Marathon CAP reform enters final furlong

The reform of the Common Agricultural Policy (CAP) is entering its final stages at European level, with a number of key decisions on farm payments still outstanding.

MEPs in the European Parliament voted through their amendments to the European Commission’s original proposals on Friday by a commanding majority of 2:1 across all three legislative files.

Earlier in the week EU agriculture ministers agreed the Council’s position under the chair of German farm minister Julia Klockner. She will now enter trilogue negotiations with a team of MEPs to agree a final CAP package that will govern EU payments to farmers from 2023 to 2027.

It is anticipated that these negotiations will begin next month, with a goal of thrashing out a compromise before year end.

There are a number of differences between the two sides that will have to be resolved.

The European Council agreed to set aside 20% of farmers’ direct payments for eco-schemes, while Parliament voted for a higher figure of 30%. Depending on the final decision, somewhere between €237m and €355m of Irish direct payments will be ring-fenced for environmental action.

There are also differing positions on the convergence of farm payments.

The Council stuck closely to the original proposal for all entitlements to reach 75% of the national average by 2026. In Ireland’s case this would see the minimum entitlement value increase from €112 excluding greening to €140.

However, Parliament voted for a more ambitious proposal. It wants all entitlements to reach the 75% mark by 2024 with full flattening by 2027. This would set the value of entitlements for all Irish farmers at €186 excluding greening.

On the capping of payments, MEPs voted for a mandatory limit of €100,000 with reductions for those receiving over €60,000. The Council wants this to be voluntary.

Once a compromise is agreed by all sides, the ball will be in member states’ court to draft individualised strategic plans.