Two important topics have dominated attention on suckler and beef production in recent times – the European Commission’s decision to progress with the Mercosur trade deal and the standoff between the IFA, Bord Bia and the Department of Agriculture regarding Larry Murrin’s position as chair of Bord Bia.

However, there is arguably an even bigger topic that will define the future of suckler production – that being the reform of the next Common Agricultural Policy (CAP).

As it stands the proposed budget for the next CAP, which runs from 2028-2034, has been cut by over 20%.

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In real terms it means that funding from the European Union stands to be cut by over €300m per annum which equates to a similar sum of money as is currently allocated to the Eco Scheme.

Many suckler and beef producers have witnessed colossal cuts to the level of payment received via entitlements in the last two reforms.

The proposed ending of entitlements will bring further cuts for many intensive and full-time suckler-beef production systems, which are most reliant on direct payments.

Coupled payments

The European Commission has brought discussions regarding a return of coupled payments on to the table.

Aligning payments linked to the level of farming activity would be a sensible decision and see funding targeted at those who are driving output rather than the current system of payments largely linked to a historical level of production.

However, for this to have any meaningful impact requires a reversion of cuts to the proposed EU budget and an adequately funded CAP matched by national exchequer funding.

Without this, larger systems of production will continue to convert to dairying or seek out alternative opportunities.

There is also welcome targets to double the volume of funding for young farmers, but again incentives should support farming activity.

There is currently some optimism in the sector following an upturn in prices, but to have any hope of building momentum and steadying suckler numbers requires a well-funded CAP budget.