entitlements could activate entitlements and lease them to their transferees. If the transferee did not wish to use the entitlements, a transferor has until 2007 to lease the entitlements with land to another farmer. Once at least 80% of the entitlements have been used by the lessee, the transferor has the option to sell the entitlements with or without land; otherwise he can continue to lease the entitlements with land.

The second issue the Joint Committee focused on was the levels of payment under the two Schemes. In the course of discussions on this issue, the European Commission has pointed out that the rate in the earlier Scheme was set at the maximum amount for co-funding that the Regulation allowed, and that it would not be possible to secure co-funding for an increase in the rate of pension for existing participants in the current Scheme.