John Cregan (Limerick West, Fianna Fail)
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Question 349: To ask the Minister for Agriculture, Fisheries and Food the level of moneys available under the lost crops compensation scheme; and the way that this compensation will be distributed. [19171/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Following on from a preliminary assessment, by my officials, of the crop losses caused by the severe weather conditions, I announced, on 3rd February 2010, the introduction of a limited scheme of financial assistance for certain potato and field vegetable growers who could demonstrate that they had suffered significant losses of their produce due to these severe frosts. Affected growers had to supply the Department with details of the crops involved and the extent and amount of the losses which they had incurred.

Officials of the Department then completed on-farm inspections to verify that those crops, which are the subject of the claim for assistance, were present in the fields at the time of the inspection and to assess the extent of the damage caused by the frost. An analysis of the financial data submitted by each applicant is currently being undertaken and eligibility for assistance will be determined on a case-by-case basis.

The Scheme of assistance is being administered in full compliance with EU State Aid Rules [Commission Regulation (EC) No 1857/2006]. This confines aid to the actual losses experienced by growers and is conditional on more than 30% of the crop having being destroyed. It also sets out how the aid is to be calculated. This requires that aid is calculated on the basis of sales from the average of the 3 previous years' production minus sales value of this year's production. Aid is then calculated at 40% of this difference and is further reduced by 50% if the applicant does not have crop insurance. In addition, there is provision in the Scheme for the Department to apply a sliding scale to the amount of aid provided.