Minister for Agriculture Michael Creed has emphatically ruled out cutting direct payments to create a fund for dairy farmers.

Speaking in the Netherlands where the EU’s farm ministers were meeting, Creed said the crisis reserve fund was “off the table”. He said low-income drystock farmers could not be expected to suffer cuts in their basic payments to fund supports for the dairy sector.

Up to 3% of the national envelope is held back for the crisis reserve, which is paid to individual farmers if not used. Around €40m is due to farmers from last year.

Creed also ruled out Ireland enacting a voluntary cessation scheme. “I’m not in favour. It’s not a road we’re travelling in Ireland,” he said, adding that he had no objection to the initiative, provided it remained voluntary, and was paid for by national governments and not Brussels.

On Mercosur, Minister Creed said “it’s not over”, and Ireland would remain vigilant on developments in all trade negotiations.