Denis Naughten (Roscommon-South Leitrim, Independent)
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Question 31: To ask the Minister for Agriculture, Food and the Marine the steps he is taking to support agricultural development in less favoured areas; and if he will make a statement on the matter. [23134/12]

Simon Coveney (Cork South Central, Fine Gael)
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The Rural Development Programme for Ireland has an allocation of close on €4.9 billion for the period 2007 – 2013 to fund various support schemes in the agricultural sector under the principles of competitiveness, improvement of the environment, land management and the development of the wider rural economy. Support for agricultural development in less favoured areas (LFAs) forms an important part of the Programme and these areas are supported both directly through LFA payments themselves and indirectly through schemes such as on farm investment and the Rural Environment Protection Scheme (REPs), Agri-environment Options Scheme (AEOS) and Natura agri-environment schemes. Under the LFA scheme itself a total of €1.1Bn has been spent to date, with €1.67Bn spent on the agri-environmental measures and €56.4m on the Natura Scheme. This is a considerable investment in the LFA areas. In addition, under the on farm investment schemes farmers in LFA areas are prioritised by the use of selection criteria for determination of entry to these schemes.

Despite ongoing budgetary constraints, which necessitated a reduction in the funding for the 2012 Disadvantaged Areas Scheme, I remain determined that the scheme should continue to contribute in a meaningful way to the support of those farming in designated less favoured areas. The most effective way of achieving this is by introducing technical changes to the qualifying criteria, which are designed to ensure that the aid is focused on those whose farming enterprises are located solely in LFA areas and who are making a significant contribution to achieving the objectives of the scheme, which are defined as follows: (1) to ensure the continued agricultural land use and thereby contribute to the maintenance of a viable rural community, (2) to maintain the countryside and (3) to maintain and promote sustainable farming systems which, in particular, take account of environmental protection requirements. The alternative to this approach would simply be to apply an across-the-board cut, which would affect all participants, regardless of their farming activity. The proposed changes must be approved by the EU Commission, as the Disadvantaged Areas Scheme forms part of the partially funded EU Rural Development Programme (2007 to 2013). However, in the meantime, I have published the 2012 Terms and Conditions, incorporating the proposed changes.

Farmers with ewe breeding flocks situated in Disadvantaged Areas continue to benefit from the payment of aid under the Grassland Sheep Scheme. My Department has paid €16.2 million to 27,829 farmers to date in 2012 under the 2011 Grassland Sheep Scheme. The vast majority of the beneficiaries of aid under this Scheme farm in Disadvantaged Areas. The Grassland Sheep Scheme will continue to support these farmers in 2012 and 2013.

Beef continues to be the principal farming enterprise in Disadvantaged Areas. In that regard, I have also maintained the Suckler Welfare Scheme in which approximately 35,000 suckler farmers continue to participate. Aid payments under this Scheme amount to almost €30million per annum and it is fully funded by the National Exchequer. This Scheme was recently the subject of a Value for Money Review and it was found to be successful in achieving its objectives of improving animal welfare standards and data collection. This has contributed to the increased prices now being achieved for weanlings and the improvement in the reputation of Irish beef in our key export markets.