SFP Post 2013 = less cash for Ireland

BeeDI

From today's Indo!

The likely path of SFP is leaning towards less cash being on offer for Ireland



By John Shirley

Tuesday May 25 2010

Across Irish farming the wellbeing of the €1.3bn single farm payment (SFP) dwarfs all. A new regime will apply from 2013. Over the past decades we've had intervention/export refunds, lower prices and subsidies, and now we have the SFP. What's next, as Romanian Darion Ciolos now holds the Agriculture Commissioner portfolio?
The jousting to decide the shape of the CAP support from 2013 is already under way. In an ideal world farmers could expect that the support would be indexed for inflation, especially since the SFP has remained unchanged since 2005. In the real world the CAP budget is under threat. Some softening of farmers for cuts is already under way, but maybe the balance is tilting back towards the primary producer.
The latest position on the CAP was recently outlined to the Guild of Agricultural Journalists by Aidan O'Driscoll, the senior civil servant working on this topic. Nothing is yet decided but Mr O'Driscoll discussed the issues and the prospects.
Overriding all else, and before any divvy out is made, the overall EU budget, and the share allotted to agriculture, has to be secured. This time around -- and for the first time -- the renewal of farm support actually coincides with the renewal of the EU's seven-year budget, which is to run up to 2020. Currently, 40pc of the budget is allocated to CAP. A leaked draft EU document called for a reduction in the CAP budget but there are also forces backing the CAP. Last December in Paris, 22 member states, including Ireland, signed a document calling for a strong and adequately resourced CAP.
Also new this time around is that the EU Parliament will have co-decision on CAP. The effect of this is unknown but already they have engaged in the debate. A draft initiative from a member attracted 782 amendments and proposals. Lobbying of, and discussions with, the EU Parliament members is already under way, Mr O'Driscoll pointed out.
At one level, the debate is between funding farmers directly, as in SFP, or through environmental and rural development schemes. At another level the debate concerns the share-out across the 27 member states. On the latter, several payment models are under discussion.

<LI sizset="181" sizcache="50">Historical Model: This would continue the payments based on the 2000-2002 reference period. This is the approach favoured by the

IFA, but across the EU it only has the support of a couple of member states, said Aidan O'Driscoll. It has the merit of reflecting farm output. If this model is to be accepted, a more recent reference period would seem more appropriate. <LI sizset="182" sizcache="50">Flat Rate Payment: A flat rate land payment across the EU is favoured by the new member states in Eastern Europe. This would lead to a 20pc drop in the gross cash going to Ireland. It would also lead to the redistribution of money within Ireland. SFP would travel from the east to the west of Ireland and would transfer from cattle finishing and tillage to cattle rearing and sheep farms. Dairy farms would be least affected. Likelihood? Unlikely. <LI sizset="183" sizcache="50">Payment based on costs in member states: The cost of living varies widely across the EU and farm payments could reflect this, giving parity of buying power. Compared to an EU average of 100, the cost of living in Ireland is rated 135, while Hungary is 64 and Bulgaria 41. Likelihood? While the EU would favour objective criteria to apply an SFP share-out, Mr O'Driscoll reckons that the above ratios are unlikely.
[*]Grass-based payout: No detail given, but it should suit Ireland and environmentalists.
[*]A share out based on carbon usage: Details are sketchy but the concept is getting support.

A few years ago it was planned to remove all market supports, such as private storage aids and export refunds. The extreme volatility, especially in dairy and grain prices, has caused a re-think and food security is now an issue. Mr O'Driscoll sees market support measures being retained but it will be a fight to hold onto export refunds.
A Commission paper on CAP is expected later this year, with legal proposals expected in the middle of next year. The negotiations will then start in earnest, but the debate is already well under way.
Agriculture Minister Brendan Smith had invited CAP submissions from the public and, in total, 60 were submitted. He has now established a consultative committee on the CAP changes. We all need to be on our bikes.
- John Shirley
Irish Independent

Scofflaw

I raised the point earlier - you can have your own input to the CAP reforms:

The EU's Agricultural policy is set for reform by 2013. This does not just affect farmers or those who work in the food industry, it has implications for the environment, trade, food safety and indeed how rural areas are looked after. Everyone is concerned.

We would like to ask you a few questions that will help guide the European Commission in proposing future policy. So far over 600 submissions have been made across Europe, but only three of them are Irish (14/05/10).

The survey is only 4 questions long and takes less than 5 minutes to answer. You can check out some of the previous submissions if you want to get a flavour of what is being covered.

Remember your view is very important and this is just one opportunity to have input into one of the EU's most important policies. This part of the debate is open until the 3rd of June.

http://ec.europa.eu/agriculture/cap-...e/index_en.htm

There's a survey form here, open until June 3rd.

cordially,
Scofflaw

ravima

theres another Irish one now!