Answering parliamentary questions on Thursday evening, Minister Creed confirmed that payment rates and conditions for the second phase of the scheme would remain unchanged. However, he added: “I am also glad to say that provision has been made for new entrants to suckler farming in the scheme and it is these farmers that will drive the future of the Irish suckler herd.”

This offers new hope to farmers who started up in the past three years. The initial announcement of BDGP II on Thursday morning stated that payments under the scheme would be based on improvements made to suckler herds compared with the reference year 2014. This appeared to disqualify applicants who began farming after that date.

The details of provisions for new entrants are expected to be published as part of the terms and conditions of the scheme when applications open next Wednesday.

No plans to increase support level

Minister Creed was also asked for his views on increasing annual BDGP payments from the current €85/cow to €200/cow. He rejected the suggestion, saying this would go against the decoupling of farm payments under the current CAP.

“The provision of coupled support for suckler farmers under Pillar I would require a redistribution of direct payments between farmers and this would involve a linear cut across payment to all BPS beneficiaries,” he said. “It would also require beneficiaries to maintain animals in order to obtain the premium, even in circumstances where supply and demand factors were exerting downward pressure on prices. There is also some evidence to suggest that the necessity to keep animals to obtain a premium had a negative impact on quality, with the focus turning to ‘farming the premium’,” he added.

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Potential for at least 5,000 farmers to get into BDGP