Latest news with #MartinHeydon
Irish Times
3 days ago
- Business
- Irish Times
Ireland needs to stop holding out against Mercosur
Amid the consternation on tariffs there is a certainty; it is time to get Mercosur done. The EU trade agreement with Argentina, Brazil, Paraguay and Uruguay concluded last year and follows one with Canada. A deal with India is well advanced, and Indonesia is in the offing. Mercosur is ready now, but it is politically tricky here. It is a big win for Ireland, but beef farmers feel challenged, the Opposition supports them, and there is no sign of the Government taking its courage into its hands. That is not sustainable politically in Brussels, nor is it in Ireland's interest as a trading nation. Mercosur is a distinct issue, but interconnected with other issues that affect farmers, including threatened Common Agricultural Policy (CAP) spending in the seven-year €1.8 trillion EU budget from 2028, announced on Wednesday. Then there is the Nitrates Directive under which Ireland has a derogation allowing greater livestock density, and which runs out this year. The derogation is connected to our underperformance under the Habitats Directive. Green policies are important after all. The farming vote is not what it was, and farm politics is fractious. But farmers are disproportionately important to the Government parties which have thin electoral margins. Minister for Agriculture Martin Heydon must simultaneously move out of the cul de sac that is opposition to Mercosur, deliver on the Nitrates Directive derogation this year and build a coalition for EU budget negotiations next year. Writing a commitment into the Programme for Government to oppose the current Mercosur trade deal was a particular error of judgment. A 10 per cent tariff with the US is now a new baseline – and much worse is possible . The Mercosur deal eliminates tariffs on 91 per cent of all products, benefiting virtually all Irish goods. In 2023, that included €329 million in chemicals and pharmaceuticals. The value of Irish services exported to Mercosur is €1.8 billion per year. Farmers win because tariffs will be reduced from 55 per cent to zero. The political rub, however, is that the deal allows 99,000 tonnes of Mercosur beef to enter the EU market with a 7.5 per cent duty. That is about one steak per person per year. READ MORE But it is the narrative that has jammed political support for the deal which requires that imported food products comply with EU Sanitary and Phytosanitary standards. Curiously, we happily import protein from the Mercosur countries to feed our livestock here. This is a matter of interest, not principle. It is fair to insist that what is agreed is policed properly. But expat policing isn't a new concept in a country where we welcomed Russian vets to verify animal health standards during the BSE crisis of the 1990s. Mercosur is one of several trade deals that can partly rebalance the cost of US tariffs. It is also imperative that it is not a diversion as we try to hold on to the Nitrates Directive derogation. Emerging plans to divide the country into 48 administrative regions to assess compliance with environmental standards seem bizarre. An extended derogation, which we are the very last to benefit from, should be based on future full compliance of the entire country with the Habitat Directive. [ More than 20 Irish companies on Asian trade mission Opens in new window ] Farm product prices are at record highs, except for cereals. These are good times for farmers generally, but they are also changing times. The EU budget proposed this week is just the beginning of a long process. Ireland will hold the presidency of the EU Council in the second half of 2026. That is both an opportunity and a restraint, but it will double down on domestic political pressure to shape an EU budget that is more supportive of farmers. The current proposal means the CAP is no longer a standalone fund and is instead merged with EU cohesion, migration, and infrastructure funding. What isn't ring-fenced is not guaranteed. Ultimately, this is the real fight for farmers and will matter long after Mercosur is a fact, and a Nitrates Directive derogation that may be extended temporarily is a distant memory. [ Is Trump's tariffs plan working for the US? And where does it go next? Opens in new window ] Farmers are divided between beef and dairy, and between big and small. Farm politics is a melee. Dairy farmers, even with a derogation from the Nitrates Directive, need more land, which is pushing up prices. That edges out younger farmers but suits older ones who are happy to take higher rents. The EU now has other priorities, including defence, to compete with the CAP established in 1962. Big decisions will be taken this year and bigger ones in the next 18 months. Holding out against Mercosur is a tactical mistake for farmers in terms of their own interests. More importantly, it is a strategic mistake by the Government in terms of the national interest.
Irish Examiner
5 days ago
- Business
- Irish Examiner
'Big battle ahead' on EU supports for farming, IFA warns
The Irish Farmers' Association has warned of a "big battle ahead" for vital EU supports for farming, ahead of the publication of the European Commission's proposals for the next EU budget post-2027 and the next Common Agriculture Policy (Cap). Speaking from Brussels, IFA president Francie Gorman said what was emerging about how farming will be funded from 2027 was "very concerning". 'While we will have to examine the specifics in more detail, it is clear that the EU Commission is downgrading the importance of the Cap and food production to allow for greater spending elsewhere,' he said. 'The Cap is being turned into an environmental and social policy. Support for farmers who are producing the most food is being consistently reduced. The commission seem more interested in finding ways to cut payments to individual farmers rather than support them,' he said. "As it stands, the Cap provides an annual injection of nearly €2bn into our rural economy to support food production. 'At a time when Ireland is a net contributor to the overall EU budget, this level of investment in every parish takes on even more significance. Cap has been the cornerstone of the multi-billion export sector that underpins thousands of jobs in regions far from the urban centres,' he said. The EU Commission also needs to be honest with consumers. Cutting Cap funding will reduce food production and lead to food price inflation. 'These proposals will have to be approved by the member states and the EU Parliament, so there is a long journey ahead and we will expect a real fight from our Government and MEPs. 'The EU presidency, which Ireland will assume this time next year for the second half of 2026, takes on added importance. Our Government has to secure the maximum funding for Irish farmers to encourage the next generation to consider farming as a career. "From the Taoiseach down, this has to be front and centre of every discussion across those six months,' he said. Commenting, agriculture minister Martin Heydon said: 'These are complex legislative proposals which will need detailed consideration. The commission is proposing major changes in structure that we will now study in detail in order to better understand the impact on Ireland. 'This publication is just the beginning of a protracted process. Member states will, through the Council of Ministers, begin the process of agreeing a general approach to the commission's proposals, before engaging in line-by-line negotiations with the EU Parliament and the EU Commission. "This will take some time, and I fully expect the progression of these proposals to be a significant feature of Ireland's presidency of the EU Council in the second half of next year.' The minister will host the first meeting of Ireland's Cap consultative committee on Thursday, which will engage in detail on these proposals. Read More Agricultural output price index up 20.7% in the 12 months to May
Irish Independent
5 days ago
- Business
- Irish Independent
EU proposes major cut to farm subsidies
Under the new proposal, CAP funding would fall to €300 billion for the next seven-year period, compared to €387 billion allocated for 2021–2027. When adjusted to real prices, this amounts to an estimated 30% reduction in funding. The CAP will also no longer be a standalone fund. Instead, it will be merged into a single mega-fund alongside cohesion and rural development spending, to be managed at the national level through new National and Regional Partnership Plans. It comes as a draft proposal on the next CAP leaked in recent days also outlines a controversial shake-up of how direct farm payments are distributed, including new caps on large payouts. Under the Commission's blueprint, income support would be capped at €100,000 per year per farmer. Tiered reductions would apply to larger recipients: payments above €20,000 would face a 25% cut, those above €50,000 a 50% cut, and anything over €75,000 would be cut by 75%. The goal is to reallocate support towards smaller farms. Previous efforts to impose caps on farm subsidies have been blocked by member states concerned about their larger farming operations. The proposals are likely to spark resistance from Europe's powerful farming lobby. The influential COPA-COGECA group, of which the Irish Farmers' Association (IFA) is a member, has strongly opposed the merging of CAP's two-pillar structure and warned against the redistribution of direct payments. Ireland, a net contributor to the EU budget since 2013, receives the bulk of its EU receipts through CAP. Under the current CAP Strategic Plan (2023–2027), Ireland receives nearly €2 billion annually to support its farming and agri-food sectors. Minister for Agriculture Martin Heydon recently warned of the economic risks posed by CAP cuts. 'As a country that is now a net contributor to the overall EU budget, there are many things we pay into that we don't get a direct return from,' he said. 'Of the receipts the Exchequer gets back from what we pay into Europe, 75pc comes through the CAP. If CAP is reduced, that hits the overall economy in terms of how much of that return we see.' In 2023, Ireland contributed €3.6 billion to the EU budget. That figure is forecast to rise to almost €4.5 billion by 2027. However, speaking today Minister Heydon said today's publication is just the beginning of a 'protracted process'. ADVERTISEMENT Learn more "Member States will, through the Council of Ministers, begin the process of agreeing a general approach to the Commission's proposals, before engaging in line by line negotiations with the EU Parliament and the EU Commission. "This will take some time, and I fully expect the progression of these proposals to be a significant feature of Ireland's Presidency of the EU Council in the second half of next year.' Broader overhaul of EU spending The CAP reform is part of a wider redesign of the EU's long-term budget. The Commission today unveiled a draft Multiannual Financial Framework (MFF) for 2028–2034 worth nearly €2 trillion — equivalent to 1.26% of the EU's gross national income. President Ursula von der Leyen said the revamped budget would help the EU 'shape its own destiny' in an era of global uncertainty. 'Our new long-term budget will help protect European citizens, strengthen Europe's social model and make our European industry thrive,' she said. 'In a time of geopolitical instability, the budget will allow Europe to shape its own destiny, in line with its vision and ideals.' The Commission stressed that new demands on the EU budget — including defence, migration, energy resilience and industrial competitiveness — require a fundamental overhaul. 'Europe faces an increasing number of challenges... These are not temporary but reflect systemic geopolitical and economic shifts,' the Commission said. One pressing concern is the EU's mounting debt, with repayments of €25–30 billion per year due to begin in 2028. To fund new priorities and ease the burden on national budgets, the Commission proposed five new 'own resources,' including levies on emissions, e-waste, tobacco, and large corporate revenues. Combined, these are expected to raise €58.5 billion per year. Next steps The Commission's draft budget must be agreed unanimously by member states, following approval from the European Parliament. Several proposals, including new revenue streams, require ratification by national parliaments.
Irish Examiner
5 days ago
- General
- Irish Examiner
Spotlight on female-led sustainability launched
The 'Spotlight on Female-Led Sustainability' booklet was launched by the Minister of Agriculture, Martin Heydon. The booklet launch is part of the Women in Agriculture Action Plan, which aims to promote the role of women in improved social, environmental and economic sustainability for the sector. The Women in Agriculture Working Group, responsible for the delivery of the Action Plan, developed the booklet, which profiles twelve female farmers, fishers, foresters, and food producers innovating in sustainability. Increasing the visibility of women's contribution to sustainability across the sector provides positive female role models to inspire other women and young girls. As part of the launch, Minister Heydon visited the stud farm of Mariann Klay in Swordlestown, Naas, Co Kildare, whose sustainability initiatives were highlighted in the booklet. Farmer, Mariann Klay, with Minister for Agriculture, Food and the Marine, Martin Heydon TD, on her stud farm, Swordlestown Little Stud Farm, Naas, Co. Kildare. PIC: Maxwells Ms Klay believes that incorporating and encouraging greater biodiversity has been a key part of their successful stud farm. A full-time farmer since 2003 and an active Farming for Nature ambassador, Mariann proudly promotes improved sustainability and biodiversity on her farm. Minister Heydon acknowledged the importance of the contribution women make to the Irish agri-food sector at the launch, especially in areas of social, environmental, and economic sustainability. 'Advancing the role of women in agriculture is a key priority for me and is a commitment in the Programme for Government. The importance of gender balance to the long-term sustainable future of the sector is widely recognised and it is important that we continue to build on the progress of the Women in Agriculture Action Plan. Sustainability is one of the areas in which women are leading the way for the sector, contributing to a resilient and viable sector for future generations of farmers,' he said, reiterating his commitment to supporting women in agri-food roles.
Irish Examiner
5 days ago
- Business
- Irish Examiner
The red tape that stalled farm loans — and the road back for Microfinance Ireland
Administrative arrangements with Microfinance Ireland to allow them to recommence lending to farmers are currently being finalised with the Department of Agriculture. Over 10 years since 2013, Microfinance Ireland has made 182 loans to Irish farmers, totalling €3,252,368. But this valuable source of credit for Irish farmers is cut off since 2023, until Microfinance Ireland complies with new EU agriculture state aid requirements, including new legal arrangements for data sharing between Microfinance Ireland and the Department of Agriculture. This has been the case since the EU's Temporary Crisis and Transition Framework ceased in December 2023, and Microfinance Ireland had to change over to providing loans under the newly applicable State Aid Framework, which is the De Minimis Regulation. Now, agriculture minister Martin Heydon has told the Dáil a statutory instrument to allow the sharing of data between third-party agri-loan providers and his department has been finalised. It was signed into law on April 4 last, completing the first step to allow Microfinance Ireland to recommence lending to farmers. The minister was answering a Dáil question from Fianna Fáil TD Albert Dolan. Microfinance Ireland was set up by the government to help micro-enterprises that cannot get funding from the main banks. It is a not-for-profit organisation that does not compete with the main banks, and predominantly supports start-ups, with loans at low interest rate charges relative to the credit risk. Microfinance Ireland provides loans from €2,000 up to €50,000 to businesses that do not meet the conventional risk criteria applied by commercial lenders. Since 2023, it has continued lending to non-agriculture businesses. Microfinance Ireland assists businesses with fewer than 10 employees to meet payments for stock, working capital requirements, and other overhead expenses. In September 2024, Microfinance Ireland increased the permitted loan limit from €25,000 to €50,000. The loan term is typically three years for working capital purposes, and can be extended to five years for capital expenditures. Loan records indicate the main farming enterprises supported up to the end of 2023 were dairy and cattle farms, taking out 34 loans totalling €642,749, and 28 loans totalling €455,900, respectively. There were 21 loans totalling €344,000 for mixed farming, 14 loans totalling €214,999 to support activities for animal production, 13 loans totalling €171,074 to horticultural growers, and 12 loans totalling €197,499 for poultry production. Microfinance Ireland made 41 loans to farmers in 2020, totalling €950,600; 29 loans in 2021, totalling €558,300; 14 loans in 2022, totalling €255,024; and 14 loans in 2023, totalling €225,000. There were zero loans in 2024 and 2025 to agriculture. Where Microfinance Ireland offers loans to farmers, it must ensure such loans comply with relevant EU state aid regulations. Read More State aid fix to unlock farm loans from Microfinance Ireland
