Dáil Éireann díospóireacht -
Tuesday, 5 Dec 2000

Vol. 527 No. 3

Written Answers. - Grant Payments.

Mildred Fox

Ceist:

66 Miss Fox asked the Minister for Agriculture, Food and Rural Development the plans he has to address the losses in headage payments for farmers in mountain type grazing areas; if he has sought EU approval for these proposals; and when he will announce these plans. [26262/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The scheme agreed with the social partner farm organisations in July and since approved by the European Commission provides for area related payments as follows. More Severely Handicapped (lowland) – £70 per hectare up to 45 hectares; Less Severely Handicapped (lowland) – £60 per hectare up to 45 hectares; Mountain Type Land – £45 per hectare up to 60 hectares. Where a farmer farms a combination of land categories he will be paid on lowland, more severely handicapped, first, lowland, less severely handicapped, next the mountain grazings last. If a farmer only has lowland, more severely handicapped, and-or lowland, less severely handicapped, his overall limit is 45 hectares. If he has a combination of lowland, more severely handicapped, and-or lowland, less severely handicapped, and some mountain type land, he will be paid on up to 45 hectares lowland and up to an extra 15 hectares of mountain subject to an overall limit of 60 hectares. If a farmer only has mountain type land his overall limit is 60 hectares.

The Government has already committed some £360 million additional funding for the scheme over the period 2001-06. The new arrangements involve a cost of £180 million in 2001 representing an increase of about £60 million over the current scheme. There are no losers this year since the existing schemes remain in place under the transitional arrangements. It is estimated that the number of farmers qualifying for payment under the new area based scheme 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 for losers under which 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 rising to £64 in 2002.

I have asked my officials to carry out a review of the scheme to see if an equitable long-term solution can be found to the problem of reduced payments. As I indicated earlier, the average loss in 2001, for those farmers who stand to lose, will be about £32. My immediate priority therefore is to concentrate on putting arrangements in place for delivery of the new area based system in 2001. I am anxious however to find an equitable solution to this issue and I would hope that a review can be carried out during the early part of next year.