The benefits of the common agricultural policy, CAP, to Ireland can be measured both in terms of the EU budget transfers — for market prices supports and direct payments — and in the trade benefits derived from higher EU commodity prices. Even allowing for Ireland's contribution to the FEOGA budget, Ireland is estimated to have benefited by €1,279 million in 2003 through net budget transfers and by €772 million through higher prices. This is a combined benefit of over €2 billion.
Agriculture and related employment in the agri-food sector provided 160,000 jobs or 9% of total employment in 2003. In addition, in the same year the value of agri-food exports was €6.8 billion or 8.3% of all exports. The sector also provided an estimated 20% of all foreign earnings from Irish manufacturing industry.
It has been estimated by independent analysis that the Luxembourg Agreement on CAP reform will underpin the value of the sector in terms of direct payments and general production levels. In addition the capping of budgets until the year 2013 will ensure that no further demands are made on the Irish or EU taxpayer. Finally, the benefits of EU multifunctional agriculture will continue to be provided for the consumer in terms of safe, quality food produced in a sustainable, environmentally friendly way.
