Minister for Agriculture Martin Heydon has sounded a warning to farmers to be aware that direct payment entitlements are on the chopping block for the post-2027 CAP.

The European Commission’s plans for the 2028-2034 CAP moves towards a full-flattening of area-based direct payment schemes, replacing the current BISS with what it terms degressive area-based income support (DABIS).

The proposals it published this summer would not allow EU countries to continue entitlements-based payment schemes as they currently stand but would necessitate a flat-rate baseline farm income support payment of €130-240/ha.

ADVERTISEMENT

Higher per-hectare payment rates or lump sum top-ups for small farmers, female farmers, farmers in Areas of Natural Constraint and mixed farmers are also on the table from 2028 onwards.

Sea change

Minister Heydon told the Oireachtas agriculture committee meeting on Wednesday that these changes to farm schemes would bring about a “sea change” in the way farm income support payments are administered in Ireland.

“Currently, there is no provision in the proposals for entitlements as such,” the committee heard from the minister.

“Entitlements appear to be abolished in the proposal,” he explained before adding that negotiations on the next CAP are still at an “early stage”.

“This is something we need to be mindful of. People need to be very careful in terms of decisions they are making around entitlements.

“Absolutely, people need to be very mindful of the fact. This has been well flagged that entitlements are not guaranteed to be there and they are a key part of our consideration.”

Minister Heydon said that farmers should be cautious of “getting caught with long-term leases” and highlighted that headage payments could replace some area-based income supports if backed by farm organisations.

The minister’s remarks also suggested that the Commission’s entitlement-related elements of the proposals may be more difficult to shift in negotiations than other areas of change planned for farm schemes.

“Convergence isn’t an issue for the majority of my colleagues on the Agri-Fish Council because they went flattened years ago,” he said.

“We are one of only a few member states that this is a big issue for and that makes it harder then.”

He stated that the Department of Agriculture is carrying out economic modelling to inform Ireland’s position on the CAP and that he is to open a public consultation on the proposals in March.

Read more

Move to scrap entitlements

Mixed views on proposal to scrap payment entitlements

CAP entitlement changes and new reference period proposed