With the current CAP proposals detailing requirements for a minimum 85% convergence, an eco-scheme of 25% and a front loading of payments the Irish Natura & Hill Farmers Association (INHFA) have called on the Department (DAFM) to carry out a new modelling exercise that reflects this.

The INHFA had taken issue with previous modelling done by the DAFM last May that didn’t include any proposal for front loaded payments, and was misleading as it didn't include payments under the eco-scheme in their final sum-up.

In commenting on the previous modelling exercise conducted by the DAFM INHFA President Colm O’Donnell stated “how in addition to not modelling for the front-loading of payments it also failed to factor in what the capping of payments could deliver in terms of redistribution.”

This is O'Donnell continued “a clear requirement for a front-loaded payment under the Complementary Redistributive Income Support for Sustainability (CRISS) with a proposed budget of at least 10% of Members States Direct Payments.”

On this basis it is he maintained “vital that the DAFM factor in a front-loaded payment option (CRISS) in a new remodeling exercise that reflects the possibilities this payment option has for farmers on ten, twenty and thirty hectares.”In addition to remodeling for the CRISS the INHFA President stressed the need for a modelling exercise on the capping of Pillar 1 payments. This should he stated “clarify what money can be made available for redistribution through the CRISS if we cap payments at €60,000, €80,000 or €100,000.”

O’Donnell concluded by stating how “the DAFM are best placed to calculate on all the options available under this new CAP deal as they have the necessary information and resources to conduct these calculations. Once completed we will all be in a position to fully appreciate the many possibilities of this CAP deal.”

The Irish Natura and Hill Farmers Association (INHFA) has formally written to the Minister for Agriculture, Food and the Marine (DAFM) Charlie McConalogue calling for him to restart the Internal Convergence mechanism for the remainder of the CAP Transition Regulation period.

The INHFA President Colm O’Donnell reminded the Minister that he had given a commitment to look at releasing the pause button on convergence for 2022 and that he would be engaging widely with farmers in making his decision.
The farm leader pointed out to the Minister that Member States must inform the EU Commission on an annual basis of its intentions regarding any changes to direct payment entitlement values during the Transition period and the deadline date is fast approaching.

"The reason given by the Minister", stated O’Donnell, "to pause the Internal Convergence process for 2021 was because the budget and the legal framework for the Transition period was only agreed in late November 2020. This meant that the August 2020 deadline had expired for informing the EU Commission of any changes to entitlement values for the 2021 calendar year".

Concluding, he said "that the Minister must use the flexibility in the Transition Regulation to begin the long road towards a fairer distribution of direct payments to all farmers, something that the majority of Irish farmers have been denied for twenty years and which now must be addressed by our Minister.

The Irish Natura and Hill Farmers Association (INHFA) has called for the capping of Pillar 1 direct payments to be set at a maximum level of 60,000 euros for all beneficiaries with no allowances for labour cost reductions.

The INHFA President Colm O’Donnell was speaking after a specially convened National Council meeting called to analyse the EU compromise package agreed in Brussels last week. "The Minister now has the flexibility to set the upper limit received by applicants at 60,000 euros with 85% degressivity on payments above 60k up to the maximum cut off level of €100,000".

"It is not credible" he continued "to have a situation whereby beneficiaries can offset labour production unit costs before applying a capping to these huge amounts of money and Minister Mc Conologue must ensure that this cannot happen".

The farm leader continued by stating" that this cohort of commercially viable farmers took to the streets of rural Ireland in recent weeks in a last ditch effort to preserve the status quo and seek to deny the vast majority of Irish farmers from long overdue justice ".

Concluding, O'Donnell outlined" that 73,000 Irish family farmers have waited for over twenty years for a level playing field to be created by our legislators to finally put an end to the grossly unfair historical payment system. This outdated system is no longer justifiable. The Minister now has the necessary tools to deliver for the majority through 100% convergence.

He can achieve this through the
• Use of the redistribution mechanism
• Front loading of payments
• Capping the upper level at 60k with no allowances.

All farmers pay their taxes and support their local towns and businesses and there must not be a two tier cohort that gets preferential treatment from our Government.

Following the announcement of a CAP deal in Brussels last Friday that ensures a minimum convergence rate of 85%, President of the Irish Natura & Hill Farmers Association (INHFA) Colm O’Donnell has reiterated the call for the full flattening of payments through 100% convergence.

Speaking on this O’Donnell stated, “that it is now time for the Minister to bite the bullet and get convergence done.”
The major disparity in Pillar 1 payments has he added: “undermined farmer solidarity, created miss-trust amongst farmers which has weakened our lobbying power and undermining the industry.” Full convergence will he maintained “help support all farmers and prove that support through the CAP is not just for large commercial operations.”

In addition to this, it will he stressed “recognise the changing dynamic in the CAP process. A dynamic that pays farmers based on conditions under the GAEC’s and not from what was produced twenty years ago.” With these conditions the same for all farmers then it is he added: “entirely reasonable that the payment rate per hectare is also the same.”

When assessing the impact of 100% convergence the INHFA leader outlined how this will deliver for 73,000 farmers or sixty percent of those in receipt of CAP payments.

This he stressed “will provide invaluable support to many of our smaller family farm units that the CAP is designed to protect. In doing this we will also support local business and the local community.”

In addressing the concerns of smaller farm units on higher payments O’Donnell pointed to proposals in the CAP deal for a front-loaded option under the Complementary Redistributive Income Support for Sustainability (CRISS), which the INHFA supports. This will he stated, “allow Member States to redirect payments from those in receipt of very high CAP payments (for example €60,000 or above) to farmers such as these, by making additional payments to all farmers on the first number of hectares.”

Additional funding for the CRISS will he added “be sourced through a linear cut to Pillar 1 payments and the deal agreed on Friday provides for this with a 10% mandatory requirement.”

Concluding O’Donnell called on the Minister “to act in the best interest of Irish farmers and ensure full convergence is done through this CAP Programme.”

Speaking from Brussels Colm O’Donnell President of the Irish Natura & Hill Farmers Association stated “how a final CAP deal is very close that will see broad agreement on the major items. This could be achieved as early as this evening (Friday, June 25) which will allow for a final agreement to be signed off on in Luxemburg early next week.”

O’Donnell added “how the INHFA delegation have engaged in formal and informal meetings with a number of our MEP’s and EU staff with all indications from them being that a deal is imminent.”

The deal will he continued “include details on a minimum convergence level of 85% that each Member State must reach, a requirement for front-loading of payments under the Complementary Redistributive Income Support for Sustainability, (CRISS) and an eco-scheme set at 25% with the possibility of 20% for the first two years to facilitate a learning period.”

In outlining the INHFA ambition for this CAP Reform the INHFA leader “stressed the need to protect the family farm model and ensure that those who choose to farm are supported fairly in doing this. Ongoing convergence of Pillar 1 payments with additional support through the CRISS are the vehicles to deliver on this.

On the eco-scheme, O’Donnell maintained “that this must be available to all farmers with an equal uniform level of payments per hectare.”

On the issue of maximum payments under Pillar 1 The Farm President was very clear in the requirement to reduce the maximum payment down to €60,000 with no allowance for Labour Units.

The whole point of a redistribution of payments is he stated “to support as many farmers as possible and this is why we have a major issue with allowances for Labour Units as this provides additional support for very large commercial units and feedlots to the determinant of our family farm.

Concluding O’Donnell stated “how the final CAP deal will we expect provide for further redistribution in Pillar 1 payments that supports the vast majority of Irish farmers.”