Éamon Ó Cuív (Galway West, Fianna Fail)
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272. To ask the Minister for Agriculture, Food and the Marine if he plans to pursue a policy of 100% convergence of the value of entitlements for farm schemes by 2027 in view of the fact that the only basis for different values being assigned to entitlements for farm schemes is the amount of grants paid to farmers in each of the years 2001 to 2003 and that a very significant number of entitlements have been transferred since; and if he will make a statement on the matter. [28955/21]

Charlie McConalogue (Donegal, Fianna Fail)
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Convergence is a mandatory provision in the current Common Agricultural Policy (CAP) programme and the new CAP proposals continue with this policy. Ireland has supported this element of these proposals. Convergence aims to redistribute and flatten the value of CAP payment entitlements and like all elements of the CAP, there are differing views regarding its implementation.

The new legislative proposals for the CAP include a continuation of the process of internal convergence, to a minimum of 75% of the national average. The European Parliament is seeking for a higher level of convergence. Final agreement on the CAP is dependent on the outcome of trilogue negotiations between the three institutions, which are aimed at reaching a final shared agreement on the shape of the new CAP. I am hopeful that these will conclude shortly.

The Department continues to monitor the proposed changes, including changes to convergence, and is engaged on an ongoing basis with European colleagues as well as stakeholders here. This close engagement and monitoring of the proposals on farmers in Ireland will continue until the regulations are fully developed and will, in due course, inform the implementation of new CAP regulations in Ireland.

I intend on fully engaging with farmers and farm organisations to get their views on convergence before I make a decision. I understand this is an issue with far reaching consequences and I want to put farmers at the centre of a decision on their future.

Éamon Ó Cuív (Galway West, Fianna Fail)
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273. To ask the Minister for Agriculture, Food and the Marine if he plans introducing a limit on the maximum farm grants that would be payable to farmers under the forthcoming CAP programme; if so, the conditions that will attach to same; and if he will make a statement on the matter. [28956/21]

Charlie McConalogue (Donegal, Fianna Fail)
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The draft proposals for the new CAP Programme propose capping of Basic Income Support Scheme (BISS) payments above €100,000 with degressivity possible between €60,000 and €100,000 and which includes options to offset some salaries against that limit. The draft proposals include a number of measures which concern redistribution of direct payments, including:

1. An overall cap of €100,000;

2. Degressive reduction of payments above €60,000;

3. A complementary redistributive income support scheme, and

4. The convergence of payments towards the average payment per hectare nationally.

At present, Ireland has implemented the maximum level of capping allowed under the regulations -100% capping of payment entitlement value above €150,000. If the maximum capping allowable under the proposed regulations were implemented, the maximum BISS payment would be c. €82,000. It seems likely that other direct payments, such as eco-schemes, would be excluded from this capping.

These redistributive mechanisms are core EU policies and are set to continue under the draft regulations for the new CAP. There has been extensive engagement and consultation with stakeholders on this process since the draft proposals were announced. I continue to engage with stakeholders with a view to ensuring that the developing EU regulations include a suite of measures which will enable us to ensure the fair implementation of these vital financial supports.

These measures, and others under the direct payments ceiling, are inextricably linked to each other. This means that each time one of the elements is changed, each of the other elements also are affected. Discussions are continuing around the new legislative proposals for the CAP and the final shape of the regulations and the options available to Member States will not be clear until this process is concluded. The Department continues to play a proactive role in this process.

Éamon Ó Cuív (Galway West, Fianna Fail)
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274. To ask the Minister for Agriculture, Food and the Marine if he plans to ensure there is a direct relationship between the rates of payment under the ANC scheme and the natural constraint on production of different types of land under the forthcoming CAP; and if he will make a statement on the matter. [28957/21]

Charlie McConalogue (Donegal, Fianna Fail)
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Ahead of the launch of the 2019 Areas of Natural Constraints (ANC) scheme, Member States were required under EU Regulations to change the approach to the designation of land under the ANC Scheme. Prior to this, the Department identified eligible areas using a range of socio economic indicators such as Family Farm Income statistics, population density, percentage of working population engaged in agriculture, stocking density etc.

From 2019 onwards, it was required that eligible areas must instead be designated by reference to a range of bio-physical criteria such as, for example, low temperature, excess soil moisture and poor chemical properties. The process also took into account constraints facing offshore island farming and three other identified categories of land: areas of environmental importance, areas facing structural constraints relating to fragmentation and farm size and areas facing structural constraints relating to the prevalence of grassland cover and field size.

Following the completion of this process, areas under the scheme which were determined to be constrained were further classified into a number of different land categories as follows:

- Category 1 land

- Category 2 land

- Category 3 land

These categories are based on the considerations set out in Article 31(1) of Regulation 1305/2013. The system of farming prevalent in Category 1 is characterised by extensive farming practices focused on livestock management on higher ground. By contrast, Category 2 is characterised by extensive livestock grazing practices on lower ground, while Category 3 is less extensive in nature and characterised by grazing livestock enterprises.

Areas of Specific Constraints (Island Farming) formed an additional land category.

Payment rates under the existing scheme are based on an examination of standard output data from the Central Statistics Office Census of Agriculture and data from DAFM databases. This facilitated a comparison at district electoral division (DED) level of DEDs containing designated land, with DEDs containing no designated land. CSO Standard output figures show for Category 1 areas only an average SO/ha of €236.76, for Category 2 areas only an average SO/ha of €742.81, for Category 3 areas only an average SO/ha of €1020.38, and for non-designated areas an average SO/ha of €1206.86.

Based on these figures, the payment rates set out in the scheme are in line with the provision of Article 31 (1) of Regulation 1305/2013 in that the support granted annually per hectare will compensate beneficiaries for “part of the additional costs and income foregone related to the constraints for agricultural production in the area concerned.”

Payment rates are designed to reflect the differences between these three categories.

In the case of support for offshore farming, eligible costs are determined on the basis of the costs and income foregone linked to the specific constraints experienced by off shore island farmers. Island farmers already incur the additional costs and lower productivity that other mainland farmers situated on Areas of Natural Constraints also incur. However, there are additional costs borne by island farmers, which cover all of the main farming activities. These include higher input costs (fertiliser and machinery), animal feed, and other services such as veterinary, consultancy, and maintenance charges.

It is expected that the existing criteria for the determination of the status of land under the scheme, established following the extensive re-designation process undertaken ahead of the 2019 ANC scheme, will continue to form the basis of the determination of land designated as constrained under the new CAP.

The payment rates set out in the existing scheme also show a direct relationship to the level of constraint and production on the different categories of land designated as constrained. On that basis, it is also the intention to ensure that the existing basis of the determination of the rates of payment for each category of land designated as disadvantaged under the scheme also forms the basis for the payment rates which will be in place for the new CAP.

The current payment rates under the ANC scheme are:

- Category 1 Land: €148 on the first 12 eligible hectares or part thereof, and € 112 per hectare on remaining hectares up to a maximum of 34 hectares.

- Category 2 Land: €111 on the first 10 eligible hectares or part thereof, and €104 per hectare on remaining hectares up to a maximum of 30 hectares.

- Category 3 Land: €93 on the first 8 eligible hectares or part thereof, and €88.25 per hectare on remaining hectares up to a maximum of 30 hectares.

- Areas of Specific Constraints (Island Farming): €250 on the first 20 eligible hectares or part thereof, €170 on greater than 20 hectares to less than or equal to 34 hectares and €70.00 on greater than 34 hectares or less than or equal to 40 hectares.

Éamon Ó Cuív (Galway West, Fianna Fail)
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275. To ask the Minister for Agriculture, Food and the Marine the steps he plans taking to ensure that as much of the grants payable to farmers under the forthcoming CAP will remain with the farmer and that compliance costs will be kept to a minimum in view of the income challenges faced by the agriculture sector; and if he will make a statement on the matter. [28958/21]

Charlie McConalogue (Donegal, Fianna Fail)
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I am very much aware of the pressures on farm income and the need to consider compliance costs for farmers. I will consider in the preparation of Ireland’s draft CAP Strategic Plan (CSP) 2023-2027 how we can best support farm incomes and minimise compliance costs, while adopting new approaches and innovations to address new and existing challenges.

I am conscious of the need to put in place supports to assist farmers and advisors to address the climate, environment, biodiversity and health and safety challenges at farm and local level. We have started this work in the transitional period, providing training for farmers and advisors, and testing results-based scorecards through the REAP pilot project, as well as continuing to provide support for EIP-AGRI innovation projects to find local solutions to local problems with farmers.

We aim to continue our online services using the agfood.ie system for applications by farmers, thereby reducing compliance costs. The Department already provides dedicated telephone and online help facilities for those farmers who need assistance in making applications, again cost-free for customers. Ease of application and compliance will be central to the new interventions under the CSP.

I will also continue the extensive engagement with stakeholders on development of the CSP through the CAP Consultative Committee, which comprises representatives of the main stakeholders, including farm bodies, NGOs (including the Environmental Pillar), industry representatives and academia. Further, wider, public consultations on the development of the CSP will take place over the coming weeks and months as we have more clarity on the regulations, which are under consideration in Brussels this week. I will continue to engage with stakeholders on all aspects as we develop our CAP Strategic Plan 2023-2027 to meet the deadline of submission to the Commission by 1st January 2023.