Oireachtas Joint and Select Committees
Wednesday, 9 June 2021
Joint Oireachtas Committee on Agriculture, Food and the Marine
Common Agricultural Policy Negotiations: Discussion
Mr. Tim Cullinan:
Deputy Carthy asked a number of questions, the first of which was on new entrants. We need to combine them with the definition of "genuine farmer" and the issue of leasing entitlements. We have been clear on this. We always advocate generational renewal. It is important in any sector that young blood come into it. Where funding is concerned in that regard, we must consider giving people who are leasing entitlements out, particularly over the long term, the option of selling them. The Government needs to implement a capital gains allowance to provide the incentive of a tax-free lump sum. A retirement scheme was mentioned. It would go a long way for someone who wanted to give up farming and continue leasing out his or her lands if the rental income was tax free. We should take that route.
The Deputy spoke about the genuine farmer. In our view, there should be activity on the farm and the financial output in the accounts should be based on sales. A farm needs to have a minimum level of sales and activity. That is critical.
The Deputy spoke about convergence. We need to stand back and consider where we are now. We have convergence and eco-schemes. The negotiations reconvened last week. At that point, the CRISS was a voluntary measure for member states. It needs to remain voluntary. It is up to each member state to make a decision on same. When payment capping and all of the other measures are included, this is a major change that redistributes funding across the board. We are clear on capping, in that we do not want to see funding going to Larry Goodman or the sheikhs. It needs to go to the genuine farmer who is doing the work. In light of what is coming down the tracks, though, particularly with convergence and how the eco-schemes will be developed, our farmers need to get rewarded. The money in the eco-schemes is being taken from supports for farmers for producing cheap food and turned into an environmental measure. At a minimum, the farmer has to get back the amount of money that is being taken out and should be rewarded if he or she is doing more.
The Deputy spoke about the IFA's position on the budget. As far back as last July, we were clear that there was not enough money in the budget. With the greening measures, the green deal and the impact of same, there needed to be an increase in the budget. As to whether it is a sell-out, the budget is what it is. We were not satisfied with it at the time. The Deputy asked why the IFA was only taking action now. We have not done so to date because we were in the midst of Covid last July. There was a slight break in the pandemic at the time, but there was no way I was going to put my members at risk by having them go out on the streets even though we were very frustrated. We must look at the budget. It was not last July that the problem with the budget arose. It has been decreasing since 2001 from 50% to 32%. That is where the budget stands. It has been eroded over time, which is a major concern for us.
No comments