€54m in CAP payments as IFA warns against cuts in EU budget reform plans

Farmers in Westmeath received an estimated €54 million in Common Agricultural Policy (CAP) payments in 2023/24, according to figures released by the IFA at the Tullamore Show last week.

They benefited from an average of €10,300 per holding under Pillar I and €7,500 under Pillar II. In total, €31.24m was paid out under Pillar I and €22.76m under Pillar II to local farmers.

IFA president Francie Gorman said CAP remains “absolutely pivotal” to the future of Irish livestock farming, warning that recent EU Commission proposals for reform could threaten the viability of rural communities.

“Even with the increases in recent years, CAP still accounts for a significant portion of farm income and historically has been higher than 100% of income on the livestock side.”

According to the IFA, Counties Laois, Offaly, Longford, and Westmeath received a total of €179.75m last year.

Mr Gorman said a reduction in the CAP would have “reverberations through the rural economy”, noting that the quality of stock on display at the Tullamore Show was testament to investment possible by CAP supports.

He also pushed back against criticism of farm gate prices, pointing out that production costs have risen 73% since 2018. “Farmers are consumers too, and they understand cost-of-living pressures, but commentary often ignores the huge rise in the cost of producing food to the highest standards,” he said.

He wants a stronger, simpler, inflation-adjusted CAP that retains the traditional two-pillar model and maintains full funding for targeted interventions. IFA priorities include retaining Pillar II measures with maximum national co-financing for vulnerable sectors and strategic priorities, reforming the “costs incurred/income foregone” approach to ensure payments reflect minimum rather than maximum rates, and making agri-environment schemes universally accessible, practical, and evidence-based, with loyalty bonuses to reward long-term participation.

Mr Gorman reiterated the IFA opposition to the Mercosur trade deal, citing continuing shortcomings in Brazilian production systems flagged by the EU’s own inspections.

Senator Paul Daly echoed the concerns at an Oireachtas Agriculture Committee meeting. “We need a well-funded CAP with two strong pillars and a clear emphasis on food security,” he said.

“We’ve gone too far in paying for what is valueless – we have to get back to producing food, or it will come back to haunt us.”