Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

I have no plans at present to reopen the Early Retirement or Young Farmers' Installation Schemes to new applications.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Question 217: To ask the Minister for Agriculture, Fisheries and Food if his attention has been drawn to the negative impact upon farm families and young farmers of the measures announced in budget 2009 and in particular the decisions to suspend the early retirement scheme and the installation aid scheme, together with changes to the disadvantaged area scheme and the suckler cow welfare scheme which will mean substantial income losses for many farmers; if he will take steps to review same with a view to reversing same; and if he will make a statement on the matter. [37722/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Against the background of the deterioration in public finances, 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. There has been a high level of investment in developing this sector in recent years, with the commitment of significant financial resources to areas such as the rural environment scheme, where the rates of grant had been increased by 17%, the new suckler cow scheme and the farm waste management scheme. Expenditure for that scheme in 2008 will exceed €375 million following the recent provision of an additional €195 million.

Because I have chosen to protect expenditure in certain areas, expenditure in other areas has to be curtailed. In relation to the Scheme of Early Retirement from Farming and the Young Farmers' Installation Scheme, I have made provision of €56.7 million to meet current commitments but this level of funding means that for the present, new applications for these schemes are suspended. Despite the reduction in expenditure under the scheme of Area-based Compensatory payments, we will be making payments of over €220 million under this scheme next year and the reduction will be implemented in a targeted way, with the majority of farmers not suffering any loss in their payments.

As regards the Suckler Cow Welfare Scheme, I have ensured that the commitment entered into in Partnership to spend €250 million on that scheme is fully honoured. The payment rate for 2008 will be €80 per cow. The rate of payment in the remaining years of the scheme will be determined by reference to the continuing rate of participation in the scheme. The rate applicable to 2009 will be advised to participating farmers before the end of this year.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context

Question 218: To ask the Minister for Agriculture, Fisheries and Food the number of applications and payments on a county basis under the single farm payment 2007 and the projected figures for 2008; the corresponding figures for all REP schemes; the status of the modulation proposals tabled for the mid-term CAP review; the other proposals tabled for the mid-term review which will have an impact on payments to farmers; and if he will make a statement on the matter. [37732/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

The number of applications and payments made to date, on a county basis, under the 2007 Single Payment Scheme are as at Table 1. The number of applications and advance payments made to date, on a county basis, under the 2008 Single Payment Scheme are as at Table 2. The number of REPS payments to date in 2008 is set out in Table 3, while the figures for 2007 are set out in Table 4. It is not possible to project the figures forward to the end of the year.

With regard to Modulation, the present provisions provide for the deduction of 5% modulation on all payments made under the Single Payment Scheme. The funds raised by this measure are transferred to Pillar II of the EU Budget and used to finance Rural Development measures. The Regulations require that Member States subsequently refund that element of modulation related to the first €5,000 of each payment. I welcome the abolition of the €5,000 franchise proposed in the EU Health Check, as this means that the requirement to deduct the modulation from all payments and refund it at a later stage will no longer apply. This means that farmers no longer have to wait for the payment of the refund and the proposed change will also simplify the administration of the Single Payment Scheme. I am opposed to the increases in the modulation deductions from 2009 proposed by the EU Commission as part of its Health Check proposals and I have made this position clear during the on-going negotiations on the proposals.

There are other proposals in the CAP Health Check, which, if adopted, will simplify the Single Payment Scheme for farmers. These include the following: the abolition of the set-aside obligation; the extension of the use it or lose it rule for National Reserve entitlements from one to two years; the abolition of the requirement that a farmer must have utilised 80% or more of his or her entitlements before the entitlements can be sold without land.