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ACRES Overpayments: Farmers Face Clawbacks Amidst Scoring Errors

13 September, 2024 - 1:25AM
ACRES Overpayments: Farmers Face Clawbacks Amidst Scoring Errors
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ACRES Overpayments: Farmers Face Clawbacks Amidst Scoring Errors

The Irish Natura and Hill Farmers Association (INHFA) has issued a strong call for the Minister for Agriculture to suspend plans for clawing back Agri-Climate Rural Environment Scheme (ACRES) overpayments from farmers. The organization alleges that the basis for assessing these overpayments is flawed, raising concerns about the accuracy and fairness of the scheme's implementation.

INHFA vice president John Joe Fitzgerald explained that numerous farmers have contacted the organization after receiving their habitat scores and associated maps. These farmers have reported “worrying mistakes” related to the mapped areas, with some finding they have been awarded scores for land parcels they don’t own, while others have discovered that some of their own land parcels are missing.

Fitzgerald emphasized the significance of these errors, stating, “We are trying to assess how widespread this issue is and we are encouraging all farmers (especially those that have been contacted around an overpayment claim) to cross reference their ACRES parcel number against their land parcel identification system (LPIS) number.”

Impacts on Payments

Given the crucial role of habitat scores in determining overall ACRES payments, particularly for farmers participating in ACRES co-operation, Fitzgerald stressed that the presence of incorrect land parcels or the omission of correct ones could have a substantial effect on a farmer's final payment. He asserted that it is “vital that the parcel numbers are correct and this is why we are calling on the Department to immediately suspend the recovery of any ACRES payments.”

Delays in NPIs and Landscape Actions

In addition to the concerns over payment accuracy, the INHFA has also expressed dissatisfaction with the Department's delay in ratifying non-productive investments (NPIs) and landscape actions (LAs). Fitzgerald argued that these delays, combined with the late release of habitat scores to farmers, will negatively impact farmers in the upcoming year, especially those who have had their lands assessed for the second time this summer.

The INHFA contends that the Department's failure to ratify these actions has deprived farmers of the opportunity to address potential issues like invasive species or dumping. As a result, their scores will remain locked in for another two years, effectively condemning them to their current payment rates and hindering biodiversity efforts.

Fitzgerald concluded by stating that the INHFA has written to the Minister requesting a meeting to address the growing number of ACRES-related problems. The organization is determined to advocate for farmers and ensure that the scheme functions effectively and fairly.

Minister's Update on ACRES Payments

Minister for Agriculture, Food and the Marine, Charlie McConalogue T.D., has provided an update on the progress of ACRES payments already made and those scheduled for release in the coming period.

Acknowledging the delays encountered in processing payments for farmers who joined ACRES in Tranche 1, particularly for the 8,636 farmers awaiting their balancing payment, the Minister stated, “This scheme, with its scale, ambition and complexity, has presented challenges in terms of meeting the payment timelines envisaged at the time of its launch.”

Payment Progress

The Minister highlighted that by the middle of March, practically all ACRES participants (44,780) had received either an 85% advance payment or a flat-rate interim payment of €4,000 or €5,000.

Of those, 19,719 received their advance payment between November and February, while the remaining 25,061 received interim payments by mid-March. The Minister explained that these interim payments often represented the majority of, or in some cases even exceeded, the total ACRES payments due for the year.

As of the current date, 36,410 farmers, representing 82% of participants, have received their final balancing payment, adjusted as necessary to account for the interim payment. These payments, combined, bring the total paid out for the first year of the scheme to €241 million.

The Minister confirmed that the Department of Agriculture, Food and the Marine is currently finalizing calculations for the remaining 8,646 participants who have received an advance or interim payment but are yet to receive their final balancing payment for the first year of the scheme.

McConalogue stated, “I have been working closely with the ACRES team to ensure that a plan is in place to ensure that these are finalised as soon as possible. I expect payments to be completed in respect of 95% of all ACRES participants by the end of September.”

The average total payment for ACRES General participants has reached €5,200, and the average total core payment for those in the Cooperation stream has been €5,100, aligning with the initial projections for the scheme.

Upcoming Payments and Future Plans

Looking ahead, the Minister announced that for farmers participating in the Cooperation stream, there is an additional €17,500 maximum available to be drawn down from NPIs, LAs, and the Landscape Bonus.

The Minister assured that approvals for already received NPI applications will be issued before the end of 2024, with a new round of NPI applications opening on September 17th.

McConalogue emphasized that the Department is fully committed to resolving the challenges faced in administering the first year of the scheme to ensure a smoother experience for the second year. Efforts are underway to ensure the effective delivery of advance payments in 2024 for both Tranche 1 and 2 ACRES participants, with these payments set to begin by the end of November 2024.

McConalogue highlighted that ACRES boasts the highest level of funding available of any environmental scheme ever run by the Department, with all applicants accepted into both tranches, leading to nearly 55,000 farmers now participating in the scheme.

In conclusion, the Minister stated, “ACRES is an environmental scheme that is unprecedented in the scale of its ambition, and it has enormous potential to deliver significant long-term dividends for farmers and for the environment. I look forward to the remaining year one balancing payments being significantly resolved this month, and to both Tranche 1 and 2 payments proceeding according to committed timelines for 2024.”

Concerns Raised About ACRES Delivery

Independent TD for East Galway, Sean Canney, has expressed concerns about the ACRES scheme's effectiveness, stating that it is not delivering the expected support for farmers. Canney has been contacted by farmers in the area whose applications are being reviewed by the Department of Agriculture, with markings leading to significantly lower grants than the advertised average of €5,000. Canney argued for transparency in the marking system and urged the Minister to address this issue promptly.

The INHFA's concerns, alongside the Minister's update and the independent TD's statement, highlight the complex challenges surrounding the implementation of ACRES, a scheme with ambitious environmental goals. The coming months will be crucial in addressing the issues raised and ensuring that the scheme effectively supports farmers while delivering its intended environmental benefits.

ACRES Overpayments: Farmers Face Clawbacks Amidst Scoring Errors
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ACRES Overpayments: Farmers Face Clawbacks Amidst Scoring Errors
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Department of Agriculture, Food and the Marine Charlie McConalogue Payment ACRES farmers Payments overpayments INHFA
Kwame Osei
Kwame Osei

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