A package of €500m has been announced in Brussels on Monday to support European farmers with a portion being set aside to cut production.

The package is broken into €150m to incentivise a reduction in milk production and €350m for "targeted aid".

Ireland is unlikely to avail of the €150m package to reduce production with Agriculture Minister Michael Creed last week reaffirming Ireland's stance on the issue. He said there would be no return to "quotas by the backdoor".

Therefore Ireland will receive €11.1m out of the €350m that is targeted towards conditional adjustment aid which can cover a range of livestock sectors. This amount can be co-funded by the member state. The financial amount granted to each country takes into account the main features of its sector including production, market prices and the weight of small farmers.

Basic Payment Scheme advance

Other measures announced by the Commission include a 70% advance on the basic payment to take place on 16 October 2016, similar to last year, an 85% advance for area based RDP payments and extension of intervention period for Skimmed Milk Powder and private storage aid schemes past 30 September 2016 until February 2017.


Commenting EU Commissioner for Agriculture Phil Hogan said: "Coming at a time of significant budgetary pressures, this package provides a further robust response, and means that the Commission has mobilised more than €1bn in new money to support hard-pressed farmers. Our ultimate goal is to see the much needed recovery of prices paid to farmers, so that they may make a living from their work and continue to provide safe, high quality food for citizens, as well as their contribution to rural areas and rural jobs and the provision of public goods."


Minister Creed said the fact that 70% of today’s package has been directed to adjustment aid is very welcome.

"In relation use of these funds, I have argued strongly that the maximum possible flexibility needs to be given to Members States. While we still await full details, which we will examine closely, the flexibility indicated by the Commissioner to provide liquidity support to farmers is welcome.”

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