The fundamental focus of the Common Agricultural Policy (CAP) review must be on ensuring farmers achieve viable incomes in return for the high quality food they produce, IFA President Joe Healy has said.
Healy was speaking in response to the launch of a three-month consultation on the CAP yesterday.
He also said that the review must also ensure farmers receive a viable income in return for their efforts towards protecting the rural environment and supporting rural development.
The IFA President said key priorities for EU Agriculture Commissioner Phil Hogan must be:
- Improving farm incomes by securing a stronger CAP budget;
- A properly functioning market that returns a viable price to farmers;
- Ensuring that direct payments go to active farmers who protect the environment and produce quality food; and,
- An enhanced Rural Development Programme for farm schemes.
“Strong funding for the CAP budget is justified by the multiple benefits the policy brings for all European citizens, in terms of sustainable food production, environmental protection and economic development.”
He warned against any reduction in the CAP budget as a result of Brexit, saying if EU solidarity means anything, then the budget shortfall must be made good so that farmers are not hit with CAP cuts when the UK leaves.
Healy welcomed Commissioner Hogan’s commitment to making CAP less complex and building on simplification measures in the review, saying he hoped this would reduce the unnecessary stress burden on farmers.
The IFA President also welcomed Commissioner Hogan’s indication that he is seeking to develop additional instruments to strengthen farmers’ resilience against volatility.
He said any such instruments must be in addition to effective market support measures to protect farm incomes in times of market collapse.
“CAP must ensure that family farms are sufficiently protected and equipped to deal with the extreme volatility they are exposed to from multiple sources, including price fluctuation, weather, animal health issues, and political events.”
In 2017, Commissioner Hogan has committed to acting upon the recommendations of the Agri-Markets Task Force to improve the position of farmers in the supply chain, including regulation of the retail sector, greater price transparency along the supply chain, and enhanced options for contracts for farmers.
“In parallel with reform of the CAP, these actions are necessary to ensure a properly functioning market that returns a viable price to producers.”
IFA will be consulting widely with members in preparing its response to the consultation on the future CAP.
‘CAP consultation an opportunity to tackle inequality in farm payments’
Meanwhile, Sinn Fein MEP for the Midlands North West, Matt Carthy, has urged Irish farmers to take part in the European Commission’s consultation on CAP 2020.
The opening of this consultation is timely, as it coincides with new data from the European Commission which shows that glaring inequalities in the roll out of CAP payments continue to persistent, he said.
“This consultation is timely coming as it does days after new data released by the Commission clearly shows that despite the aims of 2013 CAP reforms to redistribute funds more fairly, there are still huge inequalities in the system.”
The European Commission’s public consultation on CAP post 2020 is therefore a crucial starting point to start addressing these issues once and for all.
“The figures contained in the Commission’s paper ‘Indicative figures on the distribution of direct aid payment to producers by Member State and category of beneficiaries for the year 2015’ show that across Europe in 2015, 20% of the beneficiaries of direct payments are still receiving 80% of the payments.
“The largest portion of funding going to a few privileged landowners was something the European Commission had promised to target with 2013 reforms.
“When you look at countries like Denmark and the Czech Republic where there are almost 800 farmers receiving annual payments above €500,000 it is clear that the current system of CAP is still broken.”
In Ireland the vast number of farmers are receiving payments under €20,000 – the figures showing 60% of farmers receive direct payments under €10,000 and 88% under €20,000. However almost 50% of Ireland’s envelope for direct payments is going to those earning above that amount.
“The fact that there are still 261 beneficiaries getting over €100,000 in annual direct payments from EU funds while most other farmers struggle to get by, is astounding and morally unjustifiable.
“Sinn Fein has argued for years that there should be an upper limit on Direct Payments of between €50,000 and €100,000 in order to deliver fairness and equality into the system.”
“The revision of CAP post-2020 is kicking off with this consultation at EU level and it is issues like this, among other issues like fairness for young farmers, forgotten farmers and disadvantaged area farmers that need to be highlighted in responses by Irish farmers.”