Written answers

Wednesday, 24 May 2023

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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177. To ask the Minister for Agriculture, Food and the Marine his views on the difficulties that Irish farmers are facing as a result of having to meet climate targets; and if he will make a statement on the matter. [25231/23]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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As the Deputy may be aware, the agriculture sector was assigned a target of reducing greenhouse gas emissions by 25% by 2030. It is a challenging and ambitious target but is one that farmers and the industry are committed to achieving. It is also a target that is reflective of the unique position of agriculture in the context of the overall economy.

My Department has several ambitious policies and strategies in place to ensure agriculture plays its role in meeting the national climate targets by 2030 and 2050, while continuing to sustainably produce food and feed.

Delivering the reduction in GHG emissions required to meet the targets for agriculture will require a significant transformation in Ireland’s agriculture and food production system. Ensuring that Irish farmers, foresters, and fisheries are environmentally, socially, and economically sustainable throughout the period of transformation and beyond is critical. Supporting farmers in this transformation of the Irish agri-food production system will require significant resources and is of the upmost importance to the government.

Farmers and industry stakeholders are committed to meeting the challenge of improving the environmental sustainability of Irish agriculture and reducing agricultural and land use GHG emissions.

Irish farmers are incredibly committed to ensuring that they farm in a sustainable way. This commitment will contribute to a vibrant rural economy for generations to come. Irish farmers are innovative, resilient, and already committed to working together to find solutions in the face of this enormous challenge.

The significant actions for agriculture in the Climate Action Plan 2023 provide a viable pathway to meet our climate targets. The Government has a number of supports already available that will help assist Irish farmers to meet the outlined targets.

Financial aid has been and will continue to be put in place to support farmers in their transition to adapting more farming practices that will reduce emissions.

There is a five-fold, or 500%, increase in funding for Organic Farming to €256m to triple the area of land farmed organically to 7.5%. Organic farmers are also eligible for support of 60% in the Organic Capital Investment Scheme (OCIS) and had priority access to the 2023 Agri-Climate Rural environmental Scheme (ACRES).

Nitrogen reduction is continually supported through the aid for Low Emission Slurry Spreading (LESS) Equipment. Funding for this LESS measure has increased from 40% to 60% in the new TAMS 3 scheme. The TAMS 3 scheme furthermore includes a Solar Capital Investment Scheme which has also seen the grant aid increased for farmers from 40% to 60%, with a €90,000 investment ceiling, assisting farmers to generate renewable energy for use on their farms.

Overall, the CAP Strategic Plan has seen a significant increase in national co-funding, bringing the total budget to almost €10 billion. This represents a significant increase in funding compared to the previous Rural Development Programme and includes €1.5bn for the new agri-environmental scheme – ACRES.DAFM provided funding of €3m to a Methane related research project almost five years ago.

I recently announced a world-first scientific breakthrough in animal breeding that can enable the reduction of methane from the Irish cattle herd through animal genetics – we are starting to see results from research funded projects as this breakthrough is a result of funding supplied by my department almost five years ago.

Reducing slaughter age of cattle is a key recommendation of the Food Vision Beef and Sheep group I established. To deliver on this measure a Suckler Carbon Efficiency Programme was introduced in 2023 with an overall allocation to this scheme of €260 million and is designed specifically to improve the environmental sustainability and genetic merit of the suckler herd.

The Climate action plan recognises the positive impact that forests and forest products make in sequestering and storing carbon. Late last year I announced investment by the government of €1.3 billion in Irish forestry.

The funding will be for the next National Forestry Programme and represents the largest ever investment by an Irish Government in tree-planting.

Irish farmers are known for being innovative and their capacity to adopt new sustainable practices to benefit their farm and environment. I will continue to support farmers at every step on this journey.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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178. To ask the Minister for Agriculture, Food and the Marine his views on the age profile of Irish farm holders and the difficulties associated with succession and attracting younger people into the sector; and if he will make a statement on the matter. [25232/23]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The challenge of generational renewal is widely recognised both at national and EU level. I am a strong supporter of assisting the next generation take over the farm when the time is right to do so.

Food Vision 2030, our shared strategy for the agri-food sector also recognises the importance of generational renewal and proposes a number of actions. There are a range of measures in place at present, both in the new CAP and at national level, that support younger and older farmers and facilitate generational renewal.

The new Common Agricultural Policy (CAP) cites generational renewal as one of its nine key objectives. Ireland’s CAP Strategic Plan 2023-2027 reaffirms our commitment to generational renewal, reflecting the need for skilled and innovative young farmers to respond to societal demands for quality food and environmental public goods. Measures include:

  • The new Complementary Income Support for Young Farmers (CIS-YF) has a significantly increased financial allocation of 3% of the direct payments ceiling. An amount of €35.5 million will be provided in support of young farmers each year from 2023 to 2027, which will result in payments of an average of €175 per hectare, subject to a maximum of 50 hectares, over the five years of the scheme. This is an almost threefold increase on the level of payment to successful applicants under the previous CAP.
  • Higher grant rates of 60% under the Targeted Agriculture Modernisation Schemes (TAMS) are available for capital investment for young farmers to invest in and futureproof their farms.
  • Under the National Reserve, young farmers will be supported as a priority category under the National Reserve to provide for an allocation of payment entitlements at the national average value on eligible land for which the young farmer holds no entitlements, or the topping up of low value entitlements held by the young farmer to the national average entitlement value.
  • My Department also continues to support and further develop collaborative farming models, with grants available for registered farm partnerships. A new initiative for older farmers, providing financial support towards the costs incurred for independent legal and financial advice about succession planning and navigating a pathway to retirement, is also being considered.
At national level there are a number of taxation measures, both to facilitate succession and to support the establishment of young farmers.
  • Succession and the early transfer of family farms is supported by Agricultural Relief from Capital Acquisitions Tax and Stamp Duty exemptions.
  • Investment and access to land are supported by 100% Stamp Duty Relief for Young Trained Farmers, 100% Stock Relief for Young Trained Farmers and Relief for Long-Term Leasing (which in particular provides a route to retirement for older farmers). In addition, the Succession Farm Partnership Scheme provides for a €25,000 tax credit over five years to further assist the transfer of land within a partnership structure to encourage earlier transfer of family farms.
On access to finance, one of my priorities is to ensure adequate availability and access to long-term investment finance for young farmers. The recent Future Growth Loan Scheme saw strong demand, with approximately 1,600 loans to the value of €237m sanctioned to farmers. A new €500 million Growth and Sustainability Loan Scheme for long-term investment, with terms of up to 10 years, will launch later this year.

In addition, Teagasc agricultural education activities continue to focus on equipping young farmers with the necessary knowledge to build successful careers.

I want to ensure that the agri-food sector remains strong and sustainable into the future, and will continue to engage with stakeholders to find the best approaches to support all farmers.

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