€12.5bn boost for agri sector unveiled

The allocation of €12.5bn in Common Agricultural Policy funding for the agri sector over the next seven years is a “massive boost” for rural jobs and balanced regional development, according to the Taoiseach.

Enda Kenny said almost €4bn of the funding, including €1.9bn from the exchequer, will be spent on the Rural Development Programme which will invest in farms to help grow the indigenous food and drink sector which produced almost €10bn worth of exports last year.

“At a time of scare resources, the investment of €550m a year in the agri sector represents the Government’s strong commitment to job creation and investment in our rural communities,” said Mr Kenny.

The total funding includes €8.5bn of EU money under the CAP which will be distributed in single farm payments (SFP) to almost 125,000 farmers who will continue to receive an average of about €10,000 per year.

The new programme will provide additional supports for young farmers including a 60% grant aid for farm buildings, and a 25% “top-up” on direct payments on up to 50 hectares for farmers under 40 years of age which can be worth up to €16,000 between 2014 and 2020.

An agri environment scheme called GLAS focusing on biodiversity, water quality, and climate change issues will provide a payment of €5,000 for up to 50,000 farmers with an extra €2,000 for those who deliver “an exceptional level of environmental benefit”.

The annual disadvantaged area payments of €195m are protected and supports across the sector include a suckler genomic scheme worth €80 per cow and funding for the artisan sector and island farming communities.

Agriculture Minister Simon Coveney said despite the economic crisis, almost 25,000 of the 58,000 jobs created last year were in the agriculture and fisheries sector.

“Families on farms are now seeing sons and daughters come back into farming and naming it as their main source of income.”

The announcement was broadly welcomed by farming groups including the IFA, which said the rural development programme would deliver “strong support” for vital schemes over the next seven years. Its president Eddie Downey said the Government recognised direct payments were a key element of farm income and said the new rural schemes should be up and running without delay.

The ICMSA also welcomed the broad thrust of the announcement but cautioned saying the devil was in the detail. President John Comer welcomed the decision not to introduce a coupled payment system and said no matter what way the direct payments were analysed, someone who had received a SFP of €10,000 last year could suffer a reduction of up to €1,250.

The Irish Cattle and Sheep Farmers Association also had a broad welcome for the scheme but would have preferred if the Government had matched the EU on funding for the rural development scheme.

Groups had lobbied for a 50:50 breakdown but it ended up as 54:46 with Ireland providing €1.9bn and €2.2bn provided by Europe.

* See Farming Special Report — http://exa.mn/1oi