Eamon Ryan (Dublin South, Green Party)
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Question 192: To ask the Minister for Agriculture and Food her plans to encourage organic farming here (details supplied); and if she will make a statement on the matter. [26471/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am strongly committed to the development of the organic sector in Ireland. My Department already provides incentives to encourage organic farming, which are substantial in proportion to the size of the sector. Through the rural environment protection scheme, REPS, 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 of €18,505 a year for the first two years while the farm is in conversion, and €13,555 each year for the rest of his or her time in the scheme.

Many of the changes recommended in the organic development committee report were incorporated in the new REPS 3 scheme launched last year. To facilitate and encourage the expansion of the sector, partial conversion of a holding is now permitted. The increase in the eligible area for payment has benefited all farmers. The scheme conditions have been amended to facilitate a farmer to receive the in-conversion financial support for the equivalent of his or her full conversion period. Farmers with commonage lands or grazing rights can now participate, under strict criteria, in the organic supplementary measure of the scheme.

Special investment aid is also available for organic farmers and processors under 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 more than €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. The demonstration farm project, for example, has been a considerable success and additional farms have been included this year.

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.