IFA is determined that the CAP post-2013 must support active farmers, underpin production and support agriculture in contributing to our economic recovery. IFA has prioritised the protection of the CAP budget with the Taoiseach, Enda Kenny, and made it crystal clear that Ireland's national envelope of €1.7 bn is fully protected.
The Taoiseach and Minister for Agriculture, Simon Coveney, simply cannot concede any of Ireland's CAP budget.
This applies both to Pillar I, the Single Farm Payment and Pillar II, the Rural Development programme.
Key issues
The key issues for Irish farmers are securing a fully funded CAP budget for both Pillar I and Pillar II, with 50% national co-financing in Pillar II. IFA is strongly opposed to the Commission's proposals for flattening and regionalisation of the Single Farm Payment and the 30% Greening proposal.
Minister Coveney and the Government must maintain a strong bargaining position for Ireland and ensure that full funding for the SFP and Rural Development is secured.
Any changes to the Single Farm Payment cannot undermine farm viability, must be minimised and must be spread out over the longest timeframe possible. Adjustments to the SFP after 2013 must minimise disruption at farm level, and maximise the productive base.
Any other outcome will undermine the viability of thousands of farm families and be a massive setback for our Food Harvest 2020 growth targets for employment and exports.
IMPACT OF PROPOSALS ON PRODUCTIVE FARMERS
Commissioner Dacian Ciolos's proposals for a flat-rate payment per hectare at national or regional level by 2019 are flawed and would decimate the incomes of tens of thousands of productive farmers.
The EU Commission's proposals for a flat-rate payment per hectare at national or regional level by 2019 have the potential to significantly reduce payments for average-sized, productive farmers.
The example in Figure 1 shows the impact on a farmer with 24 Suckler Cows, farming on 31 hectares and finishing all stock.
Under the current proposals, his original Single Farm Payment has the potential to be cut by 45%, from €14,400 in 2013 to €7,900 by 2019.
Of the 128,000 farmers currently receiving the SFP, 56,000 could lose significantly and 41,000 would gain somewhat, while the remainder would see little change.
IFA has highlighted the disruption to the land market that is arising from the proposed future reference year of 2014.
flat-rate payment
The proposal for a flat-rate payment will cause huge problems as it will result in payments being capitalised in land values and rental prices, as opposed to being used to support production.
The proposals will have a hugely negative knock-on effect on the agri-food sector. A cut in support to productive farmers will result in a fall in production, which will threaten jobs and damage exports.
farmersjournal.ie
Source: Argentine Beef Packers S.A.
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