John Halligan (Waterford, Independent)
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119. To ask the Minister for Agriculture, Food and the Marine if he is aware that farmers could end up with penalties of up to 140% of an annual payment under the beef data and genomics programme for failure to meet the 50% four to five star target, even though such failure could be completely outside their control and in reality be due to poor reliability figures from the Irish Cattle Breeding Federation; if he will establish a scheme with a six-year contract which would result in a likely clawback of all payments for previous years where farmers decide to change their systems of farming, due to income pressures and economic realities; and if he will make a statement on the matter. [26553/15]

Simon Coveney (Cork South Central, Fine Gael)
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The Beef Data and Genomics Programme (BDGP) forms part of Ireland’s Rural Development Programme and allocates funding of some €300 million over the next six years to suckler farmers in Ireland. The Programme builds on the large strategic investment in data recording and genomics which the country has made in recent years. It will ultimately bring about fundamental and strategic improvements to the entire beef sector by substantially improving the overall genetic quality of the national beef herd. This is an objective I believe we all should share.

The replacement strategy is an essential element of the Beef Data and Genomics Programme (BDGP) if the overall objectives of the Programme are to be achieved, i.e. a reduction in Greenhouse Gas Emissions and the improvement of the genetic merit of the national beef herd. Twenty per cent of the payment is for the purchase/breeding of 4 and 5 star heifers and this component of the overall payment is made in each year of the programme, starting in year one, although the participant is not required to fully meet the replacement requirement until 2020. Any penalties for non compliance with this element of the Programme will apply only to that 20% component of the payment.

In the event that the participant achieves compliance for the replacement females of between ninety and ninety nine per cent, a proportionate reduction will be applied to that component of the payment based on the actual compliance level. This provides some flexibility whereby farmers who go most of the way to meeting their requirement, but do not achieve 100% compliance, will only have a proportionate reduction applied and no additional penalty will be incurred.

However, if less than ninety per cent compliance is achieved by 2020, no payment will be made for that element of the total payment for that year, i.e. twenty per cent of the total payment. In addition, a penalty of the equivalent amount will be imposed and any payments made in previous years for this element of the payment will be recovered. As 20% of the payment each year relates to replacement females, it is necessary to reclaim this 20% proportion from the payment in later years where this requirement has not been met. This is a central component of the programme and I believe that there is a sufficient lead in time for participants to achieve this requirement by 31 October 2020. In addition, each participant will be provided with tailored BDGP training, together with ongoing information from ICBF which will assist them in developing a replacement strategy that will ensure that the replacement targets can be met with confidence on each holding.

This programme is aimed at committed suckler farmers who are willing to commit to this farming system for a 6 year period and experience from the past indicates that only a minority of farmers change farming practices in any given period. As regards exiting the programme during the 6 year period, force majeure clauses have been included in the Terms and Conditions where withdrawal is caused by circumstances beyond the applicant’s control, such as illness or animal disease. If force majeurecircumstances arise, such as death or the long term incapacity of the participant, then payments will not be recovered. My Department has also confirmed that where an applicant sells or leases his/her land, or transfers it by inheritance or gift, there will be no clawback of funds. Of course, where an applicant retains sufficient land to fulfil the requirements of the Programme (the maximum payable area), he or she is required to continue to meet its terms and conditions on an ongoing basis.