Food funding envelope must be retained in full
The heads of government are re-convening after they failed last November to agree on the Multi-Annual Financial Framework for 2014-2020.
For Ireland, the most important element of the discussion is the Common Agricultural Policy. The CAP budget is worth a potential €11bn to the Irish economy over the next seven years, and a positive outcome is vital to growth for farming and food.
It also provides consumers with a plentiful supply of high quality, sustainably-produced food.
Taoiseach Enda Kenny will have to forge strong alliances with European leaders, who value a fully-funded CAP budget. IFA president, John Bryan, is in Brussels to watch the negotiations, and assess what is needed to get the right result.
*What is at stake here for Irish farming?
>>The outcome of these negotiations will have serious ramifications for Irish farmers and the agri-food sector. The heads of state are attempting to agree a multi-annual budget for the EU, which will set out funding across different headings, such as agriculture, research, and structural funding, from 2014 to 2020. In Ireland’s case, the Single Farm Payment is worth €1.25bn each year and Europe supports our Rural Development Programme with funding of €350m each year. We are insisting that our envelope of funding is retained in full.
*Where does the Taoiseach look for allies?
>>The Taoiseach has taken a strong stance. As president of IFA, I have engaged with him regularly, and I hope to meet him today, while the talks are taking place. Before the discussions in November, Enda Kenny met the French president, Francois Hollande, on the importance of a strong CAP. France has always been a staunch supporter of farm families and our long-standing alliance with them will be crucial over the next two days. Other member states are looking to cut the Budget, particularly the UK.
*David Cameron will argue in times of austerity, there must be a cut to the Budget. How do you counter that?
>>From President van Rompuy to the head of the Commission, Jose Manuel Barroso, all the talk is of a growth strategy that will help create jobs. The sector already supports 40m jobs across Europe and I firmly believe that investment in farming and food will reap a dividend for Europe’s economy. UCD have done the analysis in this country, which shows the economic impact and the jobs created, particularly in the rural economy, if you invest in agriculture. Conversely, any reduction will have a negative impact on the economy.
*What are farm organisations doing to keep up the pressure?
>>In the build-up to CAP reform, we have worked closely with the main farm organisations across Europe, from FNSEA, in France, to DBV, in Germany, and the Austrian Farmers’ Union. Only yesterday, I attended a rally of EU farmers organised by COPA-COGECA, here in Brussels. We had the IFA national officers and the key commodity chairmen here, also, to demonstrate the importance of funding for all farmers, across all sectors. From talking to other farm leaders, we are united in looking for a fully funded CAP budget over the next seven years. This is a key issue for farming communities across Europe.
*Are you concerned about rural development?
>>The Rural Development Programme is a very important part of the overall CAP. Farming is the main driver of economic growth in rural economies, and funding through the Rural Development Programme is very important in supporting on-farm investment and restructuring, agri-environment measures, maintaining farming in vulnerable regions across Ireland and the EU, supporting farmers in their provision of agri-environmental goods and services, and contributing both to on- and off-farm economic development.
Ireland has traditionally participated strongly in the Rural Development Programme, and our future funding allocation must reflect this past performance and participation. There are two elements to Pillar 11; the level of funding to be agreed, and the level of co-financing provided by national governments. A number of countries have made a special case for a specific allocation of rural development funds, as the formula being used by the EU Commission for allocation of funding between member states would have left those countries short. These countries include Austria, Italy and Finland. I believe the Taoiseach must also fight for, and secure, a specific funding allocation for Ireland that fairly reflects our past performance in the Rural Development Programme. In addition, 50% national co-financing must be agreed, to ensure the Government’s continued commitment to agriculture-led rural development programmes in Ireland.
*Assuming agreement is reached, what next?
>>If the framework for the CAP budget is put in place, then the focus will switch to getting a deal on CAP reform under the Irish presidency. These decisions will have major implications for the future growth potential of the sector. As I pointed out at our AGM last month, the outcome here will define the success, or otherwise, of Agriculture Minister Simon Coveney.
