Western counties set be the big winners from CAP convergence

A FULL flattening of CAP payments could result in the transfer of close to €14m from Cork to Kerry over the course of the next CAP programme.

Farmers in Donegal, Mayo, Galway, Sligo, Leitrim and Clare would be the other big winners from full convergence of Pillar I payments.

Farming Independent calculations confirm a major movement in direct payments from the south and east to farmers along the western seaboard should full flattening get the green light under the next CAP regime.

The calculations estimate that full convergence would result in payments moving to an average of €268/ha and are based on a simple division of the total Pillar I envelope of €1.17bn by the total national eligible area of 4.37m hectares.

Twelve counties would see an increase in total payments, with 14 suffering losses.

Mayo would be the biggest beneficiary of full convergence, with the total value of Pillar I payments increasing by €15m, rising from €72m to €87m. This would be worth an additional €1,300 on average for the county’s 11,300 farmers.

Kerry’s farmers would receive a further €14m annually, while €12m extra would be paid to farmers in Donegal, with an additional €6.5m going to Galway.

Farmers in Sligo and Leitrim would enjoy a payments boost of €4.9m, while Clare farmers would share in an extra €3.9m. Pillar I payments to Roscommon would be €1m higher.

The big losers under full flattening would be Cork (€13.8m), Tipperary (€9.4m), Wexford (€7.7m), Kilkenny (€6.8m), Laois (€5.5m) and Meath (€5.2m).

While these figures are not definitive, they help paint a picture of future movements in terms of direct payments and the likely winners and losers from full convergence.

However, they are ‘broad brushstroke’ figures in that the real movement in payments will be from farmers with high payment rates per hectare to those with low payment rates per hectare, irrespective of where they farm.

The calculations are also based on the assumption that the CAP budget is retained, and that full convergence will be implemented.

While the European Parliament has called for the CAP budget to be retained, there are proposals to cut it by as much as 5pc. In addition, while full convergence is being sought by the European Parliament, it is opposed by many member states, including Ireland.

THE FLATTENING of CAP payments remains a hugely divisive issue, with the farm organisations taking divergent views on the matter.

The IFA and ICMSA are steadfastly opposed to further convergence beyond the current 60pc level, unless additional funding is provided by the State or the EU to bring farmers on low payments up to the national average.

However, the INHFA contend that basing farm payments on production levels achieved in the reference years of 2000 to 2002 is a flawed process. The INHFA has therefore demanded the full flattening of payments to the national average of €265-268/ha.

Setting out its position on the matter the IFA stated: “We too want to see more money going to farmers with low payments. But the EU or the Irish government will have to come up with the money. It cannot be taken off other farmers. They have given enough.”

ICMSA president, Pat McCormack, pointed out that farmers with high per hectare payments but low overall payments suffered unfairly under the ‘full-flattening’ approach.

Mr McCormack claimed that a more nuanced approach to convergence needs to be taken and that CAP funds must only go to genuine farmers.

“A definition of a farmer needs to be established that caters for all categories of farmers - be it upland or lowland - but excludes people who are simply drawing payments,” Mr McCormack said.

However, INHFA president, Colm O’Donnell, said that basing annual CAP payments of over €1.1 billion on the reference years of 2000, 2001 and 2002 was no longer justifiable.

He said the unfairness of the current regime was highlighted by the Greening payment rates, where different farmers received between €48/ ha and €210/ha for carrying out “the exact same measures” based on the output of their respective holdings two decades ago.

Full convergence would involve the redistribution of €60m in CAP funds to farmers working the country’s most difficult lands, Mr O’Donnell said. He maintained that the issue of farmers with low overall payments by but high per acre payments could addressed through a higher front-loaded payment on the first 10-20ha.