Michael Healy-Rae (Kerry, Independent)
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607. To ask the Minister for Agriculture, Food and the Marine if he will address a matter with regard to discussions on the next reform of the Common Agricultural Policy (details supplied); and if he will make a statement on the matter. [16750/17]

Michael Healy-Rae (Kerry, Independent)
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608. To ask the Minister for Agriculture, Food and the Marine if he will address issues with regard to discussions on the next reform of the Common Agricultural Policy (details supplied); and if he will make a statement on the matter. [16751/17]

Michael Healy-Rae (Kerry, Independent)
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609. To ask the Minister for Agriculture, Food and the Marine if he will address issues with regard to discussions on the next reform of the Common Agricultural Policy (details supplied); and if he will make a statement on the matter. [16753/17]

Michael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 607 to 609, inclusive, together.

The future of the CAP is an issue of enormous importance for Ireland’s agriculture sector.  It is my strong view that the CAP has evolved considerably and very effectively in recent years in response to changing market, consumer and environmental demands.  It also plays a central role in delivering the smart, sustainable and inclusive growth sought under the Europe 2020 strategy.  I believe it is important that the CAP continues to evolve in a way that supports the achievement of European strategic priorities, particularly in the context of securing a strong CAP budget for the post 2020 period.

My Department is currently conducting a detailed policy analysis on the future shape of the CAP, taking into account what we see as the key challenges ahead, many of which are reflected in the Deputy’s questions and also mirror the identified priorities for the future CAP which were recently discussed at the Agriculture Council of Ministers meeting in March.  In my view, the overriding priority must be to support the sustainable intensification of food production, in order to meet the requirements of a growing global population while at the same time facilitating adaptation to climate change and mitigation against further change.  In order to achieve these priorities, I believe it is important that a strong CAP budget is maintained. 

The future of the CAP budget will be discussed in the context of the Multiannual Financial Framework for the post-2020 period.  The CAP budget accounts for approximately 37% of the overall EU budget and there has been ongoing pressure from some Member States to reduce this proportion and to divert EU spending to newer issues such as migration, external action and development co-operation.  It is likely that this pressure on the CAP budget will continue, which will undoubtedly be compounded further by the impact and uncertainty created by Brexit. It will be important to ensure that the CAP is seen as an effective and relevant policy instrument in helping to achieve broader societal goals, such as job creation and economic growth, particularly in rural areas at risk of social exclusion. 

Market volatility is an issue we have seen cause considerable difficulties for our farmers in recent times and I am particularly interested in how we can build farmer’s resilience to deal with this in the event of future crises.  The use of modern and innovative measures such as hedging arrangements, futures markets and fixed price contracts are areas worth considering, while the direct payments system provides certainty and stability to farmers in the face of market volatility, and should continue to be a key component of the future CAP.

I agree that our deliberations on any further reform of CAP should take account of the need to encourage generational renewal.  This has been a priority and the current CAP, which was agreed during the Irish Presidency in 2013, allowed for supplementary payments from the National Reserve for young educated farmers and for their prioritisation in the assessment of applications under various rural development measures. Generational renewal will remain a priority in my department's assessment of any proposals emerging on the reform of CAP.