The Irish Natura and Hill Farmers’ Association (INHFA) has condemned a recent document released by the Department of Agriculture Food and the Marine (DAFM) on modelling future Common Agricultural Policy (CAP) payments.
The document, which is available on the department’s website indicates that no farmer will gain under the convergence model.
INHFA president Colm O’Donnell said: “This totally misrepresents the reality that over 72,000 farmers representing almost 60% of all farmers, stand to gain under 100% convergence or full flattening.
“Of these, over half would also gain substantially under the 85% convergence model which the DAFM [has] based this document around.”
DAFM modelling on CAP payments
The modelling exercise focused on payment entitlement unit values under the proposed Basic Income Support for Sustainability (BISS) – the successor to the Basic Payment Scheme (BPS) – but does not look at any proposed eco-schemes, for which 20% of CAP funds will be ringfenced.
The current average BPS entitlement value came to €266 in 2019, according to department figures.
The DAFM modelling outlines details on how 85% convergence will impact on farmers’ Pillar I payments with modelling done on three farmers with varying payments to illustrate this.
According to the INHFA, in the example from the department, all three farmers have 32ha, but there are variations in their Pillar I payment rates which sees Farmer X on €160/ha (made up of the BPS and Greening).
Farmer Y is on €300/ha with Farmer Z on €400/ha, again made up from their BPS and Greening.
The hill farmers’ organisation said that through the lifetime of the new CAP (2023-2026) the DAFM modelling shows how the payment rate per hectare falls for Farmer Z from €400/ha to €233 by 2026, with Farmer Y seeing payments fall from €300/ha to €200/ha and for Farmer X, there is a ‘modest’ increase from €160 up to €161/ha.
“The DAFM modelling is totally misleading as it excludes the eco-payment in the final figures despite including the Greening payment in the initial figures,” O’Donnell continued.
“The document also fails to differentiate between changes in farmers’ payments due the way eco-schemes will be paid and changes in payments caused by additional convergence.
“This has the effect of making the effects of increasing convergence look even worse for farmers on high historic payments,” he added.
Eco-schemes
The INHFA said that payments for eco-schemes, which replace ‘greening’ will be available to all farmers and can deliver a payment of between €54 and €80/ha.
Final clarity will be got on this when the EU decides what percentage of Pillar I payments will be allocated to the eco-scheme, with current proposals suggesting between 20 to 30%.
O’Donnell outlined what he maintained would be a more accurate assessment of the final figures under 85% convergence and an eco-scheme payment at 25%.
He said that this would see Farmer X increase to a total payment of €228/ha with Farmer Y on a payment of €267 and Farmer Z on a payment of €300/ha.
”There is an opportunity to protect farmers on small holdings who have higher payments through the frontloaded option referred to as the Complementary Redistributive Income Support Scheme (CRISS),” O’Donnell said.
“Unfortunately, this option was not included in the DAFM modelling and must be included in any future modelling.
“The DAFM must at all times be objective and remain independent. Clarity is now essential, not just in relation to its many mistakes but also with regard to its intention,” O’Donnell concluded.