There was a significant increase in 2023 in both the number of individual settlements made by Teagasc, and the total amount of money paid out to farmers in those settlements, compared to 2022.
The advisory and educational body’s financial statements for 2023 show a total of €503,000 under the heading of settlements, an over five-fold increase on the €98,000 figure for 2022.
The total number of cases concerned in these settlements was 49, more than triple the figure for 2022, which was 14.
Conversely, there was a slight decrease in the amount of associated legal fees (not including legal advice) incurred by Teagasc last year, which decreased from €29,000 to €28,000.
The statements said that the actual total settlements paid to farmer clients in 2023 was €336,000, more than four times the figure for 2022, which was €77,000.
The remainder of the money under the settlements category was made up of an increased provision for future settlements of €167,000 (almost eight times the €21,000 provision at the end of 2022) to take account of unresolved claims as of December 31 last year.
This figure, as well as the actual total of settlements paid, brought the figure to €503,000.
The settlements were paid out to what the financial statements described as farmer clients who, having engaged with Teagasc to prepare and submit applications and support administrative compliance for several farm schemes, were unsuccessful.
The statements noted that it can take several years to settle more complicated cases, and that 21% of 2023 settlements (€72,000) were paid in respect of issues that arose before 2014.
According to Teagasc, its advisory work related to Department of Agriculture, Food and Marine regulations and schemes – citing the Agri Climate Rural Environment Scheme (ACRES) specifically – increased significantly during 2022 and 2023.
The authority said that its terms of engagement with clients has been recently reviewed and strengthened by its legal advisors and are “now considered robust”.
Teagasc said it has also reverted to office consultations with clients (as was the case pre-Covid) which “are important to avoiding errors in scheme applications”.
Other key figures from the Teagasc financial statements show a total income of €232.3 million in 2023, an increase from €224.5 million in 2022, including an increase in Oireachtas grants from €159.8 million in 2022 to €168.6 million last year.
Total expenditure by Teagasc for 2023 was €230.7 million, an increase from €215.7 million on the year before.
This gave an operating surplus for last year of €1.7 million, a notable decrease on the €8.9 million surplus for 2022.
In 2023, Teagasc paid €788,000 to its key management personnel, up from €745,000 in 2022. These included salaries and short term benefits to members of the Teagasc Authority, the director Prof. Frank O’Mara, and three divisional directors reporting to the director.
Prof. O’Mara’s basic pay saw an increase to €184,000 last year, compared to €178,000 in 2022.