On 19 October 2003, I announced my decision that all direct payments in the arable crops, cattle and sheep sectors would be decoupled from 1 January 2005. On 29 September 2003, I announced my decision that decoupled direct payments in the dairy sector, for which there were no partial decoupling options, would also take place from 2005.
My decision regarding the arable crops, cattle and sheep sectors was taken after having given careful consideration to the submissions received under the public consultation process, which included the farming organisations and other social partners, that I initiated last July. I had also carefully studied the outcome of the independent research which I had commissioned from FAPRI Ireland. I also took into account the overwhelming weight of opinion in favour of full decoupling among individual farmers whom I had met and who had attended the information seminars held by my Department throughout the country in the preceding weeks.
I believe that decoupling is in the best interests of Irish agriculture and the development of a sustainable, market orientated agri-food sector. Decoupling will allow farmers to concentrate on enterprises that return the best margins from production rather than on optimising their income from premia. Quality should also improve through better market orientation. There should also be environmental benefits through the reduction of greenhouse gas emissions. The analysis undertaken by FAPRI Ireland showed that the full decoupling option should lead to the greatest improvement in aggregate farm incomes.