Farmers face a 17% fall in the value of their EU direct payments over the period of the next CAP, equivalent to a €3,000 cut to the average farm income, IFA analysis shows.

The fall in value is the result of cuts proposed by the European Commission for the next CAP combined with erosion of EU farm payments by inflation.

The EU is proposing a cut of 5% in direct payments. Meanwhile, payments have not been increased in recent CAP reforms and farmers are aware that these payments are being eaten away by rising costs.

Now, for the first time, the stark effects of inflation in the years ahead are spelled out clearly for farmers, by IFA president Joe Healy. He quantified the effect of modest 2% inflation which is the EU’s target rate.

The proposed CAP cut would reduce direct payments to Ireland over the seven years from 2021 by €97m per year. But factoring in inflation would see the value of direct payments cut by the equivalent of €256m per year.

Speaking to the Irish Farmers Journal, IFA president Joe Healy said it is clear that the current CAP proposals would have a devastating effect on Irish farm families.

“While the cuts have been presented as a 5% cut when the effects of inflation are taken into account, the real impact, based on an IFA analysis, is over 16% or an average of €3,000 per farmer, which amounts to €256m per annum to Irish farmers.

Lobby campaign

“The IFA now has an intense lobby campaign under way focusing on MEPs and rural ministers. It is time for our political leaders to stand up for farmers and rural Ireland.

“It is clear that farmers are being ‘hung out to dry’ in favour of other EU priorities,” he said.

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Political pressure on maximum CAP payments