Joe McHugh (Donegal North East, Fine Gael)
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Question 388: To ask the Minister for Agriculture, Fisheries and Food if he will expedite the area aid maps process and to deliver overdue area aid payments to farmers as quickly as possible; his views on whether these delays are causing cash-flow difficulties that are preventing farmers from investing in dry stock at this time; to acknowledge that this is the appropriate time of year for Irish dry-stock farmers to invest in store cattle and store lambs and that credit is necessary for this; to acknowledge that farmers' cash flow problems are compounded by the banks' credit recalcitrance; and if he will make a statement on the matter. [34521/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My entire focus is to make the maximum permissible payments to farmers under each of the relevant Direct Payment Schemes, at the earliest possible dates, having due regard to the governing regulations. In this regard, I am confident that almost €1.5 billion will be paid to Irish farmers before 31 December 2010. In relation to the 2010 Disadvantaged Areas Scheme, I have exercised the option of making a 75% advance payment; these payments began issuing on 22 September and I have scheduled the balancing payments for 20 October. I have taken this option because of the EU requirement to entirely process applications before payment can be made in full. This approach will ensure the maximum number of farmers will get an advance payment, whereas a far fewer number of farmers could be paid in full if an alternative option were taken. The rate of payment under DAS is unchanged from last year and I am confident that all applicants will receive their full entitlement when their maps and applications are fully processed.

With regard to the Single Payment Scheme, I sought EU agreement to make an advance payment and, I am pleased to say that, based on the strong case that I presented, this request was viewed favourably by the EU Commission and was subsequently unanimously approved by the relevant Management Committee. Furthermore, I have decided that payments under the new Grassland Sheep Scheme, worth some €18m to sheep farmers, will commence on the 8th of December. The schedule of payments is as follows: 22 September: 75% advance payment under the Disadvantaged Areas Scheme; 18 October: 50% advance of the Single Payment; 20 October: 25% balancing DAS payment; 1 December: 50% balancing Single Payment; 8 December: Grassland Sheep Payment.

With regard to the campaign earlier this year to encourage farmers to identify and map ineligible areas of their holdings, I wish again to record my thanks to all farmers who responded so positively. It was anticipated that the vast majority of scheme applicants had been making sufficient allowance for these ineligible areas on their claims; however, as these areas were not recorded on my Department's LPIS mapping database, action was required as the risk of substantial EU disallowances is very real. However, the significant increase in the number of maps requiring re-digitisation has inevitably resulted in more complex processing of applications.

I am also conscious that despite this being a good year for farming from a production and price perspective, the farming community has endured two difficult years in terms of farm income. The approach that I am taking on direct payments this year will result in the maximum release of funds to farmers at the earliest possible opportunity and will underpin their incomes in 2010. This high level of funding should remind the farming community of the importance of CAP money and the need to protect this source of funding in the forthcoming EU negotiations.

Joe McHugh (Donegal North East, Fine Gael)
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Question 389: To ask the Minister for Agriculture, Fisheries and Food the number of Donegal 2010 area aid payments that are 100% paid; the number that are unpaid; the number that are 75% paid; and if he will make a statement on the matter. [34567/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In relation to the 2010 Disadvantaged Areas Scheme, I have exercised the option of making an advance payment of 75% of DAS beginning on 22 September, with the balancing 25% payment commencing 20 October. I have taken this option because of the EU requirement to entirely process applications before payment can be made in full. However, this approach is ensuring the maximum number of farmers will get an advance payment, whereas a far fewer number of farmers could be paid in full if an alternative option were taken. The rate of payment under DAS is unchanged from last year and I am confident that all applicants will receive their full entitlement when their maps and applications are fully processed. A total of 8,497 Donegal applicants applied under the 2010 Scheme; to date, 5,848 applicants have received their advance payment. Payments continue to issue on an ongoing basis as individual cases are cleared.