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IFA: Relaxing State aid rules for farmers 'a first step'

The Irish Farmers Association (IFA) has said more needs to be done to protect their sector in a w...
Jack Quann
Jack Quann

15.20 22 Feb 2019


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IFA: Relaxing State aid rules...

IFA: Relaxing State aid rules for farmers 'a first step'

Jack Quann
Jack Quann

15.20 22 Feb 2019


Share this article


The Irish Farmers Association (IFA) has said more needs to be done to protect their sector in a worst-case scenario Brexit.

Its comments came after the European Commission announced an increase of funds that governments can use to support farmers, without seeking prior approval to grant State aid.

In times of crisis, national authorities can currently distribute €15,000 per farm over a three year period.

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But this figure will rise to €20,000, and in certain cases €25,000, per farm over three years.

Higher amounts of State aid can still be granted by member states as long as the Commission agrees that action is proportionate to the crisis, and does not create an uneven playing field that would distort the single market.

Agriculture and Rural Development Commissioner Phil Hogan said: "The Commission's proposal for new State aid rules for the agricultural sector reflects the value of this form of support in times of crisis.

"By increasing the maximum aid amount to farmers, national authorities will have more flexibility and be able to react more quickly and more effectively to support vulnerable farmers.

"In some cases, the amount of State aid that can be provided to individual farmers will be increased by 66%.

"These new rules will continue to accompany the normal rules for notified State aid, which member states may continue to apply."

Each national ceiling will be set at 1.25% of the country's annual agricultural output over the same three-year period - up from 1% in the current rules.

This is an increase in the national ceiling of 25%.

If a country does not spend more than 50% of its total national aid envelope on one particular agricultural sector, it may increase the aid even further to €25,000.

For countries that do opt for that highest ceiling, the new rules require the creation of mandatory central registers at national level.

This will allow keeping track of the aids granted in order to simplify and improve the delivery and monitoring of the aid.

The increased ceilings come into force on March 14th and can apply retroactively to aids fulfilling all the conditions.

The Commission consulted member states and stakeholders to provide input on the revisions.

State aid President of the Irish Farmers Association (IFA) Joe Healy speaking at to the media after the IFA Annual General Meeting (AGM) in IFA HQ in Dublin | Image: Sam Boal/RollingNews.ie

But IFA President Joe Healy has said the decision was 'an important first step'.

He said in a no-deal Brexit, State Aid limited to €8,300 per year will not be enough - given the losses that farmers have already encountered and will be facing in such a scenario.

He warned that such is the scale of the losses from a Brexit crash out, the EU Commission will have to be the primary source of funds for a Brexit emergency support package.

"We need to see much more urgency from the minister and clarity on the details of exactly what mechanisms will be applied.

"Aid must go to farmers and not be gobbled up by others in the supply chain."


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Agricultural Output Agriculture Commissioner European Commission Farmers Farmers In Crisis Phil Hogan State Aid Vulnerable Farmers

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