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CAP post 2014
A Local, National & European
            View

  • Peter Young, Irish Farmers Journal

• Eimear Ní Bhroin, European Commission

         • Denis Naughten TD
CAP post 2014
A Local, National & European
            View



 Chairperson
 Cllr. Dominic Connolly
CAP post 2014
A Local, National & European
            View



 Introduction
    Cllr. Laurence Fallon
CAP post 2014
A Local, National & European
            View



 Peter Young
    Irish Farmers Journal
CAP post 2014
 A Local, National & European
             View


Eimear Ní Bhroin
   European Commission
CAP post 2014
A Local, National & European
            View



Denis Naughten TD
CAP post 2014
                         A local perspective




               Denis Naughten TD

                       Welcome



Putting People First                           Denis Naughten TD
CAP post 2014
                        A local perspective




   Impact of CAP
     proposals
A local perspective

Putting People First                          Denis Naughten TD
CAP post 2014
                        A local perspective




Putting People First                          Denis Naughten TD
CAP post 2014
                                          A local perspective




               The CAP Budget reform
                            Redistribution of CAP funds

Direct payment funds (pillar 1)
        -between Member States over period 2014-2020
        - within Member States

Redistribution of rural development funds (pillar 2)
       - allocations by Member State based on objective criteria
(All Member States may transfer up to 10% of pillar 1 national ceiling to pillar 2 –decision by
1/08/2013)




     Putting People First                                                 Denis Naughten TD
CAP post 2014
                             A local perspective

  European Commission’s budget
            proposals
      Proposed Total CAP Budget 2014 -2020
                          (at current prices)


Direct payments & markets                          €317.2bn (76%)
Rural Development                                  €101.2bn (24%)
Total Pillar 1 & 2                                 €418.4bn
(100%)

   Putting People First                               Denis Naughten TD
CAP post 2014
                         A local perspective


         Redistribution of CAP funds
          between Member States
Direct payments - redistribution &
  convergence of funds (pillar 1)
Member States with direct payments below 90% of EU-
27 average will be able to close 1/3 of the gap between
   their current level and 90% of average payments




 Putting People First                          Denis Naughten TD
CAP post 2014
                        A local perspective




Putting People First                          Denis Naughten TD
CAP post 2014
                                  A local perspective



  Convergence to flat rate system by
               2019
- Abolish current entitlement system by 31st Dec
                       2013
                          (new one on 1st Jan 2014)
- Member States with historic payments – 40% of
    basic payment must be flat-rate in 2014

-further 60% redistribution progressively to 2019


   Putting People First                                 Denis Naughten TD
CAP post 2014
                          A local perspective




    What does flat rating mean?
-Current national envelope €1.5bn
            -divide by no of Hectares = €270/ha


         -less deductions = €230/ha
            (subject to 30% greening = €69/ha)


Estimated basic payment = €161/ha
 Putting People First                           Denis Naughten TD
CAP post 2014
                        A local perspective

     Average SFP € /Ha by County
1.Laois      386.82                     14.Dublin   323.26
2.Kilkenny   384.60                     15.Longford 314.17
3.Carlow     378.49                     16.Limerick 307.81
4.Wexford    377.98                     17.Cavan    290.79
5.Meath      376.06                     18.Roscommon 281.98
6.Louth      372.88                     19.Wicklow  274.08
7.Tipperary  362.52                     20.Clare    255.09
8.Monaghan 354.22                       21.Galway   245.90
9.Cork       348.11                           ----average 230-----
10.Offaly    345.14                     22.Sligo         214.00
11.Kildare   344.72                     23. Kerry        199.79
12.Waterford 342.44                     24. Mayo         194.50
13.Westmeath 325.33                     25.Leitrim       193.84
                                        26.Donegal       192.88
Putting People First                             Denis Naughten TD
CAP post 2014
                                         A local perspective

     Historic SFP                                                                 Flat Rate SFP




Source Teagasc                                                 Source Teagasc

                 Putting People First                                           Denis Naughten TD
CAP post 2014
                                      A local perspective




            Flat rating by region?
         -estimated proportion of national
           envelope in Connacht €222m
                       -divide by no of Hectares = €228.7/ha


                -less deductions = €195/ha
                       (subject to 30% greening = €58.5/ha)

    Estimated basic payment = €136.5/ha


Putting People First                                           Denis Naughten TD
CAP post 2014
                                  A local perspective



Average SFP € /Ha by Connacht
           County
                       1.Roscommon 281.98
                         2.Galway 245.90
                         3.Sligo  214.00
                          -----average €195-----
                        4. Mayo 194.50
                        5.Leitrim 193.84


Putting People First                                    Denis Naughten TD
Historic SFP
  Source Teagasc
Flat Rate SFP
   Source Teagasc
CAP post 2014
                                   A local perspective


             Capping of direct payments
- Only active farmers to be eligible for direct payments.
       -    Main definition proposed: ineligible if direct payments less than
                            5% of total non-agricultural receipts
     (does not apply if direct payments less than €5000 in previous year)


-Degressive payment above €150k; max. payment €300k
      -        Greening payments and declared salaries (including taxes &
      social security linked to employment) deducted before capping


-Funds accruing from capping added to Rural
Development funds in the Member State
           Putting People First                           Denis Naughten TD
CAP post 2014
                        A local perspective




               Greening

Putting People First                          Denis Naughten TD
CAP post 2014
                        A local perspective




Putting People First                          Denis Naughten TD
CAP post 2014
                                 A local perspective



                               Greening
 -crop diversification – min. 3 crops on arable land;
     each crop must be between 5 – 70% of area
  -permanent grassland – maintain at least 95% of
                   hectares in 2014.
-ecological focus areas – no production on 7% of all
 eligible hectares except permanent grassland. Can
                include existing areas.
 All farmers receiving basic payment must respect greening requirements


        Putting People First                           Denis Naughten TD
CAP post 2014
                                        A local perspective



                Small farmer scheme
-All farmers eligible; minimum payment €500/ max.
                        €1000.
   Average payment in Co. Roscommon €6k & Co. Leitrim €4k
   -Exempt from cross compliance penalties, greening &
                     financial discipline
  -Not eligible for additional payments (greening, young
       farmers, natural constraints, coupled support)
                       max. 10% of direct payments national ceiling




     Putting People First                                             Denis Naughten TD
CAP post 2014
                             A local perspective




                   Young farmers scheme

    - For farmers under 40 setting-up for max. 5
                        years

-   This is in addition to setting-up grant under Rural Development


      11% Roscommon & 13% Leitrim Farmers U35 (CSO, 2000)


     Putting People First                          Denis Naughten TD
Cap post 2013.ppt
CAP post 2014
                                  A local perspective




                Young farmers scheme

- 25% top-up to basic hectare payment for up to 5
           years with max. n° hectares

    - up to 89 ha depending on Member State average size

          -       max. 2% of direct payments national ceiling


     Putting People First                               Denis Naughten TD
CAP post 2014
                        A local perspective




Putting People First                          Denis Naughten TD
CAP post 2014
                         A local perspective




Key priorities
                  Retain CAP Budget

           Maximum flexibility on
             implementation

Putting People First                           Denis Naughten TD
CAP post 2014
A Local, National & European
            View



       Q&A
CAP post 2014
A Local, National & European
            View


What you can
 do, now !
CAP post 2014
A Local, National & European
            View

   Roscommon Initiative:
    Over Christmas, get your family to
      Contact their local MEP & MP
           throughout Europe
CAP post 2014
A Local, National & European
            View



   Thank You

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Cap post 2013.ppt

  • 1. CAP post 2014 A Local, National & European View • Peter Young, Irish Farmers Journal • Eimear Ní Bhroin, European Commission • Denis Naughten TD
  • 2. CAP post 2014 A Local, National & European View Chairperson Cllr. Dominic Connolly
  • 3. CAP post 2014 A Local, National & European View Introduction Cllr. Laurence Fallon
  • 4. CAP post 2014 A Local, National & European View Peter Young Irish Farmers Journal
  • 5. CAP post 2014 A Local, National & European View Eimear Ní Bhroin European Commission
  • 6. CAP post 2014 A Local, National & European View Denis Naughten TD
  • 7. CAP post 2014 A local perspective Denis Naughten TD Welcome Putting People First Denis Naughten TD
  • 8. CAP post 2014 A local perspective Impact of CAP proposals A local perspective Putting People First Denis Naughten TD
  • 9. CAP post 2014 A local perspective Putting People First Denis Naughten TD
  • 10. CAP post 2014 A local perspective The CAP Budget reform Redistribution of CAP funds Direct payment funds (pillar 1) -between Member States over period 2014-2020 - within Member States Redistribution of rural development funds (pillar 2) - allocations by Member State based on objective criteria (All Member States may transfer up to 10% of pillar 1 national ceiling to pillar 2 –decision by 1/08/2013) Putting People First Denis Naughten TD
  • 11. CAP post 2014 A local perspective European Commission’s budget proposals Proposed Total CAP Budget 2014 -2020 (at current prices) Direct payments & markets €317.2bn (76%) Rural Development €101.2bn (24%) Total Pillar 1 & 2 €418.4bn (100%) Putting People First Denis Naughten TD
  • 12. CAP post 2014 A local perspective Redistribution of CAP funds between Member States Direct payments - redistribution & convergence of funds (pillar 1) Member States with direct payments below 90% of EU- 27 average will be able to close 1/3 of the gap between their current level and 90% of average payments Putting People First Denis Naughten TD
  • 13. CAP post 2014 A local perspective Putting People First Denis Naughten TD
  • 14. CAP post 2014 A local perspective Convergence to flat rate system by 2019 - Abolish current entitlement system by 31st Dec 2013 (new one on 1st Jan 2014) - Member States with historic payments – 40% of basic payment must be flat-rate in 2014 -further 60% redistribution progressively to 2019 Putting People First Denis Naughten TD
  • 15. CAP post 2014 A local perspective What does flat rating mean? -Current national envelope €1.5bn -divide by no of Hectares = €270/ha -less deductions = €230/ha (subject to 30% greening = €69/ha) Estimated basic payment = €161/ha Putting People First Denis Naughten TD
  • 16. CAP post 2014 A local perspective Average SFP € /Ha by County 1.Laois 386.82 14.Dublin 323.26 2.Kilkenny 384.60 15.Longford 314.17 3.Carlow 378.49 16.Limerick 307.81 4.Wexford 377.98 17.Cavan 290.79 5.Meath 376.06 18.Roscommon 281.98 6.Louth 372.88 19.Wicklow 274.08 7.Tipperary 362.52 20.Clare 255.09 8.Monaghan 354.22 21.Galway 245.90 9.Cork 348.11 ----average 230----- 10.Offaly 345.14 22.Sligo 214.00 11.Kildare 344.72 23. Kerry 199.79 12.Waterford 342.44 24. Mayo 194.50 13.Westmeath 325.33 25.Leitrim 193.84 26.Donegal 192.88 Putting People First Denis Naughten TD
  • 17. CAP post 2014 A local perspective Historic SFP Flat Rate SFP Source Teagasc Source Teagasc Putting People First Denis Naughten TD
  • 18. CAP post 2014 A local perspective Flat rating by region? -estimated proportion of national envelope in Connacht €222m -divide by no of Hectares = €228.7/ha -less deductions = €195/ha (subject to 30% greening = €58.5/ha) Estimated basic payment = €136.5/ha Putting People First Denis Naughten TD
  • 19. CAP post 2014 A local perspective Average SFP € /Ha by Connacht County 1.Roscommon 281.98 2.Galway 245.90 3.Sligo 214.00 -----average €195----- 4. Mayo 194.50 5.Leitrim 193.84 Putting People First Denis Naughten TD
  • 20. Historic SFP Source Teagasc
  • 21. Flat Rate SFP Source Teagasc
  • 22. CAP post 2014 A local perspective Capping of direct payments - Only active farmers to be eligible for direct payments. - Main definition proposed: ineligible if direct payments less than 5% of total non-agricultural receipts (does not apply if direct payments less than €5000 in previous year) -Degressive payment above €150k; max. payment €300k - Greening payments and declared salaries (including taxes & social security linked to employment) deducted before capping -Funds accruing from capping added to Rural Development funds in the Member State Putting People First Denis Naughten TD
  • 23. CAP post 2014 A local perspective Greening Putting People First Denis Naughten TD
  • 24. CAP post 2014 A local perspective Putting People First Denis Naughten TD
  • 25. CAP post 2014 A local perspective Greening -crop diversification – min. 3 crops on arable land; each crop must be between 5 – 70% of area -permanent grassland – maintain at least 95% of hectares in 2014. -ecological focus areas – no production on 7% of all eligible hectares except permanent grassland. Can include existing areas. All farmers receiving basic payment must respect greening requirements Putting People First Denis Naughten TD
  • 26. CAP post 2014 A local perspective Small farmer scheme -All farmers eligible; minimum payment €500/ max. €1000. Average payment in Co. Roscommon €6k & Co. Leitrim €4k -Exempt from cross compliance penalties, greening & financial discipline -Not eligible for additional payments (greening, young farmers, natural constraints, coupled support) max. 10% of direct payments national ceiling Putting People First Denis Naughten TD
  • 27. CAP post 2014 A local perspective Young farmers scheme - For farmers under 40 setting-up for max. 5 years - This is in addition to setting-up grant under Rural Development 11% Roscommon & 13% Leitrim Farmers U35 (CSO, 2000) Putting People First Denis Naughten TD
  • 29. CAP post 2014 A local perspective Young farmers scheme - 25% top-up to basic hectare payment for up to 5 years with max. n° hectares - up to 89 ha depending on Member State average size - max. 2% of direct payments national ceiling Putting People First Denis Naughten TD
  • 30. CAP post 2014 A local perspective Putting People First Denis Naughten TD
  • 31. CAP post 2014 A local perspective Key priorities Retain CAP Budget Maximum flexibility on implementation Putting People First Denis Naughten TD
  • 32. CAP post 2014 A Local, National & European View Q&A
  • 33. CAP post 2014 A Local, National & European View What you can do, now !
  • 34. CAP post 2014 A Local, National & European View Roscommon Initiative: Over Christmas, get your family to Contact their local MEP & MP throughout Europe
  • 35. CAP post 2014 A Local, National & European View Thank You