Vol. 556 No. 5
102 Mr. Sargent asked the Minister for Agriculture and Food the policy he will implement to make farming more attractive to young people, in view of the fact that only 11% of farmers are under 35 years of age and 45% are over 55 years of age or over. [20983/02]
My Department operates a number of specific measures to encourage young people into farming, apart from tax incentives which are available for this purpose. The principal mechanism in place is the installation aid scheme, which was established pursuant to the National Development Plan 2000-2006 and the early retirement scheme. Under the installation scheme, a grant of €9,523 is available to young farmers under the age of 35, who have become established in farming for the first time on or after 1 January 2000. In addition, "top-up" grants are also available to young farmers under both the dairy hygiene scheme and the farm waste management scheme. Under the early retirement scheme, older farmers are encouraged to retire early from farming in order to qualify for a pension which is jointly funded by the EU and by the Exchequer, thereby encouraging their replacement by younger farmers able to improve, where necessary, the economic viability of agricultural holdings.
In the case of young producers in the dairy sector, since the introduction of the European Communities (Milk Quota) Regulations, 2000, the milk quota restructuring schemes have become the principal means by which producers can increase their milk quotas. Accordingly, I have been able to prioritise the distribution of available quota and young producers, especially those with small quotas, have been a high priority. These schemes include a number of special concessions to the younger farmer. The first is the priority allocation to new entrants of a minimum allocation of 50,000 litres. The second is the continuing priority of "recent entrants" up to the age of 35 to acquire quota up to the limit of the first category (180,000 litres). Priority to purchase available quota has also been afforded to successors of producers, who had to sell their quotas in recent years into restructuring schemes.
To give further assistance to the younger producers in the milk quota restructuring scheme 2002, the share of the pool to be allocated to the new and recent entrants priority category was increased. It rose from 20% to 25% of the pool available after the allocation to the two highest priority groups (i.e. successors to producers who had to sell into restructuring in the past and those who lost quota due to changes in the milk quota regime).
In addition to the on going priority in the restructuring schemes, I also afforded particular importance to young producers in deciding on the allocation of the additional quota that I secured for Ireland as part of the Agenda 2000 agreement. During 2000 and 2001, I allocated 45 million litres of free quota, that is almost one third of the total additional quota available, to approximately 3,500 young trained dairy producers.
In March of this year, I introduced regulations allowing for the registration of milk production partnerships. Milk production partnerships will provide opportunities for improving the efficiency of dairy operations and allow for a better mix between work and family life, thereby increasing the attractiveness of dairying to younger farmers.
