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In the next CAP it is almost certain that a limit on direct payments will be introduced.
There are currently three proposals on the table for the limiting of payments (see table). The European Commission has proposed payments greater than €60,000 be gradually reduced.
Under this proposal the maximum possible payment would be €81,250 per farmer.
Based on 2018 figures,716 farmers would have their payments cut. On average, each would lose €11,522, equivalent to 10% of their direct payment. This would free up €8.2m for redistribution.
A maximum limit of €60,000 has also been proposed. The same 716 farmers would suffer a larger cut. The average payment would be cut by €22,917 (23%) and a total of €16.4m would become available for redistribution.
The European Parliament has proposed a direct payment limit of €100,000 per farmer. This would affect 113 farmers in Ireland.
They would lose €29,023 each. On average, these farms are 380ha (939 acres) and most are owned by companies (45%), with 44% owned by individuals.
Some 45% are tillage farms, 20% are dairy farms and 16% are cattle finishers.
Introducing the €100,000 limit would free up €3.3m for other farmers.
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