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The Fine Gael MEP was responding to comments made by his party colleague and former Taoiseach Leo Varadkar about farmers.
Speaking with Matt Cooper on the Path to Power podcast, Varadkar claimed that farmers "still see themselves as the people who bring money and jobs into Ireland, where actually a lot of the time they bring costs on Ireland".
Varadkar added: "People in rural Ireland are very quick to tell people in urban Ireland that ‘we're the real workers, we’re the ones paying all the bills, we’re the ones feeding the country".
"I think maybe we need to be a little bit more blunt in urban Ireland and say, actually that's not the case, we’re the ones paying all the bills and you’re the ones in receipt of a lot of subsidies and a lot of tax benefits that other people don’t get," he said.
Rural
When asked by Agriland in Brussels to comment on Varadkar's comments, MEP Kelly, who hails from Co. Kerry, said:
"I think it's very important not to be making distinctions between urban and rural. They're both equally important.
"Most of the SMEs (small and medium enterprises) are in urban areas. They need to be supported.
"Agriculture and food security is vital, and I think they need to be supported as well.
"Leo is a free thinker, so we'll listen to what he has to say. He's fairly intelligent, so we'll listen to what he has to say, but we don't agree with everything he says," Kelly said.
CAP
MEP Kelly also told Agriland he would support the European Parliament budget committee's call for the next Common Agricultural Policy (CAP) to be allocated €433 billion for the 2028-2034 period.
The initial proposals for the next CAP, published last summer by the European Commission, would result in an overall cut in funding of 20% compared to the current CAP.
The budget committee's counter proposal would add €139 billion to the commission's plans.
MEP Kelly said he would support the recommendation to increase the ringfenced amount for CAP post 2027.
"I think the CAP is vital for agriculture. It's been reduced, which is understandable in a sense because the budget is reduced and there are more demands in it.
"But at the same time, you must have, particularly what they used to call Pillar One, more direct payments for those who are farming the land.
"I think that's one of the key reforms that are necessary. There are an awful lot of people drawing down CAP funds and they're not farming at all.
"That would give a little leeway. That has to be tackled in Ireland and across Europe," he said.
This week, the European Commission is due to unveil a temporary framework to help sectors affected by the soaring energy and fertilizer prices, triggered by the war in the Middle East.
MEP Kelly said he would hope the commission will come up with proposals to protect farmers against such price shocks in the longer term.