Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 396: To ask the Minister for Agriculture, Food and the Marine the number of applicants under the disadvantaged area aid scheme who solely have horses and the value of such claims; the estimated total number of applicants who will be impacted upon under Budget 2012 changes to the scheme; and if he will make a statement on the matter. [39773/11]

Simon Coveney (Cork South Central, Fine Gael)
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This is a very important Scheme for the country, as the total area designated as disadvantaged is almost 75% of Ireland's total land area. From an economic perspective, the Scheme is particularly significant, contributing to the support of in excess of 100,000 Irish farm families, whose ability to farm is restricted by the physical environment and, in particular, the impact of the prevailing wet cold climatic conditions.

However, in light of the recognised, ongoing difficulties in the public finances, savings had to be found in my Department's 2011 budget, in the context of which a decision was taken to limit the spend under the 2011 DAS to €190 million. To achieve this saving priority has been given to active farmers and a range of adjustments to the qualifying criteria, including the exclusion of horses for the stocking density calculations, are currently under consideration, also including:

· increasing the minimum stocking density requirement, from 0.15 livestock units per hectare to 0.30 livestock units per hectare;

· doubling the minimum retention period from three to six months;

· providing for reduced rates of aid where applicants hold both eligible and ill-eligible land;

· excluding land located more than 80 kilometres from an applicant's main holding.

I would emphasise that these changes are not yet confirmed and their potential impact is still being considered. Furthermore, given that the Disadvantaged Areas Scheme is part of the wider Rural Development Programme 2007/2013, it will be necessary to obtain Commission for any changes beforehand.

In relation to the exclusion of horses from the stocking density calculation, I must also emphasise that the exclusion will not apply to equine breeding enterprises. My Department paid over €3.3 to 2,171 applicants under the 2010 Disadvantaged Areas Scheme, whose only livestock were horses. This figure is likely to increase further in 2011. There is a clear pattern evident when these applications are subjected to detailed analysis. The applicants were generally maintaining livestock but when ceased doing so they lost their entitlement to the Disadvantaged Area aid as they no longer met the minimum stocking density requirement. Subsequently, they acquired some horses and submitted horse passports in support of their case that they had met the stocking density requirement. Applicants, who submitted passports applied for the Scheme in a very haphazard manner. Some years they submitted passports and other years they did not. That meant that were not eligible for the aid every year. In fact, only six such applicants submitted passports for each of the years from 2007 to 2011.

In addition, the average number of horses maintained by these applicants was minimal with an average of four horses per applicant in 2010. Finally, it is important to note that many of these farmers continue to benefit from aid payments under the Single Farm Payment and REPS. It is also an option for these farmers to resume livestock production and they will continue to benefit from aid under the Disadvantaged Areas Scheme if they meet the proposed revised minimum stocking density criteria.