Flat rate payments in seven years

Agriculture Minister, Michelle O’Neill, has introduced a single region for Northern Ireland with a seven-year transition period beginning January 1 2015.

That means that after seven years, by 2021, every farmer in Northern Ireland will have a flat-rate entitlement of 329 euros per hectare, regardless, what their historic payments have been in previous years.

For some, there will be some pain. Some farmers on thousands of euros per hectare for entitlements will see that drop by a seventh each year from 2015. Their payments this December will be the last at the current level.

For others, who have smaller entitlements of say 250 euros per hectare, will see their payments rise to 329 euros after seven years.

Generally, the announcement by the Minister has been broadly welcomed as it ends months of uncertainty over what will happen, even though the timing caught many people by surprise as it was not expected to be fully decided until later in July. It means farmers can now plan for the future.

The Minister stated:“I’m very pleased that the Executive has reached a resolution on this very important issue. There were diverse views on some of the remaining CAP implementation issues. Compromise was needed and we have succeeded in finding a fair and balanced solution which represents a good outcome for farmers’ right across the north.” The Minister continued: “The level of stakeholder engagement on the new CAP reforms has been unprecedented and very careful consideration was given to all the views expressed. In reaching an agreed outcome the Executive has concluded that there should be a single region model, no voluntary coupled support - though the latter will be kept under review - and an Areas of Natural Constraint (ANC) scheme in Pillar II for the first two years of the next CAP period, with a review thereafter.” There will not be any changes to LFA boundaries.

She added: “The Executive also agreed that the basic payment and the greening payment will move to a flat rate payment per hectare over a seven year transition period starting in 2015. In my view, this strikes the appropriate balance between allowing reasonable time for the industry to adjust and moving towards a support regime that is fair and defensible.” On Rural Development funding the Minister has set a Rural Development Programme 2014 – 2020 of up to £623million representing a significant increase in funding from the current Programme (2007- 2013) and will allow delivery of a broad range of measures.

Enterprise, Trade and Investment Minister Arlene Foster said: “Today’s approval is positive news for the agri food industry. Going for Growth sets ambitious targets and challenges for both Government and industry but I would expect nothing less from a sector which has continued to grow, despite the recent economic downturn.” The Ulster Farmers’ Union has said that while the final positions on regionalisation and transition decided by the NI Executive were not exactly what the Union was hoping for, farmers would be relieved that an agreement had finally been reached.

UFU president Ian Marshall said; “This hasn’t been an easy or smooth process for anyone involved and farmers across Northern Ireland have been seriously worried over the past few months that we would be facing a default position come August 1.

“Farmers at least now know where they stand and while it isn’t exactly what the Union was hoping for we need to look at the positives. A seven year transition means that Northern Ireland has the longest transition period of all the UK regions and it gives farmers some time to adapt their businesses. However, this may be of little comfort to Northern Ireland’s beef farmers in disadvantaged areas (DA) who will be the ones hardest hit through a combination of redistribution under a single region and also coming out of the Area’s of Natural Constraint (ANC) scheme. The Union has always argued strongly that something needs to be done to support the entire suckler industry across Northern Ireland, and we still continue to press for targeted support for this vulnerable sector.

The Fermanagh-based SDA Group said they welcomed the Minister’s announcement which they described as “fair and balanced.” John Sheridan from the SDA Group stated: “We are pleased that the Derrygonnelly Meeting brought an unprecedented awareness to the debate and thereafter a more diligent participation by everyone. Our members and supporters can now rest assured that their voices were heard and recognised.” “While many of our members would have preferred a much shorter transition period towards flat rate, we are content that by 2019, we will be 71.4% there, which will go some way to undo the historic inequalities of which SDA farmers were the casualties off.

“We are delighted that the Minister has managed to negotiate and secure the largest pot of funding ever for the Rural Development Programme (RDP) 2014 – 2020. The proposed Farm Business Improvement Scheme in the next RDP will include a measures which could potentially benefit SDA farmers.