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EU proposes major cut to farm subsidies
EU proposes major cut to farm subsidies

Irish Independent

time16-07-2025

  • Business
  • Irish Independent

EU proposes major cut to farm subsidies

Under the new proposal, CAP funding would fall to €300 billion for the next seven-year period, compared to €387 billion allocated for 2021–2027. When adjusted to real prices, this amounts to an estimated 30% reduction in funding. The CAP will also no longer be a standalone fund. Instead, it will be merged into a single mega-fund alongside cohesion and rural development spending, to be managed at the national level through new National and Regional Partnership Plans. It comes as a draft proposal on the next CAP leaked in recent days also outlines a controversial shake-up of how direct farm payments are distributed, including new caps on large payouts. Under the Commission's blueprint, income support would be capped at €100,000 per year per farmer. Tiered reductions would apply to larger recipients: payments above €20,000 would face a 25% cut, those above €50,000 a 50% cut, and anything over €75,000 would be cut by 75%. The goal is to reallocate support towards smaller farms. Previous efforts to impose caps on farm subsidies have been blocked by member states concerned about their larger farming operations. The proposals are likely to spark resistance from Europe's powerful farming lobby. The influential COPA-COGECA group, of which the Irish Farmers' Association (IFA) is a member, has strongly opposed the merging of CAP's two-pillar structure and warned against the redistribution of direct payments. Ireland, a net contributor to the EU budget since 2013, receives the bulk of its EU receipts through CAP. Under the current CAP Strategic Plan (2023–2027), Ireland receives nearly €2 billion annually to support its farming and agri-food sectors. Minister for Agriculture Martin Heydon recently warned of the economic risks posed by CAP cuts. 'As a country that is now a net contributor to the overall EU budget, there are many things we pay into that we don't get a direct return from,' he said. 'Of the receipts the Exchequer gets back from what we pay into Europe, 75pc comes through the CAP. If CAP is reduced, that hits the overall economy in terms of how much of that return we see.' In 2023, Ireland contributed €3.6 billion to the EU budget. That figure is forecast to rise to almost €4.5 billion by 2027. However, speaking today Minister Heydon said today's publication is just the beginning of a 'protracted process'. ADVERTISEMENT Learn more "Member States will, through the Council of Ministers, begin the process of agreeing a general approach to the Commission's proposals, before engaging in line by line negotiations with the EU Parliament and the EU Commission. "This will take some time, and I fully expect the progression of these proposals to be a significant feature of Ireland's Presidency of the EU Council in the second half of next year.' Broader overhaul of EU spending The CAP reform is part of a wider redesign of the EU's long-term budget. The Commission today unveiled a draft Multiannual Financial Framework (MFF) for 2028–2034 worth nearly €2 trillion — equivalent to 1.26% of the EU's gross national income. President Ursula von der Leyen said the revamped budget would help the EU 'shape its own destiny' in an era of global uncertainty. 'Our new long-term budget will help protect European citizens, strengthen Europe's social model and make our European industry thrive,' she said. 'In a time of geopolitical instability, the budget will allow Europe to shape its own destiny, in line with its vision and ideals.' The Commission stressed that new demands on the EU budget — including defence, migration, energy resilience and industrial competitiveness — require a fundamental overhaul. 'Europe faces an increasing number of challenges... These are not temporary but reflect systemic geopolitical and economic shifts,' the Commission said. One pressing concern is the EU's mounting debt, with repayments of €25–30 billion per year due to begin in 2028. To fund new priorities and ease the burden on national budgets, the Commission proposed five new 'own resources,' including levies on emissions, e-waste, tobacco, and large corporate revenues. Combined, these are expected to raise €58.5 billion per year. Next steps The Commission's draft budget must be agreed unanimously by member states, following approval from the European Parliament. Several proposals, including new revenue streams, require ratification by national parliaments.

One in three Wicklow farmers still waiting on ACRES payments
One in three Wicklow farmers still waiting on ACRES payments

Irish Independent

time27-06-2025

  • Business
  • Irish Independent

One in three Wicklow farmers still waiting on ACRES payments

ACRES is Ireland's agri-environment climate scheme under Ireland's CAP Strategic Plan. This €1.5 billion flagship agri-environment scheme is a farmer-friendly scheme to help address biodiversity decline while delivering an income support for farm families in Ireland. Deputy Whitmore, the Social Democrats spokesperson on agriculture, said: 'According to the latest figures, 62 farmers in Wicklow have yet to receive their advance payment, and 191 are still waiting on any payments. That's nearly one in three participants left in limbo. 'These payments are vital for farmers who are actively working to improve biodiversity and environmental outcomes on their land. Many have already invested time and money into these measures, and the department's failure to deliver payments on time is completely unacceptable. 'Farmers need certainty. If the government wants to encourage participation in schemes like ACRES, it must ensure that payments are made promptly and fairly. Delays like this undermine trust and place unnecessary financial pressure on farming families. I am calling on the Minister for Agriculture to urgently address the backlog and ensure that all outstanding payments are processed without further delay.' At a meeting of the Select Committee on Agriculture and Food held last week, Agriculture Minister Martin Heydon acknowledged the significant payment delays experienced with ACRES. More than €500 million has been paid out to Irish farmers since 2023 through ACRES, but a 'dark cloud hangs over it because not every farmer was paid', the minister said, though he expected 'considerable progress' to take place over coming weeks to drive the number of outstanding payments down further.

Farm investment boom puts squeeze on TAMS fund
Farm investment boom puts squeeze on TAMS fund

Irish Independent

time10-06-2025

  • Business
  • Irish Independent

Farm investment boom puts squeeze on TAMS fund

Future applications may be subject to ranking in order stay within budget Today at 21:30 Farmers are being warned that future applications for TAMS grants may face tougher rules, as the Department scrambles to keep the scheme within budget. Agriculture Minister Martin Heydon has confirmed that applications under the next tranche of TAMS may be subject to ranking and selection criteria for the first time due to 'prudent budget management'. Over 42,000 applications have flooded in under the scheme since February 2023, with nearly 12,000 of those submitted in just the last three tranches, which closed between March and early June. The surge comes off the back of strong beef and dairy prices, which have given many farmers the confidence to invest in sheds, safety equipment and renewables. Extra demand also followed emergency supports introduced after Storm Éowyn. The total TAMS budget under the current CAP is €370m, set to run until 2027. But with €70.5m already paid out to just 8,000 farmers, should the remaining 34,000 applicants invest in similarly sized projects, it could cost a further €300m if all are approved, nearly wiping out the scheme's budget with over two years still to go. In a statement last weekend, Mr Heydon hailed the success of the scheme and said around €2m in payments are issuing to farmers on a weekly basis. However, he warned TAMS is a demand-led scheme with a defined budgetary allocation. 'Given that we are now just halfway through the current CAP Strategic Plan (CSP), it is prudent that we are mindful of the budget available for the remaining TAMS tranches. 'In order to ensure that the available budget is distributed fairly over the remainder of the CSP, it may be necessary to limit the number of approved applications per tranche going forward by applying ranking and selection criteria, including for the upcoming Tranche 9, which opened on June 7 and will close on September 6,' he said. Under TAMS, applications are ranked based on the age of the farmer, the size of their farm, previous grant aid payments, eligibility for ANC payments and their nitrates position. ADVERTISEMENT It is very disappointing to hear that the Government is signalling plans to restrict eligibility in future tranches of TAMS solar PV supports The minister's comments are already causing concern, particularly around the popular solar PV grant, which gives up to 60pc support for installing panels on farm buildings. Micro-Renewable Energy Federation chairman Kieran Kells criticised the Government for what he says is a backward step. 'It is very disappointing to hear that the Government is signalling plans to restrict eligibility in future tranches of TAMS solar PV supports,' Kells said. He went on to say that the current criteria – where farmers are scored on factors like BISS or ANC status – makes little sense when applied to energy-saving investments. 'What has a farmer's ANC payment got to do with whether or not he should qualify for a solar grant?' he said. 'If you've high energy bills and want to cut costs and carbon, you should be supported.'

All eligible TAMS applications approved but limits on next tranche
All eligible TAMS applications approved but limits on next tranche

Agriland

time07-06-2025

  • Business
  • Agriland

All eligible TAMS applications approved but limits on next tranche

Minister for Agriculture, Food and the Marine, Martin Heydon, today (Saturday, June 7) confirmed the approval of 100% of eligible applications received under Tranches 6, 7 and 8 of the Targeted Agricultural Modernisation Schemes (TAMS) 3 scheme. Tranche 6 closed to applications on March 7, 2025, with 4,931 applications received across the 11 schemes. Tranche 7, the emergency tranche, which was opened in response to Storm Éowyn, closed for applications on March 28, with 1,945 applications submitted in respect of the agreed emergency investments, namely: Back-up generators; Sheep, bovine and equine fencing; Wood/biomass chipper; Mulchers. Tranche 8 closed yesterday, Friday June 6, with approximately 5,000 applications received and the final number will be confirmed early next week. Tranche 9 of the scheme is now open. Minister Heydon commented: 'TAMS 3 has proven to be a very successful scheme, with approximately 42,000 applications received over the first seven tranches since February 2023, supporting farmers to build and/or improve a specified range of farm buildings and equipment on their holdings, while addressing issues such as generational renewal and farm safety. 'Over €70.5 million has issued to over 8,000 applicants, with payments of approximately €2 million continuing to issue on a weekly basis. 'However, TAMS is a demand-led scheme with a defined budgetary allocation. Given that we are now just halfway through the current CAP Strategic Plan (CSP), it is prudent that we are mindful of the budget available for the remaining TAMS tranches. 'In order to ensure that the available budget is distributed fairly over the remainder of the CSP, it may be necessary to limit the number of approved applications per tranche going forward by applying ranking and selection criteria, including for the upcoming Tranche 9, which opened on June 7 and will close on September 6,' the minister said. This will be kept under ongoing review for the remainder of the CSP. TAMS is jointly funded by the national exchequer and the European Agricultural Fund for Rural Development (EAFRD) of the European Union (EU) under Ireland's Rural Development Plan 2014-2022 and CAP Strategic Plan 2023-2027. Under the On-farm Capital Investment Scheme known as TAMS 3, there are 11 individual schemes. These are as follows: Animal Welfare, Nutrient Storage Scheme (AWNSS) at 40% grant rate, with a €90,000 investment ceiling; Tillage Capital Investment Scheme (TCIS) at 40% grant rate, with a €90,000 investment ceiling; Pig and Poultry Capital Investment Scheme (PPIS) at 40% grant rate, with a €500,000 investment ceiling; Dairy Equipment Scheme (DES) at 40% grant rate, with a €90,000 investment ceiling; Young Farmer Capital Investment Scheme (YFCIS) at 60% grant rate, with a €90,000 investment ceiling; Women Farmer Capital Investment Scheme (WFCIS) at 60% grant rate, with a €90,000 investment ceiling; Organic Farming Capital Investment Scheme (OCIS) at 60% grant rate, with a €90,000 investment ceiling; Farm Safety Capital Investment Scheme (FCIS) at 60% grant rate, with a €90,000 investment ceiling; Solar Capital Investment Scheme (SCIS) at 60% grant rate, with a €90,000 investment ceiling that is separate from other schemes; Low Emission Slurry Spreading Equipment Scheme (LESS) at 60% grant rate, with a €40,000 investment ceiling that is separate from other schemes; Nutrient Importation Storage Scheme (NISS) at 70% grant rate, with a €90,000 investment ceiling that is separate from other schemes.

Department publishes list of CAP beneficiaries for 2024
Department publishes list of CAP beneficiaries for 2024

Agriland

time26-05-2025

  • Business
  • Agriland

Department publishes list of CAP beneficiaries for 2024

The Department of Agriculture, Food and the Marine has published the annual list of who benefitted from payments under the Common Agricultural Policy (CAP) in the 2024 programme year. The department is required to publish the information before the end of May in each year following the year in question. The data, published today (Monday, May 26) outlines how much money was received by each beneficiary across all aspects of CAP across Pillar I and Pillar II. The beneficiaries can be legal persons, or an entity, such as a farm that operates with a business name. The data cover the CAP expenditure period of October 16, 2023 to October 15, 2024. Therefore, the publication today is the first such publication that covers an entire year of the current 2023-2027 CAP under Ireland's CAP Strategic Plan, as last year's publication (for 2023) included the last couple of months of 2022, which was part of a 'rolled-over' CAP programme that officially came to an end in 2020. For this reason, there are some differences in how funding is recorded under various measures. For example, in this year's publication, the Basic Income Support for Sustainability (BISS) is listed separately to direct payments. In last year's CAP beneficiaries publication, neither BISS, nor its predecessor the Basic Payment Scheme (BPS), were listed as separate items. Focusing at first on payments listed under the direct payments measure, the data shows the largest amount of direct payment funding for a single beneficiary was €181,541.42, for 'Reps' of Harry O'Farrell, of Co. Roscommon. This was followed by 'Reps' of Matthew & Alan Ward, of Co. Clare, with €136,829.19. The third highest recipient was 'Reps' of Deirdre Bourns, of Co. Galway, with €113,422.47. The top 10 recipients of direct payments for 2024 are outlined in the table below: Beneficiary County Amount Reps of Harry O'Farrell Roscommon €181,541.42 Reps of Matthew & Alan Ward Clare €136,829.19 Reps of Deirdre Bourns Galway €113,422.47 Reps of James Butler Kilkenny €102,542.88 Alan Carson Mayo €91,325.07 Reps of Michael J Towey Roscommon €89,956.50 Reps of James T Neale Carlow €88,237.81 Curraghdermot Farms Limited Cork €88,010.57 Reps of John & T O'Callaghan Cork €87,123.27 David & Aidan Fennin Kildare €74,766.84 Source: Department of Agriculture, Food and the Marine Turning to CAP payments listed under the BISS measure, the highest amount paid out was €120,255.98 to Tallon Farm, of Co. Meath. The next highest payment was to a recipient recorded as 'Ghillsdltd Tbrownaodonovan', of Co. Cork, which received €119,865.30. The third highest BISS payment went to Park Farms Partnership in Co. Carlow, which received €115,866.86. The top 10 beneficiaries of BISS for 2024 are outlined in the table below: Beneficiary County Amount Tallon Farm Meath €120,255.98 Ghillsdltd Tbrownaodonovan Cork €119,865.30 Park Farm Partnership Carlow €115,866.86 Gillstown Dairy Partnership Meath €114,564.30 Reps of K & M & B Byrne Kildare €113,589.14 Shanrahan Farms Tipperary €108,920.69 Darmody Brosfarm Partnership Tipperary €101,075.61 Tara Agri Offaly €95,941.59 Power Farm Partnership Kilkenny €92,654.80 Lisbeg Dairies Galway €92,572.89 Source: Department of Agriculture, Food and the Marine

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