The next CAP will define farm payments out to 2027.

There are a number of proposals on the table that will have a significant impact on Irish farmers.

As crucial CAP talks continue in Brussels, the Irish Farmers Journal reviews the positions of five Irish farm organisations on some of the key direct payment issues.

Convergence

The European Commission has proposed a convergence figure of 75%, backed by the European Council. The Parliament wants 100% convergence.

The Irish Farmers Association (IFA) recently changed from a position of ‘upward-only’ convergence to call for the 75% position to be robustly defended.

It comes as the Council has made a compromise offer of 85%.

The Irish Creamery and Milk Suppliers Association (ICMSA) believes the 75% option should be implemented with protections for payments under €30,000.

The Irish Cattle and Sheep Farmers Association (ICSA) and Macra na Feirme said they accept that convergence will reach 75% by 2026.

The Irish Natura and Hill Farmers Association (INHFA) supports 100% convergence.

Capping

The European Commission has proposed reductions for payments over €60,000, with a maximum limit of €100,000. There would also be a provision for labour units.

The European Parliament has backed the mandatory introduction of payment limits, while the European Council wants them to be optional.

Macra na Feirme backs a €60,000 limit, with allowances for labour units and farm partnerships. The INHFA and the ICMSA are in favour of a €60,000 cap with no allowances.

The ICSA and the IFA back the original position. However, the IFA wants labour allowances included, while the ICSA does not.

Front-loading

Front-loaded payments may be introduced in the next CAP, with extra payments per hectare made on the first hectares of a farm.

These payments are made in some countries, but the Commission wants them to be mandatory. The Parliament supports this position, while the Council wants it to remain optional.

The IFA has said it is against a front-loaded payment, as a linear cut to all payments would be required to fund the scheme.

The ICMSA said it would only support front-loaded payments if they compensated farmers negatively impacted by convergence.

The ICSA supports a front-loaded payment, as does the INHFA. The ICSA wants to see a payment of €40/ha made on up to 30ha, but excluding the first 5ha.