Brian O'Shea (Waterford, Labour)
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Question 113: To ask the Minister for Agriculture, Fisheries and Food if her attention has been drawn to the recent Eurostat survey which showed that Ireland has the third lowest area under organic production in the EU; her plans to increase organic output in view of increasing consumer demand in this area; and if she will make a statement on the matter. [21796/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Programme for Government has set a target of increasing the amount of agricultural land area under organic production from its current rate of less than 1% to 5% by 2012. Even though this is a challenging target I believe it is attainable, and my Department offers substantial incentives to promote the growth of the sector.

The new Organic Farming Scheme, introduced under the Rural Development Programme for the period from 2007 to 2013, aims at encouraging producers to respond to the market demand for organic food. Rates of payment under the scheme are some 17% higher than comparable payments under the previous Rural Environment Protection Scheme (REPS 3). One significant change this time round is that we are allowing organic producers to obtain organic support payments without having to join REPS. This should encourage small-scale horticultural producers to convert to organic production, and also conventional tillage producers to convert part or even all of their holdings. As a further incentive to encourage non-REPS farmers solely involved in tillage production to convert to organic farming, there is an additional payment of €240 per hectare available in the in-conversion period, up to a maximum of 40 hectares, provided they grow green cover crops.

As well as payments to farmers, my Department also offers significant development grants both to farmers and to processors under the Schemes of Grant Aid for the Development of the Organic Sector. The current Schemes were launched last June and they provide grant aid for investments by farmers and processors in equipment and facilities. The Schemes provide grant aid of 40% of the cost up to a maximum grant of €60,000 in the case of on-farm investments and €500,000 for investments off-farm.

I am pleased to note that Teagasc has appointed an additional three specialist organic advisors to strengthen its advisory role. This development, allied to the expanding demonstration farm programme, should further facilitate producers considering the organic option. Education, training and research and development are also key elements in encouraging and supporting growth in the organic sector. I am considering how the contributions from these areas can be enhanced.

The development at production level cannot happen in isolation. It needs a market to support it. The most recent initiative in this regard is the three-year Organic Marketing Plan 2006–2009, produced by Bord Bia, in consultation with the Organic Market Development Group. The objective of the plan is to develop the organic sector in Ireland for existing suppliers and new entrants. Included in the plan is National Organic Week, which this year runs from October 22nd to 28th.

I have asked for and received submissions from the organic farming bodies with their proposals for the development of the sector. I have also asked the National Steering Group for the Organic Sector and its two sub-groups, the Partnership Expert Working Group and the Organic Marketing and Development Group, to give me their considered views on the best ways to move to the Programme for Government target.