EUROPEAN COMMISSION proposals to cut the agriculture allocation in its budget to 36.2 per cent from 39.4 per cent have caused concern in the farming sector.
While the Common Agricultural Policy (Cap) will remain in place, there is also concern over a proposal which will see 30 per cent of direct payments being “greened”. This means all farmers must engage in environmentally supportive practices. The impact will shift the agricultural sector significantly in a more sustainable direction, with farmers receiving payments to deliver public goods to their fellow citizens.
Jackie Cahill, president of the Irish Creamery Milk Suppliers’ Association, said the reduction in the amount allocated to agriculture as a percentage of the budget will bring Ireland into net contributor status much earlier than expected.
“This highlights the critical importance of EU farm payments for the whole economy, and not just the farming sector,” said Mr Cahill.
“In addition, and in relation to the actual agricultural payments, we see serious issues around the conduct of our negotiations at both EU and national level,” he said.
“Specifically we see, with no little regret, attempts to fudge the critical issues and we have to conclude that if certain parties have their way then we’re going to have the usual waffle with no genuine intention of getting down to the facts of the matter,” he said.
Irish Farmers Association president John Bryan said he was disappointed direct payments would not be index-linked for the period 2014-2020, and said the Cap budget should have benefited from the overall 5 per cent increase that has been put forward.
The IFA president said Taoiseach Enda Kenny and Minister for Agriculture Simon Coveney must engage with other member states in the negotiations ahead to ensure that Ireland secures its full envelope of funding, and active producers are fully supported.
“The funding that Ireland receives through the Cap is of vital importance in underpinning agricultural production, supporting farm incomes and driving growth in the agri-food sector and wider rural economy,” Mr Bryan said.