Sir, – Your Editorial (August 18th) suggested farmers’ fears over the leaked Common Agricultural Policy (Cap) proposals are exaggerated. The IFA knows only too well that leaked EU proposals have a habit of becoming reality, if not challenged from the start. Our farming and the agri-food sector is growing and with the right policies can continue to contribute to Ireland’s economic recovery. The sector provides 14 per cent of total employment or up to 300,000 jobs. A recent UCD analysis shows every €100 in agricultural output produces an additional €73 of economic output, creating a total of €9.25 billion output value in the Irish economy.
The proposal contained in the recent EU Commission leaked paper on Cap 2013, involving the dismantling of the Single Farm Payment and the imposition of a flat rate payment, has caused serious concern in the industry. IFA’s initial assessment is that it could cause a fall-off in production of up to 30 per cent, particularly in livestock, sheep and tillage, with a much smaller impact in other sectors.
This would cut annual agricultural output by an estimated €711 million. Applying the agricultural output multiplier of 1.73, the output loss to the Irish economy would be €1.23 billion overall. It is no exaggeration to suggest that such an impact is unacceptable and would involve thousands of job losses across the country.
Your Editorial implies that IFA’s resistance to flat-rate payments has more to do with the EU Commission’s proposal to cap payments to larger farmers. This is incorrect. The Commission is targeting payments above €150,000, and with fewer than 50 such recipients in Ireland, capping is not an issue.
But flat rate payments would seriously damage productive agriculture. IFA makes no apology to anybody for doing our job and defending farmers, the agri-food sector and our vital national interest, which is at stake in these negotiations.
Farming is having a good year and contributing to strong export earnings, which the economy badly needs. A capital taxation environment that facilitates necessary restructuring is essential to remain competitive and allow the sector to reach the ambitious growth targets in Food Harvest 2020. – Yours, etc,