Commission opposed to ‘upwards only’ move on direct payments — INHFA

The EU Commission has dismissed the concept of ‘upwards only’ convergence of CAP direct payments.

While this approach to convergence is IFA policy and is supported by all three candidates in the association’s presidential election, the INHFA claimed that senior Commission officials had effectively ruled out upward only convergence at a recent meeting.

INHFA president, Colm O’Donnell, said DG Agri staff confirmed that upwards only convergence was not possible where member states choose the internal convergence model.

The INHFA has also insisted that the convergence process must be continued through any transition period that is required between the current CAP programme and the next one.

“Irish farmers deserve to hear the true facts on convergence; what it means, how its structured and that payments per hectare can only converge upwards if payments at the top end travel downwards,” Mr O’Donnell said.

With transition regulation already drafted by the EU Commission to ensure payments to farmers in 2020, Mr O’Donnell called pn the Minister for Agriculture, Michael Creed, to set out the transition rules for internal convergence for next year and possibly 2021.

“Our position is crystal clear, internal convergence as outlined by the Commission must continue during the transition period and into the next CAP programme,” Mr O’Donnell said.

Convergence of payments has been a hugely contentious and divisive issue among farmers, and is strongly resisted by producers whose payments were traditionally high.

Under the current CAP regulations direct payments have to meet a 60pc convergence rate by 2020. This means farmers are paid a minimum payment of around €160/ ha for the Basic Payment Scheme (BPS) and Greening.

This is roughly 60pc of the Irish national average of €255/ha for Pillar I payments.

Proposals from the EU Commission would see the rate of convergence reach 75pc by 2027. This would take the minimum Pillar I payment to around €190/ha.

However, the European parliament has called for 100pc convergence by 2027, which would flatten all payments to the national average. In Ireland’s case such a move would take all Pillar I payments to €255/ha.

This proposal has been strongly opposed by the IFA. It claims that 100pc flattening would result in a massive removal of supports from the country’s most productive farmers.

However, the INHFA argues that the flattening of payments would redress a historical imbalance in the allocation of CAP supports among farmers.