Dáil Éireann Debate, Tuesday - 30 November 2004
381 Mr. P. McGrath asked the Minister for Agriculture and Food the provision which is made under the proposed decoupling arrangements to ensure that young farmers will be able to make a livelihood from agriculture in relation to farmers who, having availed of the farm retirement scheme, and on completion of this scheme, wish to give their land to a family member. [31022/04]
View answer394 Mr. Naughten asked the Minister for Agriculture and Food the plans she has to address the plight of farmers who entered the early retirement scheme in the late 1990s due to ill health in view of the fact that they have no decoupled entitlements attached to the land and as a consequence their ability to lease the land is extremely limited; and if she will make a statement on the matter. [31411/04]
View answerI propose to take Questions Nos. 381 and 394 together.
In general, the new single payment scheme which will be introduced in Ireland from 1 January 2005, 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.
However, during the course of EU negotiations, Ireland secured agreement that farmers who take over a holding, by transfer free of charge or by a lease of five or more years at a nominal amount, a holding that was leased out to a third party during the reference period, may apply to the national reserve for payment entitlements under the single payment scheme. This should be of particular benefit to family members who now take over the holdings of farmers who joined the early retirement scheme before the reference period where the land was leased out to a third party during the reference period.
Farmers who were in receipt of direct payments during the reference period who have already transferred their holdings by deed of transfer or by lease or who will do so by 15 May 2005, may transfer or lease their entitlements with the land by using a private contract clause in the sales contract or lease agreement. This will ensure that the recipients many of whom are young farmers, will have access to the single payment scheme from 2005 onwards. Further details on use of the private contract clause are available on pages 18 and 19 of the explanatory guide on the single payment scheme which was issued by my Department earlier this year.
Under the terms of the scheme of early retirement from farming, the participant is required at all times to have his land leased or transferred to an eligible transferee in order to receive payment of pension. I am conscious of the concerns of retired farmers, particularly of those who entered the first scheme of early retirement and whose leases may now be nearing an end. Discussions are taking place with the European Commission in the hope of finding a solution, within the terms of the relevant EU regulations, to situations such as that in which a participant may experience difficulties in finding a replacement transferee. The rental value of land is, however, a matter that must be determined by the market.
