Opting to preserve what are currently Pillar 2 schemes could wipe between €260m and €500m annually off farmers’ combined payments based on 2025 levels, IFA figures show.
Stark figures from the IFA show the reality of attempting to balance scheme funding amid huge CAP cuts proposed by Brussels.
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New analysis of the European Commission’s plans to raid ring-fenced farmer funding shows that €184/ha to €190/ha is needed to prevent a collapse in direct payments post 2027.
The figures from the IFA pile pressure on the Government to push for a higher ring-fenced allocation for CAP in upcoming EU budget negotiations or to back-fill any cuts in farmer funding with other EU and Exchequer-funded sources.
The IFA’s analysis shows that attempting to establish a strong area-based income support scheme for 2028 to 2034 would leave Ireland’s CAP coffers short of EU funding to pay for the schemes that will replace those currently residing within CAP’s Pillar 2.
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Under the EU proposals, the maximum allowable area-based income support could average up to €240/ha.
If this payment rate was claimed over an equivalent area as BISS was in 2025, this could leave as little as €20m per year in EU funds to top up the national funds covering a raft of other expected schemes currently funded under Pillar 2, according to the IFA analysis. This would see a €300m per annum reduction in funding available for schemes replacing ACRES, ANC, SCEP and the Organic Farming Scheme.
Payment rates
The worst-case scenario for area-based payments would result in payment rates averaging just €130/ha. If applied, this would wipe between €260m and €500m annually off farmers’ area-based direct payments based on 2025 levels but would free up funding for coupled supports.
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New analysis of the European Commission’s plans to raid ring-fenced farmer funding shows that €184/ha to €190/ha is needed to prevent a collapse in direct payments post 2027.
The figures from the IFA pile pressure on the Government to push for a higher ring-fenced allocation for CAP in upcoming EU budget negotiations or to back-fill any cuts in farmer funding with other EU and Exchequer-funded sources.
The IFA’s analysis shows that attempting to establish a strong area-based income support scheme for 2028 to 2034 would leave Ireland’s CAP coffers short of EU funding to pay for the schemes that will replace those currently residing within CAP’s Pillar 2.
Under the EU proposals, the maximum allowable area-based income support could average up to €240/ha.
If this payment rate was claimed over an equivalent area as BISS was in 2025, this could leave as little as €20m per year in EU funds to top up the national funds covering a raft of other expected schemes currently funded under Pillar 2, according to the IFA analysis. This would see a €300m per annum reduction in funding available for schemes replacing ACRES, ANC, SCEP and the Organic Farming Scheme.
Payment rates
The worst-case scenario for area-based payments would result in payment rates averaging just €130/ha. If applied, this would wipe between €260m and €500m annually off farmers’ area-based direct payments based on 2025 levels but would free up funding for coupled supports.
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