Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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402. To ask the Minister for Agriculture, Food and the Marine the status of the national reserve scheme; if he will address fears by young farmers wanting to avail of the scheme; and if he will make a statement on the matter. [38359/16]

Michael Creed (Cork North West, Fine Gael)
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In 2015 the National Reserve fund was based on a 3% cut to the Basic Payment Scheme financial ceiling and provided some €24 million in funding which was the maximum financing rate available under the relevant EU Regulations. There was no National Reserve in 2016 as all available funding had been utilised under the 2015 scheme. In order to provide for a National Reserve in 2017 funding is required to replenish the Reserve. The two priority categories are Young Farmer and New Entrants. EU Regulations governing the scheme provide that funding for the replenishment of the National Reserve may be obtained by means of surrender of entitlements that remain unused by farmers for two consecutive years and by clawback derived following the sale of entitlements without land. It is envisaged that funding derived from these two sources in 2017 will be very limited. The Regulations also provide for the option of a linear cut to be applied to all farmers entitlements to replenish the Reserve.

Decisions in relation to the National Reserve for 2017 will be considered once the position on potential funding has been established. Consultation between Department officials and the Direct Payments Advisory Committee comprising members of the main farming organisations, agricultural education and farm advisory bodies takes place annually as part of the decision making process for the National Reserve.