Seanad debates
Wednesday, 1 December 2021
Nithe i dtosach suíonna - Commencement Matters
Agriculture Schemes
10:30 am
Annie Hoey (Labour)
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I welcome the Minister for Agriculture, Food and the Marine, Deputy McConalogue, to the House.
Garret Ahearn (Fine Gael)
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I welcome the Minister to the Chamber and thank him for taking this Commencement matter. The straw incorporation measure is a payment for chopping straw and incorporating it into the soil. There are certain crops that can be used such as winter or spring oats, rye, winter or spring wheat, winter or spring barley and winter or spring oilseed rape. You can get paid on, at least, 5 ha but for no more than 40 ha. If you apply for more than 40 ha you can carry it out but there is no payment above 40 ha. The Department of Agriculture, Food and the Marine has approved a budget of €10 million for this scheme, with a payment rate per ha for the oat, rye, wheat and barley of €250 and for oilseed rape €150.
Since its establishment, this has been a really good scheme. Many tillage farmers in Tipperary speak very positively about it and they are very happy with it. A question regularly asked of me by tillage farmers is if this scheme can be made permanent. The Minister will be aware that for most schemes introduced by the Department of Agriculture, Food and the Marine the first question is always on how it can be made easier to apply for. This is a scheme that people are really happy with in terms of applying for it, but they are looking for it to be made permanent. In fairness to the Irish Grain Growers group, it has been requesting this. I know that the group has been in contact with the Minister and the Department in regard to the scheme being made permanent for tillage farmers. This year has been a good year for tillage farming but that is not always the case. A scheme like this gives a level of certainty to farmers.
Another question often put to me by farmers is on why the payment for oilseed rape is set at a different level and if, at any point into the future, it is proposed to increase it to the €250 payment for the other crops. A number of farmers chop the oilseed rape, but from a financial point of view and with a difference of €100 per ha, it makes more sense to chop the straw of the wheat barley rather than the oilseed rape. Will the Minister consider raising the budget for this over the next number of years as well because of the interest in it?
One of the main requests is for an increase in the ceiling per individual. At the moment, as the Minister will be aware, a farmer can apply for 40 ha, or almost 100 acres, under this scheme, which is excellent and people are really happy with that. Last year, we fell below the overall amount allowed to be used nationally. I know farmers in Tipperary who wanted to use more of their land for this because they know it is a benefit to the environment. Over the next number of months - this has started already - we will face issues with regard to fertiliser and the cost of fertiliser. Cutting up straw and incorporating it into the soil helps in terms of encouraging farmers to use less fertiliser and it reduces the dependency for tillage farmers to use fertiliser. There is an environmental aspect to this and they know that.
While it is welcome that you can have up to 100 acres per farmer, can the Department do something for tillage farmers in Tipperary who have more than 100 acres, such as set a percentage of their land that they can use? For example, a farmer who has 150 acres can use 100 acres for this scheme, which means that farmer can use two-thirds of his or her land, but for the farmer who has 400 acres or 500 acres, 100 acres is only 20%. Could we, perhaps, allow for say, 25% or 30% of land to be used under this scheme? There are farmers who feel they would benefit a lot more if they could use more than 100 acres or, use the first 100 acres and beyond that a percentage of, say, 20% or 25%. This would give farmers with greater amounts of land more to work it.
Charlie McConalogue (Donegal, Fianna Fail)
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I thank Senator Ahearn for raising the straw incorporation measure, SIM. Having secured funding in budget 2021, I introduced the measure as a pilot to support Irish tillage farmers who decide to chop and incorporate straw into the soil after harvest. As pointed out by the Senator, the measure has been a success in terms of the environment and as a financial support to tillage farmers. In 2021, it will pay out approximately €8.5 million, with very strong support for the measure from applicants. Eligible crops include: wheat, barley, oats, rye and oilseed rape. The measure increases organic matter in soils, which will increase carbon sequestration, thereby reducing greenhouse gas emissions, but with added advantages of increasing water holding capacity and soil workability, while also returning nutrients to the soil.
Payments are made at the rate of €250 per hectare for those applicants who chop and incorporate oats, rye, wheat or barley, and oilseed rape is paid at the rate of €150 per hectare. The minimum application is 5 ha, with a maximum of 40 ha. I believe in the long-term success of the straw incorporation measure and for that reason I have incorporated it into the CAP strategic plan as a permanent measure. This will ensure that it will be available for at least the duration 2023-2027. In the meantime, it will continue as a pilot measure in 2022. The general feedback from advisers and farmers who participated in the pilot in 2021 is that they are very happy with it and most plan to reapply in 2022. Tillage is a relatively low greenhouse gas emissions sector but, nonetheless, there is an increased awareness among tillage farmers of the need to improve soil and to play their part in reducing emissions overall.
The measure also supports tillage farmers in making a change in their farm practice, which is positive in terms of greenhouse gas and soil improvement. Therefore, it is imperative that farmers chop and incorporate the straw to achieve the numerous benefits and goals of the measure. The ceiling of 40 ha was decided on to ensure that the measure is available to as many farmers as possible. A farmer could earn up to €10,000 under the measure. Following on from the success of the scheme this year, I expect an increase in the number of applicants next year and I consider that an increase in the eligible hectare at this time is not warranted as data from applications indicates that the average farm size was less than 20 ha. Furthermore, I believe any increase in the eligible maximum area per farm would limit the possibility for all applicants availing of the measure. I need to remain conscious of that as well. I want as many farmers as possible to have the opportunity to avail of this measure, without the need to impose rank and selection criteria if it is over-subscribed.
The straw incorporation measure is an agri-environment and climate support targeted specifically at supporting tillage farmers in undertaking actions which will increase soil organic carbon levels and deliver reductions in greenhouse gas emissions.It is not possible to open the measure to farmers who decide not to chop straw because one of the main purposes of the measure, which is to increase soil organic carbon levels, will not be achieved. It is a condition of the measure that participants chop and incorporate straw into the soil after the harvest.
Garret Ahearn (Fine Gael)
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I welcome that this will be available for the duration of the next CAP. I acknowledge the excellent work that the Minister has done on CAP over the past weeks and months, and his engagement with farmers throughout the country. No one would want to limit the possibility of farmers coming onto the scheme, especially when, as the Minister said, it is a positive one. He said that there has been a pay-out of approximately €8.5 million. There will be €10 million for this scheme in the budget. Particular farmers in Tipperary are full-time tillage farmers who have quite sizable farms and see the opportunity, from an environmental point of view, and also certainty of payment relating to this scheme. As the Minister knows, the past six or seven years have been challenging for tillage farmers. Although this year has been good, that will not always be the case. This scheme has been widely welcomed by the industry and by grain growers across the country. The more people who can use it, the better. I understand about making sure that farmers across the country are not limited from getting into it.
Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Senator for raising this matter. I take the point he makes about wanting to ensure that all farmers who want to avail of the scheme can do so. This is a reflection of how well it has been received and the value of it to farmers as well as the value from an environmental and emissions perspective. It is a good initiative. I am glad to be able to put the funding back in for 2022. I will keep it under review. I want to ensure that it is available to everyone, which is why the thresholds are there. The average so far is 20 ha, but people who apply for 40 ha will get €10,000, which is significant support to income. It also puts a floor on the straw market to ensure that income is available. We need to support tillage sector incomes.
We need to have a safety valve too. Last year, people could withdraw at any stage. The safety valve was there to ensure that if straw started to get expensive, we expected to see farmers being able to sell it in order to keep the market right and to not see the price increase unnecessarily. This is a type of scheme that makes sense in a year when yields are high and when there is a good supply of straw that can be used. In years when things are tighter, it cab be used for other purposes. The scheme needs to be flexible in order that it can be used to address any excess.
I thank the Senator for raising this matter. I note his support for the scheme and the points he made.