Single Farm Payments crucial for dairy farmers

Over the next two months the minister for agriculture has key decisions to take on the CAP.

Those decisions will have a major bearing on the success or otherwise of farm families and the agri-food sector up to, and beyond, 2020.

The importance of the Single Farm Payment and other payments cannot be overstated, with 2012 and the first half of 2013 a clear example of their importance.

Without these payments, what was a major disaster could have turned into a catastrophe.

The year 2009 also clearly showed the importance of the Single Farm Payment to dairy farmers when it represented over 75% of their income, and ICMSA is concerned the minister does not fully appreciate the importance of these payments to dairy farmers.

An impression is being given that these payments are only of importance to the drystock farmers — that is simply not true.

Dairy farmers are facing a period of enormous change, with possibly huge variation in prices and little — if any — stabilising mechanisms in EU policy to address this volatility. The Single Farm Payment and Pillar II payments are absolutely essential to the future development of the Irish dairy sector and any attempt to hive off additional sums from dairy farmers — by way, for instance, of a coupled payment — would be a very foolish policy.

Given the full-time nature of dairy farming, off-farm employment is a non-runner in most cases, so the dairy farmer and his/her family are totally exposed to the volatility of the global food market.

The minister needs to recognise this and ensure that the payments to farmers dependent on farming of all types for their living are protected to the maximum.

From an ICMSA perspective, the following should be key objectives:

- Minimise to the maximum extent possible any reductions in the payments to those farmers with total payments of less than €30,000.

- The entitlements and payments of active farmers should be protected and given priority.

- As far as possible the rules should not inhibit land mobility, nor increase the cost of renting land.

- The voluntary deductions must be kept to an absolute minimum.

There is a major concern among farmers — in particular farmers who have small landholdings but payments above the national average — that these people will see a substantial deduction in their payment in order to increase payments to persons with larger holdings. The minister cannot allow this to happen.

Thousands of farmers are going to suffer reductions in their payments, and the extent will be decided by the minister’s decisions on the voluntary deductions. One significant issue is whether or not we will have a coupled payment. People should realise that many suckler farmers, as well as dairy, tillage farmers, etc, will lose if this is introduced and we cannot accept further reductions given the already significant cuts facing farmers. The minister and his department should introduce a system based on the minimum amount of inspections and administration.

In relation to Pillar II, these schemes are hugely important, particularly to those in vulnerable areas and for farmers with limited land areas. The minister cannot simply dismiss these schemes, and the closure of REPS will hit rural areas particularly hard over the coming year when thousands of farmers will come to the end of their contracts.

ICMSA is clearly saying that the Disadvantaged Areas Scheme and a proper agri-environment scheme must be retained and properly funded.

AEOS is a poor relation of REPS and is not the answer going forward.

Budget 2014 will tell a lot about the Government commitment to the Pillar II scheme, to farmers and to the wider rural economy, and whether the Government is serious about helping our most important indigenous economic activity.

- John Comer is president of the ICMSA