Decoupling anomaly endangers dairy compo
Having bought out milk quotas, which they leased with land prior to April, 2000, many will be farming less land in 2005 than they had in the 2000/2002 period.
"It has come to light that, under CAP Reform, to activate 100% of his Single Farm Payment, including the dairy premium, a dairy farmer who also has entitlements arising from other sectors such as livestock, sheep or cereals, needs to have available in 2005 the same number of hectares as in the reference period of 2000/2002," explained Michael Murphy, IFA's National Dairy Committee Chairman.
"For example, a dairy farmer farming 50ha in 2000/02, who bought out a leased quota in 2003, letting go of the 10ha he was leasing with the quota, will only be able to activate 40 out of his 50 payment entitlements, unless he acquires another 10 ha", said Mr Murphy.
"Dairy farmers are getting a rough enough deal out of CAP Reform, but they should not have to incur additional cost to secure their full dairy premium," he said.
"This is totally outrageous. Having to acquire extra land to secure the full premium which itself is only a partial compensation payment would lumber active dairy farmers with massive unnecessary additional cost. On the other hand, deciding not to acquire extra land for economic reasons, or simply being unable to secure such extra land, will deprive an already hard pressed dairy farmer from the full benefit of the premium he is entitled to," he added.
Michael Murphy called on Minister for Agriculture Joe Walsh to correct urgently the reference year anomaly which would massively reduce the dairy premium.
