Farmers are to get a €6.8 billion payout under the terms of a package for rural development for the period 2007-2013. The deal is expected to ensure their participation in the social partnership programme.
Details of the package, which will involve a €4.7 billion input from the Irish taxpayer, were announced by the Minister for Agriculture and Food, Mary Coughlan, yesterday.
She said the funding for rural development, which was central to the partnership negotiations on agriculture for the past months, involved a major commitment to agriculture on behalf of the Government.
A Department of Agriculture spokesman said that when agreed by the EU, the increases would be paid from next year and the Minister said it was in everyone's best interest to work diligently to gain the requisite EU approval.
The major elements of the proposals put to the four farm organisations yesterday provide for a 17 per cent increase in payments under the Rural Environment Protection Scheme.
There will be an 8 per cent increase in Disadvantaged Area Payments which will benefit 100,000 farmers.
Forestry premia rates are to increase by 15 per cent and there will also be a 55 per cent increase in the amount paid to young farmers by way of installation aid as they start farming.
In addition, the Government has proposed that under the terms of a new early retirement scheme, the maximum rate available to those who retire will be €15,000.
Beef farmers will be able to access a new scheme which will be worth €250 million.
"This €6.8 billion package is clear evidence of this Government's commitment to farmers and to rural life in Ireland," the Minister said last night.
"This unprecedented increase in Exchequer funding has a dual aim.
"Firstly, it will assist competitiveness in the agriculture, food and forestry sector," she remarked.
"Secondly, it will help to ensure respect and enhancement of the environment.
"It is fully in line with the EU rural development framework and is fully consistent with our vision for the future of farming, and the agri-food sector in Ireland, set out in the Agri-Vision 2015 Action Plan."
The president of the Irish Farmers' Association, Pádraig Walshe,said he was pleased the Government had responded to the IFA submission on the challenges faced from CAP reform and trade liberalisation.
Mr Walshe said the measures to improve the structures and competitiveness of agriculture - the Installation Scheme and the Early Retirement Scheme - would significantly improve under the new agreement.
He said there had been a positive response to design the new Reps scheme to facilitate dairy farmers and there would be substantial improvement in the Dairy Hygiene Scheme and Farm Investment Scheme.
"In addition, IFA has secured a 50 per cent reduction on disease levies and a commitment to update the VAT refund in the context of the upcoming Budget," he said.
He said the IFA Executive Council will be meeting next Wednesday and he would be recommending acceptance of the new Partnership Agreement.
The president of Macra na Feírme, Colm Markey, particularly welcomed a couple of key measures for young farmers, including the retention of the Early Retirement Scheme and an enhanced Installation Aid Scheme.
Farmers' deal: what the package entails
- An 8 per cent increase in disadvantaged area payments, which benefit 100,000 farmers;
- A 17 per cent increase in payments under the new Rural Environment Protection Scheme (REPS 4);
- A 15 per cent increase in forestry premium rates;
- A new €250 million package to improve the quality of beef cattle in the State;
- A new early retirement scheme with a maximum payment rate of €15,000;
- A 55 per cent increase in installation aid rates to young farmers hoping to enter farming;
- A 50 per cent reduction in disease levies and a commitment to update the VAT refund in the upcoming Budget.
