Farmers are still waiting to hear what money will be available to fund Common Agricultural Policy (CAP) payments over the next seven years.

The European Commission has proposed a €391.5bn package which would give an extra €700m to Irish farmers over the next seven years. However, after four days of intense discussions between leaders in Brussels, very little attention has been given to the CAP budget for the next seven years as the €750bn COVID-19 recovery fund remains centre stage.

CAP compromises

One of the compromises being considered for the CAP would involve €5bn being taken out of the rural development fund, which would hit farmers’ Pillar II payments. This proposal has been met with protests from both the IFA and ICMSA.

This potential reduction is because a group of countries that are large contributors to EU finances (Austria, Netherlands, Sweden, Denmark and Finland) are unwilling to agree the proposed split of grants and loans to other member states in the €750bn package.

Negotiations will decide farm incomes

As the negotiations continue, the reality for farmers is that a meaningful increase to CAP payments will not materialise and the focus now turns to ensuring previous payment levels are maintained.

Alongside the leaders discussing the budget, agriculture ministers also met to discuss how the CAP and Farm to Fork strategy might be delivered. There, European Commissioner for Health and Food Safety Stella Kyriakides, who is responsible for the farm to fork strategy, said she recognises there will be a loss of production but hopes that EU consumers will be willing to pay more for the enhanced production quality.

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