Paul Connaughton
Question:26 Mr. Connaughton asked the Minister for Agriculture and Food the scale of financial losses which will be incurred by grain growers as a result of the Agenda 2000 agreement. [11012/99]
Written Answers. - Agenda 2000.
The financial outcome of the Agenda 2000 CAP reform as finalised by the European Council on 24 to 26 March will mean an estimated overall gain of £395 million to farm income in Ireland over the period 2000-6. The national gain over the period will be even greater – £666 million – because of the additional benefits from lower product prices.
The financial situation for grain growers has been estimated at a loss of £10.6 million in the year 2000 and at £18.7 million in each of the years 2001-6. The overall financial loss to grain growers for the period has been estimated at £122.6 million. This compared with the outcome for beef and milk which resulted in gains of £325 million and £192 million respectively.
The losses for grain were calculated on the basis that market prices will fall to the full extent of the 15 per cent reduction in the inter vention price. However, most analysts predict that this is not likely to happen due to an expected upturn in world prices. The reinstatement of a positive rate of set-aside of 10 per cent under the Berlin agreement should act as a further influence on price buoyancy in the EU and on world markets. If these price forecasts prove to be correct then the losses referred to will be significantly reduced and could even be eliminated.