Commission working on fertiliser action plan and potential crisis support
The European Commission wants to cut EU farmers' reliance on imported fertilisers with a new action plan and potential crisis support measures as the Middle East conflict continues.
The commission is closely monitoring the current situation in the region and is conscious that energy prices are weighing heavily on agriculture and pushing up day to day costs for Irish farmers.
The Fertiliser Action Plan will be published later this spring and will focus not only on the short term crisis support but also on structural measures to reduce EU dependency on imported synthetic, fossil-fuel based fertilisers.
The industry group Fertilisers Europe has warned that if the conflict in the Middle East continues or gets worse then "EU institutions should consider reinforcing aid and assistance to European farmers".
The Department of Agriculture, Food and the Marine (DAFM) is "closely monitoring developments regarding input costs" as a result of the unfolding Middle East crisis.
Minister Michael Healy-Rae told the Dáil yesterday (Thursday, March 19) that it was "too early to assess the full impact of current input price pressures on horticultural production systems and, in turn, on farmer margins".
The minister also indicated that DAFM was meeting with the fertiliser importers this week and "will continue to monitor the situation closely".
He said that it is understood there may be "sufficient" fertiliser stocks in the country to last until mid-April.
European Commission
Against the backdrop of the 21-day crisis in the Middle East the European Commission is also working to reassure Irish farmers that it is keenly aware of the challenges they face.
Not only from the perspective of the immediate issues because of geopolitics on input prices that they face but also in relation to ongoing climate change challenges and the role Irish farmers play in contributing to food security in the EU.
Commission officials have said that it is important to recognise the "strategic" nature of the sector and have emphasised that "you don't have farming, if you don't have farmers to do it".
But depending on how long the Middle East conflict continues could this fundamentally reshape discussions underway now in relation to the next Common Agricultural Policy (CAP)?
The proposed CAP allocation of approximately €294 billion at EU level is reduction of around 20% in nominal terms compared with the current CAP period.
The Minister for Agriculture, Food and the Marine, Martin Heydon has said that specifically in relation to Ireland, the indicative CAP allocation of €8.16 billion for 2028-2034 compares to €10.7 billion in the current programming period - a reduction of between 20% and 24%.
Minister Heydon has warned that this proposed reduction "is a major concern for Ireland".
It is understood that at this time the European Commission is working closely with national authorities to ensure that the next CAP remains stable, predictable, and fit for purpose.
The commission has indicated that it wants to maintain reliable income support for farmers because it believes this is essential to safeguard Europe’s food supply.
However it has also highlighted that it is important for farmers to be able to invest and modernise.
Overall the European Commission sees the next CAP as one of the cornerstones to support farmers and in turn support agri-food sector growth.
It is understood that the commission want to ensure that the next CAP will deliver more targeted support for farmers and that the financial support then "goes to those who need it most".
While CAP negotiations now take shape it is also believed that commission officials see international trade deals, including the likes of the Mercosur, playing a vital role in expanding market opportunities for farmers in the future.
The proposed next CAP post 2027 will see a single fund, replace the current two-pillar structure, which the European Commission has argued will "reduce complexity, rigidity, and overlaps, and give EU countries' authorities more flexibility and possibilities".
It aims to deliver "simplification" for farmers and make it easier for them to access funding opportunities.
The commission believes its proposals for the next CAP will deliver a "better balance between rules and incentives to preserve the climate and the environment".
But how might this work in practice when it comes for example to the likes of organic farming, which in Ireland remains behind the EU average.
According to Eddie Kiernan, who together with his wife Swantje and three children, owns Rathvale Organic Farm the next CAP should "encourage" more farmers to convert to organic.
"There has to be a financial incentive there as much as possible for people to take the plunge and go for it.
"But they also have to be environmentally and organically minded because if you're just converting for financial reasons and your heart is not in it, then I don't think it is going to work.
"We are way behind in this country in the percentage of organic hectares, the new CAP has to push it - it's a growing market people are more aware of what they are eating, what they're putting in their bodies and they're also getting more aware of the environment and biodiversity. The new CAP must incentivise organic farming more," Kiernan said.
