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The news today that a €100m fund has been secured for beef farmers has been roundly welcomed.
European Commissioner for Agriculture Phil Hogan, Minister for Agriculture Michael Creed and the IFA, which submitted the accepted proposal, deserve credit.
Again, it is an example of the power of fact-based lobbying – similar to the approach taken in the climate change debate.
However, the work is far from over.
Attention now turns to how the money will be distributed. It will undoubtedly generate plenty of debate but at all times the focus must remain on ensuring that the fund is completely targeted towards farmers and that there is no leakage.
It presents a real opportunity for processors to show some solidarity with their farmer suppliers.
They should immediately declare that they will not make any application to the compensation fund or accept any retrospective payment for cattle from either their own feedlots, from companies with which they have an association or from feedlots over which they have direct control.
Attention now turns to how the money will be distributed
It would be incomprehensible that in the absence of any commitment, the biggest benefactors of any beef compensation scheme would be ABP, through the Larry Goodman-controlled feedlots, the Kepak Group and Dawn Meats, some of which are likely to have killed up to 20,000 cattle in the past few months.
While various clauses could no doubt be included in the draw-down mechanism to try to limit this from happening, they should not be necessary.
If beef processors genuinely recognise and are concerned at the income challenges facing their farmer suppliers, they should immediately make clear their intention not to participate in the compensation scheme.
Additional costs
Meanwhile, it is important that any conditional measures attached to the scheme do not add extra costs to farmers and that any administration costs are not deducted from the total fund.
As we have highlighted previously in the Irish Farmers Journal, the necessary information exists within the Department of Agriculture to pay farmers a retrospective top-up without any significant administration burden.
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