Decision expected shortly on co-financing rural programme
IFA rural development chairman Flor McCarthy is optimistic the Government will announce 50:50 co-funding to match the EU’s €313m annual commitment, giving a total budget of €2.2bn over the next seven years.
It is expected that an annual fund of about €590m — with the State putting up €277m and the EU €313m — could be unveiled shortly. The Department of Public Expenditure and Reform will also be part of that announcement.
“We expected a decision by last October,” Mr McCarthy said. “We remain optimistic, but now is the time to apply pressure, with local and European elections coming prior to the general election due in 2016.
“The reason for the pressure is that this fund dictates how farmers, especially those in poorer areas, can manoeuvre for the next seven years. And the decision to stay in farming comes down to money.
“A lot of people are waiting for the Government’s decision to see how to drive their business; whether they can continue in farming; and whether can they send their children to college.
“The reality is that farming income comes from a number of packages, most of which been cut in the last two budgets. There is a bit more realism coming into this Government, and I think they realise how important this Pillar II funding is to the rural economy.”
The Department of Agriculture has come under sustained pressure to deliver clarity on rural development funding. The IFA, ICSA, and ICMSA have all told the Government that for many farmers on poorer land, farming would not be feasible without strong funding for schemes such as the Disadvantaged Areas Scheme and environmental schemes like AEOS.
Mr McCarthy said: “The Government must at least match this funding as it is clear that the spin-off to the rural economy is very sig-nificant given that practically all of the funding is spent in the local economy.”
