Noel Grealish (Galway West, Independent)
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504. To ask the Minister for Agriculture, Food and the Marine if he will request coupled payments on suckler cows and breeding sheep in the next round of CAP reforms; and if he will make a statement on the matter. [5379/17]

Michael Creed (Cork North West, Fine Gael)
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Ireland has supported the greater market orientation of the CAP over recent reforms, including the decoupling of payments from production. This has provided farmers a measure of income stability from the Basic Payments Scheme while allowing them to adjust production in response to market demand.  I do not feel that a move away from such an approach to direct payments would be in the best long term interest of farmers.

The introduction of a €200 suckler cow payment as has been proposed elsewhere would involve a redistribution of funds allocated to farmers under Pillar I. This would necessitate a linear cut across payment to all BPS beneficiaries.  The estimated annual  cost of such a measure could exceed €200 million.  

Similarly the introduction of a coupled payment for breeding ewes would also involve a redistribution of funds allocated to farmers under Pillar I.

In relation to funding under Pillar II of the CAP, the Beef Data and Genomics Programme is the current main support for the suckler sector and provides farmers with some €300 million of funding over the next six  years. The BDGP builds on the substantial investment in data recording and genomics which has been made in recent years and will continue to drive further developments and improvements in this area. I have recently introduced a Sheep Welfare Scheme which provides targeted support for breeding ewes which concentrates on areas which can make a positive contribution to the welfare of sheep flocks. Many of these welfare actions will also have a positive consequence on the productivity and efficiency of these flocks.

The BDGP and the Sheep Welfare Scheme were agreed with the European Commission as part of Ireland’s Rural Development Plan (2014-2020) alongside a number of other schemes such as ANCs, GLAS and TAMS, which also benefit suckler farmers. I am very conscious of the positive effect that the BDGP programme is having on the Irish suckler herd and the positive effect the Sheep Welfare Scheme will have on the national breeding flock. Both schemes will help to improve productivity and profitability in these enterprises.

I am of course conscious of the challenges faced by suckler and sheep farmers currently and am strongly of the view that the BDGP and the Sheep Welfare Scheme are the most appropriate means of providing targeted support to these farmers.

The current model of funding for farmers in both these sectors provides support to enable farmers to improve efficiency and profitability by improving the overall genetic merit of their beef herd as well as improve the welfare of breeding flocks in Ireland. I firmly believe that these schemes will deliver tangible long-term and cumulative positive effects for both farmers participating in these schemes, and for farmers who buy the progeny of farmers in these schemes be that weanlings or store cattle for further finishing or store lambs for further feeding also. These schemes will also make a significant contributor to Ireland’s well-established reputation as a producer of sustainable, high-quality beef and sheep meat.

In relation to any possible reopening of the BDGP, this is currently being considered in the context of an assessment of budgetary priorities, the operation of the Rural Development Programme and the potential impact both upon the scheme itself and other schemes. Increasing the BDGP payment to €200 per animal, even just for existing applicants, would require a doubling of the Budget under the BDGP, with at least €350m additional expenditure required over the lifetime of the scheme.

 It should also be noted that support under RDP schemes can only be provided on the basis of costs incurred or income foregone.  Even if it were possible to reallocate resources from within the RDP, any increase in the level of payment to participants in the BDGP would require the Department to submit an amendment of the RDP to the EU Commission, and an evaluation and approval by the relevant Directorates General. Even if a revised scheme were approved, any increase in the level of payment would inevitably result in additional actions being required to be carried out by farmers.

The Department will, of course continue to keep all expenditure under the Rural Development Programme under review on an ongoing basis. As with all such programmes, there are inevitably issues of timing around the scheduling of payments.  Savings in one year do not necessarily imply savings over the lifetime of the programme.

Both these sectors are a vital component of Ireland’s rural economy and the provision of support for farmers in each sector is critically important.  The range of supports as currently configured represents a balance between direct income support for the sector and rural development measures designed to improve its competitiveness and sustainability. I believe that it is entirely appropriate to maintain this balance of developmental and income supports  into the future.

There will be many challenges faced in the context of the next round of CAP reforms and I will ensure that the interests of all Irish farmers including beef and sheep farmers will be front and centre of Ireland's position during these negotiations.