The government has agreed an exchequer contribution of €2.30bn for the CAP Strategic Plan 2023-2027.
According to Minister for Agriculture, Food and the Marine, Charlie McConalogue, this brings the total funding for the plan to €9.8bn.
The funding over the seven years, 2021-2027, represents an increase of almost 30% or €1.2 billion, compared to the 2014-2020 period.
Minister McConalogue said: “The announcement today is a real commitment to our farm families. It will support our farmers in doing what they do best – produce top-class, world-famous food while helping them make a real impact in meeting our climate ambitions.
“Farm income and environmental sustainability are at the centre of everything I believe in. I know farmers will recognise the range of supports put in place.”
He announced national funding of €2.30bn for rural development interventions under the CAP Strategic Plan. When combined with EU funding, it will provide for a rural development package of some €3.86bn.
“This funding will place farmers in a very strong position to address climate and environmental challenges. It will also support the economic viability of the agriculture sector and rural communities while delivering significant public goods.”
“Agreement on the co-funding element for the Rural Development component of the CAP Strategic Plan is an important milestone in the plan’s development.”
“I intend to consult further with stakeholders, including through the CAP Consultative Committee tomorrow, on the indicative allocations for the individual measures that this funding now facilitates, and on which I am also providing further details today.”
The minister thanked his government colleagues for their support in honouring the Programme for Government commitment to allocating carbon tax funding to agriculture.
He said the government will meet its commitment to provide €1.5 billion in addition to CAP funding over the ten years to 2030.
The funding allocation includes €723m of carbon tax funding, which he views as a “significant first step” in this regard. He said it reflects the incremental nature of carbon tax revenues over the period to 2030.
The minister intends to allocate this funding to support sustainable farming practices through a flagship agri-environment climate measure.
“This funding is a substantial increase on the existing rural development programme. When you compare the last seven-year programme 2014-2020 with the next seven years 2021-2027, the funding is almost €1.2bn, or nearly 30%, higher. Even excluding the carbon tax funding element, there is an increase of €500m.”
On co-financing, the minister noted that the exchequer had increased the percentage contribution over the period from 47% in the current RDP to 50% in the CSP, with the contribution rising to 60% when the carbon tax funding is included.
Pillar I elements
On the Pillar I elements, the minister indicated his current thinking: “I am keen to provide more clarity on the overall package.”
“Therefore, I am proposing that 25% of funding will be set aside for eco-schemes, 10% for CRISS with the funding redistributed on the first 30ha of every farm.”
“I propose to continue internal convergence on an incremental basis over the period so that all entitlements reach a minimum level of 85% of the national entitlement value by 2026.”
“I am proposing to implement capping of direct payments at €66,000 by utilising the flexibility in the regulation where payments between €60,000 and €100,000 can be reduced by 85%, giving an effective cap of €66,000. “
“Regarding young farmers, I intend to allocate 3% of the value of the Pillar 1 budget for interventions for Young Farmers on an annual basis.”
“To address the deficit in protein, I propose to allocate €35m to the protein aid scheme over the period,” the minister concluded.
|Basic Income Support for Sustainability||3,667.4|
|Complementary income support for young farmers (CIS-YF)||177.9|
|Complementary redistributive income support for sustainability (CRISS)||590.1|
|Sectoral Intervention for the Apiculture sector||0.6|
|Sectoral Intervention in the Fruit and Vegetable Sector||39.0|
|Total Pillar 1||5,971.60|
|Areas of Natural Constraint (ANC)||1,250.0|
|Agri-environment climate measure (AECM)||1,500.0|
|Straw Incorporation Measure||50|
|On farm investments*||100.0|
|Suckler Carbon Efficiency Programme||260.0|
|Beef and Sheep Producer Organisations||1.5|
|Continuous Professional Development for Advisors||1.9|
|European Innovation Partnerships (EIPs)||36.1|
|Knowledge Transfer Groups||71.1|
|Dairy Beef Welfare Scheme||25.0|
|Sheep Improvement Scheme||100.0|
|Collaborative Farming Grant||2.0|
|Total Pillar 2||3,861.6|
|Total CSP 2023-2027||9,833.2|