Trevor Sargent (Dublin North, Green Party)
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Question 104: To ask the Minister for Agriculture and Food if she will urgently introduce initiatives to encourage organic farming here and to rescue Ireland's green clean image in the food industry; and if she will make a statement on the matter. [14220/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department has already provided incentives to encourage organic farming which are substantial in proportion to the size of the sector. Through the rural environment protection scheme, almost €4 million was paid directly to organic farmers in 2004. Since REPS began in 1994, it has delivered some €31 million to the sector. Under the current scheme, an organic farmer with 55 hectares is eligible for an annual payment in REPS 3 of €18,505 a year for the first two years, and €13,555 each year for the rest of his or her time in the scheme. As a further incentive to encourage conventional farmers to venture into organic production, REPS now allows them to convert part of the farm instead of the entire holding as previously.

My Department also operates the scheme of grant aid for the development of the organic sector, which supports investment both on-farm and off-farm. For on-farm investments, grant aid can be given for 40% of the cost up to a maximum grant of over €50,000. For off-farm investments, the maximum grant is more than €500,000.

In addition, my Department has implemented all the main recommendations of the organic development committee's report published in April 2002, including the establishment of a national steering group. This group, made up of a broad range of stakeholder, has met on nine occasions and continues to monitor the implementation of the other recommendations of the organic development committee.

The decoupling of farm payments establishes a new policy framework in which farmers will have the freedom to farm in response to market demands. In this more market-oriented scenario, there is real scope for organic production to expand with the help of the financial incentives that I have outlined already. I strongly urge farmers to give it serious thought.

Ultimately, however, it is the producer and the consumer between them who will determine the size of the Irish organic sector. I do not accept that Ireland's clean green image is in need of rescue or that it depends on the level of organic farming in the country. By the end of the year, I expect that we will have 50,000 farmers in REPS, farming to a standard that goes beyond good farming practice. The bulk of the remaining farmers will be in the single payment scheme and will be under an obligation to keep their land in good agricultural and environmental condition. In these circumstances, I foresee no difficulty in preserving and further enhancing the image of Irish food.