Fears CAP will stop activity on wetlands and peatlands allayed
CAP reform will bring new conditionality requirements for the protection of wetlands and peatlands. File Picture.
Fears that the CAP reform could prohibit agricultural activity on wetlands and peatlands have been allayed by Minister of State Malcolm Noonan.
He said last week, the reform brings new conditionality requirements for the protection of wetlands and peatlands, but member states will be able to define their national standards for these requirements, tailoring them to specific local needs and characteristics.
He said the recent CAP agreement will in general provide member states with flexibility to take account of national circumstances.
Some 25% of the direct payment envelope will now be dedicated to eco-schemes.
Work is underway on preparing these schemes to support farmers undertaking additional environmental actions.
For Ireland, a key objective will be to create effective eco-schemes that will engage as many farmers as possible.
Eco-schemes can be used by farms to adapt to climate change, store carbon, enrich biodiversity, be less dependent on inputs, and enhance animal welfare.
Examples are organic farming, crop rotation, preservation of carbon-rich soils.
The agreement fixes eco-scheme ring-fencing at 25% for the 2023-27 period, with an initial 2023 and 2024 learning period and a “floor” mechanism set at 20%, which provides for member state spending of unused funds between 20% and 25% of the eco-schemes.
This flexibility reduces in 2025 and 2026.
And rebates will allow member states that spend more than 30% of the rural development programme (the CAP's so-called Pillar 2) for agri-environmental practices up to 50% reduction on money spent for eco-schemes.
Up to 35% of Pillar 2 spending can be agri-environmental.
Under the next CAP, member states will mandatorily redistribute at least 10% to the benefit of smaller farms, and must describe in their strategic plan how they plan to do this.
Member states can consider other ways of achieving the redistribution needs, such as convergence.
“We need to have time to consider this complex issue nationally,” said Minister of State Noonan.
The proposals will also provide member states with broad flexibility to implement capping of payments, providing for 100% capping for any payments above €100,000 and for the ability to further reduce any payments above €60,000.
Internal convergence will continue, bringing every farmer up to a level of 85% of the national average entitlement value.
For young farmers (aged up to 40), the new mandatory minimum level is 3% of national budgets for direct payments. This could finance complementary income support, start-up aid, and investment support.
The new CAP will be more performance-based, with greater emphasis on results and outcomes from expenditure.
Farmers and other beneficiaries receiving direct payments who do not implement proper employment conditions may be penalised.
But relatively very few Irish farmers employ external labour.
A crisis reserve of at least €450 million and the possible earmarking of 3% of CAP direct payments for risk and crisis management tools will potentially reinforce the reactivity of the CAP to unforeseen events.
Further technical work will now be carried out to finalise CAP legal texts, following which MEPs will be invited to vote on the reform package.
The reform will then enter into EU law, upon its adoption by the Council of Europe.
