'Budget is key': Reactions to prospects of 2-year CAP extension

A number of Irish farming organisations have given their reactions following the European Parliament Agricultural Committee’s endorsement of an extension to current Common Agricultural Policy (CAP) rules for up to two years.

The Irish Creamery Milk Suppliers’ Association (ICMSA) and the Irish Farmers’ Association (IFA) have both given their reaction to the committee’s decision earlier this week.

ICMSA

The ICMSA said it is essential that the transition arrangements caters for a period of at least two years given the uncertain time-frame for the conclusion of the overall EU budget, the finer details of the CAP reform, Brexit, and now the Covid-19 pandemic.

ICMSA president Pat McCormack said there is a clear onus on politicians at national and EU level to ensure that an appropriate transition agreement is in place that will allow the funding of farm schemes to continue for 2021 and 2022, until the new CAP has been put in place.

Such a transitional agreement will require the budget to be maintained at current levels for the period and the provision of national funding for Pillar II schemes over the transition scheme ensuring that all schemes remain open and fully funded.

Highlighting the importance of key schemes such as the Basic Payment Scheme (BPS), the Green, Low-Carbon, Agri-Environment Scheme (GLAS), the Areas of Natural Constraint (ANC) and the Targeted Agricultural Modernisation Scheme (TAMS), McCormack said they “are not only important from a farmer perspective, but they’re also positive for the wider rural economy and environmental protection”.

“These schemes are all due to come to a conclusion at the end of 2020 and the incoming Government must commit to their continuation during the transition period – whether that’s one or more years – and so provide a level of certainty to farmers on their income and on their important environmental component,” he stressed.

IFA

Meanwhile, IFA Rural Development Committee chairman Michael Biggins outlined six key points that he believes are issues of relevance on the CAP transitional regulations.

The main issue for the IFA is the CAP budget, Biggins stressed, highlighting that the decision on the Multiannual Financial Framework (MFF) is vital and payments must be at least maintained across Pillars I and II.

Maintaining BPS, ANC, National Reserve and Young Farmer top-up schemes, GLAS and other rural development measures will be of vital importance to support farm incomes at this critical time, he added.

TAMS will need to be extended beyond the end of the last tranche, due to end on December 31.

While payments for farmers who complete work between now and then will be paid into next year, nevertheless, a continuation of the scheme beyond December next will be necessary as farmer investment plans cannot be put on hold, the chairman said.

Biggins said there will be a need to extend the Sheep Welfare Scheme, worth €10/ewe, as 2020 is the last year of the four-year scheme.

“This needs to be extended and the IFA wants a payment of €30/ewe,” he added.

The BDGP will also need to extended, with the IFA seeking a suckler payment of €300/cow.

“Any additional funding required in the transition period can either come from unspent money from the current programme, additional national finance, and funding from the next programming period,” Biggins concluded.