Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 27: To ask the Minister for Agriculture, Fisheries and Food the number of farmers in County Roscommon and County Leitrim who will see their suckler cow scheme payments cut as a result of the budget 2009 announcement; the number of applications submitted in each county in 2008 and the potential payments involved; the value of payments that will be lost in each county as a result of the budget 2009 changes; and if he will make a statement on the matter. [37429/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In the "Towards 2016" Partnership Agreement, a provision was made to provide €250 million in support of a suckler scheme over five years 2008-2012. This is being honoured. In order that the scheme is continued within the €250 million funding budget, it will, on current levels of participation be necessary to reduce the rate of payment in future years.

Almost 54,000 farmers have joined the scheme nationally. The number of farmers in County Roscommon who joined the scheme is 3,187. The number for County Leitrim is 2,127. The payment rate for 2008 will be €80 per cow and the total amount for the year will be determined by the number of eligible cows that calve in the calendar year 2008 and go on to fulfil the various measures under the scheme. 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.

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 28: To ask the Minister for Agriculture, Fisheries and Food the amount of funding allocated to the national reserve in 2005, 2006 and 2007; the number of farmers who have benefited under each category; and if he will make a statement on the matter. [37440/08]

Joe Costello (Dublin Central, Labour)
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Question 59: To ask the Minister for Agriculture, Fisheries and Food the value of entitlements in the national reserve; and if he will make a statement on the matter. [37439/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 28 and 59 together.

The EU regulations governing the Single Payment Scheme provided for the setting up of a National Reserve. In Ireland's case reducing each farmer's individual Single Payment by 1.82% created the Reserve. The total amount of money available for distribution under the 2005 National Reserve was some €22.5m. A further €6.5m was added representing the value of payment entitlements not activated (claimed) in 2005 bringing the total fund to some €29m. Over €23m was allocated under the 2005 National Reserve with the balance of €6m carried forward to the 2006 National Reserve. Some €4m was then added to the 2006 National Reserve (representing mainly reserve deductions applied to Dairy Premium, surplus Dairy Premium, deductions applied to the Sugar Beet and unused National Reserve entitlements in 2006) bringing the total funds available for 2006 to €10m.

The total cost of the 2006 National Reserve was €2.6m leaving a carryover of some €7.4m to the 2007 National Reserve. This allowed my Department to introduce two new categories to the National Reserve in 2007 one of which was a significant measure that catered for the sheep-farming sector. To date some €6m has been allocated from the 2007 National Reserve leaving a balance of €1.4m. The 2007 National Reserve fund has been further replenished with the addition of €4.6m from deductions applied to Sugar beet; unused National Reserve entitlements in 2007 and unused standard and setaside entitlements which were not used in the three-year period (2005, 2006, 2007). The funds going forward for the 2008 National Reserve amounted to €6m and the expected allocations in 2008 is €1m. When account is taken of entitlements that remained unused in the three-year period 2006, 2007 and 2008 it is estimated that some €7m will be available for distribution under the 2009 National Reserve.

The National Reserve is therefore a scarce resource created by reducing the entitlements of existing farmers and will only be replenished by the addition of any entitlements that remain unused.

The purpose of the National Reserve was to try and minimise the impact on farmers who, for a variety of reasons, found themselves disadvantaged in the transition to the new decoupled support regime as a result of changes in their businesses during or since the reference period. Categories of farmers to be catered for under the National Reserve were set out in EU regulations and, in 2005, included those who inherited land that was leased out during the reference period (Category A) those who made investments in production capacity or purchased or leased land on a long-term basis (Category B) or who converted from dairying to a sector for which a direct payment would have been payable during the 2000-2002 reference period (Category C). New entrants to farming after 2002 were also catered for under the National Reserve (Category D).

Certain sheep farmers with commonage land and a relatively low stocking density were prevented from increasing ewe numbers during the reference period pending the publication of commonage framework plans. A special category was created for these farmers under the 2005 National Reserve. In addition, a 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. A separate category was also introduced under the 2007 National Reserve to cater for off-shore island farmers with low value entitlements.

The tables below outline the number of farmers who have benefited under the National Reserve in 2005, 2006 and 2007.