Exchequer covers EU cuts

FARMERS could be forgiven for not realising that the EU, the main source of funding for Irish agriculture, is cutting back its allowance considerably.

Our own Exchequer, greatly boosted by our Celtic tiger prosperity, is making up for the EU cutbacks. For example, rural development measures of all kinds will be funded to the tune of €6.8 billion for the next six years, thanks to the Exchequer injecting €4.7 billion, which is €2 billion more than our own economy contributed to our previous round of funding for agriculture related rural development.

But our dairy farmers, for example, are feeling considerable pain, due to the EU slashing funding. Across Europe, the EU Commission plans to reduce annual dairy market support spending, from €2,755m in 2004 to only €400m by 2013. The EU has also cut about €250m from our funding for rural development — an inevitable trend, as Ireland gets more prosperous, and rural funding is diluted across 25 member states, plus Bulgaria and Romania.