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Dublin: 7 °C Thursday 23 May, 2013

Farmers hold ‘Day of Action’ to secure EU agricultural funding

Over 10,000 farmers are expected at a demonstration against possible cuts to the EU’s Common Agricultural Policy.

IFA president John Bryan says action is needed to stop the EU budget for being slashed, a move which would hamper agricultural funding.
IFA president John Bryan says action is needed to stop the EU budget for being slashed, a move which would hamper agricultural funding.
Image: Laura Hutton/Photocall Ireland

OVER 10,000 FARMERS are expected to converge on Dublin today as part of a demonstration against possible cuts to the EU’s agriculture budget in the coming weeks.

The Irish Farmers Association says a demonstration of farmers’ views is needed in order to underline the economic impact that any major cut to the Common Agricultural Policy would have on the Irish economy.

The association says farm incomes and profits were seriously eroded this year by poor weather and increasing input costs, with the costs of animal feed, fuel and fertiliser all having increased.

The decreasing marginal profits from running farms, it says, means farmers are increasingly dependant on funding through the EU’s Common Agricultural Policy.

This funding could be one of the main casualties from the current negotiations on the EU’s next seven-year Budget, from 2014 to 2020, which are due to step up in the coming weeks.

The current state of the EU’s finances has led some countries – most notably the UK – to call for cuts of up to 30 per cent in the EU’s operating budget, a move IFA president John Bryan requires other countries to join forces and resist such major cuts.

Any major cut to CAP funding, the union says, could have a negative impact on the €9 billion of exports from the agricultural sector, or the 300,000 Irish jobs which are reliant on the sector.

The IFA says farming schemes were disproportionately hit in the 2012 Budget, and is demanding the retention of the current €1.25 billion funding for the Single Farm Payment and €350 million in rural development measures in the next EU budget.

Read: CAP payments to be published again after privacy case

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Comments (36 Comments)

  • What about the Fishermen.?
    ……just sayin

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  • Surely any large scale cut to the CAP would cause massive detriment to France.

    On that basis alone it’ll never happen.

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  • Do any of the unsympathetic people here work in ICT or pharmaceuticals in Ireland? If so, you’re income is, most likely, just as subvented as a Farmer’s income. If you work anywhere near R&D, your multinational employer is most likely claiming tax credits for same, and any graduates near you are having a wedge of their income supported by the Irish government.

    In the globalised economy, powerhouses like the EU and US work damn hard to keep protectionist barriers to free trade from the developing nations. This applies whether you’re a farmer or you’re a computer programmer, and ensures that you can make a wage appropriate to the cost of living in your country, regardless of the fact that someone can do it for 1/4 of your cost in the developing world. Other tricks such as export controls on technology are used to ensure that the developing world never play from a level playing field.

    The CAP system is a direct payment to farmers, so it’s visible for all to see. But before you go too hard on farmers, consider that farmers and the CAP provide local security of food supply against disruption of supply from other countries (by war etc). What does your job provide?

    All of our wages in this country have spiraled upwards in the past 20 years and whether you’re a farmer earning CAP, a multinational worker subvented by lower Coporation Tax and R&D credits, a public sector work subvented by money borrowed from the troika, a bank worker subvented by the taxpayer and the troika, it’s the same.

    We are all being subvented in this country, to maintain our standard of living. We are not special. There is no knowledge economy. We are not the young well educated workforce we pretend to be. We are the same as everyone else, but we buy jobs and keep export costs low using low taxes, tax relief and public money. We also have a high minimum wage and a generous welfare state.

    That anyone working in this country can single out farmers as being on the gravy train is laughable.

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    • Excellent comment

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    • In what way are tech jobs protected from being outsourced to cheaper countries like India?

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    • http://www.revenue.ie/en/tax/ct/leaflets/research-dev.pdf

      Up to 25% of ‘qualifying expenditure’ (read any expense related to R&D) can be written off against corporation tax. What’s more, this can be carried on indefinitely. This enables companies to profit off sales paying much less, in reality, than the headline 12.5% corporation tax figure. What’s more, if you don’t profit, you can carry over that 25% tax credit into the next year … indefinitely!

      This is so-called tax-expenditure. The government forgoes corporation tax so that your average 50K ICT job costs the company a lot less, effectively. This is how the government buys jobs, and keeps them by protecting against outsourcing.

      So it’s not a simple case of “I can hire 5 times as many ICT workers in India for my money”, it’s “Ireland will let me write off a large chunk of my tax if I employ people in R&D here. What’s more, any patent royalties for a patent that comes out of my Irish office will be taxed at very low rates.”

      All in all, Ireland is a very good value proposition, despite our high wages, because we are in the euro and we tax corporations by feck all.

      This fuzzy feeling of “we’re super-well-educated, and hard workers” is nonsense which hides the real truth of spending would-be tax revenue on jobs. Don’t get me wrong, I’m all for it. This how small countries punch above their weight, by creating a competitive advantage that the big countries can’t afford to replicate.

      Multinationals aren’t all queuing up to get their hands on the latest NUI/TCD graduates, they’re getting the same employees for more money, but with massive tax incentives.

      Reply
  • Good luck folks. Hope the protest is successful and the CAP is untouched.

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  • David 09/10/12 #

    The government should not need reminding that agriculture is the backbone of this country but it looks like they do. It must support away more than 300,000 jobs in my opinion.

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  • We pay the EU and they pay the money back out. The CAP makes up almost 50% of the EU budget. Only 4% of the money, or thereabouts, goes to Ireland (with 3% of the farm land), France, which has 17% of the farm land, gets 22% of the funding.

    In fact, if the UK lost its rebate, the money the UK pays into the EU would be the same as the money that comes out to support French farming. This is why the UK tends to attack the CAP (and why France tends to protect it).

    Furthermore the entire CAP is a form of agricultural protectionism that stretches to high import duties on external producers and helps to drive up prices. You’ll all recall that guy who was locked up for not paying import duties on garlic, that was because import duty on garlic is about 233% in order to protect French and Spanish producers.

    This is insane, it should be stopped.

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  • No point going to Dublin as this country never do anything we need to shut this country down and that means ports airports fuel depots any thing that’s makes money for the government and mark your right what about the fishermen we need to shut this country down now the more we sit back the worse it will get

    Reply
    • Emmet 09/10/12 #

      Well said…. Time for some French tactics and see what happens. To think us as Irish citizens would have to bring things to that level makes one wonder what’s actually happening here…..

      Reply
  • EMD 09/10/12 #

    IFA stance will not benefit most farmers

    Farmers are objecting to a progressive change in single farm payments that would make a majority better off, writes FINTAN O’TOOLE
    http://www.irishtimes.com/newspaper/opinion/2012/1009/1224325059375.html

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  • Wonder will be Gardai and customs be on-site dipping for green diesel..?

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  • God forbid they would have to face the realities of a recession like the rest of the country.

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    • David 09/10/12 #

      Farmers are never out of recession i’m afraid conor……..

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    • most farmers make fu*k all they start ay 6am and late at night its by no means a easy job physically or mentally..over heads are naturally high and when we get weather like we did this year the crops get wasted it costs more to feed the animals this drives up the price of meat cereal bread milk etc on the shelf costing you more…without them getting a help in funds the price will double for produce….so in short the eu pays or we do

      Reply
    • John 09/10/12 #

      If I start a business and it performs badly because of the weather or recession, the EU desnt bail me out….absurd. Drop EU imposed trade restrictions throughout the world and allow third world countries export to the EU…really f***ed up of the farmers and all their grants, concessions, subsidies.

      Reply
  • Lets all go to Dublin & fcku the traffic up on a busy Tuesday.

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  • The poor poor farmers – trying hard to protect their gravy train

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  • Una Dev 09/10/12 #

    Farmers voted Yes to the Fiscal Treaty so they have no one to blame but themselves.

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    • How do you know they voted yes? Were you standing over each and every farmer in the country, watching them as they voted? I didn’t think so.

      The referendum passed, build a bridge.

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    • Well since the IFA came out in favour of a Yes vote that would suggest a majority of farmers probably voted Yes

      They also have a history of being pro-EU and supporting EU treaties

      I can’t see any compelling reason as to why that might have changed with the Austerity Treaty

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  • Agriculture is being propped up artificially, no two ways about it. In fairness this could be a strategically important thing to do in terms of ensuring that should the worst come to the worst at least there is agricultural infrastructure to provide food. However the for of agriculture here is focussed on families owning the land and making a living out of it, and while I am no fan of the landscape that results from larger holdings and more intensive processes these are undeniably better in terms of efficiency. Sure, support agriculture, but not dynastic land ownership.

    Reply

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