Vol. 444 No. 3
14 Mr. Deasy asked the Minister for Agriculture, Food and Forestry the period of time for which the payments of headage grants and premia are guaranteed from the European Union under the terms of the reform of the Common Agricultural Policy.
40 Mr. Rabbitte asked the Minister for Agriculture, Food and Forestry the terms of reference of the special beef premium scheme designed to compensate farmers for falls in beef prices; if £138 million was paid out last year in this scheme; in view of the fact that there was no fall in prices, if he intends to undertake any review of the scheme; and if he will make a statement on the matter.
85 Mr. Connor asked the Minister for Agriculture, Food and Forestry his views on whether CAP premia payments to small farmers who are in receipt of small farmer's assistance are meant only to compensate these farmers for market losses consequent on CAP reforms.
I propose to take Questions Nos. 14, 40 and 85 together.
It was decided, as part of the 1992 reform of the CAP, that the premium system for cattle should be enhanced over the three year period 1993 to 1995 in order to compensate farmers for reductions in support prices and the introduction of quantitative limits on intervention intake. These changes are being introduced on a phased basis and over time are expected to lead to reductions in producer prices. However, cattle prices actually increased by about 8 per cent in 1993 as compared with 1992.
The premia system is fully funded by the EU and is subject to terms and conditions laid down by the Union rather than by individual member states. These provide, inter alia, for the special beef premium and suckler cow premium to be increased in three annual stages to reach £87.88 and £136.70 respectively “for the 1995 calendar year and thereafter”.
In addition the bulk of Irish farmers will qualify for a top-up of £29.29 per animal by way of an extensification premium. The system of course incorporates a very deliberate and fundamental change in the direction of income supports in favour of:
—small farmers,
—disadvantaged farmers and
—less intensive farmers.
It is well suited to the needs of Irish beef farmers and is of considerable benefit to the national economy. Payments to date in respect of the 1993 special beef premium amount to £71 million. To date the total 1993 income support payments to farmers amount to about some £432 million.
