In 1997, a review of mountain type grazing lands for sheep headage purposes in the more severely handicapped areas and the less severely handicapped areas was carried out by my Department. All land classified as mountain type grazing was subsequently identified as such on the land parcel identification system. This designation as mountain type grazing suited most farmers, especially those engaged in sheep production, allowing them to be paid headage grants on mountain type ewes. However, in designating the areas concerned on the land parcel identification system regard had to be had to certain natural boundaries such as rivers and roads and it was not possible to exclude certain farms where sheep production did not take place.
The new area based compensatory allowance scheme agreed in July 2000 and approved by the European Commission in the context of the CAP rural development plan provides for area related payments as follows: More severely handicapped – lowland, £70 per hectare up to 45 hectares; Less severely handicapped – lowland, £60 per hectare up to 45 hectares; Mountain type land, £45 per hectare up to 60 hectares.
The person named was paid £1,022.88 on 3 October 2001, in respect of 22.73 hectares of mountain type land at £45 per hectare. This compares with his average headage payment of £980 over the years 1998, 1999 and 2000.
Following a thorough review of the area based compensatory allowance scheme, proposals have now been submitted to the European Commission for increased payment rates for farmers with mountain type land. The proposal involves making a payment of £80 per hectare on the first ten hectares of mountain type land with a payment of £70 per hectare on each remaining hectare subject to an overall payment ceiling of 45 hectares. Subject to securing the necessary EU approval it is intended that the revised payment rates will take effect in the current year.