Taoiseach Micheál Martin has said that negotiations around the budget for the next Common Agricultural Policy (CAP) will be "challenging".

Ireland will hold the Presidency of the Council of the European Union from July 1 to December 31, 2026.

This will be a crucial period in terms of the discussions around the next long-term EU budget, known as the Multi-Annual Financial Framework which will run from 2028 to 2034.

It is understood that an outline of the next MFF, including the next CAP, may become clear before the end of the year, with trilogue discussions expected in early 2027.

CAP

Speaking at the launch of Kinisla, the new name for Kerry Dairy Ireland, the Taoiseach outlined how Ireland will play a key role in the EU budget talks.

"It's falling to the Irish presidency [of the EU] to navigate the negotiations of the budget.

"The agenda is to get it completed by the end of this year and people are looking to the Irish presidency across Europe to drive that forward," he said.

Pressure on the wider EU budget is intensifying as many member states seek to prioritise defence spending.

Michéal Martin also spoke about the Irish government's desire to increase the proposed budget for the next CAP.

"At the moment, the draft budget is not where we want it to be, if we're all honest about that, so the agenda is to try and get that up," he said.

The Taoiseach said that Minister for Agriculture, Food and the Marine Martin Heydon will be "working very hard with his colleagues on the [EU] agriculture council".

"Likewise, I'll be working with him to try and advance the situation for farming and in the context of the budget negotiations," he added.

Proposals

The European Commission's proposals for the next CAP would see a move away from the traditional two-pillar structure.

CAP would be integrated into National and Regional Partnership Plans worth €865 billion, of which a minimum of €300 million would be ringfenced for farmer income supports.

The commission believes the proposals would increase flexibility for member states to direct funding toward specific farmer needs.

However, the European Parliament's budget committee has called for the ringfenced amount of €433 billion for farmers in next CAP.

Minister Martin Heydon, has previously said that the indicative CAP allocation for Ireland would stand at €8.16 billion for 2028-2034 - which compares to €10.7 billion in the current programming period, a reduction of between 20% and 24%.