Potential cuts of 5% to the Common Agricultural Policy (CAP) budget were announced yesterday by the EU Budget Commissioner Günther Oettinger.

The cut to the Multi-Financial Framework budget post 2020 is in light of the €12bn/annum drop in funding once the UK leaves the EU.

Minister for Agriculture Michael Creed stressed the role farm families had in providing high-quality food and protecting the environment.

A cut in funding is simply not a realistic

“These high standards, and the family farm model, are part of the fabric of European values, but come at a price that EU citizens have shown they are willing to pay,” Creed said.

“European agriculture is also facing into a period of significant market uncertainty against the background of Brexit.

“In all of these circumstances, and in particular because many farm families rely on the CAP for virtually their entire income, a cut in funding is simply not a realistic proposition.

“I want to assure farmers that Ireland will fight tooth and nail to protect the CAP budget in the negotiation to come.”

Minister Creed has been meeting with other ministers for agriculture and stated that some Member States were already willing to provide extra funding for the EU budget as the UK prepares to withdraw.

Balancing cuts

Average cuts of 3.9% for farmers to direct payments could be mitigated according to the EU Commissioner for Agriculture Phil Hogan.

Hogan explained that the introduction of limiting farm payments to €60,000 would mean that direct payment funding which was previously in excess of this amount could be redistributed.

A cut in rural development payments could also be avoided if individual Member States were willing to plug the gap in funding themselves.

For Ireland, this would mean an annual contribution of €47m/year for the rural development fund according to Commissioner Hogan.

Ireland is currently one of the Member States that is a net contributor to the budget, with an Taoiseach Leo Varadkar, indicating that the nation is prepared to put more money into the European budget.

Read more

Watch and listen: CAP facing a 5% reduction

Listen: direct hit for farmers in CAP budget