Increased payment rates for farmers

A TOTAL of 5,000 retired farmers are to benefit from increased payment rates in the schemes of early retirement from farming.

The increases totalling €33 million were announced by Agriculture and Food Minister Mary Coughlan and will be effective from November 1.

Pension payments are currently being made under two EU funded early retirement schemes.

The first of these was open to farmers who retired between 1994 and 1999.

The maximum payment is being increased from €12,075 to €14,075.

The second scheme was launched in 2000 and is due to close to new applications on December 31. The maximum payment under this scheme is being increased from €13,515 to €15,000.

Ms Coughlan said there had been calls for these pensions to be increased and index-linked. But she was consistently told by the European Commission that increases for existing participants would not be eligible for EU funding.

“I was able, however, to establish that the Commission would not oppose increases that were fully funded from the national exchequer,” she said.

Proposals for a new scheme with a maximum payment rate of €15,000, have been included in the draft Rural Development Plan for the period 2006-2013, she added.

Fine Gael agriculture spokesman Denis Naughten TD said he was concerned the new rate of €15,000 is inadequate, particularly as it is not index-linked and is not likely to keep pace with the high cost of living.