Companies may lose to ease CAP farm shock
It is one of many options which could be used to ensure national food production is not reduced by last week’s controversial CAP reform measure which transfers €103m per year of payments from 53,471 farmers, who lose 12%, on average, to 60,379 farmers, who gain 35%, on average.
Farming could be deemed insignificant for EU direct payment beneficiaries such as a number of companies in the beef business — and even high profile institutions such as University College Dublin, which got a €66,907.50 direct payment last year.
Other possibilities in this category could include Teagasc, Moorepark, paid €67,236.26 last year, and Teagasc, Carlow, paid €102,289.50.
Definitely losing out will be any companies in Ireland in the categories of airports, railway services, waterworks, real estate services, and permanent sport and recreational grounds. As part of the CAP reform, no payments will be made to them — and member states may add to this “negatives” list if it wants.
When ruling on new entitlements for direct payments, member states can also set minimum farming activity levels for grazing or cultivation areas.
Only farmers paid in 2013 can be automatically allocated new entitlements, when Ireland’s annual direct payments of over €1.2bn are based on a new reference year.
The number of entitlements to be allocated will be equal to the number of eligible hectares declared in either 2013 or 2015 (to be decided by member states).
Ireland will probably opt to use 2013 as the reference year for newly determining the land area eligible for farmer payments, according to a spokesman for the Department of Agriculture last weekend.
“But the decisions on this and on all other options available to Ireland under the new regime will only be taken by the minister after a comprehensive consultation process with stakeholders,” the spokesman added.
