Landmark reform of the CAP

The most profound change for a generation in Irish farming is in prospect as the landmark reform of the Common Agricultural Policy…

The most profound change for a generation in Irish farming is in prospect as the landmark reform of the Common Agricultural Policy comes into play over the coming year. These changes, which separate or "decouple" agricultural production from European Union subsidies, will affect farmers most directly.

But all those who work or live in agricultural areas will feel the impact, as will urban consumers and residents who visit rural Ireland. Our trading and political relations with the rest of the world will also be affected.

The changes are examined in a series of articles beginning in this newspaper today. Last week the EU farm commissioner, Dr Franz Fischler, discussed them at a well-attended meeting organised by the Irish Farmers' Association. He made a compelling case that farmers should support them, which seemed to catch the emerging mood among the activist IFA members who attended. As is to be expected in such a large and variegated industry, certain sectors stand to benefit more than others - or certainly perceive the potential benefits more readily.

Thus older, smaller and part-time farmers (probably the numerical majority) have welcomed them as a way of easing pressures to produce while retaining incentives to keep their land in good agricultural and environmental order. Many beef and cereal farmers are warming to the changes, not least because they have been given a ten year period of stability to plan their future before the next major change. The dairy sector has been most vocally critical, because it does not receive full compensation for cuts. But Dr Fischler made a strong and convincing case that they too can turn decoupling to advantage by concentrating on improving the processing end of the industry and finding new quality markets in a rapidly enlarging EU marketplace which will appreciate Irish produce.

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This message - that quality is the way forward in more discriminating domestic, European and world markets - has been made consistently and sympathetically by Dr Fischler and echoed by the more far-seeing leaders and commentators on Irish agriculture. These reforms do not clear farmers off the land but alter the parameters by which they stay there. They will have as much opportunity to find new markets and more responsibility as custodians of the rural and agricultural environment. While in the longer term the now decoupled subsidies from Brussels will be vulnerable to political change, the more immediate prospect that they would be swept aside by the looming World Trade Organisation negotiations has been halted.

The farm sector is now much less significant in Ireland's economy. But taken together with food processing and manufacturing and all the ripple effects they have throughout the economy it remains vitally important. That is why the outcome of these changes and the continuing debate about them, deserve close attention from all concerned with Ireland's welfare and prosperity.