cap post 2013.ppt

• Peter Young, Irish Farmers Journal

• Eimear Ní Bhroin, European Commission

• Denis Naughten TD

CAP post 2014A Local, National & European

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ChairpersonCllr. Dominic Connolly


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IntroductionCllr. Laurence Fallon


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Peter YoungIrish Farmers Journal


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Eimear Ní BhroinEuropean Commission


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Denis Naughten TD

CAP post 2014A local perspective

Putting People First Denis Naughten TD

Denis Naughten TD

Welcome



Impact of CAP proposals

A local perspective



The CAP Budget reformRedistribution of CAP funds

Direct payment funds (pillar 1)-between Member States over period 2014-2020- within Member States

Redistribution of rural development funds (pillar 2)- allocations by Member State based on objective criteria

(All Member States may transfer up to 10% of pillar 1 national ceiling to pillar 2 –decision by 1/08/2013)



European Commission’s budget proposals

Proposed Total CAP Budget 2014 -2020 (at current prices)

Direct payments & markets €317.2bn (76%)Rural Development €101.2bn (24%) Total Pillar 1 & 2 €418.4bn (100%)



Redistribution of CAP funds between Member States

Direct payments - redistribution & convergence of funds (pillar 1)

Member States with direct payments below 90% of EU-27 average will be able to close 1/3 of the gap between their

current level and 90% of average payments



Convergence to flat rate system by 2019

- Abolish current entitlement system by 31st Dec 2013(new one on 1st Jan 2014)

- Member States with historic payments – 40% of basic payment must be flat-rate in 2014

-further 60% redistribution progressively to 2019



What does flat rating mean?

-Current national envelope €1.5bn-divide by no of Hectares = €270/ha

-less deductions = €230/ha(subject to 30% greening = €69/ha)

Estimated basic payment = €161/ha



Average SFP € /Ha by County1.Laois 386.822.Kilkenny 384.603.Carlow 378.494.Wexford 377.98

5.Meath 376.066.Louth 372.887.Tipperary 362.52

8.Monaghan 354.229.Cork 348.11

10.Offaly345.1411.Kildare 344.72

12.Waterford 342.4413.Westmeath 325.33

14.Dublin 323.2615.Longford 314.1716.Limerick 307.8117.Cavan 290.7918.Roscommon 281.9819.Wicklow 274.0820.Clare 255.0921.Galway 245.90

----average 230-----

22.Sligo 214.0023. Kerry 199.7924. Mayo 194.5025.Leitrim 193.8426.Donegal 192.88



Historic SFP Flat Rate SFP

Source Teagasc Source Teagasc



Flat rating by region?

-estimated proportion of national envelope in Connacht €222m

-divide by no of Hectares = €228.7/ha

-less deductions = €195/ha(subject to 30% greening = €58.5/ha)

Estimated basic payment = €136.5/ha



Average SFP € /Ha by Connacht County

1.Roscommon 281.982.Galway 245.903.Sligo 214.00

-----average €195-----

4. Mayo 194.505.Leitrim 193.84

Historic SFPSource Teagasc

Flat Rate SFPSource Teagasc



Capping of direct payments- Only active farmers to be eligible for direct payments.

- Main definition proposed: ineligible if direct payments less than 5% of total non-agricultural receipts

(does not apply if direct payments less than €5000 in previous year)

-Degressive payment above €150k; max. payment €300k - Greening payments and declared salaries (including taxes & social security linked to employment) deducted before capping

-Funds accruing from capping added to Rural Development funds in the Member State



Greening



Greening-crop diversification – min. 3 crops on arable land;

each crop must be between 5 – 70% of area -permanent grassland – maintain at least 95% of

hectares in 2014. -ecological focus areas – no production on 7% of all eligible hectares except permanent grassland. Can

include existing areas. All farmers receiving basic payment must respect greening requirements



Small farmer scheme-All farmers eligible; minimum payment €500/ max.

€1000.Average payment in Co. Roscommon €6k & Co. Leitrim €4k

-Exempt from cross compliance penalties, greening & financial discipline

-Not eligible for additional payments (greening, young farmers, natural constraints, coupled support)

max. 10% of direct payments national ceiling



Young farmers scheme

- For farmers under 40 setting-up for max. 5 years

- This is in addition to setting-up grant under Rural Development

11% Roscommon & 13% Leitrim Farmers U35 (CSO, 2000)



Young farmers scheme

- 25% top-up to basic hectare payment for up to 5 years with max. n° hectares

- up to 89 ha depending on Member State average size

- max. 2% of direct payments national ceiling



Key prioritiesRetain CAP Budget

Maximum flexibility on implementation


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Q&A


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What you can do, now !


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Roscommon Initiative:Over Christmas, get your family to

Contact their local MEP & MP throughout Europe


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Thank You

cap post 2013.ppt

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