Differing farm sizes are likely to have different rates of payment per hectare in Areas of Natural Constraint (ANC) under the scheme which is due to replace the current Less Favoured Area Compensatory Allowance (LFACA) in 2016 (the claim is made in 2015).

It is likely to include a higher rate of payment on the first 200 hectares in any claim.

Outlining the latest proposals at the meeting of farmers in Creggan last week, Richard Crowe from DARD said that eligibility for ANC will be similar to the LFACA scheme, although it will only be paid in the current Severely Disadvantaged Area (SDA).

Farmers in the Disadvantaged Area (DA) are due to receive a transition payment in 2015 as they drop out of the scheme.

The reason they are out is because under new rules, payments should only be made to compensate producers where there is a clear disadvantage due to natural constraints.

Analysis by DARD has shown that there is not sufficient disparity in incomes between lowland and DA cattle and sheep farms in NI to justify continuing the payment.

The proposed rates of ANC payment on SDA land in 2016 and 2017 are £56.47/ha on the first 200ha, and £42.25/ha for areas above the 200ha threshold. This compares with a payment in the SDA of £47.62/ha in the 2013 LFACA scheme. The 2014 LFACA rates (paid in early 2015) are yet to be announced.

Looking ahead, there are no guarantees that any ANC payment will be made in SDA areas from 2018 onwards.

A review by DARD will be conducted in 2016/2017, which will consider the impact of various issues, including the move towards flat-rate subsidy payments and the impact this will have on farm incomes in the SDA.

Also relevant is the requirement to redesignate ANC areas, which has been parked for now, but must be done by 2018. It could result in some areas currently within the SDA being dropped out of the designated ANC.