No National Reserve for 2016 ‘a huge blow’

The announcement by the Minister for Agriculture, Michael Creed, that there will be no Basic Payment National Reserve in 2016 calls into question the Government’s commitment to young farmers, Macra has said.

No National Reserve for 2016 ‘a huge blow’

Last week, Mr Creed, in response to a parliamentary question from Fianna Fáil TD Pat Casey, said the National Reserve fund last year was based on a 3% cut to the Basic Payment Scheme financial ceiling, and provided €24m — the maximum financing rate available under the relevant EU regulations.

“When finalised shortly, there will be some 6,000 successful applicants under the 2015 National Reserve. As all of the National Reserve funding has been utilised, there is no funding available to cover the operation of a 2016 National Reserve,” he added.

“For 2016 the only source of funding available to the National Reserve will be from ‘clawback’ on the sale of entitlements without land, and indications are that the level of funds that will arise from ‘clawback’ during the 2016 scheme year will be minimal.

“The regulations also provide that member states may apply a linear cut to the value of all farmers’ entitlements in order to provide funding for the National Reserve.”

National president Seán Finan said Macra was “very disappointed”, deeming the move “a huge blow to young farmers”. He added: “Farmers have now established their entitlements and know where they stand in terms of CAP payments for the next few years, yet young farmers and new entrants to the agriculture sector face uncertainty.

“Young farmers always seem to be the sacrificial lambs when it comes to schemes. We have seen the abolition of Installation Aid in the past and now we are back to a stop-start situation with the National Reserve which is totally unacceptable.”

He added: “I would urge Minister Creed to honour the programme for government commitments to support the next generation of farmers.

"The lack of a 2016 National Reserve questions this commitment and we request that the minister puts a long-term strategy in place to fund the Basic Payment National Reserve every year and avoid inconsistency and uncertainty in the implementation of young farmer schemes.”

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