The possibility of a financial aid package in the next Common Agricultural Policy (CAP) to assist young farmers in the purchase of land was outlined by the vice president of the European Council of Young Farmers (CEJA), Thomas Duffy at a farm walk in Co. Roscommon this week.

Speaking to Agriland after the event, the CEJA vice president explained how such a measure could come about in the CAP reform.

Duffy said: “Essentially, the Department of Agriculture, Food and the Marine [DAFM], could assist farmers in purchasing land through the use of financial instruments.”

He noted that this is outlined in a document published by the European Commission titled ‘The Regulation for the Strategic Plan for the Common Agricultural Policy‘.

However, Duffy explained that there “hasn’t been much talk in the CAP Strategic Plan discussions around any of the potential financial instruments”.

The CAP regulation

Article 68 of the European Comission’s document outlines that member states shall establish a list of ineligible investments and categories of expenditure.

The list in the document includes some of the following measures which – according to the commission – should be deemed ineligible:

  • Purchase of agricultural production rights;
  • Purchase of payment entitlements;
  • Purchase of animals, annual plants and their planting other than for the purpose of restoring agricultural or forestry potential following natural disaster and catastrophic events;
  • Purchase of land with the exception of land purchase for environmental conservation or land purchased by young farmers through the use of financial instruments.

CEJA’s interpretation of the commission’s legislation is that a EU member state can deem land purchase eligible for CAP support in the event a young farmer is buying the land or the land is being purchased for “environmental conservation”.

According to the commission, the maximum rate of support for measures should be 75% of the eligible costs.

However, the document states that the maximum support rate may be increased for the investments in afforestation as well as a number of other measures.

Concluding, the CEJA vice president and former Macra president said: “Questions are being asked as to why the Minister for Agriculture, Charlie McConalogue, has not decided to lay out plans for financial instruments which could incentivise supports for young farmers including the purchase of land.”

CAP