Minister Coveney Cannot Allow Further Cuts to Agriculture

Economics

At a briefing for journalists at the Dublin Horse Show, IFA President John Bryan has warned the Minister for Agriculture Simon Coveney that anything less than a robust defence of the allocation for his Department in the upcoming Budget will be unacceptable to farmers, particularly those on low incomes who have been hardest hit by Budget cuts. He said, “The farming community recognises that our public finances needed to be stabilised. However, the cuts on agriculture are clearly disproportionate, and should be reversed.”

John Bryan said, “IFA analysis of the Government’s own figures shows the disproportionate impact on the sector of successive budgets. Since 2008, the total Agriculture spend has been reduced by 41.2%, compared to a reduction of 12.6% for total spending across all Government departments (Table 1).”

“At a time when the economy has shrunk back to 2004 levels, current Government expenditure on Agriculture stands out for having taken a reduction, while nominal current expenditure remains well ahead in other major departments. In fact, Agriculture’s share of current Government expenditure has fallen by one third from 3% to only 2% over the same period (Table 1).”

John Bryan was particularly critical of the current Government’s record on cuts to farm schemes since 2011. “Within Minister Coveney’s Agriculture budget, there has been a far deeper cut to farm schemes compared to other parts of his Department’s budget. Spending on farm schemes between 2011 and 2013 has fallen by 18% or €119m, compared to a reduction of 8% or €60m across the rest of his Department (Table 2).”

John Bryan said, “The onus is on Minister for Agriculture Simon Coveney to present this case at the Cabinet table when the decisions around the Budget are made over the next two months.  The Minister cannot allow himself be left behind in the pre-Budget negotiations”.

Mr Bryan said the next EU Rural Development Programme to run up to 2020 will be a major test of the Government’s commitment to the sector. “It is hugely important that the Government commits to 50:50 national/EU co-financing with national top ups to ensure a strong Rural Development Programme supporting vulnerable sectors and regions, through measures such as Disadvantaged Areas and agri-environmental schemes.”

“Under the proposed Rural Development programme 2014-2020, an average of €290m per year in EU funding will be available for farm schemes. This is an increase of over €100m on the EU funding that was available in 2013. This funding can be tapped at no additional cost to the Exchequer, and must be drawn down for farm schemes in 2014.”

The IFA President said the Minister must use the Budget to begin to reverse past draconian cuts to farm schemes which have impacted severely on low-income farmers.

John Bryan also spelt out the positive impact of expenditure on farm schemes on the wider economy. “There is a direct link between primary production and economic activity, particularly in rural areas. If the Government is looking to any sector to help with economic recovery, then there is ample evidence that agriculture and food production delivers. The recent study undertaken by UCD shows that every €1 of support for the cattle and sheep sector, through direct payments, underpins over €4 of output in the economy.”

“The recent export figures for the first half of 2013 show the agri-food sector standing out positively on the manufacturing side and recording growth of 8%.”

John Bryan highlighted the need for additional national support for the livestock sector and targeted investment to ensure that the <i>Food Harvest 2020</i> targets are achieved.

<div align=”center”>Table 1 – Government Expenditure by Department 2004-2013<a title=”” href=”#_ftn1″ name=”_ftnref1″><span><span><span><span>[1]</span></span></span></span></a>

<table border=”1″ cellspacing=”0″ cellpadding=”0″ width=”935″>
<tbody>
<tr>
<td valign=”top” width=”57″>
<b>2004</b>
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
<b>2008</b>
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
<b>2009</b>
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
<b>2010</b>
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
<b>2011</b>
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
<b>2012</b>
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
<b>2013<a title=”” href=”#_ftn2″ name=”_ftnref2″><span><span><span><b><span>[2]</span></b></span></span></span></a></b>
</td>
<td valign=”top” width=”85″>
<div align=”center”><b>% change 2004-2013</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>% change 2008-2013</b>
</td>
</tr>
<tr>
<td valign=”top” width=”85″ nowrap=”nowrap”>

</td>
<td valign=”top” width=”283″ nowrap=”nowrap”>

</td>
<td valign=”top” width=”397″ colspan=”7″>
<b><span>                                                        € billion</span></b>
</td>
<td valign=”top” width=”85″>
<div align=”center”><b> </b>
</td>
<td width=”85″>

</td>
</tr>
<tr>
<td valign=”top” width=”368″ colspan=”2″ nowrap=”nowrap”>
<b>Gross Total Expenditure (All Government Departments)</b>
</td>
<td valign=”bottom” width=”57″>
41.47
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
62.44
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
63.07
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
60.53
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
57.50
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
55.95
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
54.58
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>+31.6<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-12.6%
</td>
</tr>
<tr>
<td valign=”top” width=”368″ colspan=”2″ nowrap=”nowrap”>
<b><i>(of which)<span>        Agriculture </span></i></b>
</td>
<td valign=”bottom” width=”57″>
1.26
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.10
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.94
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.76
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.42
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.32
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.24
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>-1.8<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-41.2%
</td>
</tr>
<tr>
<td valign=”top” width=”368″ colspan=”2″ nowrap=”nowrap”>
<b>Agriculture as % of total Government Expenditure</b>
</td>
<td valign=”bottom” width=”57″>
3.04%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
3.37%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
3.07%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.91%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.47%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.36%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.26%
</td>
<td width=”170″ colspan=”2″>

</td>
</tr>
<tr>
<td valign=”top” width=”765″ colspan=”9″ nowrap=”nowrap”>

</td>
<td width=”170″ colspan=”2″>

</td>
</tr>
<tr>
<td valign=”top” width=”368″ colspan=”2″ nowrap=”nowrap”>
<b>Gross Current Expenditure (All Government Departments) </b>
</td>
<td valign=”top” width=”57″>
36.03
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
53.20
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
55.73
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
54.26
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
52.87
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
52.10
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
51.10
</td>
<td valign=”top” width=”85″>
<div align=”center”>41.9<b>%</b>
</td>
<td valign=”bottom” width=”85″ nowrap=”nowrap”>
<div align=”center”>-3.9%
</td>
</tr>
<tr>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<i>(of which)</i>
</td>
<td valign=”top” width=”283″ nowrap=”nowrap”>
<i>Social Protection</i>
</td>
<td valign=”bottom” width=”57″>
11.24
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
17.70
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
20.43
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
21.34
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
20.95
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
20.72
</td>
<td valign=”bottom” width=”57″ nowrap=”nowrap”>
20.23
</td>
<td valign=”top” width=”85″>
<div align=”center”>80.0<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-14.3%
</td>
</tr>
<tr>
<td valign=”top” width=”283″ nowrap=”nowrap”>
<i>Health </i>
</td>
<td valign=”bottom” width=”57″>
10.05
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
15.46
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
15.49
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
14.78
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
13.84
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
13.88
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
13.62
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>35.6<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-11.9%
</td>
</tr>
<tr>
<td valign=”top” width=”283″ nowrap=”nowrap”>
<i>Education</i>
</td>
<td valign=”bottom” width=”57″>
6.14
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
8.41
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
8.59
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
8.67
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
8.64
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
8.53
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
8.46
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>37.6<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>+0.5%
</td>
</tr>
<tr>
<td valign=”top” width=”283″ nowrap=”nowrap”>
<i>Justice </i>
</td>
<td valign=”bottom” width=”57″>
1.68
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.56
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.51
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.36
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.38
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.24
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.16
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>19.2<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-15.7%
</td>
</tr>
<tr>
<td valign=”top” width=”283″ nowrap=”nowrap”>
<i>Agriculture</i>
</td>
<td valign=”bottom” width=”57″>
1.82
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.42
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.40
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.27
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.22
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.13
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
1.05
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>-6.3<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-26%
</td>
</tr>
<tr>
<td valign=”top” width=”283″ nowrap=”nowrap”>
<i>Other Current Expenditure</i>
</td>
<td valign=”bottom” width=”57″>
5.66
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
7.64
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
7.31
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
5.84
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
5.84
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
5.59
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
5.58
</td>
<td valign=”bottom” width=”85″>
<div align=”center”>-0.8<b>%</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>-27%
</td>
</tr>
<tr>
<td valign=”top” width=”368″ colspan=”2″ nowrap=”nowrap”>
<b>Agriculture as % of Current Government Expenditure</b>
</td>
<td valign=”bottom” width=”57″>
3.11%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.66%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.51%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.35%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.30%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.17%
</td>
<td valign=”top” width=”57″ nowrap=”nowrap”>
2.05%
</td>
<td width=”170″ colspan=”2″>

</td>
</tr>
</tbody>
</table>

Total funding for agriculture has been reduced by a greater amount proportionately than across other Government departments. Since 2008, total funding for agriculture has been cut by 41.2%, compared to an average reduction across all Government departments of 12.6%.

<div align=”center”>Table – 2: Breakdown of Expenditure on Agriculture Budget and Farm Schemes 2011 – 2013<a title=”” href=”#_ftn3″ name=”_ftnref3″><span><span><span><span>[3]</span></span></span></span></a>

<table border=”1″ cellspacing=”0″ cellpadding=”0″ width=”671″ align=”left”>
<tbody>
<tr>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>2011</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>2012</b>
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”><b>2013</b>
<b>(allocation)</b>
</td>
<td valign=”top” width=”104″>
<div align=”center”><b>% change 2011-2013</b>
<div align=”center”><b> </b>
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
<b> </b>
</td>
<td valign=”top” width=”265″ colspan=”3″ nowrap=”nowrap”>
<div align=”center”><b>(000s)</b>
</td>
<td valign=”top” width=”104″>
<div align=”center”><b> </b>
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
<b>Gross Ceiling – Agriculture Budget </b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>1,421,366</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>1,318,011</b>
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”><b>1,241,740</b>
</td>
<td valign=”top” width=”104″>
<div align=”center”><b>-13%</b>
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
<b> </b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b> </b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b> </b>
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”><b> </b>
</td>
<td valign=”top” width=”104″>
<div align=”center”><b> </b>
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
<b>Farm Schemes and Grant Programmes</b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b> </b>
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”><b> </b>
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”><b> </b>
</td>
<td valign=”top” width=”104″>
<div align=”center”><b> </b>
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Agri-Environmental Schemes (REPs/AEOS)
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>275,059
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>253,213
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>200,375
</td>
<td valign=”top” width=”104″>
<div align=”center”>-8%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Disadvantaged Areas
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>233,757
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>206,300
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>195,000
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-17%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Early Retirement
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>27,305
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>20,300
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>14,000
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-49%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Installation Aid
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>397
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>182
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>80
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-80%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Discussion Groups (BTAP/ STAP)
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>0
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>4,400
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>9,000
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Farm Investment Schemes (TAMs/FIS)
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>3,973
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>18,530
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>20,700
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>421%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Horticulture
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>3,013
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>3,211
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>3,250
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>8%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Forestry – Afforestation
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>104,000
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>101,614
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>106,490
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>2%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
Suckler Cow
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>30,845
</td>
<td valign=”top” width=”85″ nowrap=”nowrap”>
<div align=”center”>28,200
</td>
<td valign=”top” width=”94″ nowrap=”nowrap”>
<div align=”center”>10,000
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-68%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
<b>Total expenditure on farm schemes</b>
</td>
<td valign=”bottom” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>678,349</b>
</td>
<td valign=”bottom” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>635,950</b>
</td>
<td valign=”bottom” width=”94″ nowrap=”nowrap”>
<div align=”center”><b>558,895</b>
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-18%
</td>
</tr>
<tr>
<td valign=”top” width=”302″ nowrap=”nowrap”>
<b>Agriculture budget excluding farm schemes</b>
</td>
<td valign=”bottom” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>743,017</b>
</td>
<td valign=”bottom” width=”85″ nowrap=”nowrap”>
<div align=”center”><b>682,061</b>
</td>
<td valign=”bottom” width=”94″ nowrap=”nowrap”>
<div align=”center”><b>682,845</b>
</td>
<td valign=”bottom” width=”104″>
<div align=”center”>-8%
</td>
</tr>
</tbody>
</table>

Within the agriculture budget, farm schemes have been targeted for disproportionate cuts. Total expenditure on farm schemes between 2011 and 2013 has fallen by 18% or €119m. This is by comparison to a reduction in expenditure of 8%, or €60m across all other budgetary headings within the Agriculture budget.
<br clear=”all” />
<hr width=”33%” size=”1″ align=”left” />
<div id=”ftn1″>
<a title=”” href=”#_ftnref1″ name=”_ftn1″><span><span><span><span>[1]</span></span></span></span></a><font size=”2″>  “Revised Estimates Volume” (REV) Department of Public Expenditure and Reform (2003 – 2013). Figures Represent Gross Voted Expenditure Profiles. 2013 figures are estimates, (2003 – 2012) are provisional outturns</font>

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<a title=”” href=”#_ftnref3″ name=”_ftn3″><span><span><span><span>[3]</span></span></span></span></a><font size=”2″> Department of Agriculture, Revised Estimates (2013)</font>

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