Vol. 554 No. 5
242 Mr. Wall asked the Minister for Agriculture and Food his plans to review the area based disadvantaged area scheme to ensure that the scheme is giving maximum support to the farm industry; and if he will make a statement on the matter. [15450/02]
295 Mr. Ring asked the Minister for Agriculture and Food if he will address the issue of farms who have lost out financially under the disadvantaged areas payments as compared to the amount which was received under the headage based scheme. [16036/02]
322 Mr. Naughten asked the Minister for Agriculture and Food if he will review the disadvantaged area payments which have resulted in a sev ere anomaly for many farm families; and if he will make a statement on the matter. [16199/02]
I propose to take Questions Nos. 242, 295 and 322 together.
The present area based compensatory allowance scheme replaced the old cattle, sheep, equine and goat headage schemes with effect from 2001. Under the 2001 scheme, a total of €235 million was paid to approximately 99,000 farmers compared to €144 million paid to 92,000 farmers under the 2000 animal based schemes. This additional expenditure of €91 million annually represents a major boost to farmers' incomes in the 75% of the country classified as disadvantaged.
The area based scheme was modified in 2002 by increasing the rate payable on mountain type land. That increase was backdated to 2001 with farmers being paid €16 million earlier this year by way of a top up on the 2001 scheme. The scheme now provides for area based payments as follows: mountain type land –€101.58 on first ten hectares or part thereof and €88.88 per hectare on remaining hectares subject to an overall payment ceiling of 45 hectares; more severely handicapped lowland –€88.88 per hectare on up to 45 hectares; less severely handicapped lowland –€76.18 per hectare on up to 45 hectares. Where a farmer farms a combination of the above lands he is paid on mountain type land first, lowland more severely handicapped second and lowland less severely handicapped last, subject to an overall payment ceiling of 45 hectares.
Payments under the scheme in 2002 commenced on Friday, 20 September 2002 ahead of the target date for payment agreed in the Protocol on direct payments to farmers. In the first week a record total of almost €192 million, including €4.5 million under the compensation package, issued to over 84,000 farmers. The payments now being made represent 100% entitlement for 2002. While there is a minority of farmers who would stand to lose money under the revised scheme when compared to the old animal based headage schemes, the compensation element agreed as part of the original area based scheme continues to apply. Under this arrangement farmers who lost out in 2001 received compensation of 90% of their loss. The compensation element has reduced to 80% this year and the payments now being made include this element of compensation for losses in appropriate cases.
The Government is committed, in the agreed programme for Government, to examine, in conjunction with the Commission, the possibility of extending the disadvantaged areas classification to the whole of the Border, midland and western region. The issue will be raised with the Commission in the context of the mid-term review of the CAP rural development plan.
