DARD announces 7% CAP modulation rate
Northern Ireland agriculture minister Michelle O’Neill has announced she intends to apply a 7% modulation rate to farmers’ direct payments.
This means Northern Ireland will have the lowest modulation rate of any of the four devolved governments of the UK.
Wales has chosen to transfer 15% of funds, Scotland has gone for a figure of 9.5%, while DEFRA has chosen to modulate at 12% initially with a view to increasing it in 2019.
Ms O’Neill said the transfer of 7% of funds from direct payments to rural development schemes in Northern Ireland would help to deliver positive change in rural areas.
“I consider the Rural Development Programme to be a key mechanism in delivering positive change in our rural areas and it is important that it is adequately funded,” she said.
“Similarly, I know how important direct payments are to our farm businesses. It will benefit our farmers through ensuring funding for a Farm Capital Investment Scheme and other farming-facing measures.
“It will allow me to continue to protect our natural environment through a well-funded agri-environment scheme and continue to provide support to our rural businesses and voluntary organisations, which are so vital to our rural communities.”
The news is likely to be met with relief by the Ulster Farmers Union, which had said it wanted to see a modulation rate of less than 9%.
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