EU-IMF bailout deal hits farmers

EXPENDITURE ceilings as part of the EU-IMF bailout deal hit farmers last week — in the shape of a reduced agri-environment options scheme (AEOS) for 2011.

Defending his decision to impose an expenditure ceiling of €25m for 2012 and 2013, and a maximum payment per applicant of €4,000, Agriculture Minister Simon Coveney said Fine Gael commitments given on AEOS during the election campaign were based on the previous Government’s announcement of a €50m scheme worth up to €5,000 each for 10,000 applicants.

“When I entered my department five weeks ago, however, I encountered a problem in respect of the scheme,” said Coveney. “It was a major challenge for me to put in place an agri-environment options scheme, because I was informed that the budget for this year and next year does not make any allocation for the scheme announced by the previous government. Instead, we have a commitment, under the four-year plan, to reduce current expenditure in my department by €60m.”