Smith unveils payment for farms hit by waste scheme payment deferrals

A SPECIAL ex-gratia payment will be made to farmers whose farm waste management grants have been partially deferred to 2010 and 2011, Agriculture Minister Brendan Smith has announced.

The payment, which will not exceed 3.5% ofthe value of the deferred instalments, will be made with the final grant in January, 2011.

Mr Smith has also confirmed that the initial 40% instalments of up to 6,000 grants, cleared for payment, will begin this week and will continue as cases are cleared over the next few months.

He said that the rate of interest to be charged on any loans taken out by farmers to finance the farm waste investment is a matter between the farmer and his or her bank.

“However, I believe the payment we will make to the farmer is reasonable and should also be reflected in the arrangements between banks and participating farmers,” he said.

Mr Smith said his department would, very shortly, be writing to each farmer who has yet to receive their grants advising them that their applications are being processed and setting out the basis on which the grants will be paid when cleared.

In addition, the first instalment of the grant will be accompanied by a letter of undertaking, committing the department to the payment of the second 40% instalment in January, 2010 and the remaining 20% instalment in January, 2011.

Irish Farmers Association president Padraig Walshe welcomed what he described as the progress made on grant payment arrangements, announced by the minister.

“This, combined with the letter of undertaking to 17,400 farmers, is a positive move in a difficult situation arising from the Government’s staged payments,” he said.

Mr Walshe also welcomed the commencement of payment to 6,000 farmers this week, who have already been approved.

However, the Irish Cattle and Sheep Farmers Association president Malcolm Thompson said that the outcome was “totally inadequate”.