The Areas of Natural Constraint (ANC) scheme is undergoing an update for 2019. The budget for the scheme is larger now, which will lead to increased payments for some farmers.

With the Basic Payment Scheme (BPS)/ANC online applications system expected to open soon it is pertinent that farmers get up to speed with the changes to the scheme.

The majority of the proposed changes have already been shared with the media, this week a spokesperson for the Department said the changes have been agreed as a formal amendment of the RDP and will not change.

The terms and conditions of the scheme will be published soon.

The scheme really hit the headlines over the last few months because a review of townlands eligible for inclusion was carried out.

As a result of that review more than 2,000 extra townlands have been entered into the scheme for 2019.

Even if you are not planning on appealing the exclusion you should still apply because there is a phasing out period for ANC farmers

However, around 700 townlands will be taken out of the scheme, affecting around 760 farmers.

All eligible ANC farmers should have received a letter from the Department in early January making them aware of the changes.

Farmers with land that has now been excluded from the scheme will be provided with information in relation to the data underpinning the status of the relevant townlands.

They will also be given an opportunity to appeal the exclusion. Appeal forms are available on the Departments website.

It is important to note that if you have an appeal still in process during the BPS/ANC application period you can still make your application for the 2019 ANC scheme in the normal way. Even if you are not planning on appealing the exclusion you should still apply because there is a phasing out period for ANC farmers.

A degressive phasing out payment in 2019 (80%) and 2020 (40%) will be made to help ease the financial impact according to the Department.

How to apply

So whether your townland’s ANC status has remained eligible for the scheme, has just become eligible or has just been excluded, you should still apply for the ANC scheme.

The Department has said the application process for the ANC scheme has not changed. Since 2018, all applications for the BPS/ANC have been made online.

The process in 2019 will not change – when you are making your application, you simply tick the box on the home page to indicate you are applying for the ANC scheme.

If you forget to tick the box and you have eligible land under the ANC scheme, the online system will give you a reminder to go back and tick the box to apply.

Stocking rate

The latest information we have from the Department is that the current stocking rate requirements that have been in place for a number of years will remain unchanged in the new ANC scheme. Applicants must have an average minimum stocking density of 0.15LU/ha over the calendar year and a minimum stocking rate of 0.15LU/ha must be maintained for a retention period of seven consecutive months within the calendar year.

For new entrants who did not receive their herd number in sufficient time to meet the required stocking density, the density will be calculated proportionally on the amount of stock held over the remaining months of the year, by reference to the start date of the herd number. Applicants are required to meet the minimum stocking density within 10 working days of receiving their herd number. Examples of seven-month periods are (inclusive):

  • 1 January to 31 July.
  • 15 February to 14 September.
  • 20 April to 19 November.
  • 19 May to 18 December.

    • Payment rate

    In December, the Irish Farmers Journal exclusively revealed the proposed, new payment rates for the different ANC categories. The proposed payment rates are summarised in Table 1.

    The highest rate for the mountain type grazing land, renamed Category 1, is to increase by €13/ha to €148/ha and apply to the first 12ha instead of 10ha previously.

    More severely handicapped land, now called Category 2, sees the introduction of a higher rate of €111/ha (up €7/ha) on the first 10ha.

    Less severely handicapped land (now Category 3), which includes newly eligible land, has a new €93/ha rate (up €4.75/ha) on the first 8ha. Rates on the remainder of eligible land are to stay unchanged. This brings the maximum payment to €4,240 in Category 1 (up €202), €3,190 in Category 2 (up €70) and €2,685.50 in Category 3 (up €38).

    Adviser comment

    Owen O’Driscoll, Agricultural Consultants Association (ACA) President

    “The most important part of ensuring you are in the scheme for 2019 is to tick the ANC box when you are filling out your BPS application,” Owen stated.

    He said there is still a big percentage of eligible farmers not doing this.

    Island farmers also need to declare usage of any island parcels on the island section of BPS.

    "It is also important to plan your stocking rate. I have seen situations where farmers have sold cattle at the wrong time of year, which has left them ineligible for payments for example,” Owen explained.