Mandatory provision of installation aid in latest CAP agreement a ‘huge leap’

The proposed provision of installation aid remaining as a mandatory measure under the next CAP is a small step for Irish farming but a huge leap for Ireland’s young farmers, Macra president Josephine O’Neill has said.

Macra has long called for the reintroduction of installation aid for young farmers in Ireland. Speaking from Brussels this week, Macra president Josephine O’Neill said: “Ireland is currently the only EU member state without a dedicated installation aid provision for young farmers, putting them at a severe competitive disadvantage.

“Starting a farm requires massive upfront capital for purchasing livestock, building infrastructure, and securing land rights, which young farmers typically lack.

“While our minister often says TAMS is our version of installation aid, speaking to other young farmers in Brussels this week, they avail of both so now we can finally level the playing field.” O’Neill welcomed the General Partial Approach brokered by Minister for Agriculture Martin Heydon on Monday night.

Macra president Josephine O’Neillplaceholder image
Macra president Josephine O’Neill

However, while it does not address the issue of a 24% cut to the overall budget or 10% ring-fenced funding for young farmers, it has been positive for young farmers on several policy fronts. The Macra president continued: “While securing installation aid for young farmers under the next CAP may be our biggest win from Monday night’s Partial General Approach, we also welcome the flexibility for member states to consider a beneficiary as a ‘young farmer’ from the first moment of support for a maximum duration of seven years. We are also delighted to see that the potential for a young farmer TAMS rate of 85% still stands as the negotiations progress.” However, O’Neill added that there are some elements of recent developments which Macra are wary of.

These include the proposal that would make the Areas of Natural Constraint (ANC) scheme voluntary at Member State level as well as the removal of the mandatory skills criterion for young farmers. The lack of certainty around the ring-fenced young farmer funding is also a concern to the fore of our minds as negotiations progress. She said: “Disappointingly, overall ambition has softened in how the European Commission’s proposed Starter Pack will be programmed under the next CAP. Ireland’s negotiation box has proposed that member states must choose at least three measures for young farmers as part of the Starter Pack. “However, Ireland’s current CAP Strategic Plan already has three targeted young farmer measures – the Complimentary Income Support for Young Famers (CISFY), a higher rate of TAMS and the young farmer national reserve. Softening the proposals under the Starter Pack to just three measures, threatens the ambition to support generational renewal under the next CAP. “With CISYF and Installation AID now mandatory measures under the proposals for the next CAP, there is now very low incentive for Member States to go beyond the traditional young farmers’ instruments,” O’Neill said. Macra is calling for this mandatory minimum requirement under the starter pack to increase to include more than just three measures, including supports such as subsidised farm relief services, advisory services and training, financial instruments and installation loans. Speaking directly to Commissioner Cristophe Hansen as part of a CEJA delegation in the European Commission in Brussels on Tuesday, Macra president Josephine O’Neill demanded a CAP post-2027 that delivers “certainty, commitment and change” for young farmers. She said: “I was heartened to hear the Commissioner’s commitment to food security, He said that if we want to see our fridges and supermarket shelves full, we cannot leave our fields empty.

“He also said that a succession scheme under the next CAP is something he is confident can be delivered. “The Commissioner also commented on how there are 'people who don’t even work the land' in receipt of CAP payments. This, he said, he doesn’t like.” Macra believes that this further reinforces the need for an active farmer definition which ensures that the meaningful support goes to those actively involved in food production.

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