Oireachtas Joint and Select Committees

Tuesday, 28 June 2022

Joint Oireachtas Committee on Climate Action

Sectoral Emissions Ceilings: Discussion

Mr. Bill Callanan:

I divide it into diversification. I have always tried to explain it as diversification of income or diversification of land use. On the income piece, there are a lot of farmers who have diversified through adding value to their initial produce and moving it up, or through off-farm income. All of those are diversification around the income and it influences their decision process.

With regard to land use, farmers necessarily must look at opportunities. We have clearly committed to increasing deforestation rates. Farms must look at how they can have products that contribute towards decarbonisation such as alternative energies, anaerobic digestion, biomass and development of the overall bioeconomy. Those will all influence the level of economic return that is generated on the national farm. They will feed into the farmer's decisions. The reality is, however, that it is a demand-led system where farmers are very much encouraged by the marketplace in producing what the market requires for food production and so on. We are dealing with perishable products in the food production system. If the market signals in a particular way, farmers generally will respond to that. They have no choice.