asked the Minister for Agriculture and Food if the EC regulation which prevents farmers producing milk in excess of the quota for 1986-87 from qualifying for farm development grants will be modified, as most of the work had commenced in advance of the introduction of the regulation; and if he will make a statement on the matter.
Written Answers. - Farm Improvement Programme.
49.
Under the EEC Regulation 797/85, on which the farm improvement programme is based, grant aid for dairy investment is payable only where an applicant's milk quota is respected. I see no prospect of obtaining EC Commission agreement to an amendment of the regulation nor of securing the approval of the Council of Ministers to such an amendment.
I can, however, confirm that grants for non-dairy investment under the programme will no longer be dependent on compliance with the milk quota requirements. Furthermore, milk quotas associated with land leased for a minimum of three years may be taken into account in calculating a dairy farmer's permanent milk quota for programme purposes. These two changes, which apply retrospectively, will, I am satisfied, result in a substantial number of dairy farmers, who would have been ineligible under the previous rules, being eligible now for grants for planned investment.