The Irish Natura and Hill Farmers Association (INHFA) has called on Minister for Agriculture Michael Creed to remove the 5% production reduction conditionality in the Beef Exceptional Aid Measure (BEAM).

The INHFA said that the reduction requirement was a major contributor to the low uptake of the scheme.

INHFA president Colm O’Donnell said that leaving the 5% reduction in “could distort the market and destabilise prices as the production reduction coincides with the removal of COVID-19 restrictions on our cattle markets”.

Concern

There a real concern that farmers will be forced to choose between selling cattle into an already depressed market in order to hold their payment or hold on to stock and forfeit the payment, he said.

This decision “will be decided by simple economics, but as things now appear, I wouldn’t bet against farmers holding on to stock and forfeiting the payment,” he added.

Embarrassing

The INHFA leader said this possibility “could be quite embarrassing and damaging to our Minister and Department and jeopardise future funding opportunities”.

He said it is “vital that the Minister avails of the flexibilities allowed by the European Commissioner for Agriculture in relation to pillar two schemes and removes the production reduction requirement”.

Derogation

O’Donnell said that 200 farmers applied for a stocking reduction derogation in BEAM last year.

“These farmers have not yet been paid nor informed if the [Department] have accepted their claim where a reduction in stock numbers would impact on compliance with existing pillar two schemes such as the commonage management plans in GLAS.”

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