All dairy farmers will receive a flat payment of €1,350 under the income support package announced by the European Commission in September, while young dairy farmers will get a second €800 top-up, bringing their total support to €2,150.

This follows the announcement on Tuesday by Minister for Agriculture Simon Coveney that the Government is to match the funding put forward by the EU with another €13.7m of national funding, thereby bringing the total package to €27.4m.

Minister Coveney said that the basic €1,350 payment will be made on a flat-rate basis to the country’s 18,000 milk producers.

“I have listened carefully to what the stakeholders have had to say and all have advocated for a flat-rate payment,” he said.

“I am of the same view on the basis that it is the fairest method and one which all farmers gain equally, irrespective of size.”

He said that it was his intention to get this payment out to farmers before Christmas.

The €800 top-up for young dairy farmers will go out as a separate payment early in 2016. Young farmers for this payment will be defined as dairy farmers who have successfully applied for the Young Farmers Scheme.

He said that these payments were the final pieces in the support package which included an improved PSA scheme for both SMP and pigmeat, reintroduction of PSA for cheese, a 70% advance in the Basic Payment Scheme and increased funding for promotion.

“These measures will certainly go some way towards alleviating the worst effects of the current market downturn, particularly from a cash-flow perspective.”

The minister said that €1m of the overall package will be reserved for the pig sector with the mechanism for payment to be decided shortly.