CAP talks in Brussels are set to continue late into Wednesday night as negotiators seek to break a deadlock over the ring-fencing of funds for eco-schemes.

Eco-schemes will be funded from Pillar I, traditionally used to provide direct payments to farmers.

The latest compromise tabled by the European Council of Ministers would see 22% of Pillar I ring-fenced for climate and environment measures during a “learning period” in 2023 and 2024.

This would increase to 25% from 2025 to 2027.

Disagreement

However, the European Commission and European Parliament favour a larger budget.

A compromise originally presented by the Commission would have seen member states increase the budget for eco-schemes from 22% to 30% by 2027, or ring-fence 25% for the duration of the CAP.

A range of flexibilities have also been proposed to minimise the risk of unspent funds not drawn down by farmers being returned to Brussels.

Sources indicate that talks will continue on Thursday and are expected to run into the early hours of Friday morning. If a compromise can be reached on eco-schemes it will signifcantly increase the chances of a deal.

Ireland’s position

Speaking to the Irish Farmers Journal, Minister for Agriculture Charlie McConalogue said he remains hopeful that a deal can be achieved this week but reaching a conclusion is far from certain.

“As well as continuing to hold the line firmly on issues such as the targeting of direct payments and seeking to ensure the eco-scheme rate is held at 20%, my key focus is on delivering a CAP deal that will be fair and flexible.

“What works for farmers elsewhere in Europe might not work in Ireland. It’s critical we deliver as much flexibility as possible to make our own decisions,” he said.

GAEC 2

The minister has also been vocal about new cross-compliance rules for peatlands and wetlands under Good Agricultural and Environmental Condition (GAEC) 2.

“To build on the work I have to done to date, I put GAEC 2 firmly on the agenda in Brussels today. My goal is clear – I want there to be no doubt that farmers on GAEC 2 lands will be able to continue to carry out agricultural activities on these lands.”