Fergus O'Dowd (Louth, Fine Gael)
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396. To ask the Minister for Agriculture, Food and the Marine his views on correspondence (details supplied) received from the Irish Farmers Association regarding the Beef Genome Scheme; and if he will make a statement on the matter. [20137/15]

Simon Coveney (Cork South Central, Fine Gael)
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The Beef Data and Genomics Programme (BDGP) forms part of Ireland’s Rural Development Programme and will provide suckler farmers in Ireland with funding of some €300 million over the next 6 years. The BDGP builds on the investment in data recording and genomics in recent years, and will ultimately bring about long-term improvements to the sector by fundamentally improving the genetic quality of the beef herd. It is a unique opportunity for farm participants to improve the efficiency and profitability of their herds, with significant state support.

It can also make an important contribution to reducing greenhouse gas emissions from the national herd and has been approved as an agri-environment measure under the Rural Development Programme. The six-year commitment arises from the requirements of the EU Rural Development Regulation under which this scheme is co-funded by the EU and Irish taxpayers. Article 28 of this Regulation stipulates that all agri-environmental schemes must be at least 5 years in duration and farmers will be familiar with multi-annual schemes such as GLAS and REPS where similar conditions apply.

The six-year timeframe for the BDGP provides a guaranteed and stable payment for suckler farmers, allowing them to plan and budget on their farms for the duration of the programme. It is important to note that the penalty system includes appropriate tolerances where only minor non-compliances occur and no penalty will apply in these cases. In more serious cases there must of course be an applicable penalty. However, on balance, I am satisfied that the approach proposed reflects the most proportionate response consistent with the Regulations. The requirement to seek full refund of payment only applies in the event of permanent withdrawal from the scheme. As always in such cases, force majeure clauses have been included in the Terms and Conditions where withdrawal is due to circumstances beyond the applicant’s control such as illness or disease. There is also a provision included for transfers by gift or inheritance whereby the transferee can decide to take over the commitments or exit from the programme entirely.

Participants in the programme will receive a payment of €142.50 per hectare for the first 6.66 payable hectares under the scheme, and €120 per payable hectare after that. Payment to scheme participants is on the basis of costs incurred and income foregone for each of the actions undertaken. All of the costs to the farmer, including in terms of time and effort, have been factored into the payment for the farmer as agreed with the European Commission. The payment includes a cost associated with the tissue tag sample and subsequent processing and this genotyping cost will be deducted at source from the farmer’s payment. The cost of the genotyping will be finalised following the conclusion of a public tendering process undertaken by the ICBF in relation to laboratory analysis, tissue tags and the DNA chip. It is expected that this will result in a reduced sampling/genotype cost compared to the 2014 scheme.

The number of animals to be genotyped each year will be equal to 60% of the number of calved suckler cows that the applicant had on his/her holding in 2014 – known as the applicant’s “reference animals”. The number of “reference animals” will be advised to applicants upon acceptance into the scheme. For example, an applicant with 15 reference animals in 2014 must have sufficient animals to genotype 9 cows/heifers/calves/stock bulls in each year of the programme without repetition. In specific circumstances, 2015 may be used as the base year.

While the level of testing required has increased compared to the 2014 pilot scheme, the payment to the farmer has also increased significantly so the percentage of the overall payment related to genotyping is broadly the same under both schemes. The 15% genotyping in 2014 was undertaken to develop the training population for genomic which provides the platform for the more widespread application of genomics and higher level of genotyping now made possible under the BDGP.

The 60% genotyping requirement reflects the need to genotype a high percentage of female calves at birth within scheme herds and to genotype female animals introduced from non-scheme herds so that sufficient 4 and 5 star animals can be identified. The 60% requirement will also include pedigree males and cows for ongoing research and knowledge development. This increased level of genotyping also adds value to the breeding indexes.

The BDGP is a substantial commitment to the beef sector over the next 6 years and I will continue to monitor its implementation to ensure that it is fit for purpose. The BDGP, like all RDP Schemes, will be subject to mid-term review. If aspects of the scheme can be improved in the future, I will seek to address these issues in consultation with the EU Commission. For now I am satisfied that the scheme provides the long-term support that is required to ensure the future sustainability of our suckler herd, within the parameters laid down by the relevant regulations.