The animal-based headage schemes have been replaced in 2001 by the area based compensatory allowance scheme. The new scheme, which was approved by the European Commission, provides that applicants must meet a minimum stocking density of 0.15 livestock units per forage hectare of the holding in the year preceding application. However, farmers who are unable to meet that minimum stocking density but who traditionally qualified for headage grants in respect of cattle and-or sheep may continue to qualify for payment, provided their land is being utilised and is not in danger of undergrazing. The person named was not a headage recipient in 2000, and according to my Department's records, the stocking density of the holding does not meet the minimum requirement. My Department has now written to the person named with a view to establishing the type of farming activity being pursued. A decision on entitlement to area based compensatory allowance will be made on receipt of reply.