Vol. 482 No. 8
17 Mr. Penrose asked the Minister for Agriculture and Food if he will introduce an attractive buy-out package for farmers which would incorporate an easy payment system to help overcome difficulties in view of the significant number of farmers who are experiencing difficulties in meeting their land annuity commitments; and if he will make a statement on the matter. [19536/97]
I have no proposals at present to introduce a further buy-out package. A scheme operated as recently as 1993 whereby farmers could buy out their annuities at a discount of 50 per cent on the outstanding capital provided any arrears were also paid.
Inspectors from my Department are currently visiting all farmers who have arrears of £2,000 and over with a view to assessing the reasons for non-payment. If it is found that the annuity is excessive relative to the earning capacity of the farm and the family circumstances, it is intended to capitalise the arrears and to reduce the repayments to a more reasonable level which will result in an extension of the repayment period. On the other hand, if it is found there is no good reason for non-payment, my Department will have to consider taking legal action on the matter.
This is an extremely serious problem in the midlands and in the Minister of State's county. A number of farmers did not avail of the 1993 scheme for various reasons; some farmers living on their own omitted to participate in the scheme. A case can be made for the reintroduction of another buy-out scheme at attractive terms. Will the Minister of State agree that many farmers would by now have discharged their capital commitments? This type of payment puts an enormous strain on the resources of farmers. The Minister of State will agree to restructure the payments but is it also correct that if farmers do not honour those restructured payments, the Department of Finance will deduct the payments from premiums and area aid? Is that the position or will an appeals system be set up whereby people can make a case if they are experiencing particular difficulties? Such an appeals system would give these people an opportunity to request an extension of the repayment period. This problem is particularly acute in the midlands where the livestock industry, the bedrock of many farm families, has experienced a tough 12 months. In light of the BSE crisis and the cut in export refunds, will the Minister of State agree to reconsider the possibility of introducing a new buy-out scheme? Will the Minister of State confirm how many farmers and what moneys are involved in the annuity system?
Approximately 8,000 farmers have long-term annuity and rental commitments amounting to £1,895,279. A breakdown of the amount in regard to land given to farmers by the Land Commission highlights the reasoning behind what we said. A total of 4,595 farmers or 58 per cent of them have a commitment of £50 per annum; 1,109 farmers or 14 per cent have a commitment of between £50 and £100 per annum involving an annual amount of £155,427; 1,835 farmers or 23 per cent have a commitment of between £100 and £500 per annum; 358 farmers or 4 per cent have a commitment of between £500 and £1,000 per annum and 80 farmers have a commitment of £1,000 or more per annum. That involves a total of 7,977 farmers. Some 95 per cent of farmers have annuities of less than £500 and, irrespective of their farm size, that should not be a substantial burden. I was involved in groups and delegations that looked for farms to be divided in the past. They were enthusiastic about that, even when farm land was valued at £3,000 per acre.
Some 3,240 farmers owe arrears of £276,798 in respect of the May-June instalments; 4,738 farmers owe arrears of £4,255,857 in respect of May-June and earlier instalments; and 1,038 farmers owe arrears of £23l,251 in respect of earlier instalments. The majority of farmers have a commitment of under £50 per annum and 95 per cent have one of under £500 per annum. Inspectors are inspecting and assessing the case of farmers with a problem in that regard. Many farmers who called to the office in Castlebar to discuss their case got a hearing and have had their payments restructured. Many are ignoring their arrears of payments in the hope that they will be abolished. However, this is taxpayers' money and it must be recouped as best as possible. Those who can afford to pay should make every effort to do so over a period of time.
