The Irish Farmers Association yesterday warned there would be serious consequences for the economy if the Government failed to fight off proposed cuts in the EU budget.
Its president, John Dillon, said the Government strategy of "almost total silence" on the issue might yet have a high cost in terms of cutbacks.
He told a press conference in Dublin that because agriculture was so important a means in getting EU budget transfers to Ireland, the Government would need to set high targets in a future where many of the bigger countries wanted to see budgetary cuts imposed on agriculture.
He said the IFA had estimated that about €900 million a year would be needed by 2007 to implement the range of schemes covered in the Agricultural Rural Development measures.
Mr Dillon laid down a marker that many farm families were dependent on the Agricultural Rural Development measures and would insist that any shortfall in EU funding would have to be made up by increased national co-financing.
Mr Dillon said the funding proposal from the commission was already a compromise figure. It proposed a budget ceiling of 1.24 per cent of GNI (gross national income of the 25 member states), and actual funding of 1.14 per cent of GNI - the same as for the 2000-06 period.
"The position of the 'Gang of Six' countries who want to fix the budget ceiling at 1 per cent of GNI would undermine the future of the EU itself. In my view, the best way for Ireland to oppose the Gang of Six would have been to fully back the commission," he said.
"While IFA acknowledges that Government statements have been supportive of the CAP and rural development elements of commission proposals, the political reality in the EU is that any shortfall in the overall funding requirement from that proposed by the commission will ultimately have negative consequences for every one of the main budget headings.
"A recent example of this is the recommendation of a European Parliament committee for a national co-financing element for the CAP Single Farm Payment budget.
"Bearing in mind that there will be a major decline in transfers to Ireland from the Structural Funds, IFA's estimate is that agriculture will be responsible for drawing down about 80 per cent of EU funding to Ireland in the 2007-13 period," he said.
Leinster Fine Gael MEP, Máireád McGuinness, said the EU's future was intrinsically linked to the budget debate.
"If the 'Club of Six' succeed there will not be sufficient funds available to fund the new single farm payment regime and the grand plans for new rural development policy beyond 2006. We could, at worst, be looking at further cuts in the single farm payment," she said.