08 Aug 2022

CAP must support low income sectors, contends ICSA chief

ICSA president Patrick Kent has said the static income figures for drystock farmers revealed in the Teagasc Farm Survey for 2017 demonstrates where CAP supports need to be directed.

“The differential between the different farming systems is growing,” he added.

“Comparing like with like, the average per hectare income from dairying at €1,530 is 4.75 times higher than sheep farming at €322 and 4.2 times higher than cattle rearing at €364.

“Beef finishing systems are slightly better at €451 per hectare. So the post 2020 CAP is going to have to address this huge inequality and more supports - both Pillar 1 and Pillar 2 - must be directed at low income sectors.”

He went on to say that farmers could question whether the ANC payment should be spread so thinly.

“Apart from the challenge of farming marginal land, the payment should also be more closely aligned with supporting the farmers with the lowest profitability,” Mr Kent continued.

“Annual incomes averaging as low as €16,897 for sheep farmers, €16,651 for beef farmers and €12,680 for suckler farmers reveal the stark reality for the majority of our cattle and sheep farmers.

“It is notable that the direct payments on dairy farms are actually marginally higher than on cattle and sheep farms.

However, the average dairy farm derives 23% of income from direct payments but the reliance on direct payments on beef farms is 93% of income. Worse still, on cattle rearing and sheep farms direct payments equate to 113% of income.

“However, the stand-out issue is that CAP payments will have to be re-jigged to target the low income sectors and this must be central to the CAP reform.”

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