A document, launched on 14 February by European Commission president Jean-Claude Juncker, set out a variety of scenarios for the next EU budget.

The document runs through three scenarios, which are as follows:

Maintain current CAP spending levels. This would require 37% of the current budget.

Cut the CAP budget by 30%. This "could see average farm incomes drop by more than 10%", with potentially more pronounced income drops in specific sectors.

Cut the CAP budget by 15%. This could still have a "noticeable impact in certain sectors," the report says.

Irish farming representative bodies have reacted to the news.

IFA

IFA president Joe Healy said the Taoiseach Leo Varadkar and European Commissioner for Agriculture Phil Hogan are facing a big test in their talks with Juncker between now and the setting of the CAP budget in early May.

"Under no circumstances can Ireland contemplate any of the options set out in a European Commission budget document published today as they would shut down agriculture and rural Ireland,” Healy said.

He said the IFA has made a "strong case for each member state to increase its contribution to the EU budget. This proposal has already been accepted by a number of member states and we expect the Irish Government to step up with a similar commitment."

ICMSA

Pat McCormack, president of the ICMSA, described the options set out for the CAP budget as disappointing and completely unacceptable.

He said it's disappointing that "there’s no sign here that the Commission understands that CAP is a key EU policy not only for farmers, but for wider rural economies and how they interact with their national economies".

McCormack said that proposals to cut the existing CAP budget would be a "disaster for farmers, the rural communities that depend on farming, and the wider agri-food sector which is a key driver of the Irish economy".

McCormack also said that "based on proposed reforms of CAP, it appears that the European Commission wants farmers to do more in terms of regulatory requirements with a reduced budget".

ICSA

ICSA president Patrick Kent has voiced his concern at soundings coming from Brussels that a reduced CAP budget post-2020 could be on the cards. “Maintaining the CAP budget has to be an absolute priority and I would urge Minister Creed, Taoiseach Varadkar and Commissioner Hogan to vigorously oppose any such move.”

Kent outlined the importance of the CAP given the current challenges faced by farmers by saying the "ICSA has been calling for an increase to the CAP budget to meet those challenges. The pressure is on with Brexit uncertainty, international trade deals and an increasing onus on farmers with regard to climate change. It is unconscionable that any cut in CAP payments could even be considered”.

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