Written answers

Thursday, 30 October 2008

Department of Agriculture and Food

Disadvantaged Areas Scheme

6:00 pm

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 211: To ask the Minister for Agriculture, Fisheries and Food if he will compensate County Donegal hill farmers subjected to €900 losses by the reduction in the maximum claimable area for the disadvantaged area aid compensation scheme; his views on whether these hill farms are not suitable for types of farming other than sheep farming; the way he envisages developing the hill farming industry here in the future; and if he will make a statement on the matter. [37665/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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My approach in preparing the 2009 Estimates for my Department was to focus available resources on the measures that allow us to maintain and grow the productive capacity of the agri-food sector. The 2009 Estimates provide over €1.8 billion for my Department, and, when combined with EU funding of €1.4 billion, means that total expenditure in 2009 by my Department will amount to over €3.2 billion.

While difficult decisions had to be taken in light of the situation of the public finances, account also had to be taken of the very high level of investment by the Government in recent years, when significant additional financial resources were committed to areas such as the rural environment scheme, where the rates of grant had been increased by 17 per cent, the new suckler cow welfare scheme and the farm waste management scheme and, indeed, the 8% increase in rates under the Disadvantaged Areas Scheme itself, introduced in 2007.

With regard to the 2009 Disadvantaged Areas Scheme, I decided to reduce expenditure for 2009, by reducing the maximum area limit to 34 hectares (84 acres) and by a small increase in the minimum stocking density requirement. While overall expenditure will fall, almost 67,000 farmers will not suffer any reduction in their payments as a result of the introduction of the 34-hectare limit. Furthermore, these farmers, as well as all claimants under the Scheme, will continue to benefit from the substantial increase of 8% in the rate of aid introduced by the Government in 2007. In addition, of the 102,500 farmers who benefit under the Disadvantaged Areas Scheme, in excess of 50,000 of these also benefit under REPS, while in excess of 47,000 also benefit under the Suckler Welfare Scheme, which introduces a new stream of payments to farmers in 2008.

It should also be taken into account, that in addition to the payments under these Schemes, a further €920 million was paid to farmers with Disadvantaged Area lands under the 2007 Single Payment Scheme. The total amount payable of €220 million to farmers under the Disadvantaged Areas Scheme is part of the overall substantial injection of funds paid to farmers situated in the areas and the Scheme continues to be one of the best well funded Disadvantaged Areas Schemes in the European Union.

Notwithstanding the difficulties in the public finances and the decisions I have taken against that background, the position is that in excess of €3.2 billion will be spent next year by my Department in support of agriculture, fisheries and food. It is important to get through this challenging period and continue towards achieving the full potential of our most important indigenous industry when the economy begins to grow again.

The Hill Farmers scheme was a special category under the 2005 National Reserve. This catered for farmers with commonage land who were prevented from expanding their sheep production during the 2000-2002 reference period pending publication of the Commonage Framework Plans in 2003. One of the qualifying criteria was that the existing Single Payment must have been less than €6,000. Some 500 hill-sheep farmers benefit from this measure to the tune of €400,000 annually or €3.2m over the period until 2012.

In addition, a special category was included under the 2007 National Reserve for sheep farmers whose existing Single Payment is less than €10,000 and where individual entitlements are less than the District Electoral Division (DED) average. Allocations are capped at the DED average value of entitlements or a total Single Payment of €10,000 whichever is the lesser and allocations to successful applicants did not exceed €1,000. It is estimated that some 7,500 sheep farmers will receive some €6m annually under this measure, or €36m over the period until 2012.

Under both of these measures the Member State was obliged to apply objective criteria in determining the value of entitlements to be allocated to successful applicants. In Ireland's case it was agreed that the Regional Average value of entitlements would be used for the granting of entitlements to successful applicants. The Regional Average is the average value determined at the District Electoral Division (DED) associated with the applicant's herd number. In addition it was decided that allocations would not exceed €1,000. The National Reserve is a scarce resource created by reducing the entitlements of existing farmers and will only be replenished by the relinquishing of any entitlements that remain unused. My Department must therefore be prudent is determining how the funds in the reserve are administered.

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