European Union agreed a deal to reform the Common Agricultural Policy at talks on Thursday, after disagreements on rules to curb agriculture's climate impact upended talks last month.
t is understood negotiators representing the European Parliament and EU Agriculture Ministers struck a deal on some of the most contentious issues relating to the regulation of CAP strategic plans.
The Farming Independent understands that agreement has been reached on the controversial issue of convergence. It is understood farm payment entitlement values will converge on a minimum of 85pc of the national average by the end of the next CAP period.
Negotiators agreed on rules to require countries to spend 20pc of payments to farmers from 2023-2024, rising to 25pc of payments between 2025-2027, on "eco-schemes" that protect the environment. Examples of eco-schemes could include restoring wetlands to absorb CO2, or organic farming.
Any funds below those limits that are not spent on eco-schemes must be spent on green measures in other areas instead.
Parliament had wanted a higher 30pc share, while member states' starting point in the talks was 20pc.
There was also agreement on the controversial proposal to introduce 'front loading' to CAP payments. It is understood a budget of 10pc of the CAP Pillar 1 budget has been allocated to the proposal. However, it is understood a derogation will be available to Member States that can demonstrate their farm payments are already distributed fairly. Detail on how this will impact farmers in Ireland has yet to be agreed.
Further discussions will resume today to reach a final agreement with European Agriculture Commissioner Janusz Wojciechowski, describing the position of both co-legislators as 'very close'.
The deal must be approved by the full European Parliament and by EU Agriculture Ministers. The new CAP rules apply from 2023.
Talks to reform the EU Common Agricultural Policy (CAP) have dragged on for nearly three years, with negotiators split over how to spend the CAP's 387 billion euro ($462 billion)budget of payments to farmers and support for rural development, about a third of the EU's total 2021-2027 budget.
Portuguese Agriculture Minister Maria do Ceu Antunes, who represents EU member states in the negotiations with European Parliament, said she was committed to striking a deal.
The sticking points had included rules to curb the 10pc of EU greenhouse gases emitted by agriculture and protect nature from pressures like intensive irrigation or chemical pesticides.
The talks came under heightened pressure this week when EU auditors said the current CAP was failing to reduce emissions, despite spending €100 billion in "climate-friendly" subsidies since 2014.
It had been predicted that negotiators are likely to squabble over how much money to spend on "eco-schemes" that protect the environment, such as restoring wetlands to absorb CO2, and how strictly to define such schemes.
Parliament wanted to spend 30pc of payments on eco-schemes, while EU countries proposed a binding 18pc share in last month's talks.
Other changes aim to stop the decline of Europe's small farms. Proposals under discussion could require countries to redistribute a share of CAP payments to smaller farms, or reduce the money farmers get after they receive a certain limit, to ensure more cash goes to smaller businesses.
Parliament also wants guarantees that EU countries' plans for spending CAP money comply with the bloc's legally-binding climate and environment goals.
Additional reporting Reuters