FF commits to a €160m suckler subsidy scheme

Cash would come from RDP underspend or extra CAP funding, says McConalogue

A €200/HD suckler cow payment could be financed through an increased CAP package for Ireland or targeted national exchequer funding for the sector, Fianna Fáil has insisted.

The party’s agriculture spokesman Charlie McConalogue said the party was committed to the payment, which will cost over €160m per year.

However, Fianna Fáil was accused of political opportunism by Fine Gael TDs who questioned how additional funds could be sourced for the suckler package.

A Fianna Fáil motion passed by the Dáil last week committed Ireland to the objective of a €200/hd payment for suckler cows.

In addition, it requires the Government to undertake a review of the spending in a number of Rural Development Programme (RDP) schemes.

While there is growing con- cern in Brussels regarding overall funding for CAP given the EU’s tighter finances post-Brexit, Mr McConalogue said increased payments for Irish farmers could be justified

The uncertainty and dislocation that Britain’s departure from the EU will provoke, and the potential difficulties for the beef industry from the proposed Mercusor-EU trade deal, meant that increased CAP payments for Ireland were warranted, Mr McConalogue argued.

Mr McConalogue also called for any underspend identified in RDP schemes to be reallocated to the Beef Data and Genomics Programme (BGDP) to increase its payment to €200/ cow for the duration of the current CAP package.

The Fianna Fáil TD claimed that the level of underspend on GLAS over the full term of the scheme to 2020 will be €400m. He said the BGDP and the Knowledge Transfer schemes would also come in significantly under budget.

He said any unspent monies should be targeted at suckler farmers.

However, Agriculture Minister Michael Creed insisted there were no surplus funds available in the RDP beyond what has already been allocated.

Genetics

He also stated a coupled payment for sucklers would damage the work already undertaken to improve the genetic merit of the herd.

Fine Gael chair of the Agriculture Committee Pat Deering said it was clear that Fianna Fail was “intent” on using funds already committed to farmers in GLAS and TAMS to fund a €200 suckler cow scheme.

“Fianna Fáil have some neck promising monies already committed to farmers and yet to be spent under these existing programmes.

“It’s a classic case of smoke and mirrors and farmers won’t be fooled,” he claimed.

Mr McConalogue claimed the beef cow payment was necessary to protect the income of suckler farmers.

“These farmers feel particularly exposed as they are solely dependent on CAP direct payments, with average incomes falling below €13,000 according to the latest information from Teagasc,” he added.

However, the logic of increased suckler cow payments has been questioned by leading economic commentators.

Professor Alan Matthews of Trinity said committing further public funds to a sector which is “already heavily supported by the national exchequer and the EU through CAP direct payments” would not be “a wise use of national resources”.