The Department of Agriculture’s (DAFM) modelling of the impact of convergence on farmers' entitlements “totally misrepresents the reality” and over 72,000 farmers will stand to gain under full payment flattening, according to Irish Natura and Hill Farmers Association (INHFA) president Colm O’Donnell.

The INHFA said the document implies that no farmer will gain under the convergence model.

O’Donnell said that this "totally misrepresents the reality" that over 72,000 farmers, representing almost 60% of all farmers, stand to gain under 100% convergence or full flattening.

“Of these, over half would also gain substantially under the 85% convergence model, which the DAFM have based this document around,” he said.

As revealed by the Irish Farmers Journal this week, the modelling outlines how 85% convergence will impact on farmers’ entitlements and shows that the gains for farmers with smaller entitlements will be non-existent.

Eco schemes

O’Donnell said the Department’s modelling is “totally misleading”, as it excludes the eco scheme payment in the final figures, despite the greening payment being included in the initial figures in the exercise.

“The document also fails to differentiate between changes in farmers’ payments due the way eco schemes will be paid and changes in payments caused by additional convergence.

“This has the effect of making the effects of increasing convergence look even worse for farmers on high historic payments,” he said.

Eco scheme payments will be available to all farmers and can deliver a payment of between €54 and €80/ha, O’Donnell said.

“Final clarity will be got on this when the EU decides what percentage of Pillar 1 payments will be allocated to the eco scheme, with current proposals suggesting between 20% to 30%.”

Assessment

O’Donnell outlined what he maintained would be a more accurate assessment of the final figures, under 85% convergence and an eco scheme payment at 25%.

He said this would result in a farmer with current entitlements of €160/ha see their entitlements rise to €228/ha, a farmer currently holding entitlements worth €300/ha would drop to €267/ha and a farmer with entitlements worth €400/ha would drop to €300/ha.

“There is an opportunity to protect farmers on small holdings who have higher payments through the front-loaded option, referred to as the Complementary Redistributive Income Support Scheme (CRISS).

“Unfortunately, this option was not included in the DAFM modelling and must be included in any future modelling.”

The INHFA president stated that the Department must, at all times, be objective and remain independent.

“At this point, it is difficult to say whether this was a blunder or something more deliberate in order to influence this debate.

“Clarity is now essential, not just in relation to its many mistakes, but also with regard to its intention.”

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