Billy Timmins
Question:161 Mr. Timmins asked the Minister for Agriculture and Food the way in which he proposes to address the anomalies in disadvantaged area payments; and if he will make a statement on the matter. [18593/02]
Written Answers. - Disadvantaged Areas Scheme.
The present area based compensatory allowance scheme replaced the old cattle, sheep, equine and goat headage schemes with effect from 2001. Under the 2001 scheme, a total of €235 million was paid to some 99,000 farmers compared to €144 million paid to 92,000 farmers under the 2000 animal based schemes. This additional expenditure of €91 million annually represents a major boost to farmers in the 75% of the country classified as disadvantaged.
The area based scheme was modified in 2002 by increasing the rate payable on mountain type land. That increase was backdated to 2001 with farmers being paid €16 million earlier this year by way of a top-up on the 2001 scheme. The scheme now provides for area based payments as follows:
Mountain type land: €101.58 on first 10 hectares or part thereof and €88.88 per hectare on remaining hectares subject to an overall payment ceiling of 45 hectares; more severely handicapped (lowland): €88.88 per hectare on up to 45 hectares and; less severely handicapped (lowland): €76.18 per hectare on up to 45 hectares.
Where a farmer farms a combination of lands as outlined he is paid on mountain type land first, lowland, more severely handicapped second, and lowland, less severely handicapped last subject to an overall payment ceiling of 45 hectares.
Payments under the scheme in 2002 commenced on Friday 20 September 2002 ahead of the target date for payment agreed in the protocol on direct payments to farmers and in the first week a record total of €192.5 million, including €4.5 million under the compensation package issued to some 78,000 farmers. A total of €202.7 million has now been issued to 88,851 farmers.
The payments now being made represent 100% entitlement for 2002. While there are some farmers who would stand to lose money under the revised scheme when compared to the old animal based headage schemes, the compensation element agreed as part of the original area based scheme continues to apply. Under this arrangement, farmers who lost out in 2001 received compensation of 90% of their loss. The compensation element has reduced to 80% this year and the payments now being made include this element of compensation for losses in appropriate cases.