The fate of the EU CAP (Common Agricultural Policy) budget is now being deliberated with increased intensity following the publication of a European Commission Reflection Paper on ‘The Future of EU Finances’, according to MEP and first Vice-President of the European Parliament, Mairead McGuinness.

This morning (Thursday, June 29), McGuinness, who was commenting on the matter from Brussels, said: “Targeting payments further towards protection of the environment and climate action and tilting it away from its current orientation, whereby on average 20% of farmers receive around 80% of the payments, form the primary focus of commission thinking.

The document states that moving further towards the provision of public goods, related to the protection of the environment and climate action, would require more targeted and regionally-adapted support measures.

The MEP added that the commission paper reports that, in some instances, CAP payments do not actually contribute to the structural development of agriculture but tend to drive up land prices that could impede young farmers from getting into the market.

The commission document suggests that a greater balance needs to be struck between policy objectives, payments, grants, risk-management tools and measures to cope with risk and unexpected adverse events.

“The document published by the commission is looking at how the EU will structure its budget and spending in a future where there are greater demands for budget allocations to new priority areas and pressures on the budget, including the impact of Brexit,” she added.

Agriculture and food production is a key priority area and cannot be hit by budget cuts to fund other policy areas.

“Any cuts to the CAP represent a reduction in income to rural communities, as CAP payments contribute to business and local economies.”

Elaborating, McGuinness said: “New EU policy priorities may require additional funding and this is a debate which the member states must have and show a willingness to provide that additional support – where necessary.”

Regarding the future orientation of the CAP, the MEP said redistribution of payments will continue in those member states, which include Ireland, where there is a move to a flat rate payment per hectare.

“Additional questions about further capping of payments will also be asked.”

Concluding, McGuinness said: “The future of EU financing and its impact on the CAP will continue to be hotly debated in the European Parliament. But a policy of ‘robbing Peter to pay Paul’ cannot be justified.”