Written answers

Wednesday, 22 March 2017

Department of Agriculture, Food and the Marine

Basic Payment Scheme

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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238. To ask the Minister for Agriculture, Food and the Marine his plans to keep the national reserve refunded in the future to cover all areas currently requiring funding, such as new entrants, forgotten farmers and young farmers; and if he will make a statement on the matter. [14307/17]

Photo of Michael CreedMichael 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. Some 6,250 applicants were allocated entitlements under the 2015 National Reserve.  There was no National Reserve in 2016 as all available funding of €24 million had been fully utilised under the 2015 scheme. In 2017 the National Reserve is being funded from a linear cut to all entitlements held under the Basic Payment Scheme.

In line with the Programme for Government commitment  Department officials consulted with the EU Commission with regard to funding of ‘specific disadvantage’ categories such as ‘Forgotten farmer’ under the National Reserve in 2017 and future years. The Commission has confirmed that Member States cannot use the proceeds of a linear cut to fund the specific disadvantage categories of the National Reserve.  The only funding option for this category is natural replenishment, but only after the 2 priority categories of ‘young farmer’ and ‘new entrant’ have been catered for.

Decisions in relation to the funding and operation of the National Reserve in future years can only be made once the position regarding remaining funding following the 2017 scheme year becomes apparent. 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.

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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239. To ask the Minister for Agriculture, Food and the Marine his plans to put a term limit on the number of years in a row a farmer can lease out entitlements to others, rewarding non-farmers; and if he will make a statement on the matter. [14308/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The EU Regulations governing the implementation of the Basic Payment Scheme do not permit Member States to place any limitations on the leasing of entitlements, such as the application of a term limit on the length of leases. In addition any such limitation would be contrary to existing Government policy, such as those contained in the Agri-taxation Review, which provides the granting of tax relief to include entitlements where a farmer leases both his land and entitlements. One of the qualifying criteria for the tax relief is the lease must be for a definiteterm of five years or more.  Applying a limitation to the number of year’s entitlements may be leased, would undermine the extension of the tax relief to cover entitlements and therefore be contrary to existing policies aimed at supporting generational renewal in the agriculture sector.

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