The CAP deal struck in Brussels last week after years of negotiations has the potential to redistribute more money among farmers over the coming five years than the one that went before it.

It will not be convergence or front-loading that radically changes how much money farmers receive from 2023, but rather eco-schemes.

Negotiators agreed to ring-fence 25% of the direct payment budget, traditionally used to provide income supports, for eco-schemes.

These will see farmers paid to carry out climate and environmental measures.

The agreed minimum convergence rate of 85% is set to move around €12m annually from those with above-average entitlements to those below the average.

Payment capping and convergence can be counted towards the fund and this will reduce the need for a full 10% linear cut

This will equate to around €60m in total over the course of the next CAP, compared just under €100m in the last CAP, when much of the heavy lifting was done.

There is also a mandatory requirement to redistribute 10% of direct payments to provide top-up payments to smaller farmers, known as front loading. This equates to €120m in Ireland.

Payment capping and convergence can be counted towards the fund and this will reduce the need for a full 10% linear cut.

In contrast, up to €300m currently claimed by farmers will be taken out annually from Ireland’s €1.2bn direct payment budget for eco-schemes.

Farmers now know they face a 25% linear cut to fund eco-schemes

Much is unknown about these schemes but they will not be linked to farmers’ existing entitlement values like Greening was. They are also unlikely to be paid at a flat rate per hectare.

Farmers now know they face a 25% linear cut to fund eco-schemes.

However, it is not clear yet what rate of payment will be made and how farmers can claim that payment. .

The Department of Agriculture continues to work on the details of these schemes but they will likely be a mix of top-up payments per hectare and more sector specific payments.