The greatest impact on the agriculture sector from the structural funding changes will be in the area of headage payments to farmers for their cattle.
This year, farmers received £110 million in headage payments, 50 per cent of which came from structural funds and the rest from the Exchequer.
These headage payments are made to farmers who live in Disadvantaged Areas, which cover 75 per cent of the State, and are very important for smaller operators.
Further payments come directly to farmers from structural funds for the control of farmyard pollution, the dairy hygiene scheme and installation aid for young farmers. These made up about £50 million.
Next year, because of changes in the Common Agricultural Policy, headage payments will be replaced by payments made to farmers on the acres they own rather than the number of cattle.
This is being done to ensure that in world trade talks it can be argued that the support for farmers is being made not on a production basis but on a social basis.
Because the 13 counties of the Border, midlands and western region are to retain Objective 1 status, they will continue to attract the highest levels of grants for industry and for some agricultural schemes like the Rural Environment Protection Scheme (REPS), early retirement scheme and forestry scheme.
Currently, £170 million is being paid out annually to 40,000 farmers in the REPS and £70 million is being paid on each of the other two schemes. The EU pays 75 per cent and the State 25 per cent.
However, the Irish taxpayer will have to contribute more towards the cost of these schemes when the participants are not in the Border, midlands and western areas.
According to Mr Con Lucey, the Irish Farmers' Association chief economist, we may be looking at a two-tiered system of agriculture if the taxpayer decides not to contribute.
"This is a real issue which is coming down the tracks, as will be the whole area of how much the EU will allow in capital grants to industry. "You may see a situation where towns like Portlaoise and Drogheda, because they are in Objective 1 areas, will attract most of the new industries but it is unlikely that industrialists will want to invest away from the eastern fringes of the Objective 1 areas."
Where industry is located in the State is going to become increasingly important for a farming community which will have to seek off-farm income for survival. More and more farm families need off-farm income and that can only come if there is industry available locally.
The changes which are coming will impact heavily on the agricultural sector and over the next five years the contribution of the Irish taxpayer to the Irish farmer looks set to increase.
This, in turn, must lead to new urban/rural strains.