Dáil Éireann Debate, Thursday - 19 June 2014
32. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his plans under the Common Agricultural Policy reform proposals to assist and support young farmers who have been farming for more than five years to build a viable farming enterprise; and if he will make a statement on the matter. [26139/14]
View answerThe new Direct Payments Regulation that will come into force in 2015 provides for a Young Farmers Scheme to assist young farmers in the initial stages of establishing a farming enterprise. Qualifying “Young Farmers” will be eligible to apply to the National Reserve for an allocation of new entitlements or a top up on the value of existing entitlements and also to participate in the Young Farmers Scheme.
The definition of Young Farmer includes the criteria that such persons are aged 40 or less in their first year of application and that they have established their holding within five years of their first application under the Basic Payment Scheme. This definition is included in the new Direct Payment Regulation, applies to all Member States, and no Member State has any discretion to vary these conditions. Member States may however add further qualifying criteria. In this regard, to ensure that limited resources are targeted specifically at persons who have a genuine interest in agriculture, I have decided to apply the following educational requirement:
- S/he has successfully completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent.
The essential purpose of the Young Farmers Scheme is to assist young farmers in the initial stages of establishing a farming enterprise in their own name and to encourage generational renewal. It is for this reason that the payment is restricted to those who are establishing a farming enterprise or have established such a holding in the previous five years. In addition the restricting of the payment to a maximum of five years will make it possible to support those young farmers who will come on-stream in the years subsequent to 2015.
Most farmers who have been farming for more than five years hold existing entitlements under the Single Payment Scheme. Where such farmers hold low value entitlements they will benefit significantly from the process of convergence that will apply under the Basic Payment Scheme. They will also benefit from the Greening payment which, as it is calculated as a percentage of a person’s payment under the Basic Payment Scheme, will converge in line with the Basic Payment.
The National Reserve under the current Single Payment Scheme operated up to the scheme year 2012 and many of the group in question were in a position to avail of an allocation of entitlements or a top-up on existing entitlements during one of those years.
I am however very conscious of the group of young persons who were unable to avail of the Installation Aid Scheme and who are also excluded from the benefits of being a ‘young farmer’ due to the five year rule. I am actively investigating alternative ways in which this group may be assisted.
