Irish farmers are in line for a potential cut to their direct farm payments, but could gain more from a bigger pot of money available for farm schemes.

Ireland’s share of the CAP budget for the next seven years is €10.73bn, up €50m on the last CAP, according to the new Minister for Agriculture Dara Calleary. The Irish Government is claiming this as a major success against a difficult economic backdrop.

However, there are big changes on the way for how Irish farmers can draw down CAP money.

The Pillar I pot for BPS direct payments will be smaller.

This will cut the average direct payment to Irish farmers from €9,845 to €9,610 – a drop of €235 or 3%.

Ireland’s share of the CAP budget for the next seven years is €10.73bn, up €50m on the last CAP

However, Ireland has secured more money for farm schemes in Pillar II.

The EU will provide €351m annually for schemes, up 15%. The battle now starts to match this with national funding.

The sting in the tail of the next CAP is that farmers will have to do more to maintain their current farm payments, by joining schemes focused on climate and the environment.

‘Jump through hoops’

IFA president Tim Cullinan said: “Despite the spin, there is not enough money in Pillar I to even maintain the basic payment. While Pillar II is up, the EU will want farmers to jump through hoops for this.

The Government will have to come forward with increased co-financing

“We must find a way under Pillar II of ensuring no farmer loses. The Government will have to come forward with increased co-financing,” he said.

Meanwhile, Minister Calleary has ordered a review of whether convergence of farm payments should continue during the transition period until the new CAP is in place.

He told the Irish Farmers Journal that he is personally in favour of convergence, a marked departure from the previous Government’s position.