I propose to take Questions Nos. 378 to 381, inclusive, together.
I welcome the publication by the European Commission on 29 November of the CAP Communication titled “The Future of Food and Farming”.
The document comes against the backdrop of the Commission White Paper on the Future of Europe published on 1 March 2017, and the public consultation on the future of the CAP carried out in the first half of 2017. The Communication proposes a simpler CAP, with a sharper focus on objectives and results, particularly in the environmental area. I welcome the commitment that Direct Payments should remain an essential part of CAP, as they provide an important safety net for family farms and ensure there is agricultural activity in all parts of the EU.
The Communication outlines a number of possibilities that should be explored to improve the targeting of direct payments, including compulsory capping of payments, degressive payments and redistributive payments to small or medium size farms. It also suggests that support is targeted to genuine farmers, focussing on those who are actively farming in order to earn their living.
My Department is currently reviewing the Communication but of course detailed proposals will only emerge in the context of legislative provisions to be presented by Summer 2018.
Degressivity involves the reduction of payments above a certain threshold. Under the current CAP, degressivity was possible for payments exceeding €150,000. Ireland has effectively decided to limit the maximum amount payable to an applicant under the Basic Payment Scheme (excluding the Greening Payment) to €150,000 per annum by applying 100% degressivity after that amount, as provided for under Article 11 of Regulation 1307/2013.
The Deputy will be aware that the 2016 Programme for Government, proposed a lowering of the cap on basic payments from €150,000 to €100,000. An opportunity to address this issue may arise in the context of the proposed CAP Reform.