Written Answers. - Rural Development Plan.
Michael D. Higgins
Ceist:
57
Mr. M. Higgins
asked the
Minister for Agriculture, Food and Rural Development
the main elements of the recently announced rural development plan; when implementation of the plan will commence; the proposals he will bring forward to compensate farmers who may lose out as a result of new arrangements for disadvantaged areas; and if he will make a statement on the matter.
[28437/00]
The CAP Rural Development Plan 2000-2006 is comprised of four support measures covering early retirement, compensatory allowances, agri-environment and afforestation and involves total EU and national expenditure of almost £4 billion – a 105% increase on the 1994-1999 period. The main elements are as follows.
A total of £1.6 billion in public funding is available under the rural environment protection scheme. The new scheme is designed to build on the progress achieved under the 1994 to 1999 REPS programme. It contains a number of new elements intended to boost participation, including an increase in the basic rate of payment for smaller farms, 20 hectares or less; and provision for farmers with lands in an environmentally sensitive target area to receive payment on those lands up to a limit of 10 hectares, without having to participate in the general REPS programme.
The objectives of the scheme are the establishment of farming practices and production methods which reflect the need for environmental conservation and protection; the protection of wildlife habitats and endangered species of flora and fauna; and the production of quality food in an extensive and environmentally friendly manner.
Participants are required to farm to a detailed five year farm plan drawn up by an approved agricultural planner in accordance with the scheme specifications, which includes a nutrient management plan, a grassland management plan and other measures for the protection of the environment.
A total of £602 million in public funding is available under the early retirement scheme. The objectives of the scheme are to provide an income for older farmers – between the ages of 55 and 66 – who decide to stop farming; to encourage the replacement of such older farmers by farmers able to improve, where necessary, the economic viability of the remaining agricultural holding; and to re-assign agricultural land to non-agricultural uses where it cannot be farmed under satisfactory conditions of economic viability.
The measure contains two important changes from the previous scheme. Firstly, the need for transferees to enlarge the holding has been replaced by a requirement to demonstrate economic viability. Secondly, part-time farmers will be eligible both as transferors and transferees.
In accordance with the Agenda 2000 agreement, the new compensatory allowances scheme for disadvantaged areas involves moving from an animal based or headage system to one based on area. Under transitional arrangements, the headage schemes as they have operated up to now will continue to apply for this year. The new area based system will be introduced in 2001.
The new scheme involves total public funding of some £1.2 billion – an increase of £360 million.
It is estimated that the number of farmers qualifying for payment will rise from 90,000 currently to 109,000 in 2001. From 2001, some 81,000 farmers stand to gain about £66 million annually while 28,000 farmers will incur some losses. I have, however, negotiated a compensation package with the EU Commission whereby 90% of losses will be made good in 2001, 80% in 2002 and 50% in 2003. Under these arrangements, the average loss in 2001 will be about £32 and £64 in 2002. I am anxious, however, to find an equitable long-term solution to the problem of losses and I have asked my officials to carry out an early examination with that in mind.
The public funding for forestry is £542 million. The focus is on farm forestry with planting and maintenance grants and annual premiums for income support being provided. The premiums and grants have been increased substantially. In particular, these will encourage the ongoing planting of broadleaves with higher rates available for this type of planting.
The REPS early retirement and forestry schemes have already been introduced. Application forms are available, as appropriate, from the local farm development service offices of my Department or the local offices of the forest service. The new compensatory allowance arrangements will take effect in 2001.
