Managing CAP reform to suit our farmers

A deal on Common Agricultural Policy is looking more and more achievable, says Simon Coveney

SIX months ago, the possibility of finalising the reform of the Common Agricultural Policy (CAP) within Ireland’s EU presidency was considered next to impossible.

We are now heading towards the final meeting of the council of agriculture ministers next week, and the likelihood of getting a deal, while challenging, looks achievable.

Throughout the last six months, the Irish presidency has worked hard to deliver a new CAP deal which will be fair and supportive of active farmers in all parts of the country. Achieving agreement will require the commission, the agriculture ministers’ council, and the European Parliament all reaching compromise on the big issues involved.

As part of Ireland’s presidency of the Council of the EU, the informal agriculture council took place in Dublin at the end of May.

Agriculture ministers from EU states gathered to discuss some of the key outstanding issues in relation to the CAP and to discuss the way forward.

The biggest issue for Ireland is the redistribution of the single-farm payment (SFP) within member states. It has been widely recognised for some time now that sticking with the status quo is not realistic or possible. The historic model which the current SFP system is based on cannot continue and nor would it be fair to continue with it.

There is a need for some level of redistribution but Ireland’s priority is to ensure the new system is as fair as possible and supports the goals of Food Harvest 2020 — the Government’s blueprint for the industry — and the future of agriculture in this country.

The original proposal by the commission was to move to a system of flat rate payments, where all farmers would be paid the same SFP per hectare. Ireland is opposed to this approach, as it would result in very dramatic changes in a very short space of time.

If we are to grow our agriculture sector, we need to ensure that redistribution is managed in an effective way, at a speed which does not damage our industry and our prospects for the future.

Many other EU members share the same concerns as Ireland in this regard. As a compromise, Ireland put forward an alternative proposal which would see farmers move gradually towards, but not all the way, to the national average farm payment per hectare.

This proposal has been accepted by the EU council as an option for member states and further discussion will take place between the parliament and the commission on what the final approach will be.

In redistributing payments fairly, the goal is to make sure that changes do not put productive farmers out of business, while at the same time, ensuring that farmers on low historical payments are more adequately supported.

The question of a mandatory minimum payment per hectare for all farmers has been raised by the commissioner in the context of these changes and this proposal is supported by some member states and also by some members of the European Parliament. This issue is being discussed further in the lead up to the council.

Once the broader issue of redistribution is decided, there will be a number of other likely options open to Ireland to be finalised in the discussions such as coupled payments, a young farmers’ scheme, a small farmers’ scheme, and a redistributive payment.

The other big issue under discussion along with the redistribution of payments is the greening of the CAP. We must ensure that the financial supports which we are designing for agriculture are sustainable. This means protecting biodiversity, ensuring acceptable animal husbandry, food safety controls, and the protection of clean water as well as climate change considerations.

Some of the areas yet undecided are greening, sugar quotas, areas of natural constraint, and market intervention measures which require further discussion in the lead up to the final negotiation within parliament and council.

My priority in the coming week as I prepare for this very important council meeting, is to discuss outstanding thorny issues with agriculture commissioner Dacian Ciolos, members of the European Parliament, and agriculture ministers from other EU states and to try and reach compromise on all of these areas in a way that is equitable and which supports the future of agriculture.

If a final CAP deal is reached, there will be some who gain and some who lose. My priority is to find an acceptable middle ground which does not put any farmer’s business in jeopardy, while ensuring that those who are on historically low payments are provided with the supports they need to farm actively. Irish farmers will be at the forefront of my considerations during the discussions that lie ahead. Continuing to support our family farm structure while furthering the goals of the Food Harvest 2020 strategy is my focus. This focus has not wavered throughout our presidency and now that we are at the final hurdle, my focus will intensify even further to bring this process to a conclusion in a way that is acceptable to Irish farmers.