While EU leaders have now struck a deal on the overall EU budget, it will be at least another year before the effects are felt in the pockets of Irish farmers.

However, despite a cut to the overall CAP budget, Irish farmers could be insulated from any cuts in their payments.

Figures obtained by the Irish Farmers Journal indicate that Ireland will receive approximately €10.73bn from the CAP budget over the next seven years. This is an increase of €50m on the previous allocation of €10.68bn for 2014 to 2020.

It is also a significant increase on the original budget proposed for Ireland in May 2018 when €10bn was earmarked for Irish farmers.

However, crucially for farmers, there are changes in the split between funding for direct payments and for rural development schemes such as GLAS and ANC.

The annual budget for direct payments is to be reduced from €1.21bn to €1.18bn. This will see the average direct payment to Irish farmers cut from €9,845 to €9,610, a drop of €235 or 3%.

To offset this loss, Ireland has managed to secure more money for farm schemes. The EU will provide €351m annually, which will further boosted by funds from the National Exchequer. It is an increase of 15% on last time around.

However, for some farmers Pillar II funds will be more difficult to access compared to direct payment funds. It will mean more will have to opt into schemes, many of which will be focused on climate and the environment, in order to maintain their payments at present levels.