Minister for Finance Paschal Donohoe has given a strong indication that Budget 2020 will provide a support package for farmers in the event of a no-deal Brexit.

Speaking after Wednesday’s cabinet meeting, the Minster said that Budget 2020 would be based on the assumption that there will be a no-deal Brexit. In such a scenario, he acknowledged the need for Government to introduce measures for sectors that would be impacted by a no-deal Brexit taking place.

It has widely been repeatedly highlighted that one of the sectors most exposed to a disorderly Brexit is agriculture, with 40% of exports, worth €4.5bn per annum, destined for the UK market.

Analysis

An analysis prepared for the Irish Government by Copenhagen Economics echoed this view, finding that in a no-deal scenario dairy and beef exports to the UK could fall by 76% and 53% respectively over the next decade.

A recent analysis by the Irish Farmers Journal showed that the annual cost to the Irish beef industry would be in the region of €1bn per annum, with the dairy sector taking a €100m per annum hit.

Farmers have repeatedly called on both the Government and European Commission to put in place a safety net that would protect their incomes in the event that the UK crashes out of the EU on 1 October.

Assurances

While having received repeated assurances that the plight of farmers was understood both within Government and in Brussels, the comments by the Minister for Finance are the strongest indication yet that a financial support package is being put in place.

Full details of the budget will be announced in the Dáil on 8 October.

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