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Areas of Natural Constraint Scheme Payments

Dáil Éireann Debate, Tuesday - 13 February 2018

Tuesday, 13 February 2018

Questions (40)

Willie Penrose

Question:

40. Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine when the consultation with stakeholders will begin regarding the additional €25 million for the areas of natural constraint, ANC, payment; when a decision will be made on the way it will be allocated; and if he will make a statement on the matter. [7140/18]

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Written answers

I am very aware of the importance of the Areas of Natural Constraints (ANC) Scheme, which issues annual payments in excess of €200 million to over 95,000 farmers. 

The ANC Scheme has always been recognised as a very important support for rural society and farmers across the country who farm constrained lands.  In light of the importance of the scheme, the Programme for Government included a commitment to provide an additional €25m for the Scheme in 2018.  I am pleased to confirm that this commitment was delivered in Budget 2018 and that, subject to the EU Commission’s approval of an amendment to Ireland's Rural Development Programme, this new funding will be available for payment under the 2018 ANC Scheme.  

A number of different options were available in deciding how this additional funding was to be divided.  I was conscious of the need for money to be targeted at those farmers on lands with higher levels of constraint.

With this in mind and having considered the views of stakeholders, I have decided to distribute the additional €25 million as follows:

- €13m will be allocated to the 'mountain type land' category

- €9m will be allocated to the 'more severely handicapped' category' and

- €3m will be allocated to the 'less severely handicapped' category.  

These allocations will have the effect of increasing the current payment per hectare rates across all land categories.  Those farming on what is called “mountain type land” will see their payment increase from €109.71 to €135 on their first 10 hectares, and from €95.99 to €112 on remaining hectares up to a maximum of 34 hectares.  Farmers with land categorised as “more severely handicapped lowland” will see an increase from €95.99 to €104 per hectare up to a maximum of 30 hectares.  Finally, those with “less severely handicapped lowland” will see an increase from €82.27 to €88.25 per hectare up to a maximum of 30 hectares.

I am satisfied that these increased payment rates are consistent with the underlying logic of the Scheme, where the highest level of support is targeted at those who are faced with the highest level of constraint on their land. 

These changes must now be formally agreed with the EU Commission, by way of an amendment to our Rural Development Programme (RDP).  This will involve further consultation with stakeholders, via the RDP Monitoring Committee which must be consulted on all amendments to the RDP.  My officials have initiated this process, with a view to introducing these new rates for payment in 2018.

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