It is understood that the Deputy is referring to the changes being introduced in respect of the 2012 Disadvantaged Areas Scheme, rather than the 2012 Single Payment Scheme, as there are no significant changes being introduced in respect of the latter this year.
It will be recalled that, on foot of commitments given in the 2012 Budget, significant savings needed to be found in my Department's expenditure for 2012, part of which it was decided should come from the funding assigned to the Disadvantaged Areas Scheme, with the budgeted expenditure under the 2012 Scheme being reduced to from €220 million to €190 million.
However, rather than simply apply an across the board cut to the rates payable or reduce the maximum payable area as a means to achieving these savings, I decided that real efforts should be made to focus the Scheme on those farmers who are most actively contributing to achieving the aims of the Scheme, namely, ensuring continued agricultural land use, thereby contributing to the maintenance of viable rural communities, maintaining the countryside and maintaining and promoting sustainable farming systems, which take account of environmental protection measures.
It is widely recognised that the Disadvantaged Areas Scheme is a very important one for this country, especially from an economic perspective, as it contributes to the support of in excess of 100,000 Irish farm families. Therefore, in proposing the changes in question, the intention is to better focus the Scheme, which is to the benefit of the majority of those farming in areas with recognised constraints, while at the same time attempting to cater for those genuinely prevented from achieving the revised minimums. With this objective in mind, the proposed changes have been designed to ensure that the aid payment is focused on farmers, whose farming enterprises are situated exclusively in Disadvantaged Areas and who are making a significant contribution to achieving the objectives of the Scheme.
While changes are being introduced in respect of the minimum stocking density requirements, specific provision is being made for those farmers who had a stocking density less than 0.3 livestock units per forage hectare in 2011, where that lower stocking density was as a result of adherence to lower stocking by agri-environmental measure, such as a Commonage Framework De-stocking Plans, Rural Environmental Protection Schemes (REPS) or Agri-Environment Options Scheme (AEOS).
All applicants, whose stocking density was below 0.3 livestock units per forage hectare in 2011, will be written formally and given the opportunity to apply for a derogation on the grounds that his or her participation in one of the above measures resulted in the lower stocking density. The principles of force majeure/exceptional circumstances will also be provided for in the process and provision will also be made for new entrants to farming.
With regard to REPS, I want to again emphasise my commitment to the agri-environment schemes in general which put environmentally-friendly farming to the forefront and which recognise the vital role farmers play in delivering public goods for the benefit of all society. This commitment by Government is matched by the enthusiasm of Irish farmers who have shown a keen willingness to engage with environmental issues ever since the introduction of the first agri-environmental scheme.
However, arising out of decisions announced under Budget 2012, I also had to make cuts in the total expenditure under REPS and I decided that this saving would be achieved through a cut in transaction costs, subject to the approval of the Commission.
Transaction costs are payable on all land in the scheme with the exception of Natura Commonage. They are paid compensation for the cost of participating in the scheme including the cost of preparatory work, gathering data and engaging with a planner. In order to achieve an aggregate 10% cut in expenditure beginning in 2012, it is proposed to reduce the transaction costs payable from €28.03 to €5.60 on each hectare on which a transaction cost is currently paid. This will yield savings of about €19 million per annum, commencing in 2012. There will be no reduction in the rates paid for the individual measures under the scheme. The actual cuts in payments will vary between 8% and 12% for most participants, with a smaller percentage getting cut less than 8%.
Submissions on the proposed changes to the Schemes have been made by farming organisations and other interested parties opposing or seeking alternatives to certain of these scheme changes.
