Minister outlines €2.3bn contribution to CAP payments

IFA claims it doesn't help 'active farmers'

This morning's announcement of a €2.30bn contribution to the CAP Strategic Plan 2023-2027, has been billed by the Taoiseach as “an enormous vote of confidence in the sector’s ability to meet the considerable challenges it faces”.

However the IFA has claimed it does not help the “active farmer” and places the “total emphasis” on “rewarding farmers for reducing production”. In a scathing response the IFA President fumed “The Greens are clearly running the show with Fianna Fáil and Fine Gael being led by the nose”.

Taoiseach Micheál Martin said the funding, which brings total funding for the plan to €9.8bn, was evidence of the three parties following through on commitments made in the Programme for Government: “In relation to the allocation of carbon tax funding to a flagship agri-environment and climate measure to encourage farmers to farm in a greener and more sustainable way, and in relation to the alignment of Ireland’s organic farming area with the current EU average.

“It is an enormous vote of confidence in the sector’s ability to meet the considerable challenges it faces, and to secure an economically, socially and environmentally sustainable future, for farming families and for society more widely.”

Announcing the money Minister Charlie McConalogue promised the investment will support “our farmers in doing what they do best – produce top class, world famous food while helping them make a real impact in meeting our climate ambitions. ”

He claimed that when combined with EU funding, it will result in a €3.86bn rural development package.

“This funding will place farmers in a very strong position to address climate and environmental challenges while also supporting the economic viability of the agriculture sector and rural communities, while delivering significant public goods,” he surmised.

He assured: “The Government will meet its commitment to provide €1.5 billion in addition to CAP funding over the ten-year period to 2030. The funding allocation announced today includes €723m of carbon tax funding, which is a significant first step in this regard, and reflects the incremental nature of carbon tax revenues over the period to 2030. I intend to allocate this funding to support sustainable farming practices through a flagship Agri-Environment Climate Measure, as promised in the Programme for Government.”

Pillar I

On the Pillar I elements, the Minister outlined: “I am proposing that 25% of funding will be set aside for eco-schemes, 10% for CRISS with the funding redistributed on the first 30ha of every farm. I propose to continue internal convergence on an incremental basis over the period, so that all entitlements reach a minimum level of 85% of the national entitlement value by 2026. I am proposing to implement capping of direct payments at €66,000 by utilising the flexibility in the regulation where payments between €60,000 and €100,000 can be reduced by 85% giving an effective cap of €66,000. Regarding Young farmers I intend to allocate 3% of the value of the Pillar I budget for interventions for Young Farmers on an annual basis. To address the deficit in protein, I propose to allocate €35m to the protein aid scheme over the period.”

Bizarre

IFA President Tim Cullinan was unimpressed by the minister's allocation of the funding.

“The Ministers plan to allocate the maximum 25% of every farmer’s Basic Payment to so-called ‘Eco-schemes’ is bizarre, as the Minister himself fought to secure flexibility on this at EU level,” he said.

He noted that only a third of Irish farmers are viable and claimed that today's announcements will further reduce the number of viable farmers. He said that the funding for suckler cows, ewes and the tillage sector was totally inadequate.

Tim Cullinan asserted that over €2bn of the funding announced today was EU funding, which had been announced previously, while €749 million was from carbon tax which was committed in the Programme for Government.

“For the Government to say they have increased co-funding for the CAP by 50% is disingenuous as this includes the Government’s promised carbon tax allocation,” he said.

“The irony is that the carbon tax income is generated by active farmers, who have no alternative fuel source. Yet, they are the ones being nailed by these reforms and now by our own Government,” he said.