Ireland's agricultural sector remains in great uncertainty about its near future. It appears that the country will soon finally have a new coalition government so that corona subsidies can be paid out.
So far, these payments have been made only sparingly because new temporary emergency laws require a government. The three Irish parties Fianna Fáil, Fine Gael, and the Greens reached an agreement on Monday after four months of negotiations. This agreement still must be approved by members of all three parties within the next ten days.
The coalition agreement at least breaks a political stalemate. The left-wing nationalists Sinn Féin, who had been in power for many years, had made surprisingly large election gains in February. But Sinn Féin is now sidelined because the center-right Fianna Fáil did not want to govern with them again. Subsequently, Fianna Fáil, together with the smaller center-right Fine Gael and the Greens, worked on a three-party coalition.
The member consultations next week are particularly tense due to the involvement of the Greens. According to that party’s rules, two-thirds of the members must agree, a higher threshold than for the other two parties. This could be difficult for the Greens because, according to some critics, the party leadership has brought in 'far too few green' elements. On the other hand, they did achieve results on many of their other key points.
The current Irish Minister of Agriculture Michael Creed (Fianna Fáil) believes the two centrist parties have made many concessions to the Greens, but he defended the new course for sustainability in the agricultural sector, reduction of air and soil pollution, and improvement of biodiversity. Creed told his agricultural base that the European Green Deal is the future.
It is not only uncertain for Ireland’s agricultural sector when and how the EU Green Deal will be implemented, or whether there will be cuts in the (current) Common Agricultural Policy (CAP). It may be that these issues will be contested for many years not only in Ireland but also across the EU.
Minister Creed said that proposals about less pesticide and fertilizer use and more organic production, as in the Green Deal, resonate with large parts of the public. ‘And if we think we can reverse consumer sentiment and still sell our product in a premium market, we’re kidding ourselves,’ he says. Farmers who want to farm like their fathers did are doomed because the sector must respond to consumer confidence, Creed said in an interview with the Irish Examiner.
The Irish agricultural sector also remains concerned about the currently faltering British-European negotiations on a trade agreement, as the British insist they will leave the EU by the end of this year with their Brexit. For example, a solution still needs to be found for the 'non-border' between the Republic of Ireland and British Northern Ireland. Ireland must continue to comply with strict EU rules on food quality (meat, fish, dairy, etc.), while the British will almost unhindered be able to 'smuggle' their 'inferior' products freely into Ireland.
Joining the European Union and its agricultural policy in 1973 has especially led to specialization and intensification in the fertile east and south of Ireland. Agriculture, dairy, and livestock farming have thus become important export products for the Irish economy.
Exporting meat and producing milk are significant sources of income. Much barley, wheat, potatoes, and sugar beets are also grown in the country. Most farms are small, with larger farms mainly focusing on livestock production. The sector contributes 1.2% to the Gross National Product of the Irish economy. Five percent of the population works in the sector.