The CAP strategic plan which has been approved by the European Commission is a step in the wrong direction that will undermine food production, according to IFA president Tim Cullinan.

“The new eco schemes, which are funded by a 25% cut from each farmer’s basic payment, is a step too far. The minister could have reduced this cut to below 15% but he chose not to.

“The impact of the eco schemes along with further convergence, front-loading and greater conditionality will hit a cohort of our most productive farmers the hardest,” he said.

“The eco-scheme measures themselves are designed for low output or to reduce output and will not be practical for many farmers,” he said.

IFA president Tim Cullinan. / Philip Doyle

Underfunding

Cullinan said a number of the new schemes including the suckler cow, sheep and environmental schemes, are underfunded.

“The new much trumpeted environmental scheme ACRES is a bureaucratic monster and needs changes to ensure it is workable for farmers,” he said.

Cullinan also said the onus is now on Minister for Agriculture Charlie McConalogue and his department to ensure the gaps created by his plan are covered by additional national funding.

“The upcoming national budget is an opportunity for the Government to make up some of the shortfalls arising from the new CAP,” he said.

The IFA is to meet with Minister for Finance Paschal Donohoe and Minister for Public Expenditure and Reform Michael McGrath this Friday where they will discuss the upcoming budget.

Macra

John Keane, Macra president.

Macra na Feirme has hit out at the plan’s approval from a young farmer perspective, stating that Ireland plans to allocate funding under the same headings with small variations as it has since 2014.

Macra president John Keane said it beggars belief that the Department of Agriculture and the European Commission think that doing the same and less, when inflation is considered, will result in more active young farmers in 2027.

“Of the total funding of €120bn for the period 2023-2027 approved today [Wednesday], for the seven countries €3bn will directly reach young farmers.

“This represents 2.5% of the total budget allocated to young farmers, which reflects similar levels to that previously spent on young farmer support.

“Approving 2.5% of total funds to young farmers in these seven CAP plans is a dismal display of support for the future of farming,” he said.

ICSA

ICSA President Dermot Kelleher. \Donal O' Leary

ICSA president Dermot Kelleher has said Ireland’s CAP plan is already no longer fit for purpose in the context of rapidly escalating costs.

“As things stand this CAP programme is no longer fit to deal with food security, nor is it fit to provide income security for food producers,” he said.

Kelleher called on the Government to detail how it is going to fund climate ambition and keep primary producers economically viable.

“This CAP - with its limited budget - cannot deliver on these dual goals. Achieving tough climate targets is costly and if the Government are serious about a just transition for farming, then now is the time to step forward with the financial supports that will keep farming businesses viable as they grapple with meeting climate targets.

“The fact is that the next CAP will further undermine the support for productive farmers in the beef, suckler and sheep sectors. That was bad enough two years ago, but today, escalating costs means there is a disaster in the making for cattle and sheep farmers.”

He called for a detailed examination of how climate ambition is going to be funded.