Decisions that will determine the structure of farm payments for the next five years are set to be made at a meeting of agricultural ministers, MEPs and European Commission officials next week.

Reform of the Common Agricultural Policy (CAP) has entered its endgame, with Brussels aiming to strike a final compromise on Wednesday 26 May.

Over €10bn in subsidies to Irish farmers will be at stake when negotiators sit down for two days of talks billed as a “jumbo trilogue” by European Commissioner for Agriculture Janusz Wojciechowski.

Convergence levels, eco-scheme budgets and cross-compliance rules will all be on the agenda with large divisions remaining between the European Council and European Parliament.

MEPs are pushing for 100% convergence while the Council, led by the Portuguese farm minister Maria do Céu Antunes, has offered a compromise rate of 85%.

Middle step

A middle step on the convergence path is more likely than full flattening, with a gradual increase to the 60% figure reached in 2019.

Eco-schemes remain one of the biggest unknowns but they will have a major bearing on farmers’ direct payments.

Between 20% and 30% of direct payments will be ring-fenced to fund climate, environment and animal welfare measures.

The Parliament is seeking the higher 30% figure.

The Portuguese presidency has offered to move up from its original 20% position, with ring-fencing starting at 22% before rising to 25%. This would equate to €300m in Irish direct payments annually.

Tougher rules

Details on the tougher cross-compliance rules farmers will face in the next CAP also have to be thrashed out.

Those farming peatlands will have to comply with an additional set of management requirements.

Mandatory buffer strips will be introduced along watercourses and farms will have to be set aside areas as “non-productive” for biodiversity.