Michael Creed (Cork North West, Fine Gael)
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Question 490: To ask the Minister for Agriculture, Fisheries and Food the progress made on the programme for Government proposal to convert a minimum 5% of acreage to organic farmland by 2012; and if he will make a statement on the matter. [28544/08]

Michael Creed (Cork North West, Fine Gael)
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Question 531: To ask the Minister for Agriculture, Fisheries and Food the progress made on the programme for Government proposal to strengthen support for the organic sector through the REP scheme; and if he will make a statement on the matter. [28585/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to answer Questions Nos. 490 and 531 together.

My Department recently launched its Organic Farming Action Plan 2008-2012, which is central to assisting in reaching the Programme for Government target. The Plan has four main objectives: to increase production in line with market trends, increase the knowledge base, develop the organic market at home and abroad, and encourage the development of public procurement opportunities for organic products. There are 64 actions identified in the Plan. The National Steering Group for the Organic Sector will have a crucial role in guiding and overseeing progress on the Action Plan.

Teagasc published its own Organic Business Plan in March 2008, and many of the actions outlined in that document are now incorporated in my Department's Organic Action Plan. It has increased its organic staff compliment, while its combined land area with organic status is 200 Hectares, which represents around 10% of its total land bank. Teagasc also works closely with my Department in ensuring that the 21 designated organic demonstration farms are effectively used to disseminate knowledge about organic farming.

The recently launched National Organic Training Skillnet Programme is another excellent initiative that is delivering low cost training to interested producers and processors.

My Department already provides significant incentives to encourage conventional producers to convert to organic farming and also to support existing organic producers and operators. Under the new Rural Development Programme, which runs from 2007 to 2013, we have now made it possible, for the first time, for a farmer to join the new Organic Farming Scheme without having to be in the Rural Environment Protection Scheme (REPS). This initiative is designed to encourage small-scale horticultural producers to convert to organic production, and also conventional tillage producers to convert part or even all of their holdings. The majority of organic producers will of course continue to participate in REPS as well, and we will be encouraging them to do so. The current anomaly whereby Reps 2 and 3 producers, not already participating in the Organic Supplementary Measure, have to transform to REPS 4 before joining the Organic Farming Scheme has had a negative impact on encouraging farmers to convert. My officials are currently liaising with the European Commission to try and resolve this issue.

The capital on and off-farm grant schemes, which were re-launched in 2007, provide farmers and processors with much needed assistance in developing their businesses. Over the seven-year period, the on-farm scheme provides grant aid of 40% of the cost up to a maximum grant of €60,000. For off-farm investments, the maximum grant is €500,000. So far this year, there has been a large increase in grant aid applications under these Schemes and this is indeed very encouraging.