Inclusive of amendments of 30 September 2008, of 15 May 2009



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Additional Indicators

Number of enterprises with marketing/processing activities: 190

Number of enterprises with development activities: 10

Number of enterprises with new products: 120

Number of enterprises with new techniques: 20

Number of enterprises with expansion of production: 60



5.2 Axis 2: Improving the environment and the countryside
Summary of actions
Under this Axis, Measures are designed to protect and enhance natural resources and landscapes in rural areas. In so doing they will contribute to the EU priority areas of:

  • Biodiversity and the preservation and development of high nature value farming and forestry systems and traditional agricultural landscapes

  • Water

  • Climate change.

The Measures will contribute to the implementation of the Natura 2000 network, to the Gotebörg commitment to reverse biodiversity decline by 2010, to the objectives laid down in Directive 2000/60/EC establishing a framework for Community action in the field of water policy and to the Kyoto Protocol targets for climate change mitigation.


The Measures chosen are designed to meet the Axis 2 objective through:

  • Ensuring continued agricultural land use, thereby contributing to the maintenance of a viable rural society

    • Promoting environmentally friendly farming practices

    • Preserving the farmed landscape.

The following table summarises the baseline situation and the targets for Axis 2.




Indicator



Measurement




Baseline

Target

Biodiversity: population of farmland birds

Trend of index of population of farmland birds

93.5
Index 2000=100

95

Biodiversity: high nature value farmland areas

UAA of high nature value farmland areas

1.1m ha (i.e. 26% of U.A.A.)

1.1m ha (i.e. 26% of U.A.A.)

Water quality: Gross nutrient balances

Surplus of nitrogen in kg/ha

82kg/ha

75kg/ha

Climate change: Production of renewable energy from agriculture and forestry

Production of renewable energy from biomass

3 kToe from Agriculture

180 kToe from Forestry



370kToe

Afforestation: Area determined under forestry

Hectares of trees planted

10.29 per cent of land area

10.75 per cent of land area

Soil: Areas at risk of soil erosion

Ton/ha/year

0.16

*0.16

Soil: Organic Farming

UAA under organic farming (thousand ha)

38

220

Climate change: GHG emissions from agriculture

Emissions of methane and nitrous oxide from agriculture and measured in 1000t of CO2 equivalent

18,435

9,791

6,625



Axis 2 Measures

Payments to Farmers in Areas with Handicaps, other than Mountain Areas

(Less Favoured Areas Compensatory Allowances Scheme)


Legal basis

Article 36(a)(ii) of Regulation (EC) No 1698/2005



Measure Code: 212

Rationale for intervention


In order to avoid land abandonment, compensatory allowances seek to compensate those farming in agriculturally disadvantaged areas. The Compensatory Allowances Scheme encourages sustainable use of agricultural land in less favoured areas and takes account of environmental protection requirements. The scheme ensures continued agricultural land use, thereby contributing to maintaining the countryside.


Objective of the measure


Farmers in less favoured areas face significant handicaps deriving from factors such as remoteness, difficult topography and poor soil conditions. They tend to have lower farm productivity and higher unit production costs than farmers in other areas. Without financial support, these lower returns from farming would pose a significant threat to the future viability of these farming communities.
Support under the scheme, therefore, will contribute to:

    • Ensuring continued agricultural land use, thereby contributing to the maintenance of a viable rural society

    • Maintaining the countryside

    • Maintaining and promoting sustainable farming systems, which in particular take account of environmental protection requirements.



Type of support


  • The scheme will provide support for farmers in less favoured areas to compensate for additional costs and income foregone related to maintaining agricultural production in such areas.




  • The scheme will operate on an annual basis and, to qualify for compensation, farmers must:

    • Undertake to adhere to environmental protection requirements consistent with their statutory obligations

    • Undertake to farm in the LFA for five years from the first payment of a compensatory allowance

    • Adhere to the requirements of Council Regulation (EC) No 1782/2003 on cross-compliance, which cover 18 Statutory Management Requirements relating to the Environment; Public, Animal and Plant Health; Notification of Diseases and Animal Welfare

  • Farm three hectares or more of LFA land

  • With effect from 2012 scheme year, applicants must:

    • have met a minimum stocking density of 0.3 livestock units per hectare in 2011 and

    • in the scheme year of application, meet a minimum stocking density of 0.15 livestock units per hectare.

  • The following categories of farmers will be entitled to apply for a derogation if they meet any of the following criteria:

    • The level of stocking density was restricted by the requirements of meeting a Commonage Framework De-Stocking Plan;

    • The stocking density was restricted by the provisions of an Agri-Environmental Plan implemented by the Department of Agriculture, Food and the Marine or by National Parks and Wildlife Service or any other state agency;

    • Active farmers, whose stocking levels were restricted by the marginal land that they farm;

    • Farmers, who did not meet the 0.3 lu/ha in 2011 as a result of force majeure/exceptional circumstances such as death or illness of the farmer or animal disease;

    • New entrants to farming.

  • A retention period of at least 7 continuous months will apply. The average stocking density (excluding non-breeding equines) is calculated over the twelve months of the scheme-year.

  • Land situated more than 80 kilometres from a farmer’s holding will be excluded from aid under the Scheme, where an applicant’s main holding is situated in a non-less favoured area.


Demarcation with Pillar I Article 68 Grassland Sheep Scheme

Beneficiaries under Pillar I Article 68 Grassland Sheep Scheme may receive aid under this measure. The operations funded under each scheme are totally separate and there is no element of overcompensation. This is illustrated by the difference between the two schemes and the purpose of the support under each scheme. The activities and types of enterprises proposed to be supported under the different schemes are clearly distinguishable. The operations funded under Pillar 1 involve breeding ewes only, while those falling under Pillar 2 involve mainly non-breeding sheep and other livestock. In the case of the Grassland Sheep Scheme the enterprise is permanent, labour intensive and with relatively high fixed costs. The maintenance of other sheep under the Less Favoured Area scheme in many instances is seasonal, with sheep being purchased during the grass-growing season for the purposes of grazing the grass. The sheep are generally sold in October/November. There is a minimum stocking density requirement of 0.15 livestock units per hectare under the LFA scheme but the animals can be cattle, sheep (either ewes or other sheep), goats and other farm animals. The purposes of the Less Favoured Areas Scheme are the continued use of agricultural land, the maintenance of the countryside and the promotion of sustainable farming systems. Payment reflects the severity of farming handicap, environmental problems, type of production and economic structure of the holding.
By contrast the purpose of the payment under the Grassland Sheep Scheme is to maintain the national sheep breeding flock which has declined by 41% since 2000. The aid paid under the Grassland Sheep Scheme is paid exclusively to sheep breeding flock owners and is not paid to other sheep flock owners. The sole objective here is to maintain the current level of sheep production in Ireland by concentrating aid on the breeding flocks.
Sheep enterprises are one of the less profitable farming enterprises, particularly in hill areas. The level of aid under both schemes is modest and even combined together are below the maximum level of €200 per hectare permissible under the LFA scheme. In addition there is a cap on the eligible hectarage under both schemes.


Level of support


Aid will continue to be differentiated to reflect the differing levels of severity of permanent handicap experienced within the LFAs. LFA land is sub-divided into three land classification categories as follows:

  • More severely handicapped (lowland)

  • Less severely handicapped (lowland)

  • Mountain type land.

Levels of payment will, as a rule, be based on eligible forage area declared in the Department of Agriculture and Food’s Integrated Administration and Control System (IACS). Payment rates will be as follows:



More severely handicapped (lowland)

€95.99 per hectare up to 30 hectares


Less severely handicapped (lowland)

€82.27 per hectare up to 30 hectares




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