Michael Moynihan (Cork North West, Fianna Fail)
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Question 12: To ask the Minister for Agriculture, Food and the Marine the number of farmers who will lose out under the new stocking rate criteria; the number of farmers who will lose out on a county basis on the proportionate payment between land in disadvantaged areas and land out of disadvantaged areas; and the number of farmers who will lose out as a result of horses not being taken into account in the stocking rate calculation. [7257/12]

Simon Coveney (Cork South Central, Fine Gael)
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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.

Faced with the task of achieving significant savings in the annual budget for the Disadvantaged Areas Scheme, I chose to take the opportunity to make the Scheme more targeted, rather than simply apply an across the board cuts to all participants. 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 and donkeys 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 (horse) breeding enterprises will continue to be eligible on the basis of the contribution they make to the local economy. The precise definition of an equine breeding enterprise is being formulated.

With the intention of targeting those farmers who are farming exclusively in Disadvantaged Areas, it is proposed that farmers, whose holdings consists of land situated both in Disadvantaged Areas and non-Disadvantaged Areas are in a better positioned from a farming viewpoint than those farming exclusively in Disadvantaged Areas. Therefore, it is proposed that where some of an applicant's land declared is Disadvantaged land and his or her main holding is in a non disadvantaged area, a digressive rate of aid under the Scheme will be payable. This digressive payment does not affect applicants whose main holding is in a disadvantaged area. This proposal is regarded as fair in that the greater proportion of Less Favoured Areas land in the holding, the greater the level of payment.

I am, however, particularly mindful that any proposed changes in scheme qualifying criteria, regardless of how focused and targeted their aim, will result in anomalies, because of which I have already indicated that specific provision will be made for those farmers, as described by the Deputy, who may find that their stocking rates are less than now required. Specifically, I have directed that a formal procedure be put in place to cater for all who consider that their inability to meet the proposed revised scheme requirements is due to force majeure/exceptional circumstances. Those affected will be invited to outline such details to my Department, each case then being considered on its merits. Again with specific regard to the proposed stocking provisions, where individuals can show that their inability to meet the revised requirements are due to their participation in a recognised environmental programme, for example, the necessary allowance will be made. Consideration will also be given to new entrants to farming.

It will be appreciated, therefore, for the reasons outlined, it is not possible, at this stage, to break the Scheme changes down on a county by county basis, nor on a sectoral basis.

Deputies will be aware that 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.