Farm Ireland

Friday 19 April 2019

Hard Brexit will not result in cut to direct payments - Hogan

The European Commissioner for Agriculture, Phil Hogan (Niall Carson/PA)
The European Commissioner for Agriculture, Phil Hogan (Niall Carson/PA)
Margaret Donnelly

Margaret Donnelly

There will be no cut to farmers' direct payments when the UK leaves the EU, according to the EU Agriculture Commissioner Phil Hogan.

Speaking in Kerry last week Hogan said that while the UK leaving the EU will result in a €12bn hole in the EU budget, it will not result in a cut to farmers' direct payments.

"There will be no cut in your direct payments. We are protecting the areas of natural constraint money as well in 2019."

However, the future CAP budget has been under threat in recent months, with Günther Oettinger, the EU commissioner for budget and human resources, demanding cuts in farm spending, pointing to the €12bn hole in the EU's finances that the UK leaving will create.

Under plans for the EU's budget for 2021-2027, farmers would receive around €232bn in direct support, a drop of more than €30bn from the current seven-year budget.

The Irish Minister for Agriculture and the Taoiseach have both said Ireland will look to the EU for financial aid and loosening of certain EU rules to combat the potential fallout from a disorderly Brexit.

In recent weeks the Government announced details of a €300m loan scheme for farmers and SMEs to support long-term investment post Brexit.

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