The movement of CAP payments between farmers through measures such as convergence is not a “black and white” issue, Minister for Agriculture Charlie McConalogue has said.

Minister McConalogue told a press conference on Wednesday that the decisions made in the CAP deal agreed last week would have significant implications for farm family incomes.

“It’s not straightforward, or black and white in relation to what types of sectors or what size of farms that actually are impacted by the different measures whether it be convergence or whether it be front loading,” he said.

“For example, you could have a small farm with high-value entitlements that would would have their payment reduced under convergence and you could have larger farms with lower volume entitlements that see their payments increased.”

Redistribution

The Minister said it was important the final decisions on redistribution measures were made at national level after consultation with farmers.

The minimum rate of convergence has been set at 85%, but member states have the option to go to full flattening if they wish. There is also a mandatory requirement to redistribution 10% of direct payments.

[...] we’re up there among the top member states in relation to the distribution

However, member states have the flexibility to put forward their own case on the level of redistribution that is required, the Minister said.

Across the EU, 80% of payments go to 20% of farmers on average but in Ireland only 56% of payments go to the top 20% of farmers, Minister McConalogue said.

“So we’re up there among the top member states in relation to the distribution,” he added.

Capping

The minister also highlighted that the deal struck last week gave Ireland the capacity to limit payments at a level as low as €66,000, slightly above the €60,000 limit he had advocated for.

I think that is an important issue, even though there wouldn’t necessarily be significant funding

“In relation to a national cap, I think it’s important to have that option and flexibility from a legitimacy point of view of the CAP, in terms of the public mind, as well as ensuring there is a fair distribution among farmers nationally,” Minister McConalogue said.

“I think that is an important issue, even though there wouldn’t necessarily be significant funding coming from that for redistribution.”

The minister also committed to publishing models and case studies on what the impact of different proposals would be. This would allow full engagement and consultation with farm families before a final decision is reached.