Farmers warned to go green or face losing CAP subsidies
‘The CAP post-2020 must deliver a fair standard of living for farmers’
FARMERS will face a hit to their subsidies if they do not put new environmental measures in place under radical reform of the Common Agricultural Policy.
The blueprint for the ‘Future of Food and Farming’ launched by Agriculture Commissioner Phil Hogan yesterday sets out a vision for CAP post-2020 as a simpler policy, with increasing focus on environmental matters and climate change.
But it notes that income support for farmers will be conditional on the delivery of enhanced environmental and climate obligations. It also states there may be compulsory caps on EU direct farm support payment.
With almost half of the income of the EU’s farmers coming from subsidies, the paper also highlights there “are a number of new challenges” that will place more pressures on the EU budget – a clear reference to Brexit.
“All existing instruments including the CAP will need to be looked at,” it states, with CAP taking up a significant 40pc of the bloc’s budget.
The paper from the European Commission for the new round of CAP post-2020 comes in the light of the UK’s departure – which is set to leave a gaping hole of between €10-12bn in the EU budget.
There is also increasing financial pressure from issues of migration and security across the EU.
Warning that a “one-size fits-all approach is not working,” the Commission will be exploring the following options for reform:
■ A compulsory capping of direct payments – taking into account labour to avoid negative effects on jobs;
■ Degressive payments, as a way of reducing the support for larger farms;
■ Enhanced focus on a redistributive payment in order to be able to provide support in a targeted manner – for example to small-medium sized farms;
■ Focus on supporting genuine farmers – those who are actively farming in order to earn a living.
Irish Farmers’ Association president Joe Healy warned: “Commissioner Phil Hogan cannot allow the CAP budget to be raided; any new EU initiatives must be funded by new money.”
Mr Healy said an increased budget was essential for the future CAP to be effective and to ensure a supply of safe, sus- tainably produced food for European consumers.
“If we don’t have farmers, we don’t have food. Low farm income in many sectors remains the most significant challenge to the sustainability of farming enterprises across the EU, and in attracting new entrants into farming.
“The CAP post-2020 must deliver a fair standard of living for farmers.”
Launching the communication paper on CAP reform in Brussels, Mr Hogan said people had criticised the fact that the current policy was too complex. “The one-size-fits-all approach is not working,” he said, adding they were working to simplify it.
He added that the paper “also marks a significant step change in the implementation of the CAP. Instead of the current system, a new implementation system will be introduced, giving member state regions a much greater degree of subsidiarity”.
Mr Hogan said Irish farmers and agribusiness would benefit from the policy changes.
“There will also be new income insurance products, supported by the EU, to help Irish farmers cope with market volatility,” Mr Hogan told the Irish Independent.