Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

I welcome the agreement reached by the Minister for Agriculture, Food and the Marine, Deputy Coveney, on the new round of Common Agricultural Policy, CAP, payments. These new payments brokered by the Minister represent a fantastic result for farmers in Ireland. The Minister endorsed the principle of flexibility in the way in which direct payments are to be distributed within member states, known in Ireland as internal convergence. From Ireland's perspective, this has been the outstanding issue in the negotiations.

Reform of CAP was necessary to respond to future challenges for agriculture and rural areas, namely, variable food production, sustainable management of natural resources and climate action. Ministers from 27 member states of the EU accepted a package of proposals tabled by the Irish Presidency and successfully concluded what is known as a general approach on the CAP reform package. This agreement between the 27 member states is not the end of the road. The Irish Presidency will represent the Council in discussions with the European Parliament and the Commission.

The Irish Presidency's proposal for an inter-institutional political agreement by the end of June remains on target. The Council also agreed to the proposals from the Minister, Deputy Coveney, on the greening of direct payments. These proposals add flexibility to the Commission's original proposals to ensure that farmers can practise sustainable agriculture without overly bureaucratic impediments. The agreement also addresses Ireland's requirements for greening payments to be based on a percentage of farmer's single payment rather than a flat rate.

Pressure on agricultural income is increasing as consumers demand higher standards in production and traceability while input costs continue to rise. The reform proposals contain a strong greening element, requiring many to adopt farming systems that are favourable to the environment. There is enormous economic and social value in keeping productive farmers at all levels of production on the land. Agricultural income makes an important contribution to the local economy. Farmers purchase goods and services and provide employment in local communities. For these reasons, among others, agricultural incomes across the spectrum must be supported.

The proposal also makes specific reference to the need to reduce administration costs and the burden on direct support to small farmers. Proposals to further strengthen rural development policies were agreed, providing member states with the opportunity to transfer funds from direct payment ceilings to supports directed at rural development. These proposals are favourable to smaller producers who, in comparison to larger producers, require income support to achieve greater efficiency and are less able to adapt to market and environmental changes. This should be of benefit to families in Ireland.

I congratulate the Minister on gaining acceptance for the package of proposals put forward by the Irish Presidency. The proposals were agreed following protracted negotiations resulting in a general approach on reform of the CAP.

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