The Areas of Natural Constraint (ANC) scheme for farmers in Severely Disadvantaged Areas will end next year with a transition payment to be claimed in the 2017 Single Application Form and paid in 2018. Making the announcement on Wednesday, Agriculture, Environment and Rural Affairs Minister Michelle McIlveen said that £8m of funding would be used for the one-year extension of the current ANC scheme.

Minister McIlveen has said that there are no plans for the ANC to continue after the payment in 2018 and that work on re-designation of ANC areas will also stop.

The budget of £8m for the one-year transition payment is significantly less than the £20m annual budget that was used from the previous Rural Development Programme to extend the ANC scheme for 2015 and 2016 claim years.

DAERA has said that the payment rates for the transitional scheme will be set to ensure that they do not fall below the sterling equivalent of €25/ha.

In 2016, ANC payments were made to approximately 10,000 farmers across 350,000ha of SDA land at a rate of £56.47/ha for the first 200ha claimed, and £42.35/ha thereafter.

Approval

Minister McIlveen said that extension to the ANC scheme requires approval from both the Executive and European Commission.

The minister had previously said that the ANC scheme could only be funded from the NI block grant and not from Pillar I CAP payments.

“Given the pressures on both the Department’s and Executive’s budget, it has been a challenge to find ways of funding this scheme,” McIlveen said.

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