County chairman highlights REPS payment problem

MEATH IFA Rural Development Chairman Tom Brady has described as of little value the transitional arrangements for REPS 4 farmers, which Minister Coughlan claims she has secured from the EU Commission.

Speaking following a meeting with Department of Agriculture officials, Mr Brady said that the Minister has failed to ensure that the early payment system is in place for REPS 4. The only concession that she claims to have secured is in relation to REPS 2 farmers, whose contracts expire in 2008, he said.  However, in the 3,000 cases involved, no full payment will be made to them this year.

Mr Brady also pointed out that any REPS 3 farmer who was considering moving over to REPS 4 in 2008 can only do so before the Area Aid application deadline of 15th May. This is only possible if the anniversary date falls before the 15th May.  Otherwise, he said, REPS 3 farmers  will have to wait until 2009 to avail of the 17 per cent increase in REPS 4 payments.

“In relation to the mixed grazing supplementary measure announced by Minister Coughlan as part of the sheep package prior to the General Election last year, it is not possible to get payments out to most of the 25,000 sheep farmers for whom the package was aimed at,” he said.

Continuing, the Meath IFA Rural Development Chairman said that the change in the REPS payment system will significantly impact on cash flow on farms as payment will now be made at the end of the calendar year.

Many farmers' financial position will be effected by the change and some will not be in a strong position to renegotiate their financial arrangements with their banks.

Mr Brady went on to point out that by having REPS plans with a 1st January anniversary date will lead to a bottle-neck for getting plans submitted.

Furthermore, lengthening the plan period to over five years will make it very difficult for some farmers to comply with the scheme as it will not be possible to renegotiate land lease agreements for a period greater than five years.

Concluding, Mr Brady warned that the REPS target set down be the Government in the Partnership Agreement, and in the Rural Development Plan of having 70,000 farmers in the scheme by 2013, is now unachievable.