This is a subscriber-only article
Despite MLAs voting in favour of a motion calling on agriculture minister Edwin Poots to bring forward a new Areas of Natural Constraint (ANC) scheme, it will not be happening in 2020, and the DAERA minister gave no indication that it is part of his plans beyond that.
The debate on Tuesday was brought forward by west Tyrone MLA Declan McAleer. He pointed to low incomes in marginal areas and that farmers in the Republic of Ireland and Scotland continue to receive ANC payments. He also suggested that removal of the ANC payment is a contributing factor to NI suckler numbers being the lowest since 1988.
The current ANC only applies to the severely disadvantaged area (SDA), which makes up an estimated 45% of the land area in NI and covers around 40% of farmers. Approximately 47% of suckler cows, 58% of breeding sheep and 16% of dairy cows are kept in the SDA.
In 2016 and 2017, the ANC payment was worth £20m, but by the time the scheme ended in 2018 this had been cut to £8m.
The main argument put by minister Poots against a new ANC scheme goes back to the decision taken in 2014 to move all payment entitlements to a flat rate of €330/ha over the seven-year period from 2015 to 2021.
Each year, approximately €4m is moving out of lowland and disadvantaged area farm payments and into the SDA. By 2019, this is an extra €20m into the SDA when compared with 2015.
However, with 2020 entitlements frozen at 2019 rates, the process has stalled, and the minister gave no indication that he will direct officials to allow this flattening of payments to continue in 2021 and 2022. In 2020, the lowest value entitlements remain around the €247/ha mark.
“I want to make it clear that I do not intend to introduce an ANC scheme this year: I cannot. It is simply not possible,” minister Poots told MLAs.
He went on to explain that if he was to introduce an ANC scheme the following year, it would have to be funded by scaling back payments to all farmers, and redirecting this money to the SDA.
“That has to be seen in the context of the £18m on an ongoing annual basis that has already moved into the SDA,” he said.
Instead, the DAERA minister said that he will be spending his time and effort devising schemes and measures that are good for all farmers, and young farmers in particular.
English payments
On Monday, the DAERA minister was also in the Assembly chamber making a statement about a meeting with counterparts from devolved regions. He was asked about the decision in England to start cutting payments from 2021.
Those under £30,000 will receive a 5% cut next year. Larger payments will receive greater cuts, with payments over £150,000 set for a 25% reduction. The money will be redirected to new environmental schemes.
However, the DAERA minister pointed out that this policy only applies to England, and there is a guarantee that total cash to farmers will remain for the lifetime of the current parliament.
“One thing that England is doing and is proposing to do is to reduce the larger payments and redistribute them. That may be something that we will want to do as well,” he suggested.
SHARING OPTIONS: