Written Answers Nos. 243-258
243. Deputy Dara Calleary asked the Minister for Agriculture, Food and the Marine when farm payments for a person (details supplied) in County Leitrim will be processed; the reason for the delay; and if he will make a statement on the matter. [2149/16]
View answerAn application under the 2015 Basic Payment/Areas of Natural Constraint Schemes was received from the person named on 28 February 2015. Processing of the application under both schemes is complete and payments have issued to the nominated bank account of the person named.
244. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine when payment will issue to a person (details supplied) in County Donegal under the basic payment scheme 2015; and if he will make a statement on the matter. [2150/16]
View answerThe person named submitted two 2015 Private Contract Clause applications to my Department seeking the transfer of land and entitlements by lease. The PCC application regarding the transfer of 11.82 entitlements to the person named was processed and Basic Payment Scheme payment on these entitlements issued on 1 December 2015. The remaining PCC regarding the transfer of 14.91 entitlements to the person named is currently being processed with a view to making payment on foot of these entitlements as soon as possible.
245. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine the status of farm payments to a person (details supplied) in County Kerry; and if he will make a statement on the matter. [2169/16]
View answerThe person named submitted a 2015 Basic Payment/Areas of Natural Constraint Scheme application on 28 May 2015. EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases on farm inspections, be completed before any payments issue. The 2015 Basic Payment Scheme/Areas of Natural Constraint application of the person named was selected for a remote sensing inspection. This inspection resulted in a reduction in the area claimed 19.62 ha to a found area of 14.34 ha. As the amount of entitlements held by the person named is lower than the amount of area claimed, there was no monetary reduction under the Basic Payment Scheme and payments due issued to the nominated bank account on 17 December 2015.
This inspection resulted in findings of an over-declaration in area of greater than 20% in respect of the Areas of Natural Constraint scheme. Based on the terms and conditions of the scheme this resulted in no payment in respect of that scheme. The person named was informed of this outcome on 18 December 2015. The person named has appealed this decision and this request is currently being examined. The person named will be notified of the outcome as soon as possible.
In the event that the person named is dissatisfied with the outcome of this review, the decision can be appealed to the independent Agriculture Appeals Office, within 3 months.
247. Deputy Timmy Dooley asked the Minister for Agriculture, Food and the Marine when a person (details supplied) in County Clare will receive a payment under the single payment scheme; and if he will make a statement on the matter. [2174/16]
View answerThe person named submitted a 2015 Transfer of Entitlements Allocation Right and Reference Value application to my Department to transfer allocation rights and values to a company. He also submitted an application for Review of Entitlements. These applications are currently being processed and payment under the Basic Payment Scheme will issue as soon as possible.
248. Deputy Tom Fleming asked the Minister for Agriculture, Food and the Marine the action and measures he is taking to address the unacceptably huge gap between Irish and British cattle prices and to remove obstacles inhibiting the live export trade; and if he will make a statement on the matter. [2209/16]
View answerIn relation to the beef sector, my role as Minister is to create a policy and support environment that allows it to flourish in line with standard market principles. I am guided in this context by the long-term sectoral development strategies as set out in Food Wise 2025 and I am confident that these initiatives, in conjunction with the Rural Development Programme, will lead to continued growth in terms of profitability and efficiency of the sector as whole. As with any Minister for Agriculture in the EU, I can have no role in influencing commodity prices in Ireland. I do note however that 2015 was a relatively positive year for beef prices in Ireland with the yearly average nearly 8% higher compared to 2014.
The primary determinant of prices in any market is the relationship between supply and demand. Price variations in different EU beef markets reflect prevailing conditions in those markets. With regard to the price differential between Irish and UK cattle, a number of factors have been identified to explain why Irish-born cattle command lower prices than their British equivalents. These include a British consumer preference for indigenous product as well as additional transport and processing costs in supplying that market. Last year, Ireland exported approximately 272,000 tonnes of beef, worth in the region of €1.1 billion to the UK. This constituted 54% of the volume and 52% of the value of Irish beef exports and as such, the UK is overwhelmingly Ireland’s most important export market.
I attach substantial importance to the live export trade and my Department has been very proactive during my time as Minister in facilitating both the cross-border live trade and shipments of animals overseas. Live exports serve a dual purpose as a means of satisfying market demand for live animals and providing alternative market outlets for cattle farmers in Ireland. It is expected that 2016 will see an increase in the export of live cattle. Improving economic situations in Italy and Spain are expected to boost demand for Irish cattle and general demand for calves for veal are expected to remain strong.
Last year, live exports to all markets amounted to almost 180,000 head. Geopolitical instability in North Africa, a new veterinary regime in relation to IBR in Belgium and increased domestic prices lead to a reduction in live exports. Exports to Northern Ireland, the Netherlands and France rose, while exports to Belgium, Italy, Spain and Britain declined. Bord Bia has forecast that live exports to Italy and Spain, two traditional live export destinations, should increase in 2016 on foot on economic recovery in those economies and disease outbreaks in certain supplier regions.
There are currently three dedicated and three roll on-roll off vessels approved for the carriage of livestock by sea form Irish ports. Three more vessels are currently at various stages of the process for similar approval.
249. Deputy Michael Ring asked the Minister for Agriculture, Food and the Marine the status of a payment to a person (details supplied) in County Mayo under the agri-environment options scheme; the reason for the delay; and when payment will be made. [2210/16]
View answerThe person named commenced their AEOS 2 contract on 1 September 2011 and has been paid for the 2011-2014 scheme years.
Under the EU Regulations governing the Scheme and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the Land Parcel Identification System must take place. These checks have now been completed and it is expected that payment will issue shortly.
250. Deputy Áine Collins asked the Minister for Agriculture, Food and the Marine the status of a payment to a person (details supplied) in County Cork under the single payment scheme. [2213/16]
View answerThe person named submitted a 2015 Private Contract Clause application to my Department in respect of the lease of land and entitlements. All details relating to land parcel details for 2013 and 2015 and Single Payment entitlement values for 2014 had to be reconciled in order to process this application. This application has been processed but a land parcel discrepancy has delayed the issue of payment. This issue is being resolved by my Department and payment will issue to the person named as soon as possible.
251. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine the status of a farm payment to persons (details supplied) in County Kerry; and if he will make a statement on the matter. [2227/16]
View answerThe person named has been approved under Tranche 1 of GLAS with a contract start date of 1 January 2016. There is no 2015 GLAS part year payment due to the person named. The application will be processed in respect of payment for the 2016 scheme year in the final quarter of the year.
The first person named has not submitted an application to date under the 2015 Basic Payment Scheme. The second person named submitted an application under the 2015 Basic Payment Scheme which was received in my Department on 23 April 2015. No payment can issue under the Basic Payment Scheme until entitlements have been allocated.
The second person named held nine entitlements under the Single Payment Scheme totalling €81.16. Under the Single Payment Scheme direct payments of less than €100 did not issue to farmers. As a consequence, EU Regulations provide that such farmers cannot be considered as having received a direct payment in 2013 and do not hold an automatic right to participate in the Basic Payment Scheme.
My Department obtained agreement with the EU Commission that persons who were entitled to receive a payment of less than €100 in 2013 may be considered eligible under the Scottish Derogation measure of the Basic Payment Scheme. In order to be eligible under Scottish Derogation they must produce verifiable evidence that on the 15 May 2013 they ‘produced, reared or grew agricultural products through harvesting, milking, breeding animals and keeping animals for farming purposes.’
My Department identified persons who held entitlements under €100 and invited them to submit an application under the Scottish Derogation if they were otherwise eligible. On 5 of August 2015 a letter and a Scottish derogation application form was issued to the second person named with a request to return the application form to my Department within two weeks. To date, no application has been received and the closing date has since passed.
The person named has been approved under Tranche 1 of GLAS with a contract start date of 1 January 2016.
There is no 2015 GLAS part year payment due to the person named. The application will be processed in respect of payment for the 2016 scheme year in the final quarter of the year.
252. Deputy Patrick O'Donovan asked the Minister for Agriculture, Food and the Marine if he has made a decision on the request by a person (details supplied) to have an entitlement on land which he purchased on 2014 reviewed. [2239/16]
View answerThe person named submitted an application for Review of Entitlements under the 2015 Basic Payment Scheme on the 28 March 2015. The review pertained to the establishment of allocation rights in respect of land and entitlements purchased by the person named under the 2014 Single Payment Scheme year.
To be eligible for the automatic allocation of entitlements under the Basic Payment scheme an applicant must have been eligible to receive a direct payment under the 2013 Single Payment Scheme year. Furthermore where a person sells part of their holding, they may also transfer an 'allocation right' in respect of the transferred land to the purchaser where they do not already hold an allocation right of their own.
The seller in this case did not establish an allocation right arising from 2013 scheme year and consequently there is no allocation right available to transfer.
A letter issued to the person named on the 28 of August 2015 informing them that their review was unsuccessful and giving him a right to appeal this decision and to include any further documentary evidence pertaining to his case. No appeal has been received by my Department to date.
253. Deputy Patrick O'Donovan asked the Minister for Agriculture, Food and the Marine if he has made a decision on an application by a person (details supplied) in County Kerry for extra entitlements from the national reserve. [2240/16]
View answerThe person named submitted an application under the ‘Old Young Farmer’ category of the 2015 National Reserve to my Department. Eligible applicants to the National Reserve qualify for either an allocation of new entitlements on land for which they hold no entitlements, so called ‘naked land’, or where an applicant already holds existing entitlements which are below the national average value, these entitlements are increased to the national average value. While the person named meets the eligibility conditions for the National Reserve in all other respects, he does not hold either ‘naked land’ or low value entitlements on which an allocation from the National Reserve can be made.
A letter has issued to the person named informing him of the decision in relation to his application.
254. Deputy Patrick O'Donovan asked the Minister for Agriculture, Food and the Marine if he has made a decision on an application by a person (details supplied) in County Kerry for extra entitlements from the national reserve. [2241/16]
View answerMy Department received applications under the ‘young farmer’ category of the 2015 National Reserve and the Young Farmers Scheme from the person named. These applications are currently being processed and once finalised the applicant will be notified in writing of the decision with a view to payment shortly thereafter.
255. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine when payment will issue to a person (details supplied) in County Kerry under the basic payment scheme and areas of natural constraint scheme; and if he will make a statement on the matter. [2248/16]
View answerThe 2013 Single Payment Application in respect of the person named was subject to the 2013 LPIS Review. This review identified ineligible features on a number of parcels which resulted in a penalty of greater than 20% for the 2013 Scheme year. The person named was notified of this and of his right to appeal. The person named unsuccessfully appealed this penalty both to officials in my Department, which included a field visit , and subsequently to the Agriculture Appeals Committee.
The overpayments were subsequently recouped from payments due to the person named including from the 2015 Areas of Natural Constraint and the 2015 Basic Payment Scheme.
256. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine if he will put an attractive national afforestation scheme in place for farmers and other persons who have suitable land for planting, which will include a favourable averaging taxation regime, in the context of recent climate events; and if he will make a statement on the matter. [2281/16]
View answerThe State has provided attractive grant schemes for landowners for many decades to encourage the planting of new forests and this has continued under the Forestry Programme 2014-2020.
The Afforestation Grant and Premium Scheme 2014-2020 provides very generous grants of up to €5,750 per hectare to cover the full cost of planting, along with annual premiums of up to €635 per hectare per year for 15 years. The rate of grant and premium is dependent on the species of tree planted, with native broadleaf species attracting the highest grant and premium rates. Details are available on the Department’s website www.agriculture.gov.ie.
These grant and premium payments are available to all landowners, both farmers and non-farmers.
The Afforestation Scheme supports the planting of 12 different categories of forests, including commercial conifer forests, commercial broadleaf forests and native woodlands. In 2014 two new forest categories were introduced to provide additional options for farmers. The Agro-forestry category aims to encourage farmers to combine livestock grazing with forestry, while the Forestry for Fibre category will allow farmers to plant forestry for the renewable energy or pulpwood markets on a 10-15 year crop rotation.
With regard to taxation, in Budget 2016 the High Income Earners Restriction, which formerly applied to income from forestry, was removed completely for active foresters and farmers. As a result, a taxation averaging regime is not necessary because following Budget 2016 the income earned from clear-felling will now be tax-free.
257. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine if he is concerned about recent events in the beef and sheep sector, and in particular the reduction in competition and consequent dominance in beef processing as well as rendering due to the sale of a significant share of the Slaney-Irish Country Meats business to ABP Food Group; his plans to make an appropriate submission to the Competition and Consumer Protection Commission on the importance of protecting and guaranteeing competition in processing and rendering for farmers; and if he will make a statement on the matter. [2291/16]
View answerThe State, through the Competition and Consumer Protection Commission, has an existing and well established infrastructure for oversight of competition matters and for dealing with allegations of anti-competitive practices or abuse of a dominant position.
I understand that acquisitions or mergers of organisations with turnover exceeding certain statutory thresholds are required to be notified to that body or the EU Commission, which conduct an assessment to determine whether there will be any “substantial lessening of competition”. The acquisition referred to by the deputy will be subject to the relevant statutory requirements under competition law.
258. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine his views on the new €200 million European Union fund for Ireland to deliver affordable loans for the agri-sector and the rural sector; when this credit facility will be operational; if financial institutions will provide the credit funding or if the Government will provide it directly to farmers; how much will the Government leverage the scheme; what the interest rates will be; and if he will make a statement on the matter. [2328/16]
View answerThe European Commission and the European Investment Bank (EIB) have outlined a model guarantee instrument for agriculture, developed within the framework of their Memorandum of Understanding on co-operation in agriculture and rural development within the EU. The model instrument aims to help ease access to finance for farmers and other rural businesses. Member States and regions can adapt and use this model to set up financial instruments funded by their rural development programmes (RDPs) under the European Agricultural Fund for Rural Development (EAFRD). No such funding has been allocated by the EIB or under Irelands RDP to date.
I am considering whether to include Financial Instruments (FIs) in Ireland’s Rural Development Programme. Financial instruments can take the form of loans, guarantee funds or equity investments and the funding for any such FIs would have to draw on Ireland’s existing RDP allocation of European Agricultural Fund for Rural Development funding as well as National Exchequer funding. It is also possible to incorporate funding from other sources for such instruments.
So far 7 Programmes from 5 Member States have implemented a FI for the current programme period. In order to include a FI as a measure in a RDP an Ex ante Evaluation is required by EU regulation. This evaluation can take between 3 months to a year to complete. It includes a range of steps and must assess:
- Market analysis - need to prove that FIs are required due to investment gap; this gap must be quantified;
- Estimation of value added of FI;
- Estimation of public and private resources to be raised;
- Reflection on lessons from other instruments;
- Development of a proposed investment strategy (i.e. choice of instrument) and description of the advantages and disadvantages of different types of financial products;
- Discussion about how results will contribute to RDP objectives; and
- Revision and updating of the ex-ante assessment in the case of changing market conditions.
Once this is done, an agreement must be reached between my Department and any other potential stakeholders/financial institutions on a clear investment strategy that is developed from the gaps, if any, identified in the ex-ante evaluation. Following this, a new measure description would have to be drafted and inserted into the RDP by way of an amendment.
My Department continues to explore new and more competitive sources of funding for the agri-food sector. For example, the Strategic Banking Corporation of Ireland (SBCI), which includes the EIB as one of its funding partners, provides an ‘Agriculture Investment Loans’ product. This credit is available at favourable terms for investments in primary agricultural production, the processing of agricultural products or the marketing of agricultural products. The features of the SBCI products compared with those currently on the market are lower interest rates, loan amounts up to €5m and increased repayment flexibility. Since its launch the SBCI has made €750 million of lower-cost loans available for Irish Small and Medium Enterprises (SMEs), including farmers. In its last report, the SBCI stated that of the loans approved and drawn down by SMEs, a third had been accessed by the agriculture sector.
