Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

I thank Professor Matthews for his presentation. I have crossed swords with him before regarding his views on the single payment, and it will be no different on this occasion. This is the biggest challenge in terms of direct payments that we have faced as a country since the introduction of the MacSharry reforms. I would like to make a number of observations. We talk about what benefit it has for the country, but European consumers are paying less and less as a percentage of their disposable income for the food they consume. That is a serious issue that we have as European farmers. The reality is, without the single farm payment, the vast majority of our farmers would not be able to survive. With regard to farmers on marginal land, the truth is that all farmers are under pressure. There has to be some recognition in this reform of farmers who are earning their income from full-time farming.

We have a significant number of farmers who can survive without an off-farm income, but those who are farming full time will have to be recognised this time around. One can introduce and operate caps, but if there is not some recognition of off-farm income, it will be extremely unfair. That is something that has been overlooked when we have talked about caps and targeting payments at different areas. The full-time farmer will have to be recognised more in this reform.

I would like to ask Professor Matthews a number of questions about his view of various aspects of the arguments that will be made in the next few months. The cornerstone is that it is an historic payment dating back to the period 2000 to 2002. Will it be able to survive this round of negotiations? Should it survive? A lot of people who have entered the industry engage in completely different farming practices. That is a fundamental point and it is where we are starting from.

There is an ongoing review of areas of natural constraint, ANC, payments and how the second pillar of the Common Agricultural Policy, CAP, is to be protected. Will it be protected and what percentage of the budget will be devoted to it? It is a hugely significant payment for this country. Virtually three quarters of our land is in areas of natural constraint. What impact will the review have?

I seek the professor's view on a matter related to the budget. Some 38% of the EU budget is devoted to agriculture in the form of the CAP. However, with the British decision to leave the European Union and a European Parliament that does not have a friendly disposition towards the CAP, what is the professor's realistic expectation of the percentage that will be spent on the CAP following the review? Considering the external convergence from eastern European and the internal convergence at home, will there be virtual parity per hectare when the negotiations are concluded in 2020? What will be the economic consequences for the country?

I would like the professor to expand a little more on a point that was made in an earlier contribution. He criticised the changes made by the United States of America in eliminating farm payments, but he believes what has been introduced will not work in the medium to long term. As what happens in the United States has a habit of happening here half a decade later, I would like the professor to expand on why he thinks what has been done in the United States is not in the best interests of the industry there.