asked the Minister for Agriculture and Food the reason, in light of his stated intention of increasing the national herd, he has reduced the allowable level of off-farm income in the headage payments scheme from £6,400 to £5,200; and if he will make a statement on the matter.
Written Answers. - Disadvantaged Areas Schemes Payments.
37.
If all farmers were paid headage grants under the Disadvantaged Areas Schemes regardless of their off-farm income, it would cost the Irish Exchequer a net £5 million extra per year. Raising the limit to £10,000, as suggested by the Deputy, would cost the Exchequer a net £4 million per year. The only way of increasing the limit without extra cost to the Exchequer would be to reduce payments to those farmers already in the Disadvantaged Areas Schemes so as to finance the extra payments to those who are now excluded. It does not seem very fair to me that the payments made to those with no off-farm incomes or with very low off-farm incomes should be reduced in order to make it possible to extend payments to those with higher off-farm incomes. For this reason I do not propose increasing the off-farm income limit at present.
As regards the connection between the off-farm income and an increase in the national herd, no doubt the Deputy is aware that this year for the first time ever I introduced payments on beef cows in dairy herds in our disadvantaged areas in order to alleviate the effects of the milk super levy and encourage the retention of cows that would otherwise be slaughtered. This was a measure taken to increase the national cow herd but the extra payments involved had to be financed by savings rather than by an increased call on the Exchequer. Among the savings effected this year was the reduction in the off-farm income limit from £6,400 in 1986 to £5,200 in 1987. In my judgment these savings were well worthwhile in order to secure the new payments on beef cows in dairy herds.