Written answers

Thursday, 2 February 2017

Department of Agriculture, Food and the Marine

Young Farmers Scheme

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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28. To ask the Minister for Agriculture, Food and the Marine if the plan to deal with the forgotten farmers as outlined in the programme for Government will be implemented and up and running before the end of 2017. [4879/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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EU Regulations governing the National Reserve provide that the two mandatory categories of ‘young farmer’ and ‘new entrant to farming’ must receive priority access to the Reserve. A young farmer is defined as a farmer aged no more than 40 years of age in the year when they first submit an application under the Basic Payment Scheme and who commenced their farming activity no more than five years prior to submitting that application.  A new entrant to farming is defined as a farmer who commenced their agricultural activity during the previous two years and did not have any agricultural activity in their own name and at their own risk in the five years preceding the start of the present agricultural activity.

The Regulations governing the operation of the National Reserve also include an optional provision whereby Member States may use the National Reserve to allocate new entitlements or give a top-up on the value of existing entitlements for persons who suffer from a ‘Specific Disadvantage’. Support for such categories can only be considered once the two mandatory categories of young farmer and new entrant have been catered for.  Decisions regarding the eligibility of farmers under the ‘specific disadvantage’ category of the National Reserve require the approval of the EU Commission. Ireland successfully negotiated the inclusion of a group of farmers commonly known as ‘old young farmers’ as a specific disadvantage group under the 2015 National Reserve.

A group commonly known as the ‘Forgotten Farmer’ group comprises farmers aged under 40, who established their holdings prior to 2008, and who hold no or low value entitlements and also consider themselves to be a category of specific disadvantage.  Preliminary analysis carried out by my Department shows there are some 3,900 farmers in this category.  An estimation of the cost of increasing the value of existing entitlements to the National Average for these 3,900 farmers stands at over €12 million.  The Programme for a Partnership Government contains a commitment to further pursue the category of ‘forgotten farmers’ at an EU level.

In the context of negotiations with the EU Commission in relation to the ‘Old Young Farmer’ specific disadvantage category Ireland notified the Commission that there were other categories of farmers who may also require consideration as suffering from a ‘specific disadvantage’.  The Commission notified Ireland that any application for a specific disadvantage category of the National Reserve may only be made to the EU Commission in the context of the operation of the National Reserve for that year.

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. 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 option of applying a linear cut to all farmers' entitlements to fund the National Reserve.

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.  Decisions relating to the availability of a 2017 National Reserve can only be made following determination of available funding and the consultation process involving the Direct Payments Advisory Committee.  This advisory group is due to meet shortly in relation to the 2017 National Reserve.

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