BUDGET AND FARM INCOMES THE KEY ISSUES FOR FARMERS IN CAP 2020

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BUDGET AND FARM INCOMES THE KEY ISSUES FOR FARMERS IN CAP 2020
13 Feb 2018

BUDGET AND FARM INCOMES THE KEY ISSUES FOR FARMERS IN CAP 2020

CAP, Economics

Speaking at tonight’s Department of Agriculture CAP consultation meeting in Navan, IFA UIster-North Leinster Chairman Nigel Renaghan told Agriculture Minister Michael Creed that he must deliver an increased CAP budget to support farm incomes, so that Irish agriculture through all sectors can continue to deliver for the economy, the environment, and society.

Nigel Renaghan said, “The system of decoupled direct payments to farmers was introduced to CAP from 2006, but neither the budget nor the payments have kept pace with the 11.6% inflation in the last decade. IFA is proposing contributions to the EU budget from member states must increase from 1 to 1.2% of Gross National Income, to reflect the impact of Brexit on the one hand, and the improved EU economic conditions on the other.

“Farming remains a low-income activity, and direct payments make up more than 100% of incomes in some sectors. Minister Creed must ensure that the new CAP retains strong Pillar I and Pillar II structures, delivers targeted payments to vulnerable sectors such as sheep and suckers, and continues well-funded market support mechanisms for sectors subject to volatility.”

“Minister Creed must insist that the new CAP delivers payments to active farmers, genuinely simpler compliance provisions, and real support for young farmers and new entrants.

“Farmers are doing a great deal for the environment, already. With support, they have invested over €2.5b on farms, they participate in large numbers in ongoing carbon foot-printing of farms through Origin Green schemes and 90% of measures they participate in under the RDP include climate mitigation. They can and will do more, but any additional environmental requirements in the new CAP must be accompanied by additional funding to support farmers’ engagement,” Nigel Renaghan concluded.

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