Dáil Éireann Debate, Thursday - 8 May 2014
26. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the benefits accruing from the Common Agricultural Policy reform agreement are evenly distributed throughout the agricultural sector with particular reference to ensuring that any increases or reductions do not impact on productivity; and if he will make a statement on the matter. [20334/14]
View answerThe issues of a fair distribution of funds and the desire that such redistribution should not negatively impact on the productivity of our various agricultural sectors represent the two polarities which largely defined the recent negotiations surrounding the reform of the Common Agricultural Policy.
It is no longer possible to justify the significant differences in the level of support per hectare granted to farmers based on the use of historical references. However the Commission proposal which involved a move to a ‘flat-rate’ payment by 2019 would have had a sudden and significant negative impact on agricultural production. As an alternative I proposed the ‘Irish Convergence Model’ which while initially retaining the link with current payments under the Single Payment Scheme, gradually moves all farmers towards, but does not arrive at, a national average value 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 fair and equitable re-distribution of funds between farmers while avoiding the negative impact of a sudden and significant change in income support for individual farmers. An additional safety net is added for those with low value entitlements whereby by 2019 they are guaranteed that they will reach at least 60% of the national average entitlement value.
My Department has used stocking density as one measure of agricultural productivity. While stocking density does not represent all the elements of agricultural productivity, it is a tangible and precise measurement of activity where data from my Department is readily available. Previous analysis by my Department has found that, using average results per payment category, farmers on payment rates per hectare above the national average have roughly double the stocking density of those below the average. I am satisfied therefore that for most farmers there is a fundamental correlation between stocking density and the value of payment entitlements held under the current Single Payment Scheme.
However, our analysis also shows that the stocking density of farms on the very highest payment rates (e.g. over €500 per hectare) is not significantly higher than the stocking density of farms just above the national average. In this regard, I have decided to apply a cap on the payment per hectare under the new scheme whereby by 2019 no farmer will receive a payment per hectare, consisting of his Basic Payment and Greening payment, of over €700.
The outcome is a reasonable and balanced compromise between the need for a fair redistribution of funds while ensuring that such distribution continues to reflect the realities of agricultural production in Ireland. The decision to apply the greening payment as a percentage of each individual farmer’s payment is based on the same principles.
