"The people with the worst land should have the biggest increase" in ANC payment rates in a repeat of the policy applied this year, said Department of Agriculture assistant secretary Paul Dillon.

He was speaking before the Oireachtas committee on agriculture this Tuesday after an initial round of consultations with farming organisations.

The €25m increase allocated for 2018 was targeted to mountain grazing land, where the first 10ha received a 23% boost, with degressive increases down the categories to less severely handicapped land, which saw its rate increase by just over 7%.

Next year

For 2019, the €23m budget increase will be absorbed to the tune of €10m by around 4,000 farmers newly eligible to the scheme after last week's redesignation. Department officials said they would enter the less severely handicapped category.

Assuming €12.5m remains available after this to increase payment rates, if the same proportions were applied as last year, an Irish Farmers Journal calculation shows that the following increases would occur:

  • Around €3/ha for less severely handicapped land.
  • Around €4/ha for more severely handicapped land.
  • Around €12/ha for the first 10ha of mountain grazing land
  • Around €8/ha for the next 24ha of mountain grazing land.
  • However, there is no guarantee that this exact calculation will be adopted.

    The front-loading applying a higher rate to the first 10ha of mountain grazing land may be modified, or applied to other categories and this is "not settled yet," Dillon said.

    Meanwhile, the twin scheme applying to islands "will remain unchanged," Larry Cahsman of the Department told the committee.

    Amendment

    All changes to ANCs are subject to an amendment to Ireland's Rural Development Programme and the Department has begun discussions with the European Commission to have this approved before farmers apply for the scheme in the spring.

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