Agriculture

CAP talks likely to have an impact on Tipperary economy

Payments the lifeblood of many rural businesses

Tipperary Star reporter

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CAP talks likely to have an impact on Tipperary economy

Pat McCormack: CAP talks likely to have an impact on Tipperary economy

The CAP funding debate that began recently in Brussels has the most significant implications for a heavily farming dependent county like Tipperary, according to the Tipperary president of the ICMSA.

Greenane farmer Pat McCormack said that ICMSA was operating on the basis that if the Commission’s proposals were to be accepted, then Irish farmers’ direct payments would fall from €1.2bn per annum to €1.08bn while rural development payments would fall from €330m per annum to €225m for the duration of the seven year deal.

Mr McCormack stressed that the falls involved would be catastrophic for the farm families involved but he also stressed that it was these payments going into the wider rural economy that was the lifeblood of many rural commercial businesses and service providers.

“Always remember that the multiplier effect of the farmer’s spend is at least 1.8, what that means is that the effect of the farmers’ spend in County Tipperary is nearly doubled as it goes into their local economies,” he aid.

Mr McCormack pointed out that the converse of that was equally true.

If the farmers didn’t have that money to spend then the negative effect was very disproportionate. Everybody had to understand that getting a fair and reasonable CAP was absolutely necessary for counties all over Ireland where farming and food production is the biggest industry, counties like Tipperary, he said.