Farmers EU subsidies to be decoupled

The Minister for Agriculture has decided that all payments which farmers get from the EU are to be decoupled.

This means that subsidies will no longer be linked to the amount of food farmers produce. Joe Walsh said reforming the entire subsidy is in the best overall interest of Irish farming. But some groups, including meat processors, have opposed the move.

When the EU agreed reforms of the Common Agricultural Policy last June, they left it open to individual countries to decide to what extent they would implement the most fundamental change - decoupling.

Up to now, farmers were subsidised according to the number of cattle and sheep they owned, or the amount of crops they grew. Many farmers got several annual cheques but they complained about the amount of time wasted with form filling.

But under decoupling, farmers will get one single cheque per year based on their production at the beginning of this decade. The aim is to focus on quality, consumer needs, more care for the environment and less red tape.

However, since last June the debate and consultation process about what system would suit Ireland best has continued. Economists in Teagasc estimate full decoupling would be best for farm incomes. The IFA are also in favour.

The Minister has decided that full decoupling, from 2005, is the best policy for Ireland.

But Mr Walsh said farming decisions will no longer be based on eligibility for premia, and the food industry would have a better chance to source quality raw material.

He accepted there would be some reduction in production, he expected that prices would increase, input costs would fall, with an overall increase in farm incomes.

But meat factories say fewer animals will mean less meat to be processed endangering jobs and local economies.