Meat processors and livestock marts have reported a rise in the number of farmers withholding levy payments to the Irish Farmers’ Association amid the ongoing pay controversy, though not the “deluge” some had predicted.
The voluntary payment is deducted from all farm sales to co-ops, processors and marts and is one of the biggest sources of income for the IFA.
Last year it generated just under 40 per cent, or €4.7 million, of the association’s €12.9 million budget.
Several marts contacted by The Irish Times said the controversy over IFA executive pay had resulted in more farmers opting out of the system.
"We don't have exact numbers but there were a good few," Roscommon Marts manager Maura Quigley said.
She said about 40 farmers notified the mart of their intention not to pay levies last Friday, while a further 15-20 cancelled on Tuesday.
Ms Quigley said the mart had also received calls from farmers looking for forms to reclaim levies paid over the past year.
“There is a certain amount [of farmers cancelling], but they’re not knocking down the door,” she said.
Tariff
The
European Involvement Fund
levy was introduced by the association in the 1970s to help fund its operation in Brussels.
While the tariff differs across sectors, it equates to about 0.015 per cent, or €1.50 per €1,000 in sales.
"We didn't have a massive backlash, but we had some reaction," said Richard Harnett of Castleisland Co-op Mart in Kerry, noting a few dozen farmers had approached the mart about opting out.
Clare Marts manager Martin McNamara said there was an initial reaction for the first few days, with up to 50 farmers cancelling the payment. "This has eased off," he said.
Seán Leahy, manager of the Fermoy/Corrin mart in Cork, said there had been a percentage of farmers opting out but “not the deluge we were expecting”.
Backlash
“We thought there’d be a bigger backlash,” said Mr Leahy. “I think farmers are waiting to see what will happen over the next couple of weeks before making any financial decision.”
PJ Buckley, manager of Golden Vale Marts, one of the State’s largest mart groups, with venues in Kilmallock, Tullamore and Carrigallen, said there had been some opt-outs, but declined to elaborate.
The IFA has so far declined to provide figures on how many farmers have opted out of the scheme.
Three prominent meat processors, who did not want to be identified, told The Irish Times they were aware of a rise in farmers opting to withhold the levy.
“We’ve been hearing of requests from farmers to opt out of the levy from some locations. It’s too early to say if that is a trend or a short-term blip,” one processor source said.
Dairy processor Glanbia declined to detail if there had been a fall-off, insisting payment of the levy was a matter for individual farmers.
