Anger as reform of EU payments policy could cost Irish farmers €100m

REFORMS to the EU’s €106 billion farm payments policy, which could see Irish farmers lose €100 million a year, will be resisted by the country’s main farming organisations and politicians.

Described by the European Commission as a “health check” on the Common Agriculture Policy, it has been condemned by the IFA.

Agriculture Commissioner Mariann Fischer Boel said it would help get rid of “hobby” farmers and recognise the realities of a world where demand for food was booming.

However, the IFA said the plans would unfairly affect farmers in poorer regions and those with cattle and sheep who rely on EU payments for their profits.

Last year, 130,000 Irish farmers received €1.2bn, which made up about 80% of farm income for the year. Ms Fischer Boel’s proposals would increase the amount of money farmers are losing from 5% to 13% over the next five years. The money goes to a national fund for rural development. In future, farmers’ entitlements would be based on a flat rate rather than average receipts for 2000-2002.

Farmers with less than 0.3 hectares of land would automatically lose their entitlement to payments — but this is a very small holding of less than an acre.

Those getting more than €100,000 a year in subsidies would have them reduced. This will mainly affect food processors who are among Ireland’s largest recipients.

Intervention, where the EU buys up surplus production to ensure the price is kept high, will also end, except for wheat for flour. Ireland’s beef and dairy farmers will lose out if this proposal goes ahead.

On the other hand, the planned reforms would get rid of the need for farmers to set aside 10% of their land annually, something that was designed for a time when there was a glut of food on the market.

There would also be a gradual rise in milk quotas. The IFA is seeking a 3% rise in the Irish quota.

IFA president Pádraig Walshe said the EU would save lots of money abolishing market support and refunds and should use this to fund rural development rather than take more money from farmers.

“At global level, food commodity markets are moving from surplus to deficit. This is not the time for further erosion of the CAP, and I will be asking the Irish Government to reject the main thrust of these proposals,” he said.

Fine Gael MEP Mairéad McGuinness said the commission was simply re-arranging funds in the farm budget rather than increasing the budget.

Fianna Fáil MEP Liam Aylward said what was supposed to be a health check of the CAP was turning into an attempt to make fundamental changes to it and must be resisted.