Dáil Éireann Debate, Thursday - 17 May 2012
151 Deputy Michael Moynihan asked the Minister for Agriculture, Food and the Marine the number of farmers affected by cuts since 2008, on a county basis, under disadvantaged area schemes, REP scheme and single farm payment scheme; the average loss of income due to these reductions; and if he will make a statement on the matter. [24620/12]
View answerIn respect of the Single Payment Scheme, the EU regulatory deductions in respect Modulation have increased, incrementally, from 5% under the 2008 Scheme to 10% under the 2012 Scheme. The marginal rate of modulation, levied on payments in excess of €300,000, increased pro rata, from 9% in 2008 to 14% in 2012. There are only 5 applicants that fit into the latter category in Ireland. As the Deputy is aware all SPS payments less than €5,000 are exempt from the modulation deduction as is the first €5,000 paid to all other farmers.
In relation to the Disadvantaged Areas Scheme, National budgetary considerations necessitated two reductions in the annual budget for this Scheme. The first was in respect of the 2009 Scheme-year, when the annual budget was reduced to €220 million, while the second is in respect of the 2012 scheme-year, with the annual budget reduced from €220 million to €190 million. While the savings in respect of the 2009 Scheme were achieved via the application of a general reduction in the maximum payable area, from 45 hectares to 34 hectares, the savings under the 2012 Scheme will be achieved via a series of technical adjustments to the Scheme's eligibility criteria, designed with the intention of giving better focus to the Scheme, which is to the benefit of the majority of those actively farming in areas with recognised constraints. Furthermore, every effort will be made to accommodate all active farmers who may find themselves otherwise adversely affected by the changes introduced for the 2012 Scheme.
Given the changing pattern in individual farmer's farm size, area and category of Disadvantaged land held, it is not possible to accurately measure the impact of the changes, mentioned above, for individual farmers.
REPS 4 was launched in August 2007 as one of the measures in the CAP Rural Development Programme 2007-13. In 2009 because of the very large uptake and the consequent funding commitment involved, the original payment rates were cut by 17%. At that stage 12,031 participants had already joined REPS and had been paid their 2007 and 2008 payments. The rate cuts meant an average loss of income to these farmers of €1,075 per annum. REPS continued to grow in 2009 and 2010 and there are now a total of 30,400 active participants receiving an average annual payment of €6,200. This €188 million annual payment to the farming community is vital to the fabric of our rural communities and this Department continues to support the REPS schemes.
