Charlie McConalogue (Donegal, Fianna Fail)
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301. To ask the Minister for Agriculture, Food and the Marine if he will make an allocation for 2016 and 2017 for young farmers under the national reserve scheme; when he will announce the conditions for such a scheme for 2017; and if he will make a statement on the matter. [5183/17]

Michael Creed (Cork North West, Fine Gael)
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The National Reserve measure of the Basic Payment Scheme was introduced under the reform of the Direct Payments Scheme which was designed to provide financial support to young farmers and new entrants to farming during the crucial years immediately following the setting up of the farming enterprise. 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 6,300 farmers received an allocation of entitlements under the 2015 National Reserve.

Due to the success of the 2015 National Reserve, all available funding was utilised and there was no remaining funding for a National Reserve in 2016.

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.

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.