Vol. 538 No. 3
172 Mr. Deasy asked the Minister for Agriculture, Food and Rural Development if his attention has been drawn to the fact that the proposed changes in payments of sheep headage to area based payments will result in heavy financial losses for farmers with mountain grazing; and if he will make a statement on the matter. [18143/01]
The rates of payment agreed with the IFA for the area based compensatory allowances scheme are as follows: more severely handicapped lowland gets £70 per hectare for up to 45 hectares; less severely handicapped lowland gets £60 per hectare for up to 45 hectares; mountain land gets £45 per hectare for up to 60 hectares.
The new arrangements involve a cost of £180 million in 2001 representing an increase of about £60 million over 2000. It is estimated that the number of farmers qualifying for payment under the new area based scheme will rise from 90,000 in the past to 109,000 in 2001. From 2001, some 81,000 farmers stand to gain about £66 million annually while 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 in 2001 will be £32 rising to £64 in 2002. Concern has been expressed that farmers in the mountain category should get a higher rate of payment and this matter is being examined at present.
