The Irish Creamery Milk Suppliers Association (ICMSA) has expressed concern that the EU-funded early retirement scheme for farmers is flawed and there has been a dramatic drop-off in applications.
Mr Tommy Cooke, chairman of ICMSA's rural development committee, said 2004 levels were down 50 per cent on 2003 levels, a very clear indication that the scheme is not working.
The potential of the scheme to promote positive structural change in farming was being lost by the Government's failure to recognise the flaws in the scheme as operated at present.
"The scheme's flaws haven't changed and chief amongst those flaws are the payment rates, which are simply inadequate as well as lacking indexation.
"Other problem areas centre on the relationship between the scheme and State pensions and the age limits for young farmers," he said.
The ICMSA spokesman said the Department's use of decoupling as an excuse for the sharp drop-off was simply ignoring the problems inherent in the scheme.
ICMSA noted that for this year there would be an estimated €11 million "underspend" in the scheme.
"All of these problems can be resolved and ICMSA believes that a good scheme can be designed that would benefit the farm families in question, as well as enhancing the farm sector generally," he concluded.