Lowland and DA farmers must not be ignored

Gary McHenry, Lurgan

DEAR SIR, To farmers across all sectors in NI, I wish to draw your attention to the recent shift in position of the DARD Minister regarding CAP reform.

It is alarming that it appears as though the single-region model is being rushed with no transition period and without due regard for those farmers across all sectors who generated the current support levels. Why are the majority of farmers who are key to the economic stability of Northern Ireland being ignored?

The move to a single-region model will have serious consequences not only for dairy farmers throughout the DA (Disadvantaged Areas) and lowland, who stand to lose at least one third of their Single Farm Payment, but also the cattle and sheep farmers in these regions. Lowland dairy farmers will lose 40.8%of their SFP.

Analysis by DARD concludes that under a single-region model, the dairy, DA cattle and sheep, lowland cattle and sheep, and mixed farm types will experience significant reductions in support.

With around €325m of EU SFP given to Northern Ireland each year and the most recent DARD figures showing that this accounted for 87% of Northern Ireland’s income from farming, it clearly illustrates the importance of this direct support.

If the flat-rate model were to apply from day one, it would cause enormous disruption to individual farm businesses. I fully support the UFU’s two-region model supplemented with additional targeted SDA cattle support.

With a united farming voice, I believe that additional money could have been secured and could already have been delivered. This would have resulted in an agricultural industry well positioned for growth.

The threat of no transition period is extremely worrying. It is bad enough to lose 40.8% over a transition period of 10 years, but to lose it from day one would decimate the dairy industry in NI.

Regarding the transition period, the Minister’s response to CAP reform proposals in April 2012 to EU Ag Commissioner rep Georg Haeusler, was: ‘‘In particular, I was able to discuss the detail of my suggestions for a smooth and orderly 10-year transition towards a flat-rate support regime and combining the basic and greening payments into a single payment to deliver significant simplification.”

Subsequent to the consultation period and, in recent days, Martina Anderson MEP has stated in Boho, Co Fermanagh: ‘I want to state clearly here tonight that the Sinn Fein view is that there should be an immediate transition to a flat rate in 2015.’’ Why the turnaround?

It is obvious that these meetings and photocalls at Stormont, and elsewhere, have been orchestrated and a few hundred SDA farmers are being used as a political football, while the thousands of farmers in the DA and Lowland have been disregarded and ignored.

Where is the equality there? I acknowledge the challenges faced by SDA. It is not them versus us. I support the proposal of a two-region model with additional targeted money. We need to support the most vulnerable sectors while ensuring the growth of the overall agricultural economy.

Now is the time that all farmers in all sectors from the DA and Lowland realise how serious the Minister’s proposals are for the future of their own businesses. Consider how this will affect your farming business today and, more importantly, tomorrow, can you live with this?

For too long, we have been silent, but now it is time to stand up and be counted and with a united voice support the UFU’s position for what is right for Northern Ireland agriculture.

Farmers are of equal value

John Blaney, Cushendun

DEAR SIR, I attended a meeting on the CAP reform proposals in Ballymena in early December and after listening to a presentation from DARD’s Norman Fulton, I asked the question ‘ Why did Europe decide to go for a flat rate for SFP? ‘

In reply, it was explained that Europe was concerned about the degree of inequality between the entitlement values of neighbouring farmers who were doing the same things to qualify for Single Farm Payment.

It raises the question as to how this inequality came about.

In exploring that you need to go back to the 1990s to the McSharry Reforms. McSharry introduced premia payments around cattle and sheep.

There were nine payment categories built around the Suckler Cow and her offspring and three around the ewe. The cow was paid €318.03, while the hill ewe raised €29.27. The other payments around the offspring had the potential to double the payment towards a cow. In reality, in the SDA there was little of that potential realised as calves were mainly sold as clean-eared stores at six to eight months old.

With CAP reform in 2005 100% of the premia payments to the Suckler Cow were used towards the historic element of the Hybrid Single Farm Payment, while 50% of the premia towards her offspring were included other than slaughter premium for calves where 100% was implemented. The hill ewe, on the other hand, had only 55% (€15.87) of her premia payments used towards the historic element, thereby disadvantaging the sheep sector again.

At that time, DARD recognised 6.6 ewes to be equivalent to one cow in terms of livestock units.

Under McSharry, it was taking over 11 ewes to equal the premia payments for the cow alone and, in the last reforms, it now took at least 20 ewes to equate to the cow. Is it any wonder that under CAP Reform sheep are improving their position from one of severe disadvantage.

Using DARD’s figures, under the Single Region Model, SDA sheep will gain €12.5m – an increase of 87% on the current €14.4m that the 1,561 sheep farmers share.

The loss of €13.2m to lowland dairying is a reduction of 41% when compared with the €32.3m that is presently shared among 1157 dairy farmers. Percentages tell you very little unless you want to produce a headline.

The average SFP to SDA sheep is currently €9,225, while the average payment to lowland dairying is €27,917. There will be winners and losers in every sector and there is no perfect system to correct the inequality that exists.

Whatever transition period is agreed at least under the Single Region Model all farm businesses will end up with equal valued entitlements and all farmers valued equally.