Last Wednesday, IFA launched its pre-budget submission, “Farming for a Sustainable Future”.

In it, we highlight the need for a progressive Budget 2020, one that supports Irish farmers to develop sustainably, given the immediate threats and long-term challenges facing the sector. These include agriculture’s exposure to Brexit, Mercosur, the current beef crisis, the battle to maintain CAP funding for Ireland and ambitious environmental targets outlined in the Government’s Climate Action Plan.

The IFA propose the following measures to assist Ireland’s largest indigenous sector deal with the fallout from these threats and challenges with renewed emphasis on Brexit.

  • In addition to the €100m (European Commission €50m, national Government €50m), further direct support for farmers will be needed to deal with losses incurred, particularly for beef farmers after May 2019. These ongoing losses are due to the decline in the value of sterling and market disturbance arising from Brexit uncertainty.
  • In the context of the current beef crisis which has been exacerbated by Brexit, Ireland must call on the EU to make available the €1bn fund immediately to stabilise the Irish and EU beef market. The Commission must ban the importation of Mercosur beef, which has consistently fallen short of European standards in audits by the EU Food and Veterinary Office.
  • In the event of a no-deal/hard Brexit which reduces market access and increases barriers to trade, the EU must make available structural and adjustment funding. In this context, State-aid rules must be set aside.
  • Discussions are ongoing for the next MFF 2021-2027. The Irish allocation should be increased and take account of inflation. If the UK leaves the EU without a deal there may be further issues in terms of a shortfall in 2020. EU or national funding may be required in this instance.
  • The implementation of these proposals would give farmers a signal that their role is recognised and that the Government is prepared to protect this valuable sector, which in 2018 represented approximately 10% of the value of our overall exports at €13.7bn.

    As IFA published its proposals, Boris Johnson, who has vowed to take the UK out of the EU on 31 October, deal or no deal, became UK prime minister. While it was expected, it makes the prospects of a no deal or disorderly UK exit from the EU a more likely scenario. In the absence of a clear future trading relationship, Brexit means Armageddon for Irish agriculture.

    Beef farmers have already suffered huge losses since the Brexit vote, which is further compounding the current beef crisis. The €100m fund to go towards losses already incurred from September 2018 to May 2019 must be paid out to farmers as a matter of urgency without any unnecessary conditionality.

    Coupled with Brexit, the IFA pre-Budget submission also highlights the environmental challenges facing farmers. Earlier this year, the Government published the Climate Action Plan, which contained ambitious targets for the agricultural sector.

    While farmers are already engaged in significant climate mitigation actions, we stand ready to do more and our pre-budget submission presents measures that the Government could provide to assist farmers in reducing emissions in line with the Teagasc climate roadmap.

    These include accelerated capital allowances for emissions efficient equipment, the introduction of a green tax credit for farmers selling surplus energy back into the grid, a soil structure support programme and the reopening of GLAS for all farmers who are denied entry.

    If the Government is serious about addressing climate change and empowering farmers to participate, the IFA believes it should not force a farmer out of an enterprise. Rather, it should be about creating economically and environmentally sustainable alternatives, providing for a just transition to a carbon-neutral economy. This is what the IFA’s Budget 2020 recommendations focus on.