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Flat rate Single Farm Payment

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  • Registered Users Posts: 9,633 ✭✭✭Birdnuts


    Tipp Man wrote: »
    Biodigesters have been looked at in this country and have been found to be uneconomical

    I was referring to a bigger scale(co-op style) then what has been tried in this country - anyways thats for another tread.


    Anyways, I'm intrigued by what you said about you being a small farmer on the scale of UK and Germany. That is very true, but if people beleive this is the road we should go down then the following consequences will be unavoideable

    1) A very swift and sharp collapse in farmer numbers - way outstripping the last few decades

    2) The lobbying power of remaining farmers will go the same way as it already has in the UK

    3)Any Public goodwill towards farmers will undoubtly follow(again I cite the UK as an example)

    4) The consequences of 2 and 3 will put serious question marks against future SFP supports, especcially given the long era of austerity that lies ahead for most Western countries.

    5) An ever bigger cut for the middle-men at the expense of the farmers ie. processors, big multiples etc.

    6) Obvious negative consequences for a large number of other rural stake-holders if this was to comes about


    Be carefull what you wish for folks:(


  • Registered Users Posts: 1,476 ✭✭✭coolshannagh28


    Since the last review of CAP there will have been effectively a closed shop in farming where new entrants are not welcomed or supported ,the age profile of farmers has increased to the detriment of the sector .A fairer system biased towards current production will bring a wave of talent and capital into agriculture which is out there at present looking for investment opportunities .The commodity boom has made agriculture attractive to capital but the arcane subsidy systems will turn this away.


  • Registered Users Posts: 9,633 ✭✭✭Birdnuts


    Since the last review of CAP there will have been effectively a closed shop in farming where new entrants are not welcomed or supported ,the age profile of farmers has increased to the detriment of the sector .A fairer system biased towards current production will bring a wave of talent and capital into agriculture which is out there at present looking for investment opportunities .The commodity boom has made agriculture attractive to capital but the arcane subsidy systems will turn this away.

    Maybe - but commodity prices can be just as unstable as prevailing stock markets, so this needs to be taken into account when planning for the future on the basis of overall sustainablity in the rural economy.


  • Closed Accounts Posts: 4,237 ✭✭✭Username John


    Tipp Man wrote: »
    I also don't agree with your unfair assessment of the current system - it rewarded the efficent productive farmers and those who were inefficient and idle lost out. It was easy to get a good SFP if you were anyway decent farming. Being a good farmer won't be rewarded in this new structure I am almost certain

    I agree with you to an extent in that the SFP rewarded efficient farmers - but surely the system does become unfair after a certain time?

    As for your example of a 100 acre beef farmer, I dont know the figures for SFP or what people would have historically. But it would seem that a coupled system of land & production based would seem to be fairest?

    But like I said - I am a new (part time) entrant, so I am biased in that I would like some sort of overhaul.


  • Registered Users Posts: 9,633 ✭✭✭Birdnuts


    But it would seem that a coupled system of land & production based would seem to be fairest?

    .

    I see where your coming from UJ but given the expansion of the EU East and mounting funding pressure across all budgets, this simply is not going to happen.


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  • Registered Users Posts: 1,656 ✭✭✭Western Pomise


    A lot of people seem to be advocating going into forestry option.....it has one big drawback....any land put into forestry CAN NEVER be returned to any other agri use again.So after the first crop of trees are taken off in circa 15 yrs time....ya gotta go planting again.


  • Registered Users Posts: 609 ✭✭✭flatout11


    look the idea of diverting money to alternitave enterprises to help devolop sustainable rural communities sounds great for policy makers, makes a nice article in the journal or item on ear to the ground but in reality how many farmers can this really apply to ..... less than 1% i suspect!!!!!!
    if we want to keep a rural enterprise alive in ireland then gear the payments towards it and instead of diverting it towards 'alternatives' put incentives in place for profitable farming, young farmers or for developing farming partnerships so as we will have a agri industry in 10 to 20 years


  • Closed Accounts Posts: 2,489 ✭✭✭sh1tstirrer


    Birdnuts wrote: »
    Your a brave man to be calling what things will be like in 2021 given the world we live in now :eek:;)
    What I was referring to is an index linked payment and inflation ;) I never mentioned what things will be like in 2021 :rolleyes:


  • Registered Users Posts: 177 ✭✭pat73


    I have been following this thread with interest and i thought it was time i put in my opinion.As a part time farmer with an out side job which is only now 3 days a week.As for my farming interests i got a fairly good SBF for the amount of land i have, but like alot of people it was hard not to use it to cover bills on the farm so nothing in the bank from SBP.The flaw in the system was it never allowed the new farmer to build up a SBP unless he bought his way into it.As for making money out of beef ,I consider it a saving scheme as u will make nothing out of it.The old historical way rewarded farmers for producing beef and penalized the farmers who didnt go that route,fair if u were on the producing side but not so nice if u were on the other side.Where i work there is a number of lads part time farmers and when the historical years were decided for the SBF i used to have alot of beef cattle and trying to manage both jobs was hard to say the least.The other lads did very little on the farm but when the SBP came out they thought it was very unfair.Now the new system if it is the way the journal is talking these lads where i work will now get the same payments as i do for doing nothing.Its the same as the two farmers with 200 hundred acres of land.One with all his up around mountains and not able to do anything with it and the other farmer on good working land working day and night on his.Both will get the same payments on the new system.If farmers are to make a living out of beef it will mean the price of meat in the shops will have to double in price or the fat cats will have to lower their profits,and none of those two things will happen.As for trying some thing else with the land.It will work for a few farmers but thats because a few are only trying some thing else.All try something else and we prob would flood the country with the same thing.Sorry for it being abit long but trying to fit all my points in one go.


  • Registered Users Posts: 9,633 ✭✭✭Birdnuts


    What I was referring to is an index linked payment and inflation ;) I never mentioned what things will be like in 2021 :rolleyes:


    Well at least have a shot at what currency it might be in!!:D;)


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  • Closed Accounts Posts: 5,550 ✭✭✭Min


    Tipp Man wrote: »
    Lets look at a simple example of a small to medium farmer

    A beef farmer (no other enterprise) on 100 acres (40 hectare) would easily have a SFP in the 25-30k range under the current arrangement, and it could easily be more.

    Under the current proposals he will get 70 per hectare so that will be 70 times 40 which will give him a new payment of 2,800, yes that's 10% roughly of what he is currently getting.

    Lets say the "greening measures" are another 70 a hectare which would make them 50% of the total payment which is probably as high as that will get

    Thats another 2,800 so in total this 100 acre beef farmer is getting about 5.5k instead of 25-30k. So he will receive about 20% of what he was receiving.

    Now considering the actual profits to be made from beef are slim this farmer is well and truely up the creek and will probably not be able to make a living from his 100 acre farm

    And people think that this reform might be a good thing??:confused::confused::confused:

    The IFJ says "basic payment could be as low as €70 per hectare but would increase as we head towards 2019".

    The topup payment would reduce though as all land becomes paid the same amount.


    The farmer in your example would also be getting near 30% of what he is currently getting so that would be another €7.5k to €9k. He or she would be receiving €13k to €14.5k
    The greening measure is in the propposal upto €81 per hectare. Having permanent grassland is apparently a green measure...

    I think a big problem on farms is some have their costs too high


  • Registered Users Posts: 1,476 ✭✭✭coolshannagh28


    I farm 50 hectares with no single payment and have done so since I missed the reference years as a late starter ,there are thousands of other farmers in a similar position ,this is utterly unfair.
    There will have been 10 years by 2014 where farming was not an option for new business in this country ,think of the damage this has done.
    The current system of historical payments is ludicrous,the Comissioner in his wisdom has spotted this ,coming from,a disadvantaged state and his proposals seem a fair way to put it right . I cannot emphasise how attractive agriculture would be to a huge number of people if it was percieved as a level playing field.


  • Closed Accounts Posts: 4,438 ✭✭✭5live


    A lot of people seem to be advocating going into forestry option.....it has one big drawback....any land put into forestry CAN NEVER be returned to any other agri use again.So after the first crop of trees are taken off in circa 15 yrs time....ya gotta go planting again.
    I may be wrong on this WP but i think that clause was removed a year or two back. I think any planting now can revert back to farmland again once the crop is harvested:)


  • Registered Users Posts: 1,656 ✭✭✭Western Pomise


    Immaterial to me but hope you are right....its a sin to see good land planted.


  • Registered Users Posts: 2,343 ✭✭✭JohnBoy


    Tipp Man the current system doesnt reward efficient farmers.

    It rewards farmers who were in receipt of a lot of payments ten years ago.

    It does little to support new entrants, or indeed those that chose to change their system.

    Also if you reread the article in the journal it does say that part of the payment in 2014 will be this flat rate + greening, but there will be a topup to that figure based on the existing historical payment. Over time the historical element will decrease and the flat rate (€70 bit) will increase.




    I dont have a major opinion as to whether it will be the cause of the death of irish beef production, or whether it's the commodity price we receive for producing a premium product.


  • Registered Users Posts: 1,013 ✭✭✭Curious Geroge


    Indo has a take on this also. Taking from ICSA national president Gabriel Gilmartin "He added that the key problem was that the average payment per eligible hectare for Ireland, which is €270/ha, was too low for the vast bulk of committed and active farmers who typically depended on current payments in the order of €360-€600"

    http://www.independent.ie/farming/news-features/cioloss-cap-vision-begins-to-take-hold-2874163.html


  • Registered Users Posts: 91 ✭✭Joe the Plumber


    I look like some mug as I started farming in 04 aged 40 and missed out on entitlements , didnt qualify for national reserve ,and will have to wait until 2020 to get a single payment, Crazy !


    Why dont you buy some entitlements? they are probably the best investment in farming at the moment.

    It is better than getting them from the NR as you can buy high value ones.

    It would be wise to have entitlements on your land with the new system coming and a possibility that some of the new payment being based on existing entitlements.


  • Registered Users Posts: 70 ✭✭eddiek


    will a person who inherits a farm with entitlements, herd number the lot next year 2012 lose them post 2013 because they were not in his name this year 2011? i ask because in the cap proposals they say a person has to claim this year to be able to claim in 2014 . it would seem a bit un-fair on eg. father passing on farm to child . thanks for any replies on long winded question!


  • Registered Users Posts: 2,343 ✭✭✭JohnBoy


    it's likely there will be provisions for succession


  • Registered Users Posts: 284 ✭✭Wendell Gee


    Lads, one thing you all need to realise is that none of the information the Journal is carrying is spin. The opinion is just that, but the facts are utterly verifiable. There has been a lot of confusion in this thread, so for the purposes of clarification
    The national envelope is secure under the current proposals. This is because firstly the CAP budget is to be maintained (although inflationis constantly eroding it's value in real terms. Secondly, the average payments/ha of eligible land is the yardstick brussles is using, and Ireland's average of €270/ha is bang on the EU average.

    The current system sees all our envelope for direct payments used for the SPS or SFP (Single Payment System, the official term now for what we still call the Single Farm Payment). Under the proposals, to take effect in 2014 if agreement is reached in time, the fund, and each farmers payment, will be split into four elements, or perhaps five.

    1 The basic payment. 30% of the national envelope will be allocated to this, giving €70/ha for every eligible ha in the country. At present, there are around 400,000ha of eligible land more than there are active entitlements.

    2 Greening. 30% of the fund will be devoted to this. It's envisaged that most Irish farmers will qualify, so you lose 30% of your payment, and get 30% of the average payment- another €70.

    3 Historical payment The balance of the funds will be paid based on your historical payment. This will not be 40%, as there are another couple of elements that will be incorporated (see below) and which will be taken out of the pot before this fund is determined. The Commission would like to phase out this element by 2020

    4 New entrant top-up. The Commissin want to set aside a significant fund to be allocated to young farmers by means of a 25% top-up in their first five years of farming. Assuming very little "old" entitlements, this is +25% of €140/ha, 35/ha for five years. To put this in context, if a new farmer has 100 acres, or 40ha, they would get 40 (ha) x 35 (€) x 5 (years) = €7,000. The old installation aid was worth more than this. I wouldn't be heading home for seven grand.

    5 There is a provision in the proposals for up to 10% of the national envelope to be set aside for recoupled payments, but only for promotion of sensitive products environmentally sensitive production systems, marketing and farmer producer groups. The SCWS and the ewe maintenance payment may well be templates for the kind of scheme that would emerge under this.

    The problem here is that it all gets very bitty. The current system is flawed, but at least you get a hit of money into your bank account in two payments. The dribble of various schemes, the various cross-compliance issues all of them could throw up, it could be a bloody nightmare.
    These are only proposals, but the Fischler proposals were only proposals, and emerged from all the negotiations largely intact. Do not underestimate the Commission's ability to play 27 member staes and the Parliament off against one another. Everyone is opposed to the Ciolos reforms, but for different reasons. The lack of a coherent set of counter proposlas will see this set from the basis off all the negotiations.

    I am close to all this, and I can tell you two things. Firstly, listen closely to the MEP's, particularly Liam Aylward and Mairead McGuinness. They understand the dynamic of all this, and are key in the EU parliament's ag committee. Jim Nicholson is the longest serving member of that committee, and is shrewd and worth listening to. Secondly, the farmers Journal know their stuff. There was a lot of disbelief of what was in that paper in the summer, expressed well here on this forum. It was based on the leaked documents coming out of Brussels, and has been proven to be accurate.


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  • Registered Users Posts: 70 ✭✭eddiek


    hi wendell, just wondering would you agree with johnboy re my above question?


  • Closed Accounts Posts: 4,438 ✭✭✭5live


    eddiek wrote: »
    will a person who inherits a farm with entitlements, herd number the lot next year 2012 lose them post 2013 because they were not in his name this year 2011? i ask because in the cap proposals they say a person has to claim this year to be able to claim in 2014 . it would seem a bit un-fair on eg. father passing on farm to child . thanks for any replies on long winded question!
    Dont worry, i'd say eddiek. The body of the enterprise in 2011 will be the same body drawing it down in 2014. If there was no provision for transfers then hundreds of thousands of farmers across the EU would be in trouble and thats not going to happen. The entitlement to draw is not so much on the farmer but on the enterprise so that entitlement will transfer along with the land and stock. But it will be clarified as the talks progress


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