NI : LFA payments OK for 2007

By James Campbell

Less Favoured Area Compensatory Allowances (LFACA) appear set to continue in their present form for at least one more year. Changes are possible after 2007 as the LFACA will be part of the comprehensive review of government expenditure, but DARD is not proposing any fundamental change in LFA payments.

At a briefing by DARD officials this week it was confirmed that the LFA scheme will be part of the Northern Ireland Rural Development Programme (RDP) 2007-2013.

It was indicated that Minister David Cairns is very keen to maximise participation in the Countryside Management Scheme (CMS) and the Environmentally Sensitive Areas (ESA) schemes, and that these will have high priority within the RDP 2007-13.

But aspirations to introduce an 'Entry Level' scheme that would have aided minor environmental improvements in the countryside have been dropped by DARD. This will 'save' around £45 million in the budget to make that money available for other aspects of the RDP.

Money an issue

Money is an issue for this RDP but officials simply don't know how great the shortfall of funds will be. They need £700m to fully fund an 'all-singing/all-dancing' RDP over the seven years. This would include full funding of Less Favoured Area Compensatory Allowances, agri-environment schemes, forestry programmes, marketing and processing grants, vocational training and measures which will regenerate the wider rural economy, including tourism, farm diversification, village renewal and micro business development.

On marketing and processing, the likely availability of just £24m over seven years means that the dairy processing industry need not look to the RDP as its salvation.

Any big dairy investment aid whereby NI might match the sort of push being put on in the Republic of Ireland would require all of that money and more in one go!

The case for such assistance, as proposed by industry representatives in recent meetings with the Minister and politicians, will have to be financed from a different source if it is to be funded at all. Meanwhile, there is no consideration being given by DARD within the current proposals for the NI RDP 2007-13 to include anything similar to the €100 per suckler cow scheme being proposed in the Republic.

That proposal is for an incentive scheme linked to improving animal health and welfare and breed improvement in sucklers in the south as a means of redistributing the compulsory modulation money back to the sector in greatest need.

In the NI RDP it is being proposed that a small allocation of funds would be made to promote animal health and welfare via the Focus Farms programme.

Other items being considered by DARD officials working on the draft NI RDP include some sort of Farm Modernisation Scheme, although this is 'very tentative at the moment'.

80 responses

Much interest has been expressed in the RDP. There were 80 responses to the recent public consultation, which sought views on priorities for the available budget.

DARD is continuing to discuss developments on the programme with stakeholders, with the draft programme to be submitted to Brussels next month for approval by the European Commission.