The budget for Areas of Natural Constraints (ANC) will be €1.25bn for the period from 2023 to 2027. This equates to €250m per year.

Category 1 land is characterised by extensive farming practices focused on livestock management on higher ground. The payment rate for this land is €148 on the first 12 eligible hectares or part thereof, and €112/ha on remaining hectares up to a maximum of 34ha.

Category 2 land is characterised by extensive livestock grazing practices on lower ground. It will have a payment rate of €111 on the first 10 eligible hectares or part thereof, and €104/ha on remaining hectares up to a maximum of 30ha.

Category 3 land is less extensive in nature and characterised by grazing livestock enterprises.

The payment rate will be €93 on the first eight eligible hectares or part thereof, and €88.25/ha on remaining hectares up to a maximum of 30ha.

Offshore Island Land is generally small and fragmented where the potential for intensification is limited and farming is economically marginal, at best. It will be paid at a rate of €250 for the first 20 eligible hectares, €170/ha for hectares 20 to 34, and €70 for eligible hectares 34-40.

To claim ANC, farmers must meet the “active farmer” criteria, farm a minimum of 3ha of forage and arable land, in a designated area.

They must meet the minimum stocking levels of 0.15LU/ha but where justified on environmental grounds, a lower requirement may apply.