CAP Reform 2014 – 2020 Implementation

IFA – The Agenda for Farmers

Kevin Kinsella, IFA Director of Livestock

March 2014

The IFA CAP Campaign

• From 2010, strong IFA campaign at EU and National level to secure the maximum budget• Rejected the flawed Ciolos plan for flat

payments• Work to secure Government backing for the

IFA position• IFA campaign to secure maximum national co-

funding for RDP Programme• Next stage – Practical implementation at farm

level

THE IFA CAP CAMPAIGN

The IFA SFP Campaign

• Protect the Single Farm Payment – Farm Income• Impact on agricultural production and individual

farmers• Active farmers – IFA sought objective criteria• Redistribution too high – lobby for an improved

convergence model • Variable greening as opposed to flat payment• Totally opposed regionalisation and co-efficients• Historical reference period – to avoid speculation • Option of coupled payments – vulnerable sectors• No redistribution between pillars

Key Changes on Single Farm Payment

Main Issues Original Proposals Actual Outcome

EU CAP Budget 10 – 30% 3% P1, 8% P2

SFP payment

Movement of fundsRDP co-funding

Flat payment national or regional€247/ha15% P1/PII either way50% - increased to 85% (Bailout)

Approximation + 60% min. No regionalisation or co-efficientsNo movement54% EU/46% Nat - Ireland

Greening

Permanent grasslandCrop RotationEFAs

Flat greening of 30% = SFP cut of 30% and payment of €74/haIndividual farm level3 crops on lower areas7%

Variable greening at 30% of SFP

National level2/3 crops5%

Reference Year Future reference year - 2014 Historic reference year - 2013

Vulnerable sectors Coupled payments Suckler Beef and Protein CropsSheep Grassland ?

RDP Schemes DAS, REPS /AEOS, TAMS ANC, GLAS, TAMS2

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SFP – Issues

• National Reserve• Flexibility for different categories to qualify• Learn from previous reserve to target• IFA strong on objective criteria

• Young Farmers – 25% top-up• 5 year rule – disadvantages some young

farmers• Good case for National Reserve• Education criteria – grace period to meet

requirements

SFP – Issues

• Greening - maximum flexibility at farm level- recognition of equivalent

practices- not an issue for grassland

• Sheep Grassland – IFA campaign to restore €18m funding

• Suckler Cows - €52m Beef Genomics Scheme - €80 per cow/calf in 2015 on 650,000 cows. Minimise the costs of participation.

• Protein crops – €3m – €200/ha – 15,000ha• Market supports – protection against price/income

volatility

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SFP and Leased Land Issue

• 6,000 cases impacted by this problem• Farmers cannot lose out on SFP payments

or taxation costs because of shortcomings in the CAP regulation

• Minister must secure taxation solution

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Ineligible Land issue• 900,000 land parcels reviewed• Major issue for farmers affected• Farmers with a problem – appeal• Retrospective penalties – IFA demanding

Minister goes back to Brussels• No farmer can be penalised for applying on

eligible land• Key issue on future applications• To get paid - Every entitlement must have an

eligible hectare

The IFA RDP Campaign

• Strong IFA Campaign on national co-funding• EU co-funding ranging from 50% to 85%, some bail

out countries at zero national funding• Outcome of IFA campaign – EU 54%/Nat.46% -

€580m p.a.• RDP vital to support farm incomes • Investment programme to develop and grow

farming - FH 2020.• Targets to spend €4.2bn.RDP fund over 7 years.• Early implementation of schemes - vital

Est. Funding Allocation for RDP 2014-2020

RDP Measure Funding 2014 - 2020

Farm Investment Aid €290m

Areas of Natural Constraint €1,365m

Agri-Environment €1,540m

Discussion Groups €120m

Leader Programme (7%) €275m

Other: inc. Beef, Data & Genomics €350m

Performance Reserve (6%) €251m

Total Est. €4,186m

New GLAS Scheme

• €250m p.a. – 50,000 farmers - €5,000• Scheme must open in Sept 2014. Plan

start up Jan 1st. 2015. • Over 20,000 farmers in GLAS in 2015• Prioritise Farmers leaving REPS • Payment rates for all measures must be

attractive to cover income foregone, cost of compliance and strong incentive

Areas of Natural Constraint (ANC)

• Review of areas – deferred to 2018• Restore DAS cuts • Savings in RDP Plan – directed to income

supports.

Farm Investment Scheme• 40% grant aid + 20% young farmers.• Issues for young farmers on 5 year rule• Support across all sectors• Flexibility to utilise funding for investment demand

Importance of Pillar I & Pillar II Payments on Farm

Income

Charter of Rights for Farmers

• IFA negotiating New Charter of Rights• Respect and fair play across all inspections and

schemes• Removal of the fear and stress of inspections• Key issues for IFA– Realistic notice– Efficient system for queries – no delays– Reduction in inspections – no duplication– Yellow card system and proper tolerances– Delivery of payments on time within deadlines– Addressing the SIU

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The Challenge Ahead

• Effective implementation of CAP• Mid term review – 2017/2018• A strong CAP Budget - critical

- Refocusing on European food production base

- Protecting Family farm model- Supporting Agriculture contribution to Irish economy

• Increasing role of EU Parliament • Shaping policy – at National and EU level