Joe McHugh (Donegal North East, Fine Gael)
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461. To ask the Minister for Agriculture, Food and the Marine his plans for supporting farmers with private hill holdings whose single farm payments in disadvantaged areas are relatively low; and if he will make a statement on the matter. [44608/13]

Simon Coveney (Cork South Central, Fine Gael)
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As an alternative to the ‘flat-rate’ payment per hectare proposed by the Commission during the recent negotiations, I proposed the ‘Internal Convergence’ model which, while initially retaining the link with current payments under the Single Payment Scheme, gradually moves all farmers towards a national average value over the five years of the new scheme. The purpose of this model is to achieve a gradual phased redistribution of payments between those who currently hold high value entitlements and those who hold low value entitlements. It will I believe introduce a fairer more equitable distribution of funds between farmers while avoiding the negative impact of a sudden move to a ‘flat-rate’.

Farmers who currently hold low value entitlements will benefit from this process of convergence over the five years of the new scheme. By 2019 all farmers must have an entitlement value which is at least 60% of the national average entitlement value. In addition the new Regulation provides other options which allow for further reductions of high value payments. These are currently under consideration.

The CAP agreement reached on 26 June provides a number of options for Member States in terms of how they can tailor the new measures to their specific needs. In this context I initiated a process of consultation with all stakeholders in July the responses to which are currently being collated. I will decide on the final shape of the new Direct Payments system in Ireland later this year.