The Compensatory Allowance for Natural Handicaps (ICHN) contributes, in underprivileged zones, to maintaining a viable rural community and to preserving the natural landscape by promoting sustainable farming methods.

Zones where this assistance is available are mountain and high mountain regions as well as areas in Piedmont and general underprivileged zones.

To benefit from ICHN, applicants must meet the following conditions:
- live and have the farm’s head office in an underprivileged zone
- farm at least 80 % of SAU in an underprivileged zone
- use farming practices that avoid both excessive and insufficient pasturing
- comply with agricultural good practice.

NB: these conditions are defined in the Rural Code - articles R 113-18 to R 113-26, the decrees for implementation and EC regulation n°1257/1999.

The allowance is calculated according to eligible fodder surface areas, eligible vegetable surface areas, the herd present on the farm and the type of underprivileged zone in which the farm is located. There is a ceiling size of 50 hectares.  
 
In order to encourage a dense rural fabric, a 30% increase is granted to the first 25 hectares for which a bonus is given. Finally, for sheep and goat farms, an increase of 30% is given in Piedmont zone and general underprivileged zones and a 10% increase is also available in mountain zones.

In 2004, this allowance was paid to around 105,000 farmers, which represents a total amount of 477 million euros.

Over 3/4 of compensation paid went to farms in mountain and high mountain zones.

For additional information, contact the DDAF-DDEA in the county of interest to you.