Dáil Éireann Debate, Thursday - 27 May 2021
274. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine if he plans to ensure there is a direct relationship between the rates of payment under the ANC scheme and the natural constraint on production of different types of land under the forthcoming CAP; and if he will make a statement on the matter. [28957/21]
Amharc ar fhreagraAhead of the launch of the 2019 Areas of Natural Constraints (ANC) scheme, Member States were required under EU Regulations to change the approach to the designation of land under the ANC Scheme. Prior to this, the Department identified eligible areas using a range of socio economic indicators such as Family Farm Income statistics, population density, percentage of working population engaged in agriculture, stocking density etc.
From 2019 onwards, it was required that eligible areas must instead be designated by reference to a range of bio-physical criteria such as, for example, low temperature, excess soil moisture and poor chemical properties. The process also took into account constraints facing offshore island farming and three other identified categories of land: areas of environmental importance, areas facing structural constraints relating to fragmentation and farm size and areas facing structural constraints relating to the prevalence of grassland cover and field size.
Following the completion of this process, areas under the scheme which were determined to be constrained were further classified into a number of different land categories as follows:
- Category 1 land
- Category 2 land
- Category 3 land
These categories are based on the considerations set out in Article 31(1) of Regulation 1305/2013. The system of farming prevalent in Category 1 is characterised by extensive farming practices focused on livestock management on higher ground. By contrast, Category 2 is characterised by extensive livestock grazing practices on lower ground, while Category 3 is less extensive in nature and characterised by grazing livestock enterprises.
Areas of Specific Constraints (Island Farming) formed an additional land category.
Payment rates under the existing scheme are based on an examination of standard output data from the Central Statistics Office Census of Agriculture and data from DAFM databases. This facilitated a comparison at district electoral division (DED) level of DEDs containing designated land, with DEDs containing no designated land. CSO Standard output figures show for Category 1 areas only an average SO/ha of €236.76, for Category 2 areas only an average SO/ha of €742.81, for Category 3 areas only an average SO/ha of €1020.38, and for non-designated areas an average SO/ha of €1206.86.
Based on these figures, the payment rates set out in the scheme are in line with the provision of Article 31 (1) of Regulation 1305/2013 in that the support granted annually per hectare will compensate beneficiaries for “part of the additional costs and income foregone related to the constraints for agricultural production in the area concerned.”
Payment rates are designed to reflect the differences between these three categories.
In the case of support for offshore farming, eligible costs are determined on the basis of the costs and income foregone linked to the specific constraints experienced by off shore island farmers. Island farmers already incur the additional costs and lower productivity that other mainland farmers situated on Areas of Natural Constraints also incur. However, there are additional costs borne by island farmers, which cover all of the main farming activities. These include higher input costs (fertiliser and machinery), animal feed, and other services such as veterinary, consultancy, and maintenance charges.
It is expected that the existing criteria for the determination of the status of land under the scheme, established following the extensive re-designation process undertaken ahead of the 2019 ANC scheme, will continue to form the basis of the determination of land designated as constrained under the new CAP.
The payment rates set out in the existing scheme also show a direct relationship to the level of constraint and production on the different categories of land designated as constrained. On that basis, it is also the intention to ensure that the existing basis of the determination of the rates of payment for each category of land designated as disadvantaged under the scheme also forms the basis for the payment rates which will be in place for the new CAP.
The current payment rates under the ANC scheme are:
- Category 1 Land: €148 on the first 12 eligible hectares or part thereof, and € 112 per hectare on remaining hectares up to a maximum of 34 hectares.
- Category 2 Land: €111 on the first 10 eligible hectares or part thereof, and €104 per hectare on remaining hectares up to a maximum of 30 hectares.
- Category 3 Land: €93 on the first 8 eligible hectares or part thereof, and €88.25 per hectare on remaining hectares up to a maximum of 30 hectares.
- Areas of Specific Constraints (Island Farming): €250 on the first 20 eligible hectares or part thereof, €170 on greater than 20 hectares to less than or equal to 34 hectares and €70.00 on greater than 34 hectares or less than or equal to 40 hectares.
