The fundamental changes proposed in the leaked CAP proposals that are being discussed in Brussels as we go to press have sent shock waves through European and Irish farmers since Monday.

The much maligned “single fund” proposal, as opposed to the current structure of two pillars, is now officially on the table.

This is despite serious reservations from many key players including Commissioner Hansen since it was first reported over six months ago.

ADVERTISEMENT

The fear back then was of the greater risk of funds leaking out of farmers’ and rural dwellers’ pockets if specific “rural” funding was not ringfenced.

On the back of these new proposals, some commentators have suggested up to 30% of funds could be lost.

The proposed new structure changes the game in terms of a lobbying position that farmers all over Europe have been calling for.

The two areas long called for from EU farmers are “simplification” and an additional pot of “environmental” funds on top of the two existing funding pillars.

Clearly, other important matters of trade and war are drawing on EU funds.

The single fund gives the EU more control over the purse strings, because if a member state doesn’t reach milestones, the funds are not transferred.

It’s almost 15 years since the then Agriculture Commissioner Romanian Dacian Cialos and the then IFA president John Bryan clashed over radical proposals in October 2011 for CAP 2014 reform.

The October 2011 proposals directed more money to the environment, away from production, and moved funding to a per hectare payment rather than a historical production link.

However, it was June 2013 before final agreement was reached and some of the original proposals were significantly altered.

Critical to some of the changes back then was the fact that the then agriculture minister Simon Coveney chaired the Irish presidency of the European Council at the time when a final deal was completed.

Interestingly, a significant “youth farming initiative” was part of the mix back then, as was a big funding shift to Eastern Europe.

Significant cuts

The current CAP 2028 proposals include significant cuts to total area based income supports for those granted over €20,000.

This could have significant downward impact for those farmers getting an organic payment, eco scheme, and perhaps any of the suckler incentives that are paid on a per hectare basis as opposed to a per head basis.

Ironically, there also seems to be a move, or at least a member state option, towards more coupled funding – maybe a suckler cow payment per cow and calf could be back on the cards.

We need to remember the majority of payments go to farmers in rural Ireland that will be hard set to breakeven this year despite record commodity prices.

Currently, the average BISS payment to farmers is in the region of €5,718 per farm. Without CAP, many small family farms would not exist.

So what happens next? Farm organisations will start meeting today (Thursday) to tease out and better understand the published proposals.

Member states will, through the Council of Ministers, begin the process of agreeing a general approach to the Commission’s proposals before line-by-line negotiations start with the EU Parliament and Commission.

Ultimately prime ministers decide on the member state contribution and budget overall. European president Ursula von der Leyen’s party, the European People’s Party (EPP), have stated they want Pillar 1 and 2 funding ringfenced but this week’s proposals don’t back that position.

Like 12 years ago, it looks like Ireland’s presidency of the European Council for the second half of 2026 could well be a pivotal time in CAP 2028.

Similar to CAP 2014, it looks like there is a major uphill climb to shape these current proposals into something that can drive Irish and EU farming in the right direction.

Competitiveness in basic production has slipped considerably. It is clear the minister has his work cut out to achieve a sensible end point.