Michael Healy-Rae (Kerry, Independent)
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273. To ask the Minister for Agriculture, Food and the Marine the number and percentage of farmers in each county that will be better off with a 100% convergence option versus the 85% convergence option being proposed by him under the new CAP; and if he will make a statement on the matter. [55062/21]

Charlie McConalogue (Donegal, Fianna Fail)
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Convergence will be a mandatory provision in the Common Agricultural Policy (CAP) commencing in 2023. Member States are required to ensure that, by 2026, all payment entitlements reach a minimum convergence level of 85%, creating a more levelled distribution of payments. 

Member States will also be required to set a maximum value of individual payment entitlements. The funding mechanism will be similar to the current system where payment entitlements with values above the average are reduced to fund convergence.

Table 1 illustrates the number and percentage of farmers in each county that would be comparatively better off with a 100% convergence option versus the 85% convergence option.

Table 1: The number and percentage of farmers in each County that would be comparatively better off with a 100% convergence option versus the 85% convergence option.

To demonstrate the potential effects of the Direct Payment components, such as convergence, it was necessary to identify a cross-sectional sample population of farmers for modelling purposes. The data is based on 2020 land position and 2021 entitlements.

The figures in Table 1 are modelling predictions of the expected landscape in 2023 andit is very important that the Deputy should note the following:

- Farmers are included in the “better off” category if they benefit by as little as €0.01 and as such the comparative monetary differences vary significantly between farmers.

- Payment entitlements are a monetary asset and are transferable between farmers via sale, lease, gift, inheritance etc. As such, transfer of entitlements routinely occurs across county borders.

- A Farmer’s payment position may well  change in the scheme Year 2023 based on trading of entitlements.

Finally, the Direct Payments system is a layered or composite structure with interacting component parts. Moving funds into one scheme will mean reducing the funding available for another. All elements under the Direct Payments ceiling including convergence are inextricably linked and it is challenging to examine them in isolation.

My Department continues to engage with farmers and our EU colleagues in analysing the effects of all the proposed changes, including changes to convergence. The outcome of these continued discussions and the results of these analyses assist the decision-making process on the implementation of new CAP regulations in Ireland.