Speaking in Brussels last week, President of the lobby group, Patrick Kent outlined how Irish farmers are already paying a price from exchange rate volatility and uncertainty around future UK/EU trading arrangements. In addition, Kent also expressed fears that there is no plan to make up the shortfall in the UK contribution to the EU budget.

“It is unacceptable that Ireland pays the price for Brexit and we need the EU to understand this. While the EU focus is on ensuring that the UK cannot be seen to have a Brexit without adverse consequences, it is even more untenable that member states who remain in the EU would be the losers.”

In 2015, UK contribution to the CAP has been estimated at €13.5 billion. This would suggest that the net reduction in the CAP could be in the range €4-5 billion, implying a 7-9% reduction in CAP payments, a shortfall that ICSA believes should be made up.

“We believe that making up the shortfall must be a priority and that each of the EU-27 including Ireland will have to bite the bullet” Kent continued.

Printing money

ICSA also pointed out that the value of the EU budget has been undermined in real terms by the process of Quantitative Easing (printing money) undertaken by the ECB in recent years.

“The ICSA is arguing that the impact of QE needs to be looked at. The case should be made that it is appropriate to look at maintaining the CAP budget in real terms” they concluded.

Results of the CAP consultation review are expected to revealed the 7th July, with Brexit putting serious strain on the future CAP budget.

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Fears over next CAP budget for Irish farmers - ICSA

Irish farmers will suffer “a double whammy” as a result of Brexit as there is “no plan to make up the shortfall in the UK contribution to the EU budget”, the ICSA has said.