Michael Healy-Rae (Kerry South, Independent)
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Question 194: To ask the Minister for Agriculture, Food and the Marine the position regarding the farming industry (details supplied); and if he will make a statement on the matter. [20720/12]

Simon Coveney (Cork South Central, Fine Gael)
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The European Commission's proposals for the reform of the CAP post-2013 include a proposal to use 2014 as a reference year for establishing entitlements to future direct payments. I am, of course, aware that this proposal, as currently formulated, could create a number of problems both in the land rental market up to 2014 and in the establishment of entitlements.

Following my earlier contacts with the Commission on this issue - indeed before the proposals were finalised - I secured an improvement to the initial proposals in the form of an activation clause which ties the award of entitlements in 2014 to farming activity in 2011. I also raised the matter again with Commissioner Ciolos during his visit to Dublin in January, and I will continue to do so in my ongoing contacts with Member State colleagues and with the Commission.

I have advised farmers that they should not rush into investment or long-term leasing decisions on the basis of the current proposals. Detailed clarification and further negotiation remains to be done in this area. My objective at all times will be to ensure that the system of entitlements that is finally agreed will be in the best interests of productive and active farmers.