The “exact nature” of how the payment method for eco schemes under the next Common Agricultural Policy (CAP) is “not clear” at present, according to Minister for Agriculture, Food and the Marine Charlie McConalogue.
However, he did confirm that the eco-schemes payment is to be applied at a flat rate based on compliance.
The minister was responding to a question from independent TD Marian Harkin who asked “if the proposed eco-schemes in the new CAP will be subject to internal convergence and if there will be equality of access and opportunities for all farmers to the schemes”.
In his answer the minister said: “The exact shape of the various provisions under the next CAP are still under negotiation. Until all of those are complete there is not final certainty with regard to the exact level of convergence that will be applied, or the proportion of the direct payments ceiling allocated to eco-schemes.
“The general approach agreed by [European] Council last November would see a minimum of 20% of the direct payments ceiling for Ireland dedicated to eco-schemes, while the [European] Parliament is arguing for a higher allocation, as high as 30%.
“At this point, the exact nature of how that scheme will work is not clear. Equally, it is not clear whether payments from it would be on a per hectare basis additional to the Basic Income Support for Sustainability [BISS] or on the basis of cost incurred or income foregone.”
The minister noted that the proposal covers the way the direct payments ceiling is administered, explaining:
“The allocation for eco-schemes is deducted from the ceiling. The allocation for the young farmers scheme is deducted from the ceiling.
“Any other allocations for other interventions are deducted from the ceiling. The remainder then forms the BISS ceiling.
“Payment entitlement values are assigned from that. After values are assigned, and the average value is determined, convergence can be applied to the entitlement values from that point forward.
“The eco-schemes are independent of the payment entitlement value,” the minister added.
Commenting on the minister’s reply, deputy Harkin pressed him on the government’s policy on the percentage to be allocated to eco-schemes and whether he supports a flat-rate payment not connected to historical payments.
In response Minister McConalogue said his position is to “maintain a 20% minimum threshold in terms of the eco-schemes”.
Quizzing him on this, the Sligo-Leitrim TD noted recent figures issued by the Department of Agriculture on the impact of 85% convergence on Pillar I payments.
Claiming that the figures were “completely misleading”, deputy Harking asked “will the department compare like with like and give all farmers impartial and accurate figures?”
The minister highlighted that “that piece of research was to establish what the value of the entitlement would be. That is what the figures that were set out showed”.
“The value of the entitlement is going to exclude the eco-scheme payment, which will be extracted from the entitlement value in the first place.
“I accept the point Deputy Harkin makes, but the research was about calculating what the entitlement value would be, which excludes what will happen with the eco-schemes.
“The eco-schemes payment is to be applied at a flat rate based on compliance with the draft plan on a European level and farmers will apply for that separately.
“It does have to be looked at in the round and ultimately what counts for farmers is what it means for their income. That is the crucial issue,” the minister concluded.