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Dáil Éireann díospóireacht -
Wednesday, 5 Nov 2003

Vol. 573 No. 4

Written Answers. - Direct Payment Schemes.

Mary Upton

Ceist:

164 Dr. Upton asked the Minister for Agriculture and Food his position regarding decoupling; the measures he is taking to smooth the transition to full decoupling; the discussions he has had with farming organisations to deal with their concerns regarding the move to decoupling; his views on the cost to the Exchequer of the move to decoupling; and if he will make a statement on the matter. [25575/03]

On 19 October 2003, I announced my decision that all direct payments in the arable crops, cattle and sheep sectors would be decoupled from 1 January 2005. On 29 September 2003, I announced my decision that decoupled direct payments in the dairy sector, for which there were no partial decoupling options, would also take place from 2005.

My decision regarding the arable crops, cattle and sheep sectors was taken after having given careful consideration to the submissions received under the public consultation process, which included the farming organisations and other social partners, that I initiated last July. I had also carefully studied the outcome of the independent research which I had commissioned from FAPRI Ireland. I also took into account the overwhelming weight of opinion in favour of full decoupling among individual farmers whom I had met and who had attended the information seminars held by my Department throughout the country in the preceding weeks.

I believe that decoupling is in the best interests of Irish agriculture and the development of a sustainable, market orientated agri-food sector. Decoupling will allow farmers to concentrate on enterprises that return the best margins from production rather than on optimising their income from premia. Quality should also improve through better market orientation. There should also be environmental benefits through the reduction of greenhouse gas emissions. The analysis undertaken by FAPRI Ireland showed that the full decoupling option should lead to the greatest improvement in aggregate farm incomes.

The decision to opt for full decoupling was announced well ahead of the effective date of 1 January 2005 to enable farmers and the markets to adjust and to plan ahead with confidence. The establishment of single payment entitlements for each individual farmer will be a major undertaking for my Department. I am anxious that the transition should be as smooth as possible and in that context a steering group has been established in my Department to oversee the overall implementation of decoupling. While precise estimates cannot be made at this time, decoupling should not result in an increase in net costs to the Exchequer.
Question No. 165 answered with Question No. 141.
Question No. 166 answered with Question No. 137.
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