Vol. 529 No. 1
431 Mr. Ring asked the Minister for Agriculture, Food and Rural Development if he will compensate farmers who have lost out in the changeover of headage to an area basis; when he expects to bring in the changes for the compensation; and when the compensation will issue. [2192/01]
The position is that £360 million additional funding has been committed to the disadvantaged areas compensatory allowance scheme over the period 2001 to 2006. This will increase the total value of the scheme to £1,080 million during that time. It is estimated that 109,000 farmers will qualify for payment under the new area based scheme compared with 90,000 under the old headage scheme. Total expenditure in the 2001 scheme will increase by some £60 million to £180 million. Some 81,000 farmers stand to gain under the new arrangements while about 28,000 will incur some losses. I have, however, negotiated a compensation package for losers under which 90% of losses will be made good in 2001, 80% in 2002 and 50% in 2003. Under these arrangements the average loss per farmer in 2001 will be about £32 rising to £64 in 2002. The compensation will be included in the payment due to each herdowner which will be made later in the year.
At my request my officials are currently reviewing the scheme with a view to finding an equitable long-term solution to the problem of losses.
