Specific Details
Farm Schemes
Intended results
To emphasise how Farm Schemes, funded either through the Common Agricultural Policy or National Exchequer, are a critical source of income each year for family farms, helping support their environmental, social and economic sustainability.
Dependence on Direct Payments
The importance of Direct Payments to Irish farmers and the broader rural economy cannot be overstated. Put simply, without them, many farm families would not be able to sustain on-farm operations, or make various on-farm investments – both of which in turn help promote employment and economic activity in towns and villages throughout rural Ireland.
Analysis of the Teagasc National Farm Survey for the last three years, as outlined in Figure 1, show that on average 74% of farm income comes from Direct Payments, while Direct Payments make up between 118%, 124% and 159% of Cattle Finishing; Sheep and Suckler Beef farmers' total income respectively.
The complexity; administration and degree of conditionality associated with receipt of Direct Payments has increased significantly in recent years. None more so than the new Common Agricultural Policy Programme, spanning 2023 – 2027, where, without any increased remuneration, farmers are being charged with achieving an ever-expanding list of objectives, and food security of lesser priority.
Basic Payment Scheme (BPS)
To highlight how the Basic Payment Scheme (BPS) is a vital source of family farm income, typically arriving in October & December each year. In 2023, it will be replaced by the Basic Income Support for Sustainability (BISS), and many of our most productive farmers will see a significant reduction in their incomes through Convergence,
Complementary Redistributive Income Support for Sustainability (CRISS) and Capping. In 2021, over €1.15bn was paid to more than 122,500 farmers under the Basic Payment Scheme.
The Common Agricultural Policy (CAP) reform will see Greening replaced by Eco-Schemes too. Eco-Schemes will be funded by a cut of 25% to every farmer's Basic Payment and such payment will be based on a cost incurred / income forgone model. It is worth noting that that Irish farmers already have very strong credentials on agri-environmental measures.
33% of Ireland's land is farmed under Agri-Environmental Climate Measures compared with an average of 13.4% across the EU-27 member states. More recognition should be given to the level of actions undertaken by Irish farmers to date.
In the Common Agricultural Policy (CAP) Strategic Plan 2023-2027, the Department of Agriculture, Food and the Marine (DAFM) have planned for 85% participation in eco schemes which is assuming almost 20,000 farmers will not participate in the scheme. Due to the design of the scheme and lack of options available, it will be our most productive farmers who lose out.
With the added elements of the Complimentary Redistributive Income Support for Sustainability (CRISS) and Eco-schemes to the Basic Income Support for Sustainability (BISS) payment, it is vital that they are paid alongside the Basic Income Support for Sustainability (BISS)advance payment to preserve on-farm cashflow and mitigate potential issue in meeting possible loan repayment schedules.
Within Pillar 1 funding, Complementary Income Support for Young Farmers (CIS-YF) is a crucial element in ensuring continued generational renewal. However, the issue of support for the category of farmers known as ‘Forgotten Farmers' must be recognised. It is vital that this commitment outlined in the Programme for Government is honoured, as this group of farmers have been severely disadvantaged despite the fact that they are active and productive farmers
Agri-Climate Rural Environment Scheme (ACRES)
The Agri-Climate Rural Environment Scheme (ACRES) is the €1.5bn flagship environmental scheme under the next Common Agricultural Plan (CAP), and will replace the current Green Low Carbon Agri-Environment (GLAS) scheme. Participation in an agri-environment scheme makes up a substantial portion of farm income. In 2021, almost 40% of total farms in Ireland participated in the Green Low Carbon Agri-Environment (GLAS) Scheme, with approx. 47,000 farmers receiving payments of €189m alone.
For our more vulnerable sectors, such as drystock farming, participation in an agri-environment scheme is essential, with average payments in 2021 amounting to approx. €4,000 in additional farm income.
The Agri-Climate Rural Environment Scheme (ACRES) is set to come into effect in January 2023, however, issues persist. In Budget 2023, the Minister for Agriculture allocated funding for only 30,000 places under Tranche 1 of the Agri-Climate Rural Environment(ACRES) Scheme, with Tranche 2 not expected to open until Q4 2023. Maximum number of places on the scheme is 50,000 set over at least two tranches.
Based on participation levels in the Green Low Carbon Agri-Environment(GLAS) and the Results Based Environment-Agri Pilot Project(REAP) schemes, combined with expressions of interest for the Agri-Climate Rural Environment(ACRES) scheme, it is expected that approx. 60,000 farmers may wish to participate in the agri-environment scheme.
One of the biggest issues with this scheme is the real possibility that farmers will not gain access in year one. There is no rollover of the Green Low Carbon Agri-Environment(GLAS) or Results Based Environment Agri Pilot Project(REAP) Schemes confirmed.
If there is a lag between the Green Low Carbon Agri-Environment(GLAS)/Results Based Environment Agri Pilot Project(REAP) Schemes and the Agri-Climate Rural Environment Scheme(ACRES) due to the tranche-based approach and limited places, farmers will be left out of an agri-environment scheme for a year, causing a gap year in payments. This poses a real threat to on-farm incomes – particularly among the most vulnerable farm sectors.
IFA believe that this can be avoided by offering a bridging payment to farmers who are not successful in tranche 1 of the Agri-Climate Rural Environment Scheme(ACRES) or by paying an upfront ACRES payment in 2023 for Tranche 2 participants, similar to the way the Rural Environment Protection Scheme(REPS) payments were in the past.
It is vital that no farmer who wishes to participate in the Agri-Climate Rural Environment Scheme(ACRES) is without an environmental scheme payment for 2023.
With the deadline for the Agri-Climate Rural Environment Scheme(ACRES) of Monday 21st November fast approaching, planners/consultants and farmers are under increasing pressure to complete and submit applications. This tight 6-week deadline may drastically reduce the number of applications received.
The closing date for the scheme must be extended to mid-December to ensure sufficient time is given to drawing up plans, to maximize farmer participation and their payment in the scheme.
Targeted Agricultural Modernisation Scheme (TAMS)
The Targeted Agricultural Modernisation Scheme (TAMS) has been, and continues to be a success as it has encouraged on-farm investments in excess of €700m with farmers investing over €400m of their own capital. It has contributed to upgrading and modernisation of Irish farms as well as purchase of equipment.
There is an ongoing investment requirement across all sectors, to improve efficiency and meet higher environmental and animal welfare standards. As we look ahead to TAMS III, certain issues need to be addressed. TAMS reference costs continue to cause problems as they are completely out of sync with the rising costs of materials due to the unprecedented rise in inflation.
We acknowledge the review that took place last year, however, by the time the revised costings were implemented in Tranche 26, they were already out of date. As a result, the number of farmers applying for the Targeted Agricultural Modernisation Scheme(TAMS) support has declined significantly over the last year. It is unfair to force farmers to work with reference costs which are not keeping pace with events impacting on their costs.
It means they will not receive a rate of grant that is reflective of the actual cost of investment incurred. With higher grant rates proposed across numerous investments in the next CAP, it is imperative that reference costs are updated accordingly to ensure that farmers receive the full benefit of grant aid.
Currently, solar panels are funded through the Targeted Agricultural Modernisation Scheme(TAMS). IFA believe that this is not the appropriate funding source. Funding should be provided through a separate fund from the Department of Climate, Environment and Communications.
.The next iteration of the Targeted Agricultural Modernisation Scheme(TAMS) from 2023 has a limited budget which is already under pressure. In addition, trying to ‘shoe horn' Solar into TAMS has created anomalies. For example, farmers that utilise TAMS funding for solar are not allowed to sell surplus electricity generated on-farm to the grid because TAMS is essentially a farm efficiency scheme. This makes no sense.
There is huge potential for rooftop solar and other forms of Renewable energy on farms. IFA is currently running a pilot scheme to provide objective data on the effectiveness of Roof-top Solar on farms. In the budget we called for a new Roof-top Solar Scheme funded from additional resources not taken from an already overworked Common Agricultural Policy(CAP) budget.
There needs to be increased flexibility along with the inclusion of additional qualifying investments to ensure all funding is fully utilised. IFA has made a submission on additional investment items that should be considered, including heat detection collars, underpasses and slat mats.
Suckler Carbon Efficiency Programme/Beef Data & Genomics Programme(BDGP)/Beef Environmental Efficiency Programme(BEEP-S)/ Sheep Improvement Scheme
The current targeted schemes for suckler farmers, Beef Data and Genomics Programme and Beef Sector Efficiency Pilot have proven to be essential in terms of economic support, improving efficiencies and contributing to environmental objectives over the previous 7 years. It is evident from the decline in suckler cow numbers the levels of direct funding are not adequate to sustain our suckler herd and must be built on.
The new Suckler Carbon Efficiency Programme must be built on to provide farmers a minimum of €300/cow payment for all suckler cows. The compulsion for membership of the Bord Bia Sustainable Beef and Lamb Assurance Scheme (SBLAS) as a condition for eligibility for payment is also strongly rejected. SBLAS is recognised as a market requirement, and farmers who participate in it must be rewarded from the marketplace.
The Beef Environmental Efficiency Programme(BEEP-S) scheme has proven very positive among farmers with over 25,000 applicants annually throughout the duration the scheme. The renewal of the Beef Environment and Efficiency Scheme for sucklers (BEEP-S) in Budget 2023 was important, but the allocation of €28m is too low compared to the €40m which was previously provided. This merely brings supports for suckler farmers in line with what they are currently receiving.
The sheep sector is also heavily dependent on meaningful targeted supports for its viability. The new Sheep Improvement Scheme must be funded appropriately through a combination of the Common Agricultural Policy(CAP) and National funding to deliver €30/ewe to our 2.69m breeding ewes
Organics
Ireland has approximately 1,800 organic producers, of which 70% are livestock farmers and they are mostly concentrated in the South West and Mid-West of the country. Just 2.6% of Ireland's agricultural area is under organic production, compared to an EU average of 7.5%. Organic farmers in Ireland are keen to increase production in response to market opportunities.
IFA acknowledges the recent support of the organic sector through increased funding of the Organic Farming Scheme. The increased payment rates for farmers participating in the organic farm scheme is a positive step for the sector.
Given the ambition to grow organic farming set out both at European level and under the Programme for Government, it is imperative that the sector continues to receive additional support in terms of advisory support and knowledge transfer. The establishment of robust markets to facilitate the increase in organic production must also be a priority.
Farmers' Charter of Rights
When we discuss the success of previous schemes, the role of the Farmers' Charter of Rights cannot be forgotten. Following lengthy negotiations, the current Charter of Farmers' Rights has been a substantial improvement on the previous Charter across all of the key areas affecting direct payments and services to farmers.
As the years have progressed, we have seen a high level of efficiency in the delivery of scheme payments, with farmers being paid within the guidelines set out by the Charter. However, it took time to get to this stage. There is a real fear that with a new Charter set to be negotiated, that will incorporate the new schemes set out under the CAP Strategic Plan 2023-2027, we will revert back to our old ways.
This time, there are more elements to take into account, such as CRISS and eco-schemes , We cannot revert back to a situation where farmers payments are delayed due to the complex nature of some of the new schemes.
IFA proposes that negotiations for a new Charter commence as soon as possible to ensure that clear guidelines are set out for the years ahead and that farmers are paid in the timely manner that they have become accustomed to in the first year of the implementation of the new Common Agricultural Policy(CAP).
Agriculture Appeals Office
The Review of the Agriculture Appeals Act, 2001 and operations of the Agricultural Appeals Office was published in December 2017. At the 2021 IFA AGM, Minister McConalogue restated his commitment to establish an independent review panel. Progress has been slow, however, as we understand, a bill has been approved for drafting and consultation is expected to progress in Q1 of 2023. It is vital that recommendations from this review are implemented without delay.
IFA wish to highlight how Farm Scheme payments play a pivotal role in the income of Irish farm families across all enterprises. As we move ahead to a new Common Agricultura Policy(CAP) period, it is essential that we build on the success of these schemes, learn from their failures, and ensure that the new schemes are designed and equipped to support the development and economic sustainability of our farm businesses.
Jackie Cahill
TD (Dáil Éireann, the Oireachtas)
Martin Browne
TD (Dáil Éireann, the Oireachtas)
Matt Carthy
TD (Dáil Éireann, the Oireachtas)
Michael Collins
TD (Dáil Éireann, the Oireachtas)
Michael Fitzmaurice
TD (Dáil Éireann, the Oireachtas)
Joe Flaherty
TD (Dáil Éireann, the Oireachtas)
Paul Kehoe
TD (Dáil Éireann, the Oireachtas)
Brian Leddin
TD (Dáil Éireann, the Oireachtas)
Michael Ring
TD (Dáil Éireann, the Oireachtas)
Victor Boyhan
Senator (Seanad)
Lynn Boylan
Senator (Seanad)
Paul Daly
Senator (Seanad)
Tim Lombard
Senator (Seanad)
Denis O'Donovan
Senator (Seanad)
Martin Heydon
Minister of State (Department of Agriculture, Food and the Marine)
Steven Matthews
TD (Dáil Éireann, the Oireachtas)
Simon Coveney
TD (Dáil Éireann, the Oireachtas)