ANC payment for farmers

Declan McAleer, MLA, invites your views on a Private Member’s Bill which he is currently developing which aims to establish an Areas of Natural Constraint (ANC) payment as a legal requirement under existing legislative powers outlined in Schedule 6 of the Agriculture Act 2020.

In 2014 former Minister for Agriculture and Rural Development Michelle O’Neill, announced an Areas of Natural Constraint (ANC) payment scheme as a support mechanism for farms in severely disadvantaged areas, such as hill and upland farms.

This scheme was part of the 2014-2020 rural development programmes and provided £20 million annually.

Its creation acknowledged the need for targeted assistance to address inequalities faced by farms in areas of natural constraint, where production costs are higher and agricultural opportunities are limited.

Similar ANC schemes exist in the rest of Ireland and in Scotland.

However, the ANC scheme was discontinued by a different Agriculture Minister in 2018, leaving the north of Ireland without any ANC support.

The purpose of the proposed ANC Bill is to ‘compensate farmers for all, or part, of the additional costs and income foregone related to the constraints for agricultural production in the area concerned’. The PMB seeks to:

- alleviate the financial burdens faced by farmers in Areas of Natural Constraints by reducing the burden of production costs.

- address the decline of agricultural opportunities for those farming in these
designated areas.

- promote greater equality of opportunity for farmers in Areas of Natural Constraint Designation of Areas of Natural Constraint (ANC) involves evaluating eight biophysical criteria based on soil, climate and slope characteristics to determine eligible agricultural land.

In the North ANCs primarily consist of hill and upland farms where the land is unsuitable for dairy or beef cattle. As a result, these farmers typically graze sheep and rear suckler cows for sale to lowland farms.

While upland farms face challenges related to economic viability, household vulnerability and isolation they play a crucial role in our food supply chain.

Additionally, ANC farms tend to have lower productivity underscoring the need for targeted support.

Submission deadline 28th of March.

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