The Minister said: “I welcome the fact that we now have an agreement on the CAP Health Check which will provide greater policy stability and clarity for our farmers for the coming years. The deal, in my view, produces a broadly positive outcome and is a step in the right direction.
“One of our key goals during these negotiations was to ensure that the overall modulation deductions which will apply to our local farmers will not change from previously planned levels. The increase in compulsory modulation will be balanced by a reduction in our voluntary modulation rates and, therefore, our overall rate will now be much closer to that in the rest of the EU. This I very much welcome.
“Another significant achievement is that we will be able to count existing measures under our Rural Development Programme as addressing the new challenges of climate change, bio-energy, water management and bio-diversity. Consequently, there will be no disruption to our existing Programme.”
The Minister continued: “We have seen welcome progress in other areas, such as further decoupling of subsidy schemes from production in the rest of the EU, the abolition of set-aside and some simplification of the Single Farm Payment (SFP) Scheme, including a reduction in the number of types of entitlements. I have also managed to achieve clarification that the new cross compliance requirement for buffer strips can be met by what we are already implementing under our Nitrates Action Plan.”
Turning to the dairy sector the Minister said: “I am fully aware that many are concerned about current market conditions, a concern that I share, and some may feel that now is not the best time to increase quota levels. The deal reached increases annual quota levels by 1% for each of the next five years for most Member States. Furthermore, the outcome of the CAP Health Check has sent a clear message that milk quotas will not continue beyond 2015. It is, therefore, critical that the industry uses the remaining time available to prepare for the abolition of quota. However, this overall picture for the diary industry is complex and we will need to carefully consider the implications for the sector.
“I would like to have seen more progress on the simplification agenda. The arrangements relating to the use of unused CAP funds and the National Envelope will need to be explored further. We will, of course, consult with our stakeholders on this and the other elements of the agreement where we have regional choices to make. “
Summing up, the Minister said: “There are significant positives in this deal and we can now progress to the next stage of considering it with our stakeholders and moving on to implementation.
“I would also like to take this opportunity to thank my team of senior DARD officials who were involved in the negotiations and with whom I was in regular contact all day yesterday and throughout the night.”
Notes to Editors:
1. The EU Council of Agriculture Ministers reached agreement on the CAP Health Check on 20 November 2008. The main aspects of the CAP Health Check agreement are as follows:
- The basic rate of compulsory modulation will increase from the current level of 5% to 10% in 2012. Voluntary modulation will be reduced by an equal percentage rate.
- 5 x 1% annual increases in milk quota over the period 2009/10–2013/14 with further adjustments linked to the butterfat coefficient.
- All Pillar 1 CAP subsidy schemes will be decoupled by 2012 with the exception of Suckler Cow Premium and 50% of Sheep Annual Premium in those Member States which currently retain these Schemes.
- An option to adjust SFP entitlements to or towards a flat rate.
- Changes to the provision on National Envelopes to make them more flexible. Up to 10% of SFP funds may be re-directed towards a National Envelope, with support for schemes coupled to production limited to 3.5%. National Envelopes can be used to introduce a number of different measures, such as those to support certain types of farming that are important for the protection or enhancement of the environment and to address specific disadvantages affecting farmers in the dairy, beef and sheep sectors.
- The abolition of set-aside from 1 January 2009.
- A reduction in the number of types of SFP entitlements. National Reserve and set-aside entitlements will be converted to standard entitlements from 1 January 2009.
- Energy Crop Scheme abolished from 1 January 2010.
2. Work will continue over the next few months to agree the EU Council regulations and implementing regulations. DARD will be making further announcements on the implications of the Health Check as the EU legislation is agreed.
3. All media enquiries to DARD Press Office, tel: 028 9052 4619. Out of office hours please contact the Duty Press Office via pager number 076 9971 5440 and your call will be returned.
