Common Agriculture Policy post 2013
CAP Towards 2020
Coveney announces support of more than €12.5 billion for the Agriculture sector – Release
The Minister for Agriculture, Food and the Marine, Simon Coveney TD, today 14/01/14, announced the allocation of more than €12.5 billion in Common Agricultural Policy and exchequer funding to the agriculture sector in the period to 2020.
Speaking at the CAP announcement the Taoiseach said "Getting all parts of Ireland working again remains the Government’s top priority. Economic recovery has to be felt by all regions across Ireland. For this reason I’m delighted to welcome the agreement of a new draft Rural Development Programme for Ireland as a part of the Common Agricultural Policy's €12.5 billion investment in Irish agriculture. The Rural Development Programme will see more on farm investment as we grow our indigenous food and drink industry to new heights. At a time of scarce resources this represents the Government’s strong commitment to job creation and investment in our rural communities."
Minister Coveney said: “Today marks a further landmark day in what is an unprecedentedly exciting period for the agriculture sector and the agri-food industry in Ireland. In addition to the €8.5 billion in EU funding that will be paid in direct payments to farmers in the period up to 2020, I am delighted to announce that €1.9 billion in national funding will be added to the €2.2 billion EU funding already secured for expenditure on rural development. It brings the total funding for the sector over the period to more than €12.5 billion. This represents a very significant, strategic financial investment in the agri-food sector, and comes on top of the large commercial investments that have been made by major players in the sector in recent times and the very positive news from Bord Bia on the continuing rise in the value of agri-food exports in 2013.”
Minister of State Tom Hayes emphasised the importance of ensuring that this level of funding is spent effectively: “It must be done in a forward-looking way that will help the sector to achieve its full potential by supporting innovation and improving competitiveness. Only in this manner can we ensure that we give ourselves the best possible chance to achieve the objectives agreed for the industry in the Food Harvest 2020 strategy.”
Minister Coveney developed this point further, recalling that, throughout the CAP reform process, his efforts have been informed by the need to ensure that the agriculture sector can grow in a competitive and sustainable manner: “The focus for me is consistently on the need to achieve smart, green growth, as envisaged in Food Harvest 2020. We need to be smart about what we do so that we can become more efficient and more competitive, and we need to do it in a way that is sustainable from an environmental and climate viewpoint. The package of measures I am announcing today provides practical, targeted support that will help the sector to achieve its ambitions while meeting its climate change responsibilities.”
Direct Payments
The Minister announced that, following extensive consultations with stakeholders on the structure of the new direct payments system, he has decided that Ireland should implement the so-called ‘partial convergence’ model. Under this approach, payments will move part of the way towards a national average rather than to the uniform payment also provided for under the CAP reform agreement. By opting for this approach, he is ensuring that the direct payments system is made fairer and more equitable while at the same time ensuring that the level of redistribution of payments between farmers is not of a scale that could jeopardise the achievement of the Food Harvest 2020 objectives.
The Minister said: “During the CAP reform negotiations I argued very strongly for Member States to be given the flexibility to tailor the reform outcome to their own farming circumstances. I am delighted now to be able to take what I believe to be full advantage of this flexibility. There will be significant transfers given that all entitlements must be valued at 60% of the national average entitlement value by 2019. However, I think I have struck the right balance between making the system fairer and supporting the sustainable development of the sector.”
Young Farmers
The Minister also took the opportunity to highlight the ongoing efforts to encourage the participation of young farmers in agriculture. Following consultation with stakeholders, he had decided to use the provisions of the CAP reform agreement as follows:
The Minister said: “It is vital that we do everything we can to encourage young people to take up a career in farming if the innovation and new ideas required to generate the smart, green growth envisaged under Food Harvest 2020 are to be realised. I have previously stated my strong commitment to action in this area, and am delighted to be able to introduce a range of measures across the direct payments regime and Rural Development Programme that I believe will attract and support young farmers.”
The Minister for Agriculture, Food and the Marine, Simon Coveney TD, today 14/01/14, announced the allocation of more than €12.5 billion in Common Agricultural Policy and exchequer funding to the agriculture sector in the period to 2020.
Speaking at the CAP announcement the Taoiseach said "Getting all parts of Ireland working again remains the Government’s top priority. Economic recovery has to be felt by all regions across Ireland. For this reason I’m delighted to welcome the agreement of a new draft Rural Development Programme for Ireland as a part of the Common Agricultural Policy's €12.5 billion investment in Irish agriculture. The Rural Development Programme will see more on farm investment as we grow our indigenous food and drink industry to new heights. At a time of scarce resources this represents the Government’s strong commitment to job creation and investment in our rural communities."
Minister Coveney said: “Today marks a further landmark day in what is an unprecedentedly exciting period for the agriculture sector and the agri-food industry in Ireland. In addition to the €8.5 billion in EU funding that will be paid in direct payments to farmers in the period up to 2020, I am delighted to announce that €1.9 billion in national funding will be added to the €2.2 billion EU funding already secured for expenditure on rural development. It brings the total funding for the sector over the period to more than €12.5 billion. This represents a very significant, strategic financial investment in the agri-food sector, and comes on top of the large commercial investments that have been made by major players in the sector in recent times and the very positive news from Bord Bia on the continuing rise in the value of agri-food exports in 2013.”
Minister of State Tom Hayes emphasised the importance of ensuring that this level of funding is spent effectively: “It must be done in a forward-looking way that will help the sector to achieve its full potential by supporting innovation and improving competitiveness. Only in this manner can we ensure that we give ourselves the best possible chance to achieve the objectives agreed for the industry in the Food Harvest 2020 strategy.”
Minister Coveney developed this point further, recalling that, throughout the CAP reform process, his efforts have been informed by the need to ensure that the agriculture sector can grow in a competitive and sustainable manner: “The focus for me is consistently on the need to achieve smart, green growth, as envisaged in Food Harvest 2020. We need to be smart about what we do so that we can become more efficient and more competitive, and we need to do it in a way that is sustainable from an environmental and climate viewpoint. The package of measures I am announcing today provides practical, targeted support that will help the sector to achieve its ambitions while meeting its climate change responsibilities.”
Direct Payments
The Minister announced that, following extensive consultations with stakeholders on the structure of the new direct payments system, he has decided that Ireland should implement the so-called ‘partial convergence’ model. Under this approach, payments will move part of the way towards a national average rather than to the uniform payment also provided for under the CAP reform agreement. By opting for this approach, he is ensuring that the direct payments system is made fairer and more equitable while at the same time ensuring that the level of redistribution of payments between farmers is not of a scale that could jeopardise the achievement of the Food Harvest 2020 objectives.
The Minister said: “During the CAP reform negotiations I argued very strongly for Member States to be given the flexibility to tailor the reform outcome to their own farming circumstances. I am delighted now to be able to take what I believe to be full advantage of this flexibility. There will be significant transfers given that all entitlements must be valued at 60% of the national average entitlement value by 2019. However, I think I have struck the right balance between making the system fairer and supporting the sustainable development of the sector.”
Young Farmers
The Minister also took the opportunity to highlight the ongoing efforts to encourage the participation of young farmers in agriculture. Following consultation with stakeholders, he had decided to use the provisions of the CAP reform agreement as follows:
- the full 2% of the national ceiling will be allocated to young farmers, providing for a 25% ‘top-up’ on direct payments on up to 50 hectares for farmers under 40 years of age (worth more than €16,000 over the period where payment is made on the maximum area for the full five years of the scheme),
- additional, educational criteria will ensure payments are made to genuine young farmers,
- in addition, young farmers will be prioritised in the allocation of payment entitlements from the national reserve.
The Minister said: “It is vital that we do everything we can to encourage young people to take up a career in farming if the innovation and new ideas required to generate the smart, green growth envisaged under Food Harvest 2020 are to be realised. I have previously stated my strong commitment to action in this area, and am delighted to be able to introduce a range of measures across the direct payments regime and Rural Development Programme that I believe will attract and support young farmers.”
I – DETAILED PROVISIONS ON DIRECT PAYMENTS
Annual Ceilings for Ireland
Ireland's allocation for direct payments to farmers will be just over €1.2 billion per annum in the period to 2020.
Introducing the New Regime The Single Payment Scheme will be replaced by the Basic Payment Scheme.
The Basic Payment Scheme Ireland will implement the ‘Internal Convergence Model’ of redistribution of funds between farmers largely based on the original presentation of that model by the Minister at farmers’ meetings in October 2012.
This model, while initially retaining the link with current payments under the Single Payment Scheme, gradually moves all farmers towards a national average value over the five years of the new scheme but does not arrive at a ‘flat-rate’ by 2019. The purpose of this model is to achieve a phased redistribution of payments between those who currently hold high value entitlements and those who hold low value entitlements. It introduces a fairer more equitable distribution of funds between farmers while avoiding the negative impact of a sudden move to a ‘flat-rate’.
Farmers who hold entitlements with a unit value below 90% of the national average value will be increased by one third of the difference between their starting value and the 90% level over the five years of the scheme.
Farmers who hold entitlements with a unit value over 100% of the national average value will see their value decrease over the period of the scheme. The reduction will be determined by the amount needed to fund the increase for those whose entitlement value is being increased.
By 2019 all entitlements will have a minimum value of 60% of the national average value.
No farmer will receive a payment under the Basic Payment Scheme of over €150,000 per annum.
By 2019 no farmer will receive a payment per hectare (Basic Payment plus Greening payment) greater than €700.00.
Payments received under the 2014 Grassland Sheep Scheme will be incorporated into the calculation of the entitlement value in each year of the new regime for those farmers who participated in that Scheme. This will have the effect of increasing their entitlement value and ensure that such farmers do not lose through the cessation of the Grassland Sheep Scheme at the end of 2014.
Farmers who never held entitlements, either owned or leased, under the current Single Payment Scheme but who actively farmed in 2013 will be eligible for an allocation of entitlements in 2015.
Farmers who produced ‘fruit and vegetables’ in 2013 but did not receive a direct payment in that year, and consequently do not have an automatic ‘allocation right’, will be eligible for an allocation of entitlements in 2015.
Young Farmers Scheme
Ireland will establish a Young Farmers Scheme the purpose of which is to encourage the participation of young farmers in agriculture. The scheme will assist young farmers in the initial stages of establishing a farming enterprise in their own name by providing a ‘top-up’ payment on the payment they receive under the Basic Payment Scheme.
Ireland will allocate the full allowable amount of 2% of its national ceiling to the scheme in 2015. Percentages to be applied in subsequent years will be determined by demand.
The payment is available for a maximum of five years from the date of the establishment of the holding in the young farmer’s name.
A Young farmer is defined as being aged 40 or less in their first year of application to the Basic Payment Scheme and having established their holding within the previous five years. In addition, successful applicants will have completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent.
The Young Farmers payment will be calculated as 25% of the national average payment per hectare (based on the national ceiling) multiplied by the number of entitlements activated by the young farmer subject to a maximum number of 50.
National Reserve
Ireland will establish a National Reserve using 3% of the ceiling allocated to the Basic Payment Scheme in 2015. This is a once-off allocation and in subsequent years the Reserve will be replenished from the return of unused entitlements.
Priority for the allocation of entitlements from the Reserve will be given to ‘young farmers’ and to those who ‘commence their agricultural activity’ i.e. new entrants to farming. In all cases, allocations of entitlements from the Reserve will only be given to persons who are ‘active farmers’.
The definition of ‘young farmer’ is the same as that under the Young Farmers Scheme. A ‘new entrant to farming’ is defined as persons who commenced their agricultural activity in the 2013 calendar year or any later year and did not have any agricultural activity in their own name and at their own risk in the five years preceding the start of the agricultural activity. As with the Young Farmers Scheme, successful applicants will have completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent.
Greening Farmers who participate in the Basic Payment Scheme must implement the three standard greening measures as follows;
There are a number of scenarios where a holding or part of it may be considered as ‘green by definition’ and there is no further obligation to implement the three greening standard measures. Two of the most significant are;
· Land that is subject to organic farming practices automatically fulfils all greening requirements. However such exemption only applies to that part of the holding which is farmed organically.
· Holdings where more than 75% of the eligible agricultural area is permanent grassland or is used for the production of grasses or other herbaceous forage have no further obligation to implement the three greening measures, provided the remaining arable area does not exceed 30 hectares.
Support for Protein Crops
· A new incentivised support programme for the protein sector will be introduced.
Annual Ceilings for Ireland
Ireland's allocation for direct payments to farmers will be just over €1.2 billion per annum in the period to 2020.
Introducing the New Regime The Single Payment Scheme will be replaced by the Basic Payment Scheme.
The Basic Payment Scheme Ireland will implement the ‘Internal Convergence Model’ of redistribution of funds between farmers largely based on the original presentation of that model by the Minister at farmers’ meetings in October 2012.
This model, while initially retaining the link with current payments under the Single Payment Scheme, gradually moves all farmers towards a national average value over the five years of the new scheme but does not arrive at a ‘flat-rate’ by 2019. The purpose of this model is to achieve a phased redistribution of payments between those who currently hold high value entitlements and those who hold low value entitlements. It introduces a fairer more equitable distribution of funds between farmers while avoiding the negative impact of a sudden move to a ‘flat-rate’.
Farmers who hold entitlements with a unit value below 90% of the national average value will be increased by one third of the difference between their starting value and the 90% level over the five years of the scheme.
Farmers who hold entitlements with a unit value over 100% of the national average value will see their value decrease over the period of the scheme. The reduction will be determined by the amount needed to fund the increase for those whose entitlement value is being increased.
By 2019 all entitlements will have a minimum value of 60% of the national average value.
No farmer will receive a payment under the Basic Payment Scheme of over €150,000 per annum.
By 2019 no farmer will receive a payment per hectare (Basic Payment plus Greening payment) greater than €700.00.
Payments received under the 2014 Grassland Sheep Scheme will be incorporated into the calculation of the entitlement value in each year of the new regime for those farmers who participated in that Scheme. This will have the effect of increasing their entitlement value and ensure that such farmers do not lose through the cessation of the Grassland Sheep Scheme at the end of 2014.
Farmers who never held entitlements, either owned or leased, under the current Single Payment Scheme but who actively farmed in 2013 will be eligible for an allocation of entitlements in 2015.
Farmers who produced ‘fruit and vegetables’ in 2013 but did not receive a direct payment in that year, and consequently do not have an automatic ‘allocation right’, will be eligible for an allocation of entitlements in 2015.
Young Farmers Scheme
Ireland will establish a Young Farmers Scheme the purpose of which is to encourage the participation of young farmers in agriculture. The scheme will assist young farmers in the initial stages of establishing a farming enterprise in their own name by providing a ‘top-up’ payment on the payment they receive under the Basic Payment Scheme.
Ireland will allocate the full allowable amount of 2% of its national ceiling to the scheme in 2015. Percentages to be applied in subsequent years will be determined by demand.
The payment is available for a maximum of five years from the date of the establishment of the holding in the young farmer’s name.
A Young farmer is defined as being aged 40 or less in their first year of application to the Basic Payment Scheme and having established their holding within the previous five years. In addition, successful applicants will have completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent.
The Young Farmers payment will be calculated as 25% of the national average payment per hectare (based on the national ceiling) multiplied by the number of entitlements activated by the young farmer subject to a maximum number of 50.
National Reserve
Ireland will establish a National Reserve using 3% of the ceiling allocated to the Basic Payment Scheme in 2015. This is a once-off allocation and in subsequent years the Reserve will be replenished from the return of unused entitlements.
Priority for the allocation of entitlements from the Reserve will be given to ‘young farmers’ and to those who ‘commence their agricultural activity’ i.e. new entrants to farming. In all cases, allocations of entitlements from the Reserve will only be given to persons who are ‘active farmers’.
The definition of ‘young farmer’ is the same as that under the Young Farmers Scheme. A ‘new entrant to farming’ is defined as persons who commenced their agricultural activity in the 2013 calendar year or any later year and did not have any agricultural activity in their own name and at their own risk in the five years preceding the start of the agricultural activity. As with the Young Farmers Scheme, successful applicants will have completed a recognised course of education in agriculture giving rise to an award at FETAC level 6 or its equivalent.
Greening Farmers who participate in the Basic Payment Scheme must implement the three standard greening measures as follows;
- Crop diversification
- Permanent grassland
- Ecological Focus Area (EFA)
There are a number of scenarios where a holding or part of it may be considered as ‘green by definition’ and there is no further obligation to implement the three greening standard measures. Two of the most significant are;
· Land that is subject to organic farming practices automatically fulfils all greening requirements. However such exemption only applies to that part of the holding which is farmed organically.
· Holdings where more than 75% of the eligible agricultural area is permanent grassland or is used for the production of grasses or other herbaceous forage have no further obligation to implement the three greening measures, provided the remaining arable area does not exceed 30 hectares.
Support for Protein Crops
· A new incentivised support programme for the protein sector will be introduced.
