The size of the EU budget and its impact on the Common Agricultural Policy after 2013 pose the greatest threat to Irish farming, according to the Chairman of the European Parliament Agriculture Committee, George Lyon.
At the annual conference of the Agricultural Science Association in Tullow, Co Carlow, Mr Lyon said there is the threat of a triple whammy on the EU budget, leading to a substantial cut in direct payments to Irish farmers.
The Scottish MEP said huge pressure is building up across Europe for budget cuts from finance ministers in cash-strapped member states which need to find savings.
Secondly, he said, there is pressure from those who wish to see the CAP cut and the money directed to other priorities such as climate change and economic recovery through job creation.
Thirdly, said Mr Lyon, there is a demand from new member states for a greater share of the cake when distributing direct payments, and Ireland could lose out if that argument prevails.
The Scottish MEP predicted the ending of the historic-based payment system and a move to an area-based system.
Agriculture Minister Brendan Smith told the conference that support is decreasing among his EU colleagues for the present system of payments to farmers.
However, Mr Smith said he will continue to press the merits of the current model. He said it has the very important benefit of concentrating payments on active farmers, and this is a principle which should be retained.
Mr Smith said there is a tendency to see the function of the future CAP exclusively as a mechanism to pay for environmental and other public goods.
He said his view is that the core function of the single farm payment is the support of farm income.
