Approximately 1,600 applications have been made to the National Reserve for 2022, which is a significant increase compared to the period 2018-2021, when the average number of applications was approximately 850 per annum.
These figures were revealed at a recent meeting of the Direct Payments Advisory Committee and the Department of Agriculture, Food and the Marine (DAFM).
Meeting the increased demand on the National Reserve will lead to “a linear reduction of approximately 0.6% to all payment entitlements in 2022” according to the Irish Farmers’ Association (IFA) deputy president, Brian Rushe.
Such a reduction on existing entitlements, he said, is “unacceptable” to farmers.
At the meeting, it was also revealed that in 2021, 740 farmers – of which 678 were young farmers – received an average allocation of €5,460 in entitlements.
In addition, 5,129 young farmers received an average of €2,270 as a payment top-up under the Young Farmers Scheme in 2021.
National Reserve – reason for demand
The main reason for the surge in demand is “most likely the removal of the upper off-farm income threshold of €40,000, which was a requirement prior to 2022” said the IFA deputy president.
“Irish farmers have made a very positive contribution to young farmers in terms of funding and allocation of additional entitlements through the National Reserve.
“However, this move allows people who don’t have farming as their primary source of income to secure entitlements at the expense of those who rely on farming for their livelihood,” he said.
IFA rural development chair, Michael Biggins said a linear cut, no matter how small, to fund the National Reserve is another cut to be endured by farmers who have already had cuts imposed on them in the current Common Agricultural Policy (CAP) and are facing more cuts in the next CAP.
“The DAFM previously outlined to the committee that unused funds from the Young Farmer Scheme could fund the National Reserve for 2022.
“IFA reiterated that any cut is unacceptable and unused funds from the Young Farmer Scheme, and other schemes, must be directed to fund the reserve,” he said.