Specific Details
European Semester 2023 & the National Reform Programme
Intended results
To participate in the consultation on the National Reform Programme 2023.
Move From Fossil Fuels
The REPowerEU plan's aim is to rapidly reduce dependence on Russian fossil fuels by 2027, and the European Commission estimates that this will require significant expansion of renewable energy shares in the electricity, transport and heating sectors. Agriculture can and must be central to such plans. With the correct supports and policy structures Irish Farmers can contribute significantly to the reduction on the reliance of fossil fuels and the move to renewable forms of energy.
With Solar progress has been made in the last 12 months such as the removal of the requirement for planning permission for roof top solar on farm buildings. However, much can still be done to help drastically expand the amount of electricity generated from solar on Irish farms that can be fed back into the grid. Firstly the electrical grid must be brought up to a standard where all who wish to feed in excess electricity can
Also it must be ensured that the cost of installing roof top solar does not prohibit any who may wish to do this from doing it. Realistic feed in tariffs, grants, and funding such as through SBCI must be available to all farmers to help remove the financial barrier.
The Irish Government's increased target for indigenous biomethane production of 5.7 TWh by 2030, a move that will require 130 large scale agricultural anaerobic digestion plants to be developed within eight years is an area where farmers are willing and able to become involved once the correct structures are in place.
In forming policy in this area, it must be ensured that the option of farmer involvement and ownership is present at all stages of the chain. Structured correctly will not only give the possibility of large-scale public buy in, but also mean a viable future for many living and working in rural Ireland.
The Irish Government must access all means of EU funding to help expand the generation of renewable energy from farms. The “Temporary Crisis and Transition Framework” announced by Commission Vestager in January 2023 on state aid rules may mean a simplification and easing of these rules around renewable technologies and if this happens, then the Irish Government must ensure that all aid as allowed under this framework is afforded to farmers partaking in the generation of renewable energy.
Land used for energy generation, be it wind, solar, energy crops or by any other means should receive full CAP payments. From a taxation perspective these lands should also be treated as agricultural land is currently treated, be that from a Capital Taxes perspective, Stamp Duty reliefs, imposition of Rates and for Income Tax such as reliefs for long term leases, to further incentivise farmers who wish to pursue such activities on their land.
Climate Efficient Agriculture
The move to more climate efficient means of production should be encouraged. One means of doing this is through accelerated capital allowances. In Budget 2023 accelerated capital allowance for on farm slurry storage was announced. This should be expanded, much like the accelerated capital allowance available for energy efficient investments for businesses, to all on farm investment which have a positive climatic impact.
Circular Economy
Much of what already takes place in Agriculture can be seen as part of the circular economy, however with adequate public funding this can expand further. As some farmers wish to diversify what they do to encompass more of the circular economy it must be ensured at government level that no undue impediments are placed in their way.
This can unintentionally happen especially in the areas of taxation. For example, a farmer may wish to process green waste that would have been previously burned into a fertiliser/soil conditioner, such an activity must be treated as a continuation of his/her farm business from a taxation/rates perspective.
Brexit Adjustment Reserve Fund
It must be ensured that the whole of the Irish allocation from the Brexit Adjustment Reserve Fund is spent. Currently there is a deadline for spends under this of the end of 2023. If required Ireland must apply for an extension of this deadline.
Agriculture is one of the most exposed sectors of the Irish economy to the negative effects Brexit may bring. While the worst feared consequences have not transpired to date the long term negative effect to Irish agriculture will be felt into the future.
The UK has signed and will probably continue to sign trade deals with third countries outside the EU, a large component of these deals is the opening up of the UK market to food produce such as dairy, beef and sheep from these other countries who in many instances have a large advantage over Irish farmers in their lower costs of production, in part driven by less stringent rules and regulations.
With such an exposure the allocation for agriculture from the Brexit Adjustment Fund must be spent in full to help primary producers prepare for this challenge.
John Shaw
Assistant Secretary (Department of the Taoiseach)
Leo Varadkar
Taoiseach (Department of the Taoiseach)