Written answers

Tuesday, 16 October 2012

Department of Agriculture, Food and the Marine

Agriculture Schemes Expenditure

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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To ask the Minister for Agriculture, Food and the Marine the rationale he applied when making cuts to the various farming schemes. [44156/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Eligibility for the Disadvantaged Areas Scheme requires applicants to farm a minimum of three hectares and comply with minimum stocking density requirements. While the changes introduced in respect of the 2012 Scheme, necessitated by the budgetary situation, included a requirement to have had a stocking density of 0.3 livestock units per forage hectare in 2011, provision was made for those who did not achieve this minimum to apply for derogation, on specific conditions. Of the 10,000 farmers eligible to apply, almost 9,500 availed of the opportunity; to date, almost 80% of the cases decided upon have been successful. Those who have not been successful are being afforded the opportunity of appeal to the DAS Appeals Committee, under independent chairmanship of Mr Padraig Gibbons.

Faced with the need to make budgetary savings for the current financial year and, mindful of the difficulties faced by those most dependent on the support which the Disadvantaged Areas Scheme provides, I chose to make technical adjustments to the Scheme terms and conditions, designed to better focus the aid on those contributing most to achieving the aims of the Scheme namely, ensuring continued agricultural land use, thereby contributing to the maintenance of viable rural communities, maintaining the countryside and maintaining and promoting sustainable farming systems, which take account of environmental protection measures.

REPS is an agri-environment measure under the current Rural Development Programme 2007-2013. It is designed to encourage farmers to go beyond basic good farming practice and to farm in a way that benefits the landscape, biodiversity and water quality. Every member state must have an agri-environment measure and REPS is co-funded by the EU at the rate of 55%. The scheme has proven to be very popular with Irish farmers and confirms their commitment to farming to the highest environmental standards, a commitment I might add, that fits very comfortably with the vision of smart, green, growth as set out in my Department’s Food Harvest 2020 strategy statement.

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 Under EU Regulations. In this regard I recently announced the reopening of AEOS with funding of €20m annually, with scheme documentation now available on the Department’s website.

Payment rates in an agri-environment scheme must be justified mainly by reference to income forgone and additional costs incurred by the farmer because of the nature of his or her undertakings. Also up to 20% of an additional payment may be justified by what are called “transaction costs”. Given the state of the public finances, in finalising my Department’s estimates for 2012, I had no option but to announce a 10% cut in the rate of payment to existing REPS 4 applicants. This cut, which will apply to 2012 payments onwards, will be based on a cut to the transaction cost of participating farmers from €28.03 to €5.60 on each hectare that a transaction cost is paid.

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