ACA broadly welcomes CAP reform
The ACA claimed that direct production supports have stifled innovation over the last decade.
It said it believes anything short of full decoupling will not have the desired outcome, but it has reservations in relation to the model as set out.
President Eddie McQuinn said ACA believes that, if decoupling is to be successful, certain parallel changes, particularly in regard to milk policy, will have to be implemented.
It acknowledges the reality that market supports in the form of direct or indirect subsidies have come under pressure and broadly welcomes the changes.
“While we acknowledge that there is scope for efficiency improvements, these alone will fall far short of rescuing many farmers who are close to or on the viability threshold.
“If the industry is to survive and prosper, the immediate reform of milk quota movement regulations is vital so that those committed viable dairy farmers can scale up to offset reduced profitability per gallon.
“Facilitating expansion for the ambitious efficient producer will underpin the future of our dairy industry.
“We suggest that the reintroduction of land and quota leases (with a buyout option after seven years) as being the most practical and effective means of achieving this.”
The ACA said it broadly welcomes changes in relation to beef, sheep and tillage and holds that incomes from beef and sheep enterprises should improve medium-term.
