CLARE farmers who received €100,000 in Pillar One payments under the Common Agricultural Policy (CAP) are facing a possible cut of €34,000 following agreement on a new CAP deal.
It looks as if direct payments under Pillar One will be effectively capped at €66,000 on a phased basis from 2023 onwards.
According to figures obtained by The Clare Champion, CAP payments totalling €84.67 million were paid to 6,254 Clare farmers from October 16, 2019 to October 15, 2020.
This included a payment of €1.88 million to Clare LEADER for rural development.
ICSA secretary, Eddie Punch, expressed concern that Clare farmers are being asked to do more and more for less money.
He said the main objective of CAP was to compensate farmers for providing cheaper food to consumers.
In relative terms, he pointed out consumers are paying much less for their food when compared with their take-home pay now than 30 years ago.
He outlined the price paid to farmers for beef and dairy hasn’t kept up pace with inflation.
“If you want farmers to do more for biodiversity and climate change while cutting the CAP budget, it is very hard to square that circle.
“We have a lot of people trying to influence CAP coming up with grand visions that are not focused on what is practical at farm level.
“The solutions from Brussels are not a fair and practical reflection what farmers can do in practice,” he said.
Mr Punch outlined what was agreed in Brussels were broad parameters, and noted the Irish government will have some flexibility to draw up its own plan.
CAP subsidies are generally broken down to Pillar One and Pillar Two payments.
Pillar One concerns direct payments and market measures to improve environmental compliance and climate ambition.
Pillar Two exists with the aim to aid development in rural areas through economic and social schemes.
Under the new proposals, an eco-scheme will be 25% of the total Pillar One payment, subject to certain terms and conditions.
As part of the move towards convergence by 2026, Clare farmers receiving above average payments of about €260 per hectare including environmental payments will be cut, and those below the average will be increased to at least 85% of the average payment by 2026.
Up to 10% of CAP payments is due to be redistributed to small farmers, subject to some flexibility. Another 3% has to be taken off for young farmers and the national reserve.
While the ICSA supports greater income supports for smaller farmers, he explained there is a point where an examination is needed about the most effective way of achieving this goal.
“It is not clear what the EU has proposed will be very effective. It seems like a lot of administration for very little overall improvement.
“The average Clare farmer will lose some money, how much remains to be seen and some of this will be redistributed.
“There needs to be a lot of debate about how the Brussels decisions can be modified to give a satisfactory outcome for Clare farmers.
“The big issue is average size suckler farmers, sheep farmers and small scale dairy farmers, are losing out under the new proposals in a general sense on average.
“A lot of number crunching and creative thinking will have to be done to find something that works for the majority of farmers.”

by Dan Danaher