Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I congratulate the Cathaoirleach on his role in this Seanad term ahead. It is a great honour for me to be here as Minister for agriculture addressing the Seanad in what is a very important debate. I thank Members for putting this on the agenda and giving us the opportunity to have this debate on the Common Agricultural Policy, CAP. We are currently about halfway through the implementation of the CAP strategic plan for the period of 2023 to 2027. I will open today's statement with a brief overview of the progress to date on its implementation. I will also provide an update relating to the development of the CAP post-2027, as that work commences now as well.

The CAP is one of the EU's longest standing policies firmly embedded in the Treaty of the European Union. Over successive reforms, CAP has adapted to changing policy priorities, supporting farmers to achieve sustainability in all of its dimensions while ensuring the availability of safe nutritious food for EU citizens. I am firmly of view that agrifood needs to be at the top of the EU political agenda. It is a major economic sector for the EU and member states. It is a central pillar of EU policy relating to food security, rural development, farm incomes, climate and biodiversity, social cohesion and rural youth. It also contributes to the EU's broader strategic objectives, including competitiveness and strategic autonomy.

While issues such as defence and mitigation have risen up the policy agenda, the contribution of CAP cannot be taken for granted. Ireland's CAP strategic plan for the period 2023 to 2027 sets the framework for how the CAP operates at a national level. For the first time in 2023, the CAP was programmed with a single strategic plan, including the two pillars of CAP, which are pillar one - direct payments and pillar two - rural development. The strategic plan was designed to take account of the nine specific objectives of the CAP. These are ambitious objectives to improve the economic, environmental and social sustainability of European agriculture. The Irish CAP strategic plan, CSP, has a budget of €9.8 billion over the five years. More than 60% of that, just under €6 billion, is targeted at supporting farm incomes. Over a seven-year period the funding is almost €1.2 billion higher, which is an increase of nearly 30% over the previous programme. Since the start of 2023, my Department has paid out more than €2.7 billion on CAP schemes.

Direct payment schemes are primarily area-based under Pillar 1. The basic income support for sustainability, BISS, provides more than 120,000 farmers with a predictable income support based on the number of hectares they farm and the number of entitlements they hold. This provides a baseline income and is a risk mitigation for farmers in order that they are not as badly exposed by the volatility of the market prices.

Environmental sustainability is supported through the eco scheme. Farmers can select from a menu of agriculture practices aimed at protecting habitats, the environment, natural resources or reducing emissions. Over 97% of farmers in Ireland are participating in this scheme, delivering natural environmental benefits, such as space for nature. In total, in excess of €1 billion is paid out each year in pillar one.

Generational renewal is an extremely strong priority of this CAP strategic plan. The support available to young farmers has tripled in this period. Young people are central to the continuation of a vibrant and sustainable farm sector in Ireland. Family farms are at the heart of agriculture in Ireland and I am a strong supporter of assisting the next generation to take over the farm when the time is right to do so.We now need to consider how to support and encourage young people in to the sector in the future. These efforts will be guided by the Commission on Generational Renewal in Farming, which was set up last year, and I look forward to receiving the report of the commission in due course, before the end of June this year.

In Pillar 2, schemes are aimed at particular objectives and particular types of farms. This includes interventions to improve the economic and environmental sustainability of livestock farming; including the suckler carbon efficiency programme, a sheep improvement scheme and a dairy beef welfare scheme. There are investment supports available for all types of farms through TAMS, across a wide range of categories, to improve sustainability on farms. Higher grant rates are available for women and young farmers also, in the 60% rate. The plan aims to address key environmental issues and specifically, the flagship €1.5 billion agri-environmental scheme, ACRES, aims to address the more complex environmental issues through targeted actions on farm and landscape level. The scheme has encountered issues, of which I am acutely aware, as it sets a new framework for delivering on complex environmental actions in tandem with farmers and advisers.

Real progress is now being made on implementation and my Department will be issuing regular online updates. More than 54,000 farmers are now participating in the scheme and delivering highly ambitious landscape actions through results-based score cards. Some of the highlights of the success of ACRES so far include 2,400 km of new hedgerow, enough to go from Cork to Kiev; 800,000 native trees planted, approximately the population of Dublin or slightly under and 6,300 km of watercourses being protected, equating to 1.7 times the length of the Shannon. The Department has guided a tripling of the amount of land farmed organically since 2020 and with a fivefold increase in the budget, we reached 225,000 ha in 2024. The organic farmers are reducing their use of chemical fertilisers and pesticides, improving soil health and contributing to greenhouse gas emissions reductions. This is just a flavour of how the implementation is delivering on the objective set out in the €9.8 billion strategic plan, which extends to all aspects of agriculture and rural life in Ireland.

The implementation of the plan is not without its challenges. There is additional complexity for farmers and administrators as the new CAP bedded in, both in terms of the new rules and the approach required to deliver on national and European environmental targets. It has led to challenges and higher administrative costs, as well as delays in some payments. This situation is not unique to Ireland and farmers have been speaking out about the problems across Europe in recent years.

I have been vocal about the need for simplification, particularly in my role at monthly meetings of the Council of Agricultural Ministers, AGRIFISH. The Commission listens and has been conducting its own consultations with farmers and farm bodies across Europe, as well as taking careful consideration of comments at council meetings. Last year, the European Commission brought amendments to the CAP legislation that introduced a number of targeted changes. Governments have been given certain flexibilities in the implementation of the conditionality standards, particularly in relation to how the rules should protect space for nature, and what way crop rotation and diversification should work. Also introduced was a new exemption for farmers who farm on less than 10 ha. This change will remove approximately 20,000 Irish farmers from inspections and penalties for conditionality. This is a major simplification. The implementation of the plan has continued with close consultation of all the relevant stakeholders, who regularly have opportunities to comment on the progress. Broadly speaking, the plan is performing very well. In almost every intervention, the plan is ahead of the targets.

I will take this opportunity to make some remarks on the future of the CAP. The European Commission is expected to publish the draft Common Agricultural Policy post-2027 regulations later this year. This will likely be in parallel with the multi-annual financial framework, MFF, proposals, which cover the same seven-year period and sets the EU’s budget for the CAP. The draft CAP post-2027 proposals will be informed by a range of major reports published recently at EU level, including the strategic dialogue on the future of agriculture published last September; the AGRIFISH Council conclusions on the future of CAP published in December; and the Commission’s Vision for Agriculture and Food, published in February. The agrifood sector is of critical importance to the Irish economy and to society as a whole. I have just highlighted how a well-funded CAP can be effective in supporting farm incomes and food security, while contributing meaningfully to wider EU objectives, including on climate, biodiversity and innovation.

As set out in the programme for Government, this Government will fight at EU level for a well-funded CAP that can deliver upon the multiple objectives of the sector. I am working closely with my EU colleagues to build a consensus around maintaining a strong CAP budget in order that it meets both new challenges and opportunities. In respect of the AGRIFISH Council, I am conscious that if I am lucky enough to remain in this position in 15 months’ time, I will move from being one of those 27 Ministers at the Council to being its chair, while Ireland has the Presidency.

The second half of 2026 will be a pivotal time as we will be engaged in designing the new CAP. The relationships I build now and the foundations I put in place, which clearly articulate Ireland’s position, are a very important step in order for me to ensure that during the Presidency we will be delivering for Europe while trying to get that final CAP over the line. I can also make sure the particular nuances of Irish agriculture and the impacts on Irish farmers, as well as the importance of agriculture to the Irish economy, are clearly understood by my colleagues across Europe. This will be one of my main priorities ahead of Ireland assuming the Presidency of the EU Council in the second half of next year. The building blocks we put in place now will help deliver on that in the future. It is great to have the opportunity to be here and I look forward to participating in the debate over the course of the afternoon.