Most farmers unaffected by proposed CAP reforms

THE cheque-in-the-post would be unchanged for nearly half of Ireland’s farmers, if the CAP Reform proposals were accepted.
Most farmers unaffected by proposed CAP reforms

Ireland has 55,200 farmers getting less than €5,000 per year from Brussels.

This is the threshold at which modulation is proposed the mechanism by which Brussels would claw back payments from farmers, and divert them to pay for other elements of CAP Reform.

In the 15, no farmer getting less than €5,000 per year would be affected by modulation.

Those getting €5,001 to €50,000 face cuts rising from 1% in 2007 to 12.5% in 2013. In Ireland, 62,400 farmers or 52% of those getting cheques-in-the-post, fall within this category.

Ireland has 6,000 farmers getting more than €50,000 per year. For this 2% segment, the proposed cuts rise from 1% in 2007 to 19% in 2013.

Of the money taken off direct payments to farmers, it is proposed that 1% in 2007, rising by a further 1% per year to reach 6% by 2012, will be made available to member states as additional EU support for rural development.

This modulation proposal would raise additional rural development funds of €228 million in 2007, increasing to €1.48 billion in 2012.

These funds will be allocated between member states according to their agricultural area, and estimated earnings in agricultural employment.

Direct payments would not be cut in the new Member States, until the phasing-in of direct payments reaches the normal EU level, according to the Fischler CAP reform proposals.

In Northern Ireland, farmers stand to lose out more to CAP reform.

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