Dáil Éireann díospóireacht -
Tuesday, 8 Apr 1997

Vol. 477 No. 2

Written Answers - Suckler Cow Quotas.

Joe Walsh

Ceist:

312 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the number of animals which reverted to the national suckler quota in each of the years from 1995 to date in 1997 under the 70 per cent rule; the projections, if any, of the impact on farmers of the 90 per cent rule; and if he will make a statement on the matter. [9191/97]

Minister for Agriculture, Food and Forestry (Mr. Yates)

Under EU regulations applicable in 1993, 1994 and 1995, producers holding suckler cow quota rights had to make use of at least 50 per cent of those rights in any one of two consecutive years. Otherwise the part not used during the second year reverted to the national reserve where it became available for distribution to priority categories of producer identified by the Quota Review Group under the 1995 and 1996 national reserves. Use in this context included making application for premium payments in respect of those rights or leasing out the rights or a portion of the rights.

In 1996, the EU regulations required that holders of suckler cow quota greater than 7 use at least 70 per cent of that quota every year. Farmers with quotas of 7 or less had to use at least 70 per cent in any one of two consecutive years. Otherwise the part not used reverted to the national reserve where it will become available for distribution to priority categories of producer identified by the Suckler Cow Quota Review Group under the 1997 national reserve. Distribution of quota rights from the 1997 national reserve is currently under way. The exception to these rules were farmers who joined the farm retirement scheme or famers who could demonstrate that they could not make the required use of their quotas because of exceptional circumstances.

In late 1996, the EU Commission decided that, for 1997 and 1998, farmers with quotas greater than 7 must use at least 90 per cent of their quotas each year, and farmers with quotas of 7 or less must use at least 90 per cent every second year. The part not used will revert to the national reserve but will not be available for distribution to priority categories for a period of two years. In 1995 a total of 32,068 suckler cow quota rights were returned to the national reserve because of non-usage in 1993 and 1994. The following year, 13,901 suckler cow quota rights were returned to the national reserve because of non-usage in 1994 and 1995. The position in relation to usage of quota rights in 1996 under the 70 per cent rule is that some 1,920 farmers with quotas greater than 7 who applied for the suckler cow scheme in either May 1996 or October 1996 did not make the required use of their quotas. The total number of rights involved was 20,128. Eight hundred and eighty nine of the farmers concerned were able to demonstrate that they could not make use of their rights because of exceptional circumstances and they have been allowed to retain their quotas amounting to 8,367 rights. In the final analysis 11,761 rights reverted to the 1997 national reserve because of non-usage in 1996.

It is impossible, at this stage, to predict what impact the 90 per cent usage requirement in 1997 and 1998 will have on the 1998 and 1999 national reserves. Producers who have surplus quota can of course protect their quotas either by buying additional suckler cows, or by leasing or transferring any surplus quota. Earlier this year, my Department wrote to all producers advising them of the new arrangements for 1997 and 1998. Those farmers who can demonstrate that they could not make the required use of their quotas due to exceptional circumstances will be allowed retain the rights in question.