‘Inconceivable’ for farmers to deliver with decreased funding – ICSA

It is hard to see how farmers will be able to deliver all they are being asked to if there is going to be significantly reduced Common Agricultural Policy (CAP) funding, Irish Cattle and Sheep Farmers Association (ICSA) president Edmond Phelan has said.

Reacting to the agreement of an EU budget early on Tuesday morning, Phelan said he was disappointed that it would be a significant cut on the previous budget. The agreed budget is €1.074tn with an additional €750bn COVID-19 recovery fund.

Complicated

“The whole process has been complicated immeasurably by the COVID-19 crisis,” he said.

“The Next Generation EU (NGEU) fund of €750bn, of which €390bn is grant aid, is very necessary to underpin EU economic recovery. However, the farming sector is not getting a fair share particularly with the last minute halving of the recovery support for the rural development budget which was meant to be €15bn and is now coming in at €7.5bn.”

Phelan pointed out that that funding will face a cut when compared at a constant price in 2018 and discounting inflation.

Demands

“It is inconceivable how farmers are expected to provide so many additional public goods in terms of climate and biodiversity on an ever decreasing funding regime. EU leaders have talked the talk on a Green Deal and the Farm to Fork strategy, but they have not walked the walk on funding it,” he said.

The ICSA believes the Irish Government would have to contribute more exchequer funds if it was serious about the farming sector.

REPS

On funding the proposed Rural Environmental Protection Scheme, Phelan said of an additional €300m made available to Ireland for rural development schemes, €100m could be used and €1.5bn in carbon tax could be spent over a shorter time period than the envisaged 10 years. There was also scope for higher levels of national co-funding.

“Overall, the agreement this morning brings clarity to the EU budget and it means that it is now game on to get a CAP reform agreed. Given the decisions made today, a lot of creative thinking will be required to protect the interests of Irish cattle and sheep farmers,” Phelan concluded.

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