As you are aware my Department is bound, under EU Regulations, to maintain the accuracy of the Land Parcel Identification System (LPIS) which underpins the direct payments. At the start of each year, my Department issues colour maps of all land parcels declared by farmers in the previous year together with a covering letter. In that letter, farmers are clearly informed of the need to carefully examine each map and to identify and exclude from their application all unfarmed land, ineligible features such as buildings, farmyards, scrub, roadways, forests, lakes etc. included in the land parcels. There is, therefore, an onus on all farmers to ensure that the area of land declared by them as eligible for payment under the Direct Payment Schemes is accurate. They are also given the means to do so by making the ortho-photos available to them on an annual basis. These requirements are also made clear in the Terms and Conditions of the Schemes, which accompanies the pre-printed application form issued to all farmers.
Deputies will be fully aware of the importance of payments made under the Single Payment Scheme, the Disadvantaged Areas Scheme and other Direct Payment Schemes to the annual income of Irish farmers. To date, my Department has paid €582 million in advance payments to over 115,143 farmers under the 2013 Single Payment Scheme since payments commenced on 16 October. Some 84,800 farmers have received €179.3 million under the 2013 Disadvantaged Areas Scheme. Payments continue to issue under both Schemes as cases become clear and eligible for payment. I can reassure farmers that no payments are held up due to the ongoing LPIS review.
Department officials met the Commission in July of this year about possible disallowances, and in response my Department is currently reviewing all land parcels claimed. This effectively means a review of all 950,000 land parcels. This is a mammoth task but my Department is making every effort to ensure that it will be completed in a manner that satisfies the Commission. As a result of this phase of this review, any payments made to farmers in respect of claimed areas, which were found to be ineligible, must be reimbursed. The Review of the 950,000 parcels contained on the LPIS database is well advanced at this stage with over half the parcels reviewed and is on target to be finalised in time to allow a comprehensive response to the Commission within the specified time-frame of 15 December.
To date, 19,418 over-claim letters have issued to farmers, together with maps of the land parcels in question. It should be borne in mind that for 75% of farmers, the over-claim will have no impact on payment as the many farmers declare more land than payment entitlements and a further 18% of farmers have a minimal payment reduction. The average over-claim is less that €90 or just over €300 for those applicants with a reduction and penalty. These figures are based on 2013 payments only.
In the letters issued to date there is considerable detail and maps to advise of the particular over-claims, farmers are also informed of the appeals process, should they disagree with my Department’s findings. The appeals process I have introduced is both robust and comprehensive; in the first instance, applicants are entitled to have their case reviewed by submitting their appeal on the form provided by my Department. If they are not satisfied with the outcome of the review, they can appeal their case to the independent-chaired Land Eligibility Appeals Committee, details of which I announced recently. This Committee will consist of an independent Chairman and appeals officers from the Agriculture Appeals Office.
