Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 125: To ask the Minister for Agriculture, Fisheries and Food when the recently announced payments to hill sheep farmers, worth €7 million, will be awarded; and if he will make a statement on the matter. [20315/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As the Deputy will be aware, I decided that unused funds from the Single Payment National Reserve would be paid to hill sheep farmers in 2009 in the form of an Uplands Sheep Payment. In reaching this decision, I recognised the difficulties, and costs including compliance costs, facing the sheep sector and was anxious to introduce a scheme immediately in order that Irish sheep farmers could benefit from these funds in 2009.

During the negotiations on the CAP Health Check proposals I was one of the first Ministers to press for the use of unspent funds from national Single Farm Payment ceilings to fund measures that targeted at specific sectors in need of assistance. The outcome of the health check negotiations had been very positive for Ireland, and had once again shown the importance of EU support for Irish agriculture.

In relation to the Upland Sheep payment, my objective was to ensure that it was simple and low cost to administer and created no additional administrative burden for farmers. The main features of the new Uplands Sheep Payment are as follows: (i) Eligible applicants must have sheep recorded in the National Sheep Census for both the 2007 and 2008 calendar years. (ii) Applicants must be eligible for the Disadvantaged Areas Scheme in 2009. (iii) Applicants must farm and declare in 2009 mountain type grazing land. (iv) The mountain type grazing land must have been declared on the 2008 and 2009 Single Payment/Disadvantaged Areas Scheme application forms. (v) The aid will be payable on mountain type grazing land up to a maximum of 15 hectares. (vi) The rate of aid per hectare will be calculated by reference to the available National Reserve funds and the total area eligible for payment when all of the 2009 Single Payment Scheme/Disadvantaged Areas Scheme applications are processed. (vii) Eligible farmers will apply for the Uplands Sheep payment when they submit their 2009 Single Payment Scheme/Disadvantaged Areas Scheme application form.

Payments are scheduled to commence on 1 December 2009, the first date that payments can commence under the EU Regulations. Based on the estimated National Reserve funds of approximately €7 million and the eligible area declared by farmers in 2008, approximately 14,000 hill sheep farmers will benefit from the 2009 payment. Based on the data available for 2008, it is estimated that the level of aid will be €35 per hectare and a maximum payment per farmer of €525.

I must emphasise that the measure is for 2009 alone. A decision on the use of unspent CAP funds and modulation monies from 2010 onwards, will be made when further information is available on the detailed EU rules that will apply to these measures.

Having consulted widely with all stakeholders I am currently carefully examining all proposals received for the use of these funds including those for the sheep sector and I hope to make an announcement in relation to the use of these funds in the coming weeks.