A new set of funding proposals, which call for the establishment of a five year tillage survival scheme – with an annual budget of €67 million – are to be submitted to the Minister for Agriculture, Food and the Marine by the Irish Farmers Association (IFA).
The IFA’s grain committee chair, Kieran Mc Evoy, confirmed that its proposals document urges the Government to introduce an annual payment of €250/ha for commercial tillage farmers.
According to the farming organisation €30 million of the proposed annual budget of €67 million detailed in the new proposals is funding that was already committed to the sector in 2023.
“Therefore, it effectively equates to an increase of €37 million on 2023 tillage sector funding,” the IFA stated.
The organisation is calling for the “immediate establishment” of its proposed scheme which would cover an envisaged area of 267,000ha.
Under its proposals it is envisaged that any payment per hectare under a tillage sustainability scheme must not be capped for individual growers.
Tillage area
However, it also sets out that the overall budget should be based on a national reference tillage area at an appropriate point in time in order to limit disruption of the land market.
It is critical that the actions required to comply with any tillage sustainability payment are not overly onerous to comply with, the IFA has stressed.
It also believes that eligible crops should not be under-sown with grass to avoid leakage to non-tillage sectors.
The proposals document sets out that possible sustainability actions and criteria for qualification for the multi-year payments could include: grass margins beside watercourses (4-6m); flower-rich margins or strips; minimum tillage; over winter cover crops; the use of protected urea; the use of liquid nitrogen; over winter stubbles and summer fallow cover crop.
IFA
The IFA is also calling for a tillage expansion scheme for the sector, in an effort to reverse the decline in Ireland’s tillage area.
This measure could mirror payments made under the previous Tillage Incentive Scheme.
According the organisation this is a must to encourage additional land and farmers into the sector and stem current land losses from the sector.
It is envisaged that €400/ha should be paid on land converted into tillage in year one with a maintenance payment of €250/ha following in Year 2.
According to the IFA, the immediacy of significant financial support to the sector is “vital” as a large proportion of growers are operating off rented land bases.
Where funding for these new proposals is concerned, it points to the need for a significant provision of state aid from the National Exchequer.
However the IFA also highlights in its proposals document that the funding of current agri-environmental commitments is compliant with De Minimis state aid rules for agriculture.
Under Regulation 1408/2013 a maximum of €20,000 over a 3–year period per beneficiary is allowed, with a maximum amount of €98,460,375.
A derogation also exists under Article 3a to enable this be increased to €25,000 per beneficiary over the same period with a total cumulative budget of €118,152,450 euro, subject to a sectoral cap of 50% per product sector.
The IFA believe it is essential that the Department of Agriculture, Food and the Marine secures a derogation to this regulation, in order to increase the ambition and financial support possible for a tillage expansion and sustainability scheme.