The Irish Co-operative Organisation Society (ICOS) has welcomed the sustainability initiatives and tax supports contained in Budget 2023.
However, the group said that “a lot more funding” will be needed to help the agriculture sector meet its climate, water quality and wider sustainability targets.
It added that the government must be prepared to do more to protect food security and the situation must be kept under constant review.
In its pre-budget submission, ICOS had called for the introduction of accelerated capital allowances for slurry storage in view of the challenges facing water quality and the threat to the future of the nitrates derogation.
ICOS also urged the government to introduce measures to “kick start the bioeconomy”, including anaerobic digestion (AD) and solar PV supports.
In a statement, ICOS pledged to work with farmers and stakeholders to develop a viable AD industry rooted in the co-operative model.
“The allocation of funding for farm-based anaerobic digestion must be acknowledged. However, there is a clear inconsistency between the ambition of Minister [for the environment] Eamon Ryan to establish up to 200 farm AD plants and the initial budget announced.”
The group said that extra supports for farm based solar PV under the Targeted Agricultural Modernisation Scheme (TAMS) are “a positive move”.
However, it “believes the restrictions related to grid export and TAMS funding should be removed to enable farmers to receive full credit for decarbonising the energy sector”.
ICOS said that TAMS costings will need to be reviewed for farm buildings and infrastructure in light of the 10% concrete levy unveiled in the budget.
The group said that it is disappointed that the government did not adopt recommendations designed to protect farmers from income volatility.
“The uncertainty around the price and availability of fertiliser remains very real due to the protracted war in Ukraine.
“It is not an exaggeration to suggest that there could be a catastrophic reduction in productivity and profitability at farm level should the predictions of gas shortages become a reality this winter,” ICOS stated.