Mechanism of CAP payments to be replaced, Commissioner tells Dáil

THE current mechanism for Common Agricultural Policy payments to farmers is to be replaced with a more market-aware model, but Irish farmers should have no major concerns about cuts, European Commissioner Dacian Ciolos revealed during his visit to Dáil Éireann yesterday.

He said that the EU’s taxpayers are fully supportive of payments to farmers. However, in today's enlarged 27-member European Union, taxpayers will not support any two-tier support mechanism that differentiates between long established member states and new entrants.

The CAP’s present regime of payments based on “historical” production levels from 20 years ago is to be gradually phased out, but it will not be replaced by flat “per acre” payments due to the huge diversity in the EU’s farmlands. Changes are coming, but they will be gradual.

“It is my intention that the revisions to the CAP should be an evolution rather than a revolution,” said the Commissioner. “We have to maintain interventions and farmer payments. We will be looking for more flexibility, but we will also seek to provide a system with stronger market measures to give farmers a stronger safety net against market volatility and price fluctuations. I am interested in discussing any measure in this area.

“We also need instruments for modernisation and innovation to develop our farming practices. The CAP and rural development policies must promote Europe’s ability to overcome a food crisis, to nurture the environment, and we must take all appropriate measures in this area.”

Commissioner Ciolos was in Ireland as part of an EU-wide consultation process with every member state. Some pressure is being exerted from non-farming sectors to reduce the share of EU funding distributed to the farming community. Mr Ciolos said he believed the farming community had made a compelling case to divert this threat.

Minister for Agriculture, Fisheries and Food Brendan Smith TD opened yesterday's meeting with the Joint Oireachtas Committee on Agriculture by restating the core two-pillar approach being promoted by Irish farming interest groups. Pillar one relates to the retention of existing CAP payment levels (or “the envelope”). Pillar two relates to farmer commitments towards modernisation, eco-friendly practices and ensuring Europe’s goal of food security.

Mr Smith said: “A key role of pillar one payments in the future should be the support of farm income, with direct payments stabilising incomes at farm level and market management measures establishing a safety net in the market.”

The Commissioner agreed with the minister’s assertion that the revised mechanism should encompass both pillars.

Mr Ciolos also sought to allay the concerns of the committee members, who wanted clarity on CAP payments, the EU’s ongoing support for the farming community, notably small family farms, clarity on EU discussions with the South American MERCOSUR countries and specific concerns on dairy, beef, sheep, grain and forestry supports.