Food Board On Way As CAP Reform Published

As farmers across Northern Ireland digest the news from Europe that means they will lose out on millions of pounds in subsidy payments, the NI Agriculture Minister Michelle O'Neill has backed a proposed new, over-arching food body.

Sinn Fein Minister O'Neill and the DUP Enterprise Minister Arlene Foster have both given their backing to the establishment of a new Food Strategy Board (FSB) and have initiated a recruitment process seeking the appointment of an independent Chair.

Similar to the Irish Republic's long established Bord Bia, the appointment comes on the back of a review into support structures to the agri-food sector which recommended a more 'joined-up' approach between industry and Government.

The Food Strategy Board brings these interests together under the direction of an Independent Chair.

Over the next few months, the Department of Agriculture and Rural Development, the Department of Enterprise, Trade and Investment and Invest NI will also be seeking industry nominations to the FSB.

NI farmers may need all the help they can get as a wide-ranging, cost-cutting reform to Europe's Common Agricultural Policy (CAP) was revealed today.

Currently, farmers receive £230m a year in subsidies, but that will soon be reduced and the Ulster Farmers Union said the plan to freeze the European budget over the next five years could hit farm incomes and raise food prices for consumers.

"If we end up with a smaller single farm payment then we are going to need the balance to come from the market place," Ulster Farmers Union spokesman James Brown told BBC NI today.

"At the minute CAP payment is really a food subsidy to the consumer."

As the Minister also works over the detailed statemnt, she said earlier that the key role of the proposed FSB would be to develop a longer-term plan for the sector, building on their existing Focus on Food strategy.

"The agri-food sector makes a significant contribution to the economy as well as rural communities.

"While we have an existing food strategy, we need to work with those in the agri-food sector to develop a longer term plan for further, sustained export-led growth.

"This has to be a team effort between industry and Government and so the role of the FSB in harnessing this potential is vital.

"I am pleased that we now have this opportunity to seek an independent Chair to oversee the work of the FSB and I look forward to seeing the FSB up and running in this important area of work as soon as possible."

Stormont Executive colleague, Enterprise Minister Arlene Foster said: "The food and drink processing sector generates some £3.7billion in sales annually and provides almost 20,000 jobs.

"It is the largest manufacturing sector, one of the largest exporters and has performed well during the current challenging economic climate.

"My Department has been working closely with the agri food industry, the Department of Agriculture and Rural Development and the Department for Employment and Learning for the past number of years in implementing our existing development strategy for the industry.

"I am pleased to continue this progress with the appointment of an independent Chair of a new Food Strategy Board jointly with the Department of Agriculture and Rural Development.

"I see this as a major opportunity to update our strategy and develop a longer term vision for this important industry and look forward to continued collaboration," she said.

NI Payments 'Eclipse UK'

Last November, the Head of the European Commission's NI office, Maurice Maxwell briefed journalists on 'CAP Towards 2020'.

Spekaing at the time, he explained that Northern Ireland's level of Single Farm Payment was currently eclipsing that of all the other parts of the UK - with the payment per hectare at €360 as compared to the average UK rate of €262 - being much more than either Scotland, Wales or England.

He added that the big difference on the local rate of SFP was mostly "historical" and related to the way in which such payments had been claimed by the agricultural sector, he noted, but, putting it into context, he also said that farmers in Greece are paid a huge €550 per hectare while Latvia is paid just €90.

He told the Guild of Agricultural Journalists to expect change in the regime over the next few years, specifically on these Single Farm Payments (SFP) as Europe revises its agricultural policy towards 2020.

This morning, the Commission was proposing to simplify several CAP mechanisms, including the cross-compliance rules and control systems, "without sacrificing effectiveness".

A flat-rate payment will be created for small farmers, ranging from €500 to €1,000 per farm per year.

For others, it will reduce gradually from €150,000 (degressivity), with a ceiling of €300,000 per farm per year, and will take account of the number of employees created by holdings and it will also be more fairly distributed among farmers, regions and Member States.

Full details on: CAP Reform Proposals Revealed In Brussels

Also see: NI Farm Payments 'Eclipse UK'

See: EC Offers 'Shop Front' Belfast Location

See: Europe's CAP Reform Gets Northern Focus

(BMcC/GK)