'Hard to see how farmers can do all with less CAP funding'

Confirmation of a €5 billion Brexit fund which will be targeted at areas particularly impacted by Brexit welcomed

Following this morning's agreement on EU funding, the head of the ICSA says it is “necessary” to provide economic certainty but “very hard” to see how farmers can “do all they are being asked” in the context of significantly reduced CAP funding.

“The whole process has been complicated immeasurably by the Covid crisis,” commented ICSA president Edmond Phelan.

The Next Generation EU (NGEU) fund of €750 billion, of which €390 billion is grant aid, he believes is vital to underpinning EU economic recovery. However, he states the farming sector is “not getting a fair share” particularly with the last minute halving of the recovery support for the rural development budget which was meant to be €15 billion and is now coming in at €7.5 billion.

He did however welcome confirmation of a €5 billion Brexit fund which will be targeted at areas particularly impacted by Brexit.

“It is essential that the Irish government fights tooth and nail to get a substantial allocation from this given that Irish agriculture is directly in the firing line from Brexit,” said Mr Phelan. “ICSA is disappointed that the overall EU budget of €1,074 billion for the period 2021-27 is well down on the initial EU Commission proposals in 2018 for a budget of €1,135 billion. Even that figure was a significant cut on the previous budget.

“The consequence now is that CAP funding will average just under €51 billion per annum in constant 2018 prices (or a total of just over €356 billion for the seven years) compared with a 2021 budget of €55.2 billion. It is inconceivable how farmers are expected to provide so many additional public goods in terms of climate and biodiversity on an ever decreasing funding regime. EU leaders have talked the talk on a Green Deal and the Farm to Fork strategy, but they have not walked the walk on funding it.”