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The European Commission’s plan to limit CAP direct payments to €100,000 along with gradual reductions for payments above €60,000 looks set to be altered before the final deal is signed off on.
In Ireland, there are 182 farms claiming a direct payment above €100,000, with just under 1,000 farms receiving a payment greater than €60,000.
The Commission’s proposal was for a mandatory limit applied only to the direct payment and with allowances for labour unit costs.
However, it has been met with opposition from some member states.
At the latest meeting of EU farm ministers on Monday, German farm minister Julia Klockner suggested that proposals made by EU heads of state at July’s MFF budget meeting be supported.
This would make the capping of payments optional for member states. The voluntary approach would apply to the gradual reduction of payments greater than €60,000 but less than €100,000, and to the maximum limit of €100,000.
Ireland's view
Minister for Agriculture Charlie McConalogue expressed a view that Ireland would be more in favour of a common rule across the EU, closer to the model proposed by the Commission.
“The original proposals would have allowed member states to reduce payments to €60,000. I strongly supported that option for member states. I would like to see that flexibility retained as far as possible.
“It is regrettable that the proposed text will likely result in a loss of the commonality and consistency across member states that characterised the approach to the reduction of payments previously.”
He added that taking labour costs into account should be voluntary for member states. His Department has previously said that taking such figures into account would be overcomplicated.
Commission
European Commissioner for Agriculture Janusz Wojciechowski said it was regretful that the opportunity for capping across all CAP payments would be missed.
Such limits would make economic sense, he said, and would address concerns around financial management of the CAP.
A key priority for the reform was a “fairer and more targeted distribution” of funds and a uniform reduction across the EU would have ensured a level playing field.
SHARING OPTIONS: