The Past, Present and Future of Irish Agriculture Brendan Kearney - - PowerPoint PPT Presentation

The Past, Present and Future of Irish Agriculture

Brendan Kearney

The Past, Present and Future of Irish Agriculture

• Changing role in the economy
• Main policy developments and output/

income trends

• Changing structure and performance
• The prospects and challenges which lie

ahead

• Harvest 2020 and CAP Reform 2013

Role of agriculture in the economy

Output ‐ its level and character

• Overall enterprise mix and pa9ern of farming has

changed li9le

• Dominant enterprises are ca9le and milk produc<on

accoun<ng for up to 70% of total output

• Volume of GAO expanded by 50% from EU entry to

1990

• Trend in the last decade downwards
• Volume last year less than 20 years ago.
• Value added in real terms 30% lower last year than

in 2000

Highs and lows in farm incomes over the years

• Bonanza in seven<es
• In the late eigh<es and nine<es ‐ ups and

downs

• The last decade ‐ large fluctua<ons

Role of Direct Payments

Farm structure

• UnremiUng change in the structure of

agriculture with fewer and larger farms, specialisa<on and concentra<on of produc<on, less employment and growth in part‐<me farming

• Holdings
• Age structure
• Part‐<me farming

Food Harvest 2020

Overarching targets for 2020 are:

• Increase in the value of primary output in the sector of

€1.5billion - 33% increase over the 2007/2009 average

• Increase in value-added of the sector by €3billion - 40%

increase over 2008

• Export target of €12billion - 42% increase over 2007/2009
• Major challenges for dairy, beef and pigment sectors
• Land structure and mobility a major constraint

The Common Agricultural Policy aXer 2013

Context:

Ireland received €1, 824million and €1,705million in EU agricultural receipts in the years 2008 and 2009 respec<vely, of which Single Farm Payment was €1,300million ‐ two‐thirds of total direct payments to farmers.

The objec<ves of the future CAP to 2020 are:

• Viable food produc<on including compensa<on for natural

handicaps

• Sustainable development of natural resources including the

provision of public goods and pursuing climate change mi<ga<on ac<ons

• Balanced territorial development to promote diversifica<on and

rural diversity

Three broad policy op<ons are presented:

Op<on 1:

Limited improvements in specific areas e.g. more equity in direct payments.

Op<on 2:

Make major overhauls of the policy ‐more sustainable and more targeted measures.

Op<on 3:

More radical reform of the CAP and main focus on environmental and climate change and gradually move away from income support and most market measures.

Crucial issues

• Size of budget
• Change from historic model of direct

payments

• What approach for Ireland?

Concluding comments