Draft details of Ireland’s National Strategic Plan for the next Common Agricultural Policy (CAP) were recently shared with farm organisations by the Department of Agriculture, Food and the Marine (DAFM), providing an insight into the future of CAP in Ireland.
Of course, a lot of this will depend on what agreements are made at the ongoing talks among EU institutions.
The draft details of the strategic plan covers a lot of ground, including very pertinent information for young farmers.
If this strategic plan becomes the finalised version, than young farmers will be able to avail of a scheme titled ‘Complementary Income Support for Young Farmers’ (CISYF).
This payment would be designed to encourage and facilitate educated young farmers setting up for the first time as the head of an agricultural holding, solely or jointly.
The department notes in the draft details that “there is an opportunity to build on the current suite of supports for educated young farmers to enhance the future competitiveness of the agri-food sector and help guarantee food supplies and rural sustainability into the future.”
The intervention is aimed at supporting educated young farmers entering the agriculture sector in the early years immediately after they set up as the sole or joint head of a holding.
The CISYF would build on pre-existing support under the current Young Farmers’ Scheme (YFS).
There will be an annual applications process, based on a five-year programme. The department is looking to provide continuity from existing supports.
Applying farmers will have to be no older than 40 during the calendar year in which they first submit an application under the CISFY.
They will also have to be in the process of setting up a holding as head of the holding, solely or jointly, for the first time; or have already set up such a holding during the five years preceding the first submission of an application under the CISYF.
Young farmers will have to have completed a recognised course of education in agriculture, giving rise to an award at Level 6 or equivalent.
They will also have to be eligible for payment under the new Basic Income Support for Sustainability (BISS), the successor to the Basic Payment Scheme (BPS).
The amount of funding allocated for the CIFYS will depend on a number of factors, not least the finalised level of funding to be ringfenced for eco-schemes in Pillar I.
Direct payments in new CAP
A mentioned above, the BPS will be replaced by the BISS.
It will be broadly similar to BPS, except for some very significant differences.
The primary area of concern for farm organisations is the ringfencing of funds for eco-schemes, which will see at least 20% (and in all likelihood more than that) of the Pillar I envelope being set aside for these agri-environment actions.
As these schemes will not be mandatory for farmers, ringfencing Pillar I funds for them reduces the amount of a guaranteed direct payment at a fixed rate.
Convergence over the course of the next CAP will also see payments reduced. The rate of convergence will likely be set at between 75% and 85%.
On top of that, there are proposals (opposed by Minister Charlie McConalogue) to have a mandatory payment redistribution scheme on top of convergence, potentially cutting payments further.
Both of these points are up for discussion at this week’s CAP negotiations.