Michael Healy-Rae (Kerry, Independent)
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553. To ask the Minister for Agriculture, Food and the Marine if the national reserve scheme will be open again in 2017; if funding will be available for it; and if he will make a statement on the matter. [39788/16]

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. Some 8,000 farmers received an allocation of entitlements under the 2015 National Reserve. 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. 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 claw-back 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 application of a linear cut to the value of all farmers’ entitlements to replenish the National 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. The consultation process in relation to the 2017 National Reserve will take place early in 2017.