Continuing ANC scheme in NI will be ‘challenging’ – McIlveen

There was no commitment from Agriculture, Environment and Rural Affairs Minister Michelle McIlveen on Thursday on the continuation of the ANC scheme for farmers in Severely Disadvantaged Areas (SDA).

Farmers are due to receive final payments in the existing ANC scheme next February or March (claimed in the 2016 Single Application).

A consultation on the future options for the ANC scheme closed to responses at the end of April, however a final decision has yet to be given by DAERA.

“I am still considering options, but given the pressures on both my Department’s and the Executive’s budget, providing any additional support will be challenging,” Minister McIlveen told the Irish Farmers Journal.

Uncertainty

Ulster Farmers’ Union hill farming chairman Ian Buchanan said on Thursday that uncertainty surrounding the scheme in 2017 was “making it impossible for farmers to make decisions about the future.” He said that sheep farmers planning for breeding season or tenants in SDA questioning the feasibility of taking conacre were examples.

In June, Minister McIlveen said that any continuation of the £20m scheme would have to be funded from either Pillar I or Pillar II funds meaning the only potential method of funding will be the NI block grant, something that she has again been described as “challenging”.

“I cannot ignore long-term value for money, nor indeed the redistribution of Pillar I monies which is already occurring as a result of the transition towards flat rate support in Pillar I,” Minister McIlveen said.

Incomes

Ian Buchanan pointed out that the loss of the £20m to farmers in SDA coupled with delays to opening of £100m Environmental Farming Scheme would impact farm incomes and would eventually lead to loss of production in marginal areas.

“Despite some recent improvements in beef and sheep prices, margins are slim. Direct support and agri-environment payments remain the biggest source of income on these farms. This has been recognised by neighbouring regions,” he said.

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