Vol. 573 No. 3
222 Mr. N. O'Keeffe asked the Minister for Agriculture and Food the position in relation to a suckler cow quota which was used by a person (details supplied) in County Cork in 2000 and who is now retired and has leased their quota; and if this person will be able to retain this quota in 2005. [25192/03]
The person named is not the registered herdowner of the herd number quoted. The registered herdowner joined the early retirement scheme on 21 December 2001. He had already leased out his suckler cow quota in 2001 and has continued to do so in 2002 and 2003. He may lease or sell his quota in 2004.
Following the Agenda 2000 mid-term review agreement, I have decided that all direct payments will be fully decoupled from production as and from 1 January 2005. Consequently, the quota regime as we now know it, will be abolished on 31 December 2004 and the registered herdowner will not therefore retain suckler cow quota in 2005. With effect from 2005, the decoupled payment, to be known as the single payment scheme, will be based on the average amount paid to the farmer under the various premia schemes for the years 2000-02 inclusive. The average amount is determined by taking the three yearly average number of animals per arable hectares which attracted payment, multiplying by the premium rate for 2002 – the highest rate under Agenda 2000 – and dividing by the average number of hectares over the three year period. The result is that a certain number of "payment entitlements" are established. The total number of entitlements will be equal to the average number of hectares in the reference period while the value of each entitlement will be the figure obtained by dividing the average amount determined for the reference period by the average number of hectares. Farmers for whom entitlements have been established must activate those entitlements in 2005 by continuing to farm and submitting an area aid declaration in that year.
