CAP payments limit is on the table in Brussels

Commission discussion paper proposes €60,000-€100,000 ceiling on Pillar One transfers

A CEILING on EU direct payments per farmer is being proposed as part of a major post-2020 overhaul of the Common Agricultural Policy (CAP).

A new blueprint proposes a compulsory capping of direct payments under Pillar One in a range between €60,000 and €100,000.

The document from the EU Commission’s Agriculture Directorate General is a preliminary draft paper, yet it gives a strong indication of the measures being considered by the Commission.

It suggests a focus on those who depend on farming for their living, enhanced support for smaller farmers, and an increased focus on environmental and climate practices. It also proposes moves to minimise the east-west divide in average support payments between Member States.

Over 80pc of EU farming direct payments go to 20pc of farmers. Direct payments make up nearly two-thirds of total farm income in this country.

In 2015, 261 Irish farmers and agri-business interests received payments in excess of €100,000.

Agriculture Commissioner Phil Hogan said the European Commission was currently exploring how to keep CAP fit for purpose, and that information on this would be presented at the end of November.

He said the discussions on CAP have been ongoing, with the proposals for the next budget to finance it due next May.

Speaking in Poland, Mr Hogan said the Multiannual Financial Framework must be “balanced and realistic”. “The share of CAP needs to be maintained at a reasonable and appropriate level for the CAP to stay fit for purpose,” he said.

ICMSA president John Comer said it was critical that the “starting point” for these discussions sets out “at the minimum” the preservation of the present CAP Budget.

Mr Comer said the loss of the UK’s contribution to the CAP Budget must not be used to cut existing funding.

Instead, the deficit would have to be made good by the remaining Member States “including Ireland”, he said.

“ICMSA is prepared to consider the lowering of the amounts that can be paid to individual farmers, and we have always insisted that the money must go to active farmers as sensibly defined.

“But we will not countenance a situation where the overall budget allocated to CAP is lowered.”

He added that direct payments were actually a subsidy to consumers to ensure they are able to buy quality food produced to the highest standards.

ICSA president Patrick Kent said CAP payments should be about a “sustainable income” for the family farm and “not about huge payments to meat factory-controlled feedlots”.

He said the last CAP reform saw cuts to farms in receipt of small payments, and insisted this must not be repeated.

The IFA said it recognises the challenges facing the EU budget with the UK’s departure, but a strongly funded CAP budget post-2020 is required, reversing the cuts imposed between 2014-20.

“Member States should increase their contributions, if necessary, to take account of Brexit,” the IFA stated.

Fianna Fáil’s Charlie McConalogue, who suggested a CAP ceiling earlier this year, said the Commission appear to be taking on board the need for a fairer system. He stressed there must be fair treatment for the many parttime farmers who were working hard and contributing to local economies.