EU-IMF bailout deal hits farmers
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.”
“I was told, in no uncertain terms by the Department of Finance, that if I wanted to sponsor a new agri-environment options scheme to the tune of €30m, €40m or €50m, I must find equivalent savings in my department.”
“This requirement arises from the expenditure ceilings to which we have signed up as part of the bailout deal if we are to access the stability fund,” he said.
The minister said the average payment last year in the scheme was €3,800, and he has set the payment ceiling at a higher level.
“The Department estimates that the average payment next year and in 2013 will be between €3,000 and €3,500, with the figure in commonage areas likely to be at the higher end of the scale. We also expect between 7,500 and 8,000 applicants for the scheme. Approximately 4,000 and 4,500 farmers located in special areas of conservation, special protection areas and commonage areas may apply for the scheme. They will be automatically entitled to payments, provided they meet the criteria, and will be given priority. The remaining places, of which there will be roughly 4,000, will be determined on the basis of whether an applicant was previously in REPS, and on farm size.”
“In other words, we will prioritise farmers with small-holdings and those who do not have significant income from commercial farming, or have had their income supplemented by environmental farming or other support schemes such as disadvantaged area payments.”
“I would have found it impossible to secure approval from the Department of Finance to pay out more than the ceiling of €25 million for next year and 2013,” said Mr Coveney.
He accepted that farmers getting REPS payments of €12,000 or €15,000 face a significant decline in income, but said he will continue to maximise the payments he can allocate directly to farmers, by making the necessary reductions in expenditure and finding efficiencies and making savings, where appropriate.
IFA President John Bryan said there is huge anger among farmers who were promised the scheme would be similar to last year.
