Irish farmers are facing a €50m blow in direct payments for 2021, IFA analysis of the CAP budget for 2021 has found.

The Irish Farmers Journal understands that the cut would result in a linear cut to all 123,000 farmers in the Basic Payment Scheme, a cut of over €400 per farmer. The IFA has said the budget for 2021 is unacceptable and must be rejected by the new Government.

IFA president Tim Cullinan said this budget proposal confirms what the IFA has been saying consistently, that more money is needed for the CAP.

“We cannot have any cuts to payments in 2021,” he said.

The European Commission has requested that €40.8bn be allocated to direct payments across the EU in 2021, a drop of 8.4% on 2019. The Commission has said the drop in funding is mainly linked to the UK leaving the EU.

Some €15bn will be assigned to the Rural Development Programme in 2021. The Commission will send the draft budget to the European Parliament and Council to debate and then agree on it. It is expected to be agreed by November.

Two-year transition

This week, the European Parliament and European Council agreed that there will be a two-year transition period for the next CAP. It will see the current CAP rules continued in 2021 and 2022. The Commission now needs to approve the two-year transition.