Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank Senators for giving me the opportunity to address the House on the current status of the areas of natural constraint, ANC, scheme review, payments made under the green, low-carbon, agri-environment scheme, GLAS, the current fodder problem and native cattle breeds.

The ANC scheme is one with which farmers across the country are familiar and an important support for many. As it stands, it was introduced under the rural development programme 2014 to 2020 as a replacement for the previous disadvantaged areas and less favoured areas schemes which had been in place since 1975. Payments under the ANC scheme are an important support for farmers across the country in addressing cash flow issues and contributing to the continued growth and development of the agrifood sector. The scheme was originally introduced in 1975 in recognition of the fact that farmers in particular areas were faced with challenges related to lower productivity and higher production costs than farmers in other areas where levels of disadvantage were not as pronounced. Given that the scheme has been in place in various guises for over 40 years, it is no surprise that the farming community is interested in how it will develop in the coming years.

The scheme was originally based on addressing issues such as rural depopulation, threats to the conservation of the countryside, lower income levels and the presence of lands which were more difficult to farm efficiently. Since its introduction, the scheme has been subject to several reviews at EU level. Ireland was successful during the course of those reviews in ensuring areas facing particular difficulties and additional costs would be included as eligible under the scheme. From the first review of the scheme in 1976 through the fifth review in 1996, the number of hectares included as eligible under it grew, from just under 4 million to over 5 million. At the same time, the reviews also resulted in more land being designated as having higher levels of disadvantage which attracted higher levels of payment. Accordingly, the scheme has a long history of review and refinement since its introduction.

The significant level of financial support delivered through the scheme since 1975, as well as the changes to eligible land in Ireland as part of the various reviews, show recognition of the fact that the challenges faced by farmers in certain areas pose a significant threat to the future viability of farming communities. The specific objectives of the scheme are, therefore, structured around themes such as ensuring continued agricultural land use, thereby contributing to the maintenance of a viable rural society, maintaining the countryside, as well as maintaining and promoting sustainable farming systems which take environmental protection into account.

I am aware of the importance of the scheme to the more than 95,000 farmers who receive the payment annually. With this in mind, I have prioritised in my Department in recent years the efficient making of payments under scheme. The scheme is currently structured around a tiered payment structure. Those farming on what is called mountain-type land receive €109.71 on their first ten forage hectares and €95.99 on the remaining hectares up to a maximum of 34. Farmers with land categorised as more severely handicapped lowland are paid €95.99 per forage hectare up to a maximum of 30 hectares. Those with less severely handicapped lowland are paid €82.27 per forage hectare up to a maximum of 30 hectares.

As part of the negotiation of the new rural development programme, a new category was added to the scheme in 2015. In recognition of the particular barriers and costs island farmers face, a new category of payment was introduced for offshore island farmers. Farmers on offshore islands now qualify for payments of €250 per hectare on the first 20 hectares, €170 per hectare on the number of hectares between 20 and 34 and €70 per hectare on the number of hectares between 34 and 40. In 2017 payments under the scheme began in mid-September and, to date, €201 million has been paid to 94,000 farmers. With the payment of €1.16 billion to 122,500 farmers under the 2017 basic payment scheme, this is important financial support for the agrifood sector and families in rural Ireland.

In the light of the importance of the ANC scheme, the programme for Government included a commitment to provide an additional €25 million for the scheme in 2018. I am pleased to confirm that this commitment was delivered on in budget 2018. There are several options for allocating the additional money under the 2018 scheme, ranging from a flat rate increase to a more targeted approach based on the levels of constraint faced by farmers. The options are being considered and I expect to be in a position shortly to commence the formal amendment of the rural development programme required to allocate the money. The amendment process will include consultation with stakeholders.

Under the new Common Agricultural Policy, CAP, which was finalised in 2013, the new rural development regulation introduced a change in how eligible areas under the ANC scheme were to be defined. The designation of eligible areas under the scheme to date has been based on a range of socio-economic factors. They include particular stocking density levels, family farm income levels, population density and the percentage of the total working population engaged in agriculture. The change introduced in the new rural development regulation required that from 2018 eligible areas instead be designated using a set list of biophysical criteria. The purpose of the change was linked with a concern at EU level that areas were not being designated as disadvantaged in a consistent manner across the various member states.

Following consultation at EU level, the date for introduction of the new designation has been changed to 2019. The biophysical criteria set out in the legislation to underpin the new system of designation are low temperature, dryness, excess soil moisture, limited soil drainage, unfavourable texture and stoniness, shallow rooting depth, poor chemical properties and-or steep slope. My Department has commenced work on this project and relevant technical experts are working on sourcing and analysing the data for the new criteria. Departmental officials have also been in contact with the European Commission's Joint Research Centre and the Directorate-General for Agriculture and Rural Development, DG AGRI, on technical issues arising. As the technical work is ongoing, accordingly, it is not possible to set out the final set of areas which will be eligible for payment. However, given the importance of the ANC scheme in the Irish context, officials in my Department are continuing to engage with our colleagues at EU level to ensure the best possible outcome to the review is secured. I am also aware that many farmers will have a direct interest in the outcome of the process. Accordingly, I expect consultation to take place with key stakeholders as the process develops further.

Such is the popularity of GLAS, the original target of 50,000 participants was surpassed well ahead of the target date. Given that the first approvals under the scheme run from 1 October 2015, it was a remarkable achievement to exceed the target within a period of 15 months. There is a maximum annual payment of €5,000 under the general scheme, with provision for payment of up to €7,000, under what is known as GLAS+, where the farmer is required to make exceptional environmental commitments in a limited number of cases. Last year we paid out almost €200 million under GLAS and we continued the payments each week into the new year. GLAS, like previous agri-environment schemes, supports participants in improving their agricultural productivity and practices in a sustainable manner. The scheme delivers overarching benefits to the rural environment and addresses the issues of the mitigation of the impacts of climate change, the enhancement of biodiversity and improvement of water quality. GLAS provides valuable support to participants who deliver public goods and environmental benefits that enhance the sustainability credentials of Irish agriculture.

GLAS is co-funded by the Exchequer and European Agricultural Fund for Rural Development. As required under the EU regulation, two payments issue in respect of each year, namely, the advance payment and, at a later stage, a balancing payment. In 2016 and 2017, the advance payment constituted 85% of the annual payment, with the balancing payment accounting for the remaining 15%. Advance payments have already issued to more than 41,000 of the currently 49,700 active GLAS participants, bringing to €196 million the amount paid out under GLAS since the start of 2017. When ineligible cases are deducted this means 88% of eligible applicants will have been paid. GLAS pay-runs are continuing weekly and more farmers will receive their 2017 advance this week.

In approximately 3,000 of the outstanding cases, applicants remain ineligible for payment until they complete the steps they must take before the Department can process their payment. There is nothing we can do to advance these payments until the applicant completes his or her obligations. In most of these cases, these obligations relate to outstanding documentation the applicant must submit. As soon as this documentation is received and assuming everything is in order, my Department will move immediately to issue payments. The main issues include the need for advisers to submit a farm nutrient management plan to the dedicated online system, commence a commonage management plan in the case of participants with a commonage action or submit the required documentation in the case of the low emission slurry spreading and rare breed actions.

Let me be very clear, many of these cases do not involve delayed payments, as has been suggested. It is simply not possible for my Department to make these payments because the participants have not met the requirements. The requirements are clearly set out in the terms and conditions and specifications of the scheme, which were first published in October 2015. Also set out were the implications for not complying with the various requirements. We are keenly aware of the need to process and issue all payments without delay. Updates are published weekly on my Department's website and these clearly show that steady progress is being made in reducing outstanding cases. While my officials are prioritising the clearing of cases, in circumstances where a farmer is contacted for additional information, it is important that the request is responded to because the information requested is essential to finalise all checks.

While the issue of payments is of the utmost importance, it is also important to recognise what the scheme is delivering in terms of the environment and public goods and the buy-in to the scheme by the farming community in achieving and in some cases surpassing the targets set out in the rural development programme. These achievements include that the low input permanent pasture and traditional hay meadow actions are delivering more than 350,000 ha of diverse grassland species. Moreover, 29,000 km of river bank are being managed to protect rivers from pollution under the protection of watercourses from bovines and riparian margins actions. More than 200,000 ha of farmland bird habitat are being managed to protect bird species and more than 20,000 ha of wild bird cover have been planted, providing winter feed for farmland birds. In addition, 2 million trees have been planted and almost 5,000 farmers are using new technologies to spread slurry. Approximately 10,000 ha of arable land have been cultivated using minimum tillage techniques. These achievements will deliver public goods across the key areas of water quality, biodiversity and climate change which are addressed under the scheme and they will place Ireland in a positive position in discussions on future agri-environment schemes.

I understand the matter of cattle breeds native to Ireland and what is being done to ensure their future has been raised in the House. My Department recognises there are a number of rare breeds indigenous to Ireland that are emblematic of our farming and animal husbandry heritage. We are conscious of the need to maintain biodiversity on a national and global basis. In a food producing context, this objective inevitably faces an uphill struggle in the face of commercial pressure to produce more efficiently and at ever more competitive prices. Four cattle breeds native to Ireland fall under the heading "Rare Breeds", namely, the Kerry, dexter, Irish moiled and droimeann breeds. The management of these cattle breeds is co-ordinated by my Department, with the assistance of a national advisory committee. My Department provides a wide range of activities and services in a number of areas to retain and promote these native cattle breeds.

My Department's role in this area is defined in a number of international agreements such the Convention on Biological Diversity. In its role of providing the characterisation of rare breeds, recording their inventory and monitoring trends and associated risks, my Department assists with animal identification, registration and herdbook activities. The operation of a herdbook that meets EU legislative requirements is a basic requirement for all breeds and my staff provide significant assistance to each rare breed society in this regard. My Department compiles animal data to monitor trends in animal numbers through an EU online database which is connected with all other EU countries. It also helps with the characterisation of the rare breed animals and their genetic evaluation. These services are provided through the Irish Cattle Breeding Federation or geneticists in the Teagasc campus at Moorepark. Significant funding is provided by my Department in this area.

Each breed must have a breed conservation plan and a wide range of supports is available in this area. My Department operates a research fund that provides funding for DNA and genomic analysis, both of which are essential in providing mating plans and checking for inbreeding. Funding for all rare breeds is regularly provided from this fund.

My Department also funds the collection and storage of AI straws from rare bulls for future storage and use. It has provided funding for a number of native breeds conferences and festivals, as well as websites for breeds to promote their use and for the general education of breeders and stakeholders.

My Department operates the national advisory committee for the management and conservation of genetic resources for food and agriculture, which provides expert guidance on the best methods of conserving these breeds. The advisory committee on genetic resources for food and agriculture was established in 1996 to advise and aid in the development and implementation of plans aimed at achieving the development and utilisation of genetic resources, their identification, evaluation, conservation, promotion and marketing. My Department regularly participates in international and EU programmes aimed at co-ordinating the management of genetic resources.

In its role of providing for the sustainable use and development of rare breeds, my Department provides assistance in the preparation and implementation of the national biodiversity plan, which has as an objective the conservation of native cattle breeds. It operates the beef data and genomics programme, which provides financial assistance to farmers keeping these breeds and improves data collection. It also provides continued financial support to farmers in the GLAS, which provides targeted support of €200 per livestock unit, that is, per cow, for these breeds. This is a significant support to these breeds. The Department also operates the Kerry cow scheme, which provides direct assistance to farmers who keep animals of this breed.

In its conservation role, my Department provides help and support in a number of ways, including the development of a conservation strategy for Ireland's native rare farm animal breeds; the collection and storage of semen from all rare cattle breeds, Kerry and Irish moiled cattle, with a view to creating a national gene bank; and the DNA typing of bulls in the Kerry cattle herdbook.

In summary, in partnership with owners of rare breed herds and breed societies, my Department implements a number of policies to help conserve and, if possible - through the use of best practice breeding methods, advice and engagement from staff and State agencies - develop and enhance our national stock of rare breed animals. These policies are supported by targeted financial support through certain grant schemes which help subvent the owners of rare breed herds with modest but important financial assistance aimed at compensating for the extra costs involved in maintaining these animals.

On the issue of fodder shortages, I am aware that weather conditions for much of this autumn and early winter have been challenging for farmers in some parts of the west and north west in particular. Difficulties in harvesting fodder in some of these areas were compounded by the need to house livestock earlier than usual, which resulted in additional pressure on fodder supplies over the course of the winter. I addressed these challenges last autumn through the early issue of farm payments and payments under the areas of natural constraints scheme. Together, these schemes injected more than €1.3 billion into the rural economy by the end of last year. They are providing a welcome boost for Irish farm families and will help to finance additional fodder purchase, where necessary.At this time I also requested Teagasc, through its farm advisory service, to identify farmers who would be most at risk of running out of fodder and to provide them with support to carry out fodder budgeting on their farms and explore all viable options to ensure they had sufficient feed for the coming winter. As a further response I convened a fodder group last December, chaired by Teagasc, to ensure a co-ordinated response to the fodder problem across all the main stakeholders. The group included representation by local Teagasc staff, feed merchants, co-ops, banks and the farming bodies. The group met again earlier this month and reported back through my officials on the situation on the ground.

While I believe that fodder remains available across the country, I am nevertheless conscious that a key issue to resolve is the cost of transporting fodder between those areas where it is available and those where it is scarce. To address the problem I am introducing a fodder transport support measure to provide additional assistance to those livestock farmers most severely affected by the prolonged wet weather last autumn, mainly in parts of the west and north west. Farmers who have an identified fodder shortage, having completed a fodder budgeting exercise with their agricultural adviser, will be eligible to receive a financial contribution towards offsetting the cost of transport of fodder in excess of 100 km. As fodder is traded between farms regularly, it is essential that the support measure is targeted at those who most need it and does not impact on the normal functioning of the market for fodder. It is for that reason a minimum transport distance applies. Eligible applicants will receive a transport contribution of €8 per standard bale of hay or straw for feeding, and €12 per standard bale of silage or haylage.

Financial assistance under the fodder transport support measure is payable in accordance with Commission Regulation (EU) No 1408/2013 on de minimisaid in the agricultural production sector. While this measure builds on my early supports to farmers through prioritisation of farm payments, and the convening of a fodder group, I urge affected farmers to avail of the additional fodder budgeting support being provided by Teagasc. This measure will apply until 20 April 2018. Application forms and details on the operation of the measure will be available from my Department in the coming days. I thank the Members of the Seanad again for the opportunity to brief them on these very important issues for the farming community.