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FM AMEMBASSY DUBLIN
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UNCLAS SECTION 01 OF 02 DUBLIN 000485 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR PGOV PREL EU EI
SUBJECT: IRELAND, THE CAP, AND THE EU 
 
DUBLIN 00000485  001.2 OF 002 
 
 
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SUMMARY 
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¶1.  Since entering the European Union (EU) in 1973, Ireland 
has benefited greatly from the EU's Common Agricultural 
Policy (CAP).  The importance of farming for Ireland, not 
only in economic but also in social and cultural terms, 
underscores the influence the farming community has in the 
country.  EU programs, such as the CAP, have enabled Ireland 
to transform itself into a service-oriented, urban-centered 
economy with less emphasis on its connection to agriculture 
and the land.  Despite this, recent events such as the 
referendum on the Lisbon Treaty -- which was defeated in part 
due to concerns that the Treaty might change the CAP -- have 
shown the strength of the farmers on Irish public opinion. 
Overcoming the farmers' fear of CAP reform, and mustering 
their active support for stronger relations with the EU, will 
go far in enabling the Irish Government to get Ireland's 
relations with the EU back on track.  End Summary. 
 
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Irish Gains from the CAP 
------------------------ 
 
¶2.  Ireland has experienced impressive economic gains from 
the CAP.  Statistics show that 1.5 percent of Ireland's gross 
national income came from the CAP in 2004, and that the 
country routinely receives disproportionately more CAP 
assistance than its EU-counterparts.  On July 28, 2008, James 
Kelly of the Irish farming and education body Agri-Aware, 
told POLOFF that Ireland has a "huge attachment" to the CAP, 
mainly because the nation's economy has traditionally been 
agriculturally based.  Kelly commented that the Irish people 
have never strayed far from the land, which has resulted in a 
strong farm lobby whose influence can be seen at all levels 
throughout the nation.  He noted that, as Ireland transformed 
itself from one of the poorest counties to one of the 
wealthiest in Europe -- in part because of the CAP -- the 
agricultural sector has become a prime example of the gains 
garnered from EU membership.  Kelly pointed out that Irish 
producers have been able to benefit from higher prices on the 
EU market and from the subsidization of exports with the EU's 
export refunds system.  He said that the shift in CAP policy 
towards "decoupling" and rural development aid, which helps 
accelerate farm modernization, has also been very beneficial 
to Ireland. 
 
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Social/Cultural Importance of Agriculture in Ireland 
--------------------------------------------- ------- 
 
¶3.  Kelly pointed out that the importance of agriculture in 
Ireland is generally greater than many other European 
nations.  The strong influence of Irish farmers on public 
policy stems not only from the economic benefits realized 
from farming, but also because many city dwellers have close 
family members actively involved in agriculture.  Kelly 
noted, however, that a generation gap is developing in 
Ireland as these traditional, sentimental links diminish.  He 
stated that Agri-Aware is the only farming organization in 
Europe that is independent from the main farming lobbies and 
governments, and whose function is to create an urban 
awareness of farming and its issues. 
 
¶4.  The power of the Irish Farmers Association (IFA) in 
governmental affairs in Ireland reflects agriculture's strong 
place in Irish society.  According to Pat Smith, the IFA's 
Director of Organization, the IFA is the "most powerful" of 
the European farming groups; an opinion shared by many EU 
members.  Smith noted that strong incessant IFA lobbying 
(founded in Irish public opinion) was instrumental in the 
EU's 2008 decision to limit imports of Brazilian beef. 
 
¶5.  Officials at Agri-Aware, the IFA, and the Young Farmers, 
Association (Macra na Feirme) have all told POLOFF they are 
convinced that the Irish government consistently 
under-estimates the power and influence of Irish farmers. 
They think that the May 2008 referendum on the EU Lisbon 
Treaty demonstrated how much farmers' opinions matter.  With 
the Treaty referendum and the end-game of the WTO/Doha Round 
talks running concurrently, they pointed out that the IFA 
would not give its support to a "yes" vote for the Lisbon 
Treaty until it got assurances from the government that it 
would not "sell out" Irish farmers in the WTO process. 
Eventually the government capitulated to the demands of the 
IFA, but according to Smith and Kelly, the government's 
failure to give farmers assurances earlier caused a lot of 
confusion and contributed to the Treaty's defeat. 
 
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DUBLIN 00000485  002.2 OF 002 
 
 
Comment: Irish Farmers Support the EU 
------------------------------------- 
 
¶6.  There is still tremendous support for the EU among Irish 
farmers according to Kelly.  While there was objection by 
Irish farmers to some of the negotiating positions taken by 
EU Trade Commissioner Mandelson at the WTO/Doha Round 
discussions, the main concern of Irish farmers is to see that 
the current CAP payment system is maintained.  A common theme 
is evident throughout Ireland - the Irish do not want to see 
the agriculture sector suffer, not only for economic and 
social reasons, but also for traditional cultural reasons. 
Agriculture has always been the bedrock of Ireland's society 
and culture and the farmers hold great sway over Irish public 
opinion.  Next year the CAP is up for interim review, which 
is giving Irish farmers the willies.  They wonder if the 
Irish Government will stand strong with the French in 
maintaining the current lucrative system of farm payments or 
will shift to support the British view that the CAP must be 
reformed.  Overcoming the farmers' fears of change in the 
CAP, and mustering their active support for stronger 
relations with the EU, will go far in enabling the Irish 
Government to get Ireland's relations with the EU back on 
track. 
FOLEY