The "horse trading" process began on Wednesday afternoon when the Commission tabled a compromise paper for Member States to examine and discuss in tri-lateral meetings with the Commission. Talks continued throughout the night with a deal was finally agreed the next morning.
Some of the key points of detail are:
NI Single farm Payment model
The NI Single Farm Payment model is now secured until 2013.
EU Compulsory Modulation
2009 = 5% + 2% = 7% in total
2010 = 5% + 3% = 8% in total
2011 = 5% + 4% = 9% in total
2012 = 5% + 5% = 10% in total
In addition there will be progressive modulation; a Single Farm Payment over €300 000 will have a further 4% modulation applied.
Critically for Northern Ireland, the stipulation that increases in compulsory modulation rates should be matched by decreases in the rate of any national modulation was secured.
This means our overall rate of modulation will not increase and in fact the playing field now looks more level because other Member States will now have higher modulation rates than previously.
Cross Compliance
The establishment of buffer strips along water courses is now a compulsory standard under the Good Agricultural and Environmental Conditions rules. This initially raised concerns but we have confirmed that the NI Nitrates Action Programme already meets this standard, so again the playing field looks more level.
The Council and Commission will continue to work on simplification for farmers after the Health Check.
Abolition of set aside
The Council agreed to formally abolish set aside and confirmed this will take effect from 1 January 2009.
Article 68 "national envelope schemes"
Member States may use "unused amounts" of their Single Farm Payment to finance Article 68 schemes (to address specific disadvantages in certain areas) or for Rural Development Measures.
Milk quotas
Quotas are increased by five x 1% in 2009, 2010, 2011, 2012 and 2013.
The Commission will produce two reports by 31 December 2010 and 31 December 2012 reviewing the situation.
For Italy the 5% increase will take place as of 2009.
Fat adjustment : For those producers whose fat content in their milk deliveries is over their reference fat level, the fat adjustment coefficient is reduced from 0.18 to 0.09, a move which it is anticipated will further boost production in the Republic of Ireland .
Member States may to 2014 grant state aids to the dairy sector, subject to the ceilings within Article 68(4) (i.e. up to 3.5% of the ceiling).
Private Storage Aid for butter - the existing system remains in place.