Farm payment ‘must be index-linked’

THE need to index-link the new single farm payment scheme in order to allow for future increases in inflation is to be raised in the European Parliament.

Fine Gael MEP Senator Jim Higgins, who has tabled a question on the issue, said the new scheme will streamline payments and guarantees a fixed annual income to farmers. But he said it was also seriously flawed as there is no mechanism to increase payments on an annual basis to cope with rises in inflation.

“While the incoming Commissioner has said she will review the scheme in five years time, the real value to farmers will have dropped substantially by between 10% and 15%, given the current annual Irish rate of inflation,” he said.