Written answers

Tuesday, 21 November 2006

Department of Agriculture and Food

Direct Payment Schemes

9:00 am

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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Question 504: To ask the Minister for Agriculture and Food if her attention has been drawn to the low qualification threshold for young farmers who want to purchase entitlements, particularly the qualifying criteria for new entrants in view of the low off farm income limit that currently exists; if her attention has further been drawn to the fact that the single payment 2006 EU regulations state that total off farm income must not exceed €20,000; if her attention has further been drawn to the fact that this level of off farm income appears to be very low when compared with the farm waste management scheme and others; and if she will make a statement on the matter. [38971/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The position is that Single Payment Entitlements may be sold with or without land but may only be sold without land when at least 80% of the entitlements have been used in one calendar year. The regulations also set out provisions for a claw-back on the sale of entitlements (with and without land) that Member States may apply in order to replenish the National Reserve. In this context the regulations provide that no claw-back should be applied when entitlements are sold to a new entrant to farming. The Member State is free to determine the qualifying criteria that should be applied in defining a new entrant to farming but the baseline is that the new entrant must not have been engaged in an agricultural activity at his/her own risk during the previous 5 years. The qualifying criteria for a new entrant under the Single Payment Scheme, including the threshold for off-farm income, were agreed following detailed discussions at the Single Payment Advisory Committee which was set up to advise on issues relating to the Single Payment Scheme. The Committee comprises representatives from my Department, the farming organisations and Teagasc. The arrangements for clawback, including the definition of a new entrant to farming, are subject to a review on an annual basis. It should be noted that clawback for entitlements sold in respect of the 2007 scheme year has been reduced from 30% to 15% (for entitlements sold without land) and from 5% to 2.5% (for entitlements sold with land).

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