The Department of Agriculture has rejected accusations its latest modelling on future CAP payments was biased against efforts to flatten subsidies further.
he controversial document, which became public last week, outlines details on how a proposed 85pc convergence of payments by 2026 would impact on farmers Pillar 1 payouts and highlighted significant losses for farmers with large entitlement values but low overall payments.
The 85pc convergence proposal could be a likely outcome of intense talks between member states seeking 75pc and the European Parliament, pushing for 100pc convergence by 2026.
The Department's modelling this week examined the impact of 85pc convergence on three farmers with 32ha, but there are variations in their Pillar 1 payment rates which sees Farmer X on €160/ha (made up of the BPS and Greening). Farmer Y is on €300/ha with farmer Z on €400/ha again made up from their BPS and Greening.
Through the lifetime of the new CAP (2023-26) the Department’s modelling shows how the payment rate per hectare falls for farmer Z from €400/ha to €233 by 2026, with farmer Y seeing payments fall from €300/ha to €200/ha and for farmer X there is a modest increase from €160 up to €161/ha.
However, the Irish Natura & Hill Farmers Association (INHFA) has condemned the research.
It states that it implied that no farmer will gain under the convergence model.
INHFA president Colm O’Donnell said it “totally misrepresents the reality that over 72,000 farmers representing almost 60pc of all farmers stand to gain under 100pc convergence or full flattening.
“Of these, over half would also gain substantially under the 85pc convergence model.”
He claimed the model was “totally misleading” as it excluded the new Eco Scheme payment in the final figures despite including the Greening payment in the initial figures.
He said the document also failed to differentiate between changes in farmers’ payments due to the way Eco Schemes will be paid and changes in payments caused by additional convergence.
This, Mr O’Donnell said, had the effect of making the effects of increasing convergence look even worse for farmers on high historic payments.
In the next reform, the Eco Scheme payment, which replaces Greening, will be available to all farmers, and INHFA estimates it will deliver a payment of between €54 and €80/ha.
No bias
Responding to the accusations, a Department spokesperson said there was no bias in the modelling document.
“In fact, the data is set out in explicit detail to avoid just that interpretation.
“INHFA are indeed correct in pointing out the modelling does not examine any potential payment under eco-schemes, as its sole purpose was to illustrate the convergence of payment entitlement values only,” the spokesperson said.
ICMSA president Pat McCormack said there is no doubt that if this model was the final resting place of convergence under the new CAP, commercial farming in Ireland would be dealt a hammer blow.
Convergence, he said, has severely cut payments for many farmers reliant on farming for their income since its introduction in the 2013 CAP reform.
He said that “ideally”, the organisation would favour no internal convergence, but he accepted that it is going to happen.
“The least worst option would be 75pc convergence by the end of the next CAP,” he said.
