CAP Direct Payments Modelling Impact of redistribution Francis

CAP Direct Payments Modelling: Impact of redistribution Francis Morrin CAP Entitlements Division Department of Agriculture, Food and the Marine August 11, 2021

What is in the modelling document? § Factual presentation of data based on examples § Executive summary and conclusions § Complex data, the most complex modelling we have carried out so far § Good for trends, but the final figures will change - not a perfect model § Case studies useful as allows farmers to see themselves in document 2 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Summary of direct payments modelling § Redistribution is a mandatory measure required at EU level to target payments to those who need them most, or those who are contributing to the CAP objectives § Eco-Schemes will represent an important portion of a farmer’s direct payment § CRISS (Complementary Redistributive Income Support for Sustainability) will make a contribution to a farmer’s direct payment, but is likely to be smaller than BISS (Basic Income Support for Sustainability) or Eco-Schemes § Greater allocation to eco-schemes and CRISS greatly reduce the impact/influence entitlements have (less money moving because entitlements represent a smaller proportion of the fund) § These measures redistribute from those with more land/entitlements and/or those with high value entitlements § Very limited funding will result from capping 3 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Models Minimum Model Parameters Model Min 1 Convergence by 2026 Model Min 2 Maximum Model Min 3 Model Max 1 Model Max 2 85% 100% € 780 m € 722 m 5% 10% € 59 m € 119 m Model Max 3 BISS Ceiling (After National Reserve) CRISS Percentage of National Ceiling CRISS Max Hectares (ha) 10 20 30 CRISS Payment Per Hectare (ha) € 52 € 29 € 22 € 103 € 58 € 44 CRISS Max Payment € 516 € 576 € 654 € 1, 033 € 1, 152 € 1, 308 4 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Case Study: Farmer A – 5 Low Value Entitlements MODEL Current (2021) Payment Unit Value Payment Model Min 3 Model Max 3 € 160 € 800 Change vs. Total Year One Current Year One UV BISS ECO CRISS Payment Difference € 120 € 117 € 600 € 585 € 320 € 110 € 220 € 1, 030 € 1, 125 € 230 € 325 Farmer A – 5 High Value Entitlements MODEL Current (2021) Payment Unit Value Payment Model Min 3 € 681 € 3, 405 Year One € 681 € 3, 405 Change vs. Current Payment Difference UV BISS ECO CRIS S € 429 € 2, 145 € 320 € 110 € 2, 575 -€ 830 € 1, 820 € 320 € 2, 360 -€ 1, 045 5 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine Model Max 3 Total Year One € 364

Case Study: Farmer B – 20 Static Value Entitlements MODEL Current (2021) Payment Unit Value Payment UV Model Min 3 € 261 € 5, 220 € 178 Model Max 3 € 261 € 5, 220 € 165 6 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine Year One BISS € 3, 560 € 3, 300 ECO € 1, 280 Total Year Change vs. One Current CRISS Payment Difference € 440 € 5, 280 € 60 € 880 € 5, 460 € 240

Case Study: Farmer C – 40 Low Value Entitlements MODEL Current (2021) Year One Payment Unit Value Payment UV Model Min 3 € 160 € 6, 400 € 120 BISS € 4, 800 ECO € 2, 560 Model Max 3 € 4, 680 € 2, 560 € 160 € 6, 400 Change vs. Total Year One Current € 117 CRIS S € 660 € 1, 32 0 Payment € 8, 020 Difference € 1, 620 € 8, 560 € 2, 160 Farmer C – 40 High Value Entitlements MODEL Current (2021) Change vs. Total Year One Current Year One Payment Unit Value Payment UV BISS Model Min 3 € 473 € 18, 920 € 305 € 12, 200 Model Max 3 € 473 € 18, 920 € 266 € 10, 640 7 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine ECO € 2, 560 CRISS € 660 € 1, 320 Payment € 15, 420 € 14, 520 Difference -€ 3, 500 -€ 4, 400

Go to gov. ie/CAP for full details 8 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Allocations of funding § § § Eco-schemes – 25% CRISS or front loading – 10% BISS (new BPS) Complementary Income Support for Young Farmers – 3% Voluntary Coupled Support (Protein Aid Scheme) National Reserve 9 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Ceiling allocation National Ceiling: Maximum Amount of Funding Available (€ 1. 186 bn) Subtract Funding Allocations to Mandatory and Optional Direct Payment Schemes (Eco-Scheme, CISYF, Coupled Income Support, Sectoral Interventions, CRISS, Round Sum Payment for Small Farmers) Remainder is the Basic Income Support for Sustainability Scheme (BISS) Ceiling Subtract the Funding Required for the National Reserve Final amount is the Available Fund for Distribution under BISS 10 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

CRISS contribution Example: Assume each entitlement value will be reduced by 10% to create the CRISS fund. Entitlement Value CRISS contribution € 200 € 20 € 30 € 400 € 40 CRISS payment per hectare might not be equal to the contribution per hectare 11 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Body Level One Body Level Two Body Level Three Body Level Four Body Level Five 12 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

Questions and Answers 13 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine