Farm organisations and the Department of Agriculture are on a collision course over the proposed limiting of CAP direct payments.

The European Commission has proposed reducing payments above €60,000, with a maximum payment limit of €100,000. However, farmers would be permitted to take the salaries of staff into account to raise the limit.

Department of Agriculture assistant secretary Colm Hayes told the Oireacthas Committee on Agriculture that the Department was in favour of the proposal to limit payments, but opposed the salary exemption.

Hayes highlighted “administrative complexity”, saying the Department’s priority was to issue direct payments as early as possible, but factoring in individual P45 and P60 forms would cause delays.

The Department is at odds with the IFA, which favours the salary exception.

Reductions

Analysis by the Irish Farmers Journal shows that 200 farmers would be affected by a payment limit of €100,000. The proposed limit would reduce payments to those farmers by €6.7m. A total of 1,003 farms would be affected by the reduction of payments over €60,000.

The Irish Natura and Hill Farmers’ Association (INHFA) and Irish Cattle and Sheep Farmers’ Association (ISCA) have indicated they would be in favour of a €60,000 limit with no allowance for labour units.

Hayes said the design of farm schemes due for submission at the end of this year would begin next month, but warned of difficulties in preparing for the next CAP as EU institutions may only agree its regulations and budget later this year.

The proposed 5% CAP budget cut remains “unacceptable” for Ireland, Hayes said, although European Agriculture Commissioner Phil Hogan has raised the possibility of the Exchequer making up the €47m reduction in rural development funding – but not cuts to direct payments.

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