Michael Moynihan (Cork North West, Fianna Fail)
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Question 540: To ask the Minister for Agriculture, Food and the Marine if he will clarify the eligibility criteria for the disadvantaged area scheme in 2012. [5295/12]

Michael Moynihan (Cork North West, Fianna Fail)
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Question 541: To ask the Minister for Agriculture, Food and the Marine if brood mares will be included in the stocking ratio for disadvantaged area schemes in 2012. [5296/12]

Michael Moynihan (Cork North West, Fianna Fail)
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Question 542: To ask the Minister for Agriculture, Food and the Marine if the 2012 disadvantaged area scheme has any relation to 2011 land use. [5297/12]

Michael Moynihan (Cork North West, Fianna Fail)
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Question 543: To ask the Minister for Agriculture, Food and the Marine if he will provide a breakdown of 2012 disadvantaged area scheme and REP scheme budget change impact on a county basis. [5298/12]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 540, 541, 542 and 543 together.

It is widely recognised that the Disadvantaged Areas Scheme is a very important one for this 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. The Scheme, which is co-funded by the EU, is an integral part of Ireland's Rural Development Plan, 2007/2013, and as such, any proposed change to Scheme criteria requires the agreement of the EU Commission. In this regard, therefore, the changes announced in the context of the recent Budget have been submitted to Brussels; the Commission's response is expected shortly.

The budgeted expenditure under the 2012 Scheme will be reduced from €220 million to €190 million and, in order to achieve the €30 million saving in expenditure, it is proposed to introduce specified changes to the Scheme eligibility criteria for 2012. This will be achieved by making technical adjustments to the Scheme criteria to ensure that the aid payment is focused on farmers, whose farming enterprises are situated exclusively in Less Favoured Areas and who are making a significant contribution to achieving the objectives of the Scheme. It is not possible, at this stage, to break the Scheme changes down on a county by county basis.

The savings will be achieved without the need to reduce the existing rates of aid and, in addition, there will also be no reduction in the maximum area payable – 34 hectares. The proposed changes are designed to ensure that the payments under the Scheme are focused on those farmers who (i) are farming exclusively in Disadvantaged Areas, (ii) make a significant contribution to the maintenance of a viable rural community and (iii) contribute to the enhancement of the environment.

It is proposed that eligible applicants in 2012 must have met (a) a minimum stocking density of 0.3 livestock units per hectare in 2011 (equivalent to 2 ewes per hectare) and (b) 0.15 livestock units per hectare in 2012. However, in recognition of the environmental objectives of the Scheme, specific provisions will be made for those farmers, who had a stocking density less than 0.3 lu/ha in 2011, where that lower stocking density was as a result of adherence to lower stocking by agri-environmental measure. If the proposals are accepted, all applicants, whose stocking density was below 0.3 lu/ha in 2011, will be written formally and given the opportunity to apply for a derogation on the grounds that his or her participation in one of the above measures resulted in the lower stocking density. The principles of force majeure/exceptional circumstances will also be provided for in the process. It is also intended that provision will be made for new entrants to farming.

It is proposed to continue with the minimum stocking density of 0.15 lu/ha in respect of 2012. With a view to focusing the aid to those farmers, who make the most significant contribution to the rural economy and to the environment in general, it is proposed that the calculation of the stocking density will be based on (a) a retention period of 6 months where the stocking density on the holding has to be equal to or greater than 0.15 lu/ha and (b) the stocking density calculated over the twelve months of the scheme-year.

With the intention of targeting those farmers who are farming exclusively in Disadvantaged Areas, it is proposed that digressive payments will apply for farmers whose holdings consist of land situated in both Disadvantaged Areas and non-Disadvantaged Areas.

Any analysis of the Scheme must take into account the impact of the various enterprises on the local economy. As is clearly evident, the main benefits arise from (i) beef rearing, (ii) dairying and (iii) sheep breeding enterprises. There are an increasing number of applicants under the Scheme, who have discontinued livestock (cattle or sheep) farming, but who continue to benefit from aid under the Scheme by grazing some horses on their land. It is proposed that horses will no longer be eligible for the stocking density calculation on the basis that these applicants' contribution to the rural economy is minimal. However, equine breeding enterprises will continue to be eligible on the basis of the contribution they make to the local economy.

It is also proposed to exclude land situated more than 80 kilometres from a farmer's holding from aid under the Scheme. This exclusion will be confined to applicants, whose main holding is situated in a non-Disadvantaged Area, and who declares land situated more than 80 kilometres from the main holding. It is contended that the local impact of the farming of those lands situated in the Disadvantaged Areas is marginal.

I remain committed to supporting farmers who choose to farm to environmentally friendly practices and to ensuring that these farmers are rewarded for their efforts. However, given the state of the public finances I had no option but to announce a 10% cut in the rate of payment to existing REPS applicants. This cut, which will apply to 2012 payments onwards is subject to the approval of the Commission and I am not yet in a position to indicate how the change will affect applicants on an individual basis or impact on the distribution of payments at county level.