What the proposed CAP changes mean for Irish farmers

Irish Examiner

3 days ago

The proposed EU budget post-2027 has caused waves in the agricultural sphere, with calls to action and pushback coming from all angles.
The main worry is the proposed absorption of the CAP under the National and Regional Partnerships Plans (NRPP). The European Commission advertises this move to be more efficient and have a stronger, impactful use of EU funding with agricultural policy 'at its core'.
Concerns have been raised revolving around whether money normally allocated to the CAP will be redirected and funnelled into other sections of the NRPP. Initially proposed for the NRPP is €865bn within the 2028-2034 EU budget.
Billy Kelleher, MEP for Ireland South, said: 'The 21% cut in CAP funding will cause havoc among farm families in Ireland and across the [European] Union.'
Another concern within the proposal is that the income support of €300bn ringfenced for EU farmers post 2027. This is a drop from the €387bn previously set aside for farmers within the current budget.
This would mean the nearly 120,000 farmers who avail of EU-funded supports such as Basic Income Support for Sustainability (BISS) or Complimentary Redistributive Income Support for Sustainability (CRISS) could experience drops in the amount they receive.
Billy Kelleher, MEP for Ireland South, said:
The 21% cut in CAP funding will cause havoc among farm families in Ireland and across the [European] Union…
"Perhaps it's a negotiating tactic to force member states to increase their national contributions or to agree on new own resources. Either way, it will make farmers deeply worried about their future viability,' said .
According to the 2024 National Farm Survey conducted by Teagasc, direct payments amounted to 60% contribution to a family farm income in 2024 across the sectors examined (dairy, cattle rearing, cattle other, sheep, and tillage).
This cut will have significant effects on farming families' incomes and livelihoods if a ringfence of €300bn is agreed.
A 'Unity Safety Net' of €900m per year of the budget — a total of €6.3bn — is proposed for emergencies within the sector. This is meant to help ensure stable markets and to assist in times of crisis such as extreme weather events, geopolitical situations or persistent structural challenges for EU-based farmers.
With the proposals of a single 'rule book', streamlined payments and a young and new farmers' 'starter pack' for targeted supports could benefit small enterprise farmers and young farmers entering or inheriting within the industry, reducing administrative burdens and offering lump sums.
Overview is vague on eco schemes
Notably vague within the proposal overview made public by the EU Commission was any mention of farming sustainability and eco schemes. Mentions of sustainability schemes and practices were made with no clear outline or budget proposed.
In contrast, a leaked document that was circulated before the initial official proposal made several mentions of eco and sustainability schemes with recommendations to enhance these and similar areas for farmers to receive support based on uptake of beneficial practices.
Areas outlined in this leaked document suggested support be provided for farmers or individuals who commit to climate change adaptations, climate change mitigations, soil health, preservation of biodiversity, and development of organic farming.
Ireland's presidency of the EU Council
With the uproar surrounding the proposed EU budget post-2027, the Irish presidency of the EU Council, occurring in the second semester of 2026, will take place throughout a period of finalisation of the 2028-2034 EU budget.
Ultimately, this will have farmers and their organisations alike watching the Department of Agriculture closely.
The Irish presidency of the EU Council will mean Irish ministers chairing council meetings, and our very own agriculture minister will chair talks that will focus on the finalisation of the Multiannual Financial Framework (MFF) in the context of agriculture.
'We'll negotiate through this proposal line by line and we'll have a very significant role to play during our EU Presidency in the second half of next year,' said agricultural minister, Martin Heydon, in a recent press release regarding the formation of a CAP consultation committee.
The last Irish presidency occurred in 2013, which oversaw the agreement of the MFF of the time.
Agreements were also reached on the seventh Environmental Action Programme and the reform of the Common Agricultural Policy.
Mr Heydon opened the first meeting of the CAP Consultation Committee, made up of key stakeholders, on July 17, to discuss the prospective CAP and EU Budget post-2027.
CAP consultation committee
The committee contains representatives from:
Department of Agriculture, Food & the Marine, the Department of Housing, Local Government and Heritage (including NPWS), the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, the Department of Climate, Energy and the Environment, the Department of Rural and Community Development and the Gaeltacht;
The Agricultural Consultants Association, An Taisce, Bord Bia, the County and City Management Association, the Environmental Pillar, the EPA, Ibec;
Irish Cattle & Sheep Farmers Association (ICSA), Irish Co-operative Organisation Society (ICOS), Irish Creamery Milk Suppliers Association (ICMSA), Irish Farmers Association (IFA), Irish Grain Growers Association, Irish Natura & Hill Farmers Association, Irish Organic Association;
Irish Rural Link (also representing National Rural Network), Local Development Company Network, Macra na Feirme, National Biodiversity Data Centre, National CAP Network, academic members (UCD and UCC), Teagasc, and Women in Agriculture Stakeholder Group.
Mr Heydon said: 'The committee will play a crucial role in ensuring that the CAP reform process is transparent, inclusive, and responsive to the needs of various stakeholders within the agricultural and rural community.'
He concluded: 'The Commission proposals for new CAP structures in a new MFF architecture will require careful analysis.
This seems like a very big change, but in fact this announcement marks the starting point in a long negotiating process.
"I will continue to work very closely with Commissioner Hansen, the European Parliament, and my EU counterparts to ensure that the end result delivers the best possible outcome for Irish farmers and the rural communities in which they live.'
Following the committee's meeting, a spokesperson for the Department of Agriculture, Food and the Marine informed the Irish Examiner that: 'Committee members were briefed on the European Commission announcements, bearing in mind that the detailed CAP legislative proposals have not yet been published. Committee members gave their initial reactions to the announcements and outlined their priorities for the CAP negotiations.
Opening the meeting, Mr Heydon emphasised that the commission proposals are only the first step in a lengthy negotiation process. He emphasised that stakeholders on the committee will be essential partners in the process of working to secure a robust CAP that delivers for Ireland and for all member states.'