CAP review: SFP and quota changes

By Matt Dempsey

At the informal meeting of agricultural ministers in Opporto, Portugal, she mentioned to fellow Ministers that a rise in quotas of 3% to 5% could be proposed. This intention to increase the size of the quotas is in line with official Dutch government policy and also fits in with the lobbying exercise undertaken by the IFA to convince the Commission, the Irish Government and their fellow farm organisations across Europe that an increase in quota was the logical way of preparing for its eventual abolition.

However, in her submission, the Commissioner says that special funding will be necessary to enable dairy production to continue in mountainous areas.

The Commissioner has also returned to her two previous proposals to increase the rate of compulsory modulation.

At the moment, the existing modulation deduction in Ireland is 5% and successive ministers have supported the policy that this is enough.

However, the Commissioner is proposing that the compulsory deduction increase by 2% annually in each year from 2010 to 2013, when the whole system and budget is to be renewed.

Not surprisingly, this proposal has been attacked by IFA president Padraig Walshe, who described it as simply taking money from farmers and creating an extra pot of money for local politicians under the guise of rural development.

Other points

• Abolishing all cereal Intervention, except for a crisis price level for wheat.
• Abolition of payments for energy crops in view of compulsory energy targets and high prices.
• Changes in the Single Farm Payment where the slice of payments above €100,000 would be reduced by 15%; above €200,000 by 25%, and above €300,000 by 45%.
• The capping proposal is likely to be resisted by the UK and Germany. In the paper, the Commissioner acknowledges that France may be able to keep its coupled suckler cow premium so that its beef output is maintained.