Cuts of 5% were announced to the overall proposed CAP budget post-2020 yesterday, which will have a knock-on effect on direct payments in Pillar 1 and rural development payments in Pillar 2.

The UK withdrawal from the EU and the removal of their €12bn/year contribution was blamed for the decrease in CAP funding.

In Ireland, a country I know well, €47m per year is what it would mean

However, EU Commissioner for Agriculture Phil Hogan, told an assembled press conference in Brussels on Wednesday, 2 May that Member States could avoid cuts to Pillar 2 funding by plugging the gap in funding themselves.

“If Member States fill the gap on Pillar two for rural development payments there will be no cut in that Pillar Two in those rural development payments and measures,” Hogan said.

“In Ireland, a country I know well, €47m per year is what it would mean and €180m additional for a country like Spain.”

“If the Member State decides to do this and fill the gap, it means that there will be no cut in rural development and it means farmers that are farming in areas of natural constraint will have no cut in their payment.”

Minister for Agricultural Michael Creed has stated: “Ireland will fight tooth and nail to protect the CAP.”

However, although the minister has said that he is meeting other European agricultural ministers to discuss the issue of CAP funding, he is yet to comment on the possibility of additional Irish Government funding for to maintain payment levels for farmers who face cuts post-2020.

Read more

Listen: direct hit for farmers in CAP budget

Irish farms can expect to see no more than a modest adjustment in their payment