Under the Area Based Compensatory Allowance Scheme, payment is based on eligible forage lands within the Disadvantaged Areas and designated as More Severely Handicapped (lowland), Less Severely Handicapped (lowland) and Mountain Type Grazings. The total area now designated as disadvantaged comprises almost 75% of Ireland's total land area.
The lands must be used for the grazing of cattle, sheep, horses, goats and deer and a minimum stocking density of 0.15 livestock units per forage hectare applies. Under the 2006 Scheme around 101,400 farmers have been paid to date, and of these almost 30,000 had sheep. The 2007 Scheme, for which €257 million has been allocated, forms part of the Rural Development Programme 2007-2013, which awaits EU Commission approval. It is proposed to pay an across-the-board increase of 8% over and above the 2006 basic rates to each eligible farmer in the following order on up to 45 forage hectares: €109.71 for each of the first 10 hectares of Mountain Land or part thereof; €95.99 for each of the next 35 hectares of Mountain Land or part thereof; €95.99 per hectare on More Severely Handicapped (lowland); €82.27 per hectare on Less Severely Handicapped (lowland).
All livestock premia on a headage basis were discontinued in 2005 in the context of Ireland's decision to decouple such premia from production to be replaced by the new Single Farm Payment.