The position is that unlike the 2005 National Reserve Scheme, when there was a number of mandatory categories to be catered for, this year there is only one mandatory category — Category A. This category caters for farmers who inherited, leased or otherwise received free of charge, or for a nominal amount (€100 per hectare), from a farmer who retired or died before 16 May 2005, a holding that was leased out to a third party during the 2000-2002 reference period.
Following consultations with the Single Payment Advisory Committee (comprising representatives from the farming organisations and Teagasc), I also decided to include a non-mandatory category in the 2006 National Reserve. This category (category B) caters for farmers who commenced farming after 31 December 2002 or who, while farming during 2002, did not receive any direct payments in respect of that year. The income and educational qualification that applied in 2005 will again apply to this category. In addition, new entrants who are farming leased/rented land will be eligible for an allocation provided they can demonstrate a genuine commitment to farming. In this context the leased/rented land must have been declared on the 2004 Area Aid application and on the 2005 and 2006 Single Payment Scheme applications.
In addition to the above, successful applicants under category C of the 2005 National Reserve (those who participated in the milk restructuring scheme and converted to a farming sector for which a direct payment would have been payable during the reference period) will now be eligible for a top-up from the 2006 National Reserve to reflect the increased value of the Dairy Premium in 2006. My Department will automatically apply this top-up and therefore the farmers concerned need not make application to the 2006 National Reserve. Separate arrangements concerning a National Reserve category for Sugar Beet farmers will be announced separately later on.
There is no provision for the application of Force Majeure to farmers who had land leased during 2005 where the land in question is no longer available to them. However, where a farmer was leasing land during the reference period 2000-2002 and the lease agreement has now expired, the farmer in question may be eligible to consolidate his/her entitlements for 2006.