2. CAP 2020 Consultation Process – Public Meeting Dr Kevin Hanrahan Rural Economy Development Programme Teagasc

3. The Common Agricultural Policy – Objectives and Principles
Objectives of the CAP
To increase agricultural productivity
To ensure a fair standard of living for the agricultural community
To stabilise markets
To ensure availability of supplies
To ensure that supplies reach consumers at reasonable prices
Principles of the CAP
Market unity
Community Preference
Financial Solidarity

4. What does the CAP do for the Agriculture and Food Sector?
Pillar I & Pillar II policies support of agricultural incomes, rural development and agri-environment
Provides market price support via membership of the EU Single Market and Community Preference
DAFM CAP Meetings

5. Family Farm Income & the CAP
Source: Teagasc National Farm Survey 2016
DAFM CAP meetings

6. Agriculture Sector Income & the CAP
Source: CSO Agricultural Output, Input and Income
DAFM CAP Meetings

7. Farm income and CAP
Importance of direct payments evident in their share of farm and sector income
Remember the importance of CAP when output prices are very low
A year like 2009 will probably reoccur
Preferential access to most valuable market in the world (the EU) supports the level of Irish farm gate prices and the value of Irish food exports
DAFM CAP Meetings

8. Irish Agri-food Exports: EU28 & Rest of World
Source: CSO External Trade Statistics
DAFM CAP Consultation Meetings

9. Agriculture and Food Manufacturing: Shares of total Economy GDP & Employment
Note: the decline in the share of agri-food in GVA was due to the very large increase in Irish GDP in 2015.
Source: Eurostat National and Regional Accounts
DAFM CAP Consultation Meetings

10. Agri-Food importance to Regional Economies
Importance of Agri-food industry to National Output, Income and Employment is magnified in many of the regions
Role of CAP supports to agriculture is also varies across the regions
DAFM CAP Consultation Meetings

11. Share of CAP Direct Payments in 2016 Regional Agricultural Sector Income
Source: CSO Regional Accounts for Agriculture
DAFM CAP Consultation Meetings

12. Regional Agricultural Output, Income and Subsidies - 2016
Source: CSO Regional Accounts for Agriculture
DAFM CAP Consultation Meetings

13. Regional importance of agriculture, and Food Manufacturing Employment
120 thousand people employed in agriculture and food. Importance greater outside Dublin and Mid-East regions.
Source: CSO Census of Population 2016
DAFM CAP Consultation Meetings

14. CAP and the wider economy
Agricultural activity supports wider rural economic activity
Farmer input purchases & output sales
Agricultural activity provides the basis for employment in food processing industries and in Ag. input industries
CAP support of farm incomes supports other rural and urban businesses
via farm household consumption expenditure
DAFM CAP Consultation Meetings

15. CAP and the wider rural economy
Ireland as a global tourist destination
The CAP supports the maintenance of agricultural landscapes and communities that are the basis of this attractiveness
Maintenance and economic development of rural communities
CAP support this through Pillar II spending on LEADER Company activities
DAFM CAP Consultation Meetings

16. Conclusions The future is at least partly in our own hands
Ireland (and the EU) can change its policies
CAP reform represents an opportunity
A process that allow us to do things differently and hopefully better!
Sustainability Challenges faced
Economic
Social
Environmental
Can we re-imagine/redesign the CAP and its implementation in Ireland to help us better address the challenges faced ?
DAFM CAP Meetings