Access to cheap loans and reducing on-farm inspections are some of the measures introduced by the European Commission on Thursday.

The proposals are part of the coronavirus response investment initiative plus (CRII+).

Currently the minimum requirement for BPS checks is 5% of all applications but the Commission said final legal steps were being taken to allow for the reduction of on-farm inspections. The Department of Agriculture in Ireland has already announced the suspension of inspections until Easter but the new Commission rules may allow for an extension of that period.

I'm insisting that Minister Creed reacts swiftly

The Commission also said it is looking to increase direct payments from 50% to 70% and rural development payments from 75% to 85% when they begin in October this year. However, this could have little impact for Irish farmers since Ireland traditionally already avails of an increased advance payment at these levels.

Colm O'Donnell, INHFA president is calling on Minister for Agriculture Michael Creed to take the Commission up on their offers.

"I'm insisting that Minister Creed reacts swiftly to the statement coming from the EU Commissioner for Agriculture and Rural Development Janusz Wojciechowski who announced, that he has given EU member states the flexibility to put Pillar II Schemes in place to support farmers affected by the Covid19 crisis," he said.

Other measures that could support Irish farmers include:

  • Flexibility in the use of financial instruments: Farmers and other rural development beneficiaries will be able to benefit from loans or guarantees of up to €200,000 at favourable conditions, such as very low interest rates or favourable payment schedules.
  • Reallocation of funds: EU countries will be allowed to use money left unused under their rural development programmes (RDPs), rather than sending it back into the EU budget. The money will still have to be used in the framework of the respective RDP.
  • Postponement for the submission of annual reports: the deadline for EU countries to submit these reports on the implementation of their RDPs is postponed, giving more time to national authorities to put them together.
  • No amendments to partnership agreements required: EU countries will not have to amend their partnership agreements to modify their RDPs, lifting some administrative procedures.
  • It is not yet known if the Department will avail of some of the newer measures on offer.

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