Agriculture Minister announces set-aside rate for farmers

Agriculture Minister, Ian Pearson, has announced that the compulsory set-aside rate for farmers to be applied in Northern Ireland for the first year of the Single Payment Scheme will be 4.7%.

This rate of set-aside will apply to all set-aside eligible land declared in 2005 IACS returns.

Land eligible to support a set-aside payment is that which, in 2003, was used for arable crops (including potatoes, soft fruit and vegetables) or temporary grassland (land that was used for arable crops at least once in the years 1999 – 2002).

This is different from the current definition of land eligible for set-aside. However, in common with the current Arable Area Payments Scheme, small producers will be exempt from a set-aside obligation. Producers declaring smaller set-aside eligible land in their 2005 IACS returns will not be required to set aside any land.

Producers who are required to set aside land, will be allocated a corresponding number of set-aside entitlements. The rate of payment for these will be fixed at the same level as the area component of the vertical hybrid (i.e. at least €68 per ha).

The aim of these set-aside calculations is to maintain area of land under set-aside in Northern Ireland at the same level as during the 2000-2002 Reference Period. Therefore, the above rate of set-aside and the small producer exemptions will be reviewed before 1 August 2005 and adjusted if necessary.

Commenting on this announcement, the Minister said: "This is one of a number of steps along the road to successful CAP Reform implementation. Farmers will be able to use this information to plan for the coming planting season."

Reform of the Common Agricultural Policy was agreed at the Council of Agriculture Ministers in June 2003 and will take effect from 2005, when the new Single Payment Scheme will replace the existing livestock and arable direct support regimes in Northern Ireland in January this year.

(MB)