Could CAP farm payments for pensioners end by 2032?

This week the European Commission presented its Multiannual Financial Framework (MFF) - the EU's long-term budget - which proposes to end farm support payments for farmers once they reach pension age.

In its proposal the commission states that member states must ensure that by 2032 at the latest, applicants who reach retirement age, determined by national law, who receive a pension, must no longer receive support under the Common Agricultural Policy (CAP).

The proposal comes under the heading of 'Degressive area-based income support' in the commission's draft financial plan.

It's just one of a number of controversial changes being proposed for the CAP 2028-2032 which is now being proposed as a single pillar fund for farmers across Europe.

€300 billion will be ringfenced in a single fund to support farmers and fishermen, including environmental measures, on-farm investments, support to young farmers, and risk management tools.

The CAP funding for the current period amounts to €387 million, so there has been heavy criticism from MEPs and farm organisations about what appears to be a 20% cut.

Generational renewal has long been an issue flagged by the farming sector across the EU.

As part of the commission's proposal, it has outlined measures which must be included in every member state's National Regional Partnership (NRP) Plan.

One element is that an assessment of the current demographic situation in the agricultural sector be undertaken.

The commission wants to see what it describes as "synergies between measures contributing to generational renewal" set out in the NRP Plan.

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Could this mean that the move to take away direct farm payments from pensioners is aimed at stimulating the next generation to take over, with more of a focus on supporting young farmers?

According to the Central Statistics Office (CSO) Ireland, the average age of a farmer in Ireland is 59.4 years-of-age.

38% of farm holders in Ireland are aged 65 or older according to the latest available CSO data for 2023, meaning that about 50,000 farmers fall into this age category.

With an aging population, that figure could significantly increase by 2032, meaning more than 50,000 farmers could lose out on their CAP income support, if the proposals are approved and implemented across the EU.

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