No losers with new subsidies, claims Dept of Agriculture

Consumers and farmers will both benefit from the "decoupling" of EU agriculture subsidies which came into force on January 1, the Department of Agriculture has claimed.

In the past, farmers received subsidies based on the quantity they produced. Under the new scheme, future payments will be based on the average of what farmers received between 2000 and 2002, regardless of their level of production.

The EU has introduced the change in an effort to put a focus on quality rather than quantity.

The Department of Agriculture said today this would create new opportunities for Irish farmers to compete abroad.

It also said consumers would benefit because farmers would have to compete better to protect their livelihoods and respond better to consumer needs.