Direct funds may be saved from axe

DETAILED proposals for the mid-term review of the Common Agricultural Policy are most likely to include a move to decouple direct payments from production, Agriculture and Food Minister Joe Walsh predicted yesterday.

He said EU Farm Commissioner Franz Fischler has indicated that the Commission intends to press ahead with its review proposals, except those for compulsory modulation involving the reduction of direct payments by 20% over seven years to provide funds for rural development.

Mr Walsh said discussions on the proposals, which the Commission is expected to detail early in the new year, will continue for several months and that protecting Irish interests will present a major negotiating challenge.