Full flattening of farm payments in the next CAP would result in over €50m in direct payments moving between farmers in different counties of Ireland.

Irish Farmers Journal analysis further underlines the exposure of eastern counties to 100% convergence, following on from the effect of eco-scheme flattening, outlined in last week’s edition.

Eco-schemes would result in a rapid convergence of payments upon their introduction in 2023 but there are plans to further converge payments over the lifetime of the CAP.

A minimum of 20% of farmers’ direct payments will be set aside for eco-schemes, and possibly as much as 30%

This flattening would be applied after entitlements are cut to ring-fence funds for eco-schemes. A minimum of 20% of farmers’ direct payments will be set aside for eco-schemes, and possibly as much as 30%.

If the minimum 20% fund is introduced, the national average entitlement will drop from €263/ha to €210/ha.

It would mean the minimum Irish entitlement value of €158/ha would fall to €126/ha. However, these payments will begin to rise towards the new average of €210/ha over the lifetime of the next CAP.

The extent to which they will increase is not yet decided but it looks set to be a minimum of 85% of the national average or €178.50/ha. However, a full flattening of payments by 2026 is not yet off the cards.

Cork stands to lose by far the largest sum, of almost €11m

If this were to happen, all farmers would receive a flat-rate payment of €210/ha that could be further supplemented from the eco-scheme fund outlined in last week’s paper.

Farmers in eastern counties where average entitlement values are highest would face the steepest cuts.

Cork stands to lose by far the largest sum, of almost €11m, with Tipperary (€7.2m), and Wexford (€6.2m) the next highest on the list.

On an individual entitlement basis, Carlow would see the biggest drop, down €38/ha followed by Kilkenny (€35/ha) and Laois (€34/ha).

Average payment

The average payment per farm in the counties that will lose under the policy will fall from €8,600 to €7,600, a drop of €1,000.

In contrast, counties where the average entitlement values are below the national average will benefit the most from 100% convergence.

There would be a €600 increase in the average farm payment in counties gaining under the policy

Full flattening would see major sums flow into counties like Mayo (€11.5m), Kerry (€11.3m), and Donegal (€9.9m). The average entitlement values in these counties are around €40/ha below the national average.

There would be a €600 increase in the average farm payment in counties gaining under the policy, increasing from €7,400 to €8,000.

It is important to note that within counties there will be farmers who gain under the convergence and others who lose based on the value of their entitlements.