Decoupling marks new farm era, says Maher
He said the introduction of the new decoupled farm support system is clearly the most fundamental change to the Common Agriculture Policy since it was established in 1973.
The new system, which took effect from January 1, will completely change the way farm supports are administered to farmers.
Mr Maher said the new system, negotiated by the European Council of Agriculture Ministers, would offer Irish farmers an opportunity to become more market orientated and consumer focused.
“In order to quality for payment under the new system, farmers must comply with a range a food safety and land management requirements,” he said.
Mr Maher said decoupling will also offer a reduction in the amount of bureaucracy which will allow farmers more freedom to farm.
“This will provide them with an opportunity to concentrate on market requirements and consumer demands,” he said.
IFA farm business committee chairman Eddie Downey, has, meanwhile, called on all buyers of farm produce to pass on the full amount of the flat rate VAT refund to farmers, which has been increased from 4.4% to 4.8%, with effect from January 1.
He said the flat rate VAT refund to non-VAT registered farmers now amounts to €192 million, with last December’s budget increase alone adding €16 million.
“This equates to over 12 cent per kg on cattle or €10 per head for a steer, or 18 cent per kg on lamb, or €3.6 per head,” he said.
Mr Downey said the flat rate VAT refund compensates for the VAT paid on inputs. All buyers of produce must pass on this increase in the prices they pay non-VAT registered farmers.
“Farmers must also demand complete transparency in price quotations to ensure they receive the full amount of the VAT increase,” he said. A technical working group representing farm organisations, the Revenue and the Department of Finance is to start an examination of the calculation of the VAT refund rate.
