Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I am aware of the importance of the suckler sector to Ireland's rural economy and the wider agrifood industry. My Department provides a range of income and investment supports to suckler farmers, including direct payments and grant schemes such as the basic payment scheme, the areas of natural conservation, ANC, scheme, GLAS and TAMS, as well as the beef data and genomics programme, BDGP. Analysis of Teagasc national farm survey data shows that existing direct payments to suckler farmers provide support equivalent to approximately €500 per suckler cow.

The BDGP is the main support specifically targeted for the suckler sector, which provides beef farmers with some €300 million in funding over the current rural development programme, RDP, period. So far, approximately €125 million has been paid out to farmers, and I will continue to support that through the lifetime of the RDP. In addition to improving the environmental footprint of the national suckler herd, the programme will, through increasing the genetic merit of the herd, make a positive contribution to productivity and efficiency at farm level.

Ireland has been a strong supporter of the greater market orientation of the Common Agricultural Policy, CAP, over recent reforms, including by decoupling payments from production, because allowing farmers freedom to respond to market signals is vital for the sustainable development of the sector, as set out in the Food Wise 2025 strategy. As the Deputy is aware, any proposal for a coupled payment for suckler cows under Pillar 1 of CAP would require a linear cut across the basic payment scheme for all farmers. In terms of providing additional supports under Pillar 2, which provides for Ireland's RDP, there is no surplus funding above and beyond the funding already allocated to the RDP, which has been committed to existing schemes within the programme.

In the context of CAP post 2020, we must examine the most effective way of supporting the sector while being aware of the future direction of CAP in terms of public good and environmental benefits. We need to examine further ways in which we can improve economic and environmental efficiency while responding to the constraints of WTO and state aid rules in terms of farm supports.

Additional information not given on the floor of the House

The future CAP will play a key role in the sustainable development of the sector, and I urge people to participate in the public consultation meetings on the post-2020 CAP that are taking place around the country.

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