Teagasc survey on CAP plan
The survey shows that 20% of farmers feel the changes would lead to a reduction in income while 9% feel their incomes would increase. A total of 34% did not know what impact the changes would have.
The survey, conducted among a representative sample of 1,100 farmers in recent weeks, shows that farmers involved in a combination of milk and beef production are most pessimistic about the impact of the changes. A total of 41% of this group feel their income would drop.
The results of the survey were outlined by Teagasc economist, Liam Connolly, at a Situation and Outlook conference held by the authority in Dublin yesterday.
EU Agriculture Commissioner Franz Fischler’s proposals, announced last July, involve a switch from supports on animals and crops to an area based system. The level of payment which each farmer would receive per hectare in the future would be related to a historical reference period. The EU support system for dairying would not be affected by the new changes.
In the Teagasc survey, farmers reveal they would reduce beef and cow numbers by around 12% if the new proposals were implemented.
Sheep numbers would fall by 18% in western counties and 12% in eastern counties. In contrast, dairy farmers in the south and east said they would increase cow numbers by 5%, while those in the west said they would reduce cow numbers by 2%.
The survey results also show that 25,000 farmers plan to invest almost 300 million in their farms next year.
An analysis by Teagasc also reveals that dairy and tillage farmers have taken the brunt of the income decline in farming in 2002.
Mr Connolly said the prospects for 2003 pointed to static farm incomes or perhaps a small increase.
