The position is that the new single payment scheme will replace all livestock premia and arable aid schemes and will be introduced in Ireland from 1 January 2005. There are no transitional payments. The scheme is applicable to farmers who actively farmed during the reference years 2000, 2001 and 2002, who were paid livestock premia and-or arable aid in one or more of those years and who will continue to farm in 2005. The gross single payment is based on the average number of animals and-or the average number of hectares — in the case of arable aid — on which payments were made in the three reference years.
My Department has already issued a statement of provisional single payment entitlements to some 130,000 farmers. The statement includes a detailed breakdown of how those provisional entitlements were calculated. Farmers who are not satisfied with the statement may seek a review of their entitlements on a form which is available from all local offices of my Department and from my Department's website.
My intention is that definitive statements will issue early in 2005. Statements of provisional single payment entitlements did not issue to some 17,000 farmers who largely comprise applicants for force majeure-exceptional circumstances, new entrants to farming and inheritance cases. As these applicants are processed, entitlement statements will be issued to them. Arrangements are in place, including a lo-call helpline, for dealing with inquiries from farmers.
In addition, a new dairy premium was introduced for the first time this year. It is coupled to milk production this year and based on milk quota held at 31 March 2004. Payments under the dairy premium commenced on target on 16 October 2004 and €58.5 million has already been paid to 94% of applicants. The dairy premium will be decoupled from milk production in 2005, based on milk quota held on 31 March 2005, and will be added to the single payment scheme.
In accordance with the EU regulations governing the single payment scheme, payments under the scheme are due to commence in December 2005. In general, the farming community has welcomed the single payment. Farmers will now be able to concentrate on producing what the marketplace wants and will no longer have their initiative and energies diverted into concerns about retention periods, census dates and other scheme requirements.