Chapter 8:
Action to Develop Agriculture, Food and Forestry
Introduction
8.1 - Agriculture, food and forestry account for direct employment of 174,000, or 13.5 per cent of the workforce, 14 per cent of Gross Domestic Product and over a third of net foreign earnings from trade. Farming and related industries are the bedrock of many rural communities.
8.2 - It is the objective of the Government to develop these sectors in a manner that will maximise their contribution to the economy and to sustained employment, while protecting the environment and promoting rural development. This will be underpinned by a continuing emphasis on food safety, food quality and animal health and welfare to ensure that consumer confidence in Irish food is maintained.
8.3 - The agri-food sector will face special challenges in the coming years due to further reforms of the EU Common Agricultural Policy (CAP) and another round of world trade negotiations. To meet these challenges the Government and Social Partners recognise that improvements in competitiveness will be vital and the Government is committed to maintaining a macroeconomic environment which is conducive to structural change, necessary capital investment and production efficiency.
International Context
8.4 - The European Commission have indicated that a further extension and deepening of the 1992 CAP reforms may be the way forward in preparation for the enlargement of the EU to include Central and Eastern European Countries (CEECs). Pressure for change in the CAP is likely to arise from the next round of world trade negotiations which are due to begin in 1999. The Government are committed to ensuring that any change to EU policy is achieved in a manner which protects the legitimate interests of Ireland's farming and rural communities and the food industry.
8.5 - Recognising the importance of agriculture and food to the national economy, the Government will seek to ensure that:
8.6 - Reforms of important sectors of the CAP have been initiated to prepare for the long-term changes indicated above, and in response to the BSE crisis. As part of the reform, the Commission is to come forward with fuller proposals for a more fundamental reform of the beef regime by April 1997.
8.7 - The Government approach to the reform of the beef sector will be determined by the need to protect the income of beef producers, and the contribution of the beef sector to the national economy. Particular emphasis will be placed on ensuring that Ireland's export opportunities are maintained, and that our ability to share in developing or new export markets is enhanced.
8.8 - The Government will also seek full compensation for any price reductions consequential to the reform and will aim to ensure that any changes in the premium system will continue to favour extensive production and that the present structure of the beef support arrangements is maintained.
8.9 - The Commission has indicated that it will come forward with ideas and options for the reform of the milk regime in 1997. Under existing legislation milk quotas will continue until at least 2000. At this stage, the position is that the existing support system has, on balance, worked reasonably well, and there is no need for dramatic change to the regime in the short-term. In regard to the longer term, the Government is pressing the EU for an early analysis of the issues and thereafter to bring forward its proposals in regard to the future of the milk regime at the earliest possible date. It recognises that it is important that every opportunity should be given to producers, and the industry generally, to plan for the post 2000 scenario. The guiding principles of the Government approach will be to protect the role of milk production in the context of farm income and rural development, to ensure that the maximum national benefit is derived from milk production and that due recognition is given to Ireland's export dependence.
8.10 - In relation to cereals, the Minister for Agriculture, Food and Forestry shall establish a producers' register based on three year average production of individual producers. The Minister for Agriculture, Food and Forestry shall seek changes in the relevant EU Regulations to target penalties, in the event of a base area overshoot, at individual producers deemed to be responsible for the overshoot.
8.11 - The Government will also seek to protect the income position of sheep producers and to ensure that the Irish sheep industry has the ability to realise its export potential and to minimise the threat from imports from outside the Union. The Government supports the application of an extensification premium in the sheepmeat sector and will negotiate with the European Commission for its introduction.
Food Industry
8.12 - The Government, with EU support, is committed to an investment programme of £641 million for the period 1994-1999, as part of the Food Sub-Programme of the Operational Programme for Industrial Development. Some £283 million will be provided from National and EU funds, while the remainder will be invested by industry. Support will be available for capital investment, including restructuring, research and development, marketing and promotion, and human resources.
8.13 - The evaluation of the Food Sub-Programme will form the basis of the Mid-Term Review, to be carried out in 1997, which will determine any revisions to the Sub-Programme considered necessary to support the overall objectives of the food industry. The Government will bear in mind the important linkage between the industry and the primary production sector, and the need to ensure the maintenance of the highest possible health and safety standards at all stages of the food chain.
8.14 - The Food Safety Board will be established under new primary legislation to be introduced in early 1997 which will, inter alia, provide for the independence of the Board in every respect. In the performance of its functions the Board will have extensive powers which will enable it to exercise a critical role in guaranteeing the safety of Irish food for consumers. The Board's primary function will be to monitor and assess the effectiveness of the controls and procedures in place to ensure compliance by the food industry with best international standards and practice in food safety and hygiene. It will have a supervisory role in relation to the inspection functions of Departments and Agencies, who will be legally obliged to comply with the findings of the Board based on regular performance audits. The Board will have a complement of staff that reflects the range of expertise and scientific disciplines in its area of competence.
8.15 - The Government are committed to developing, in consultation with interested parties, a National Beef Assurance Scheme during 1997 and its full implementation by the Spring of 1998. The goals and objectives of the scheme will be to:
8.16 - This scheme will comprise the following elements:
8.17 - The Government will commence work on these arrangements from the beginning of 1997, and substantial initial funding of £4 million is provided in the 1997 Estimates for this purpose. The Government will finalise the arrangements in close consultation with the parties involved. It is envisaged that, while the Department of Agriculture, Food and Forestry will play a role in overseeing the scheme, producers, processors and livestock marts will have a central role in the operation of the arrangements.
8.18 - The Government will seek and support initiatives at EU level, in the area of beef labelling and promotion, that are consistent with consumer requirements, that allow the Irish industry to exploit its natural advantage and which guard against misleading representations.
8.19 - The Government will amend the Industrial and Provident Societies legislation early in the period of the Partnership with a view to facilitating structural change in the food industry.
8.20 - Initiatives will be examined as appropriate, to address the impact of the BSE crisis on the structure of the beef processing industry and on the marketing possibilities open to it.
8.21 - Measures will be taken to minimise delays in processing export refunds.
Agriculture: Measures Promoting Structural Change
8.22 - The series of measures under the Operational Programme for Agriculture, Rural Development and Forestry (OPARDF), the Accompanying Measures to CAP reform and incentives under the taxation system are improving farm structures and the age profile of farmers by encouraging land transfer to younger farmers.
8.23 - Uptake of the Early Retirement Scheme has been high. Nearly 5,500 farmers will have participated in the scheme by end-1996, involving total expenditure of nearly £80 million and a transfer of over 165,000 hectares to younger farmers. Target participation under the scheme was 7,000 over the five year period 1994-99, at a cost of £210 million. In discussion with the European Commission, the Government will be seeking to have the scheme continued and improved during 1997 — for example, by a more flexible approach on the requirement to enlarge holdings.
8.24 - There has been a significant increase in the number of young farmers being paid Installation Aid during the past two years. There will be consultation with the farm organisations in relation to the scheme early in 1997, when an evaluation of the scheme has been completed, with a view to deciding on the priority to be attached to the Scheme in the event of funding becoming available in the Mid-Term Review of Structural Funds.
8.25 - A total of 189 projects are being funded under the first tranche of funds on agritourism, representing a grant commitment of some £4 million on a total investment of £10 million. A second tranche of funds will be released shortly.
8.26 - All of the milk quota schemes give priority to smaller, more vulnerable, producers in the allocation of additional quota. In view of the increasing demand for quota it will be necessary, over the coming years, to target more accurately the priority categories of producers under the schemes. It is also desirable that prices for temporary leased and restructured quota should fall, and milk quota policy should seek to encourage that trend. These issues will be addressed within the context of the Quota Review Group deliberations. The Government will continue to pursue options, including changes in the EU Regulations, which would facilitate the long-term leasing of quota without land.
8.27 - Any request for changes to the conditions for re-allocating suckler cow or ewe premium reserve will be considered by the Review Group set up under the PCW which will be continued under this Partnership. The Minister for Agriculture, Food and Forestry undertakes to raise as a priority with the Commission the question of raising the limit for small scale milk producers, in order to enhance the viability of farms with a combination of dairy and suckler cows, without disadvantaging specialist suckler producers.
8.28 - Compensatory headage allowances under the OPARDF are specifically targeted at disadvantaged areas and are both income support mechanisms and an assistance to investment and structural change. The scheme operates in a broadly progressive manner, with payments accounting for a major part of income among low income farmers. For that reason, the Government will be maintaining the current level of OPARDF resources allocated to the scheme.
8.29 - The Government has put proposals to the Commission arising from an independent evaluation of the scheme and, in the interests of equity and the need to concentrate a greater proportion of total funds in the reclassified and least developed areas, these proposals involved, inter alia, adjustments in the overall payment limits.
8.30 - These proposals will not now be introduced until 1998, with the consequential costs in 1997 being borne by the Exchequer. The Government will enter into negotiations with the farm organisations in 1997 with a view to reaching agreement on equitable alternatives within the current level of OPARDF resources.
8.31 - In the context of structural reform, consideration will be given to extending for a further limited period the stamp duty relief for transfers of agricultural land and buildings to young trained farmers.
8.32 - The case for continuing the 25 per cent stock relief scheme beyond 5 April, 1997, and stock relief for young trained farmers will be considered.
Agriculture: Animal Health and Dairy Hygiene
8.33 - The Government recognise the importance of maintaining a high animal health status in retaining consumer and customer confidence in livestock products. To this end, Ireland will seek to maintain and improve its high animal health status and, in addition, will adopt measures to promote food safety; a central element of the latter will be the introduction of measures to provide for effective traceability of cattle.
8.34 - The Government will operate the agreed programmes for the eradication of TB and Brucellosis. It is agreed that, for the period 1996-1999, disease levies will be fixed on the basis that they will contribute £10 million per annum or 50 per cent of the cost of compensation in this period, whichever is the greater. In setting the rates of levies for the period thereafter account will be taken, inter alia, of the total levies received in the preceding four years, and the share which they represented of total compensation paid, if this share exceeded 50 per cent of the compensation paid.
8.35 - The Government will vigorously pursue the securing of EU funding for the TB and Brucellosis Eradication Programmes. Such funding received in excess of that provided for in the 1997 Estimates will be used to improve the Schemes, and/or to reduce the costs equally to both the Exchequer and farmers. In this regard, for 1997, the Government will meet the costs of the supply of tags to farmers under the cattle tagging scheme and of calf registrations in return for the farm organisations agreeing to forego seeking credit for an equivalent amount in respect of EU funding to be received for the Brucellosis and TB schemes.
8.36 - The arrangements for payment for tags/registrations thereafter will be negotiated with the farm organisations in the context of the amount of other EU receipts for the eradication schemes. The arrangements for the foregoing will be negotiated in the Animal Health Forum.
8.37 - The new Hardship Grant Scheme was introduced from 1 November, 1996, and will operate in the period November to April each year. The scheme will be subject to review in the light of budgetary, operational and other considerations in discussions with the fanning organisations at the Forum Compensation Sub-Group.
8.38 - A computerised animal monitoring system will be developed during 1997, with full implementation by Spring 1998, taking account of market and consumer requirements and in the context of meeting the requirements of the proposed EU Council regulation for the identification and registration of cattle. All aspects of the system will be considered with the farm organisations.
8.39 - It is the intention of the Government to re-introduce, as a priority (together with the Control of Farm Pollution Scheme), the capital grants scheme for the improvement of dairy hygiene standards, in a form to be discussed with the farm organisations, which will more specifically target hygiene issues, if additional funds become available at the Mid-Term Review.
8.40 - The Government will request licenced compounders to declare in descending order the ingredient content of animal feed marketed in Ireland and, if necessary, will seek changes in EU legislation to bring this about.
Agriculture: Training, Advice and Research
8.41 - The provision of training, advisory and research services in agriculture and horticulture is the statutory function of Teagasc which is implementing a Corporate Plan (1994-1999) and is delivering an approved programme of work under the OPARDF.
8.42 - The Mid-Term Review of the OPARDF will include a review of Teagasc's activities. Teagasc will also establish structures for consultation with relevant interests at local level.
8.43 - A comprehensive and independent review of the existing training system will take place in 1997, and all relevant organisations will be consulted.
8.44 - In the meantime a number of initiatives are being taken by Teagasc to improve existing arrangements for education and training:
8.45 - In order to achieve more effective and efficient delivery of its advisory programme, Teagasc has restructured its services. An independent review of the advisory programme, including the issue of charges for services, will be undertaken in 1997, and relevant organisations will be consulted. Pending the outcome of that review, the charges for the Farm Viability Service will remain unchanged in 1997.
8.46 - The objectives of Teagasc's research programme, which accounts for almost 50 per cent of Teagasc's budget on a total-cost basis, are specified in their current programme for the period up to the end-1999. The programme is subject to ongoing review and many elements are already subject to comprehensive external assessment. As set out in the White Paper on Science, Technology and Innovation, the Government have asked the Department of Agriculture, Food and Forestry and Teagasc to examine the feasibility and operational requirements needed to raise the level of contributions from the farming community for agricultural research. The Department will examine how the Committee for Agricultural Research (Stimulus Fund Committee) could be developed to provide a more open system for supporting R&D in agriculture. The Teagasc Research Centres will have clear mission statements, accompanied by measurable objectives covering both their research and technology transfer activities.
Forestry
8.47 - Government policy in relation to forestry is set out in the Strategic Plan for the Development of the Forestry Sector in Ireland, published in July 1996. Key elements of the Plan include:
8.48 - Investment in forestry is supported by a combination of capital grants, annual premium payments and tax exemptions. The existing system of premium payments is weighted substantially in favour of farmers. Non-farmers, including Coillte, are entitled to lesser payments over a shorter period. The weighting of premium payments in favour of farmers reflects the emphasis which the Strategic Plan puts on the development of farm forestry. In the context of a European Commission review of forestry incentives, which will be completed in 1997, the Government will aim to improve the level of premium payments to farmers (e.g. by indexation, and by maximising the rates of payment for afforestation of up to 20 hectares). The achievement of the planting targets described above, and the consequential national benefits, require Exchequer and EU supported afforestation to be carried out not only by farmers but by other landowners, including Coillte.
8.49 - The Government will introduce a public notification system in early 1997 in relation to applications for grant aid for afforestation. The arrangements, which will not apply to initial planting of up to 2.5 hectares, will be reviewed with the farm organisations as necessary during the course of the Partnership.
Rural Development
8.50 - In December 1995 the Rural Development Policy Advisory Group was set up. The Group is preparing a report which will set out a broad vision for the development of rural areas in the medium term, assess the contribution of current policies in the area of rural development and advise on the components of a comprehensive, integrated and sustainable development policy. The Group's report will be completed in the first quarter of 1997 and will be submitted for consideration by Government.
8.51 - At the recent European Conference on Rural Development in Cork a declaration relating to the future direction of rural development policy in the European Union was presented to Commissioner Fischler who undertook to pursue policy proposals contained in it. On the basis of the Cork Conference outcome, rural development policy will command a high priority within the European Union in the coming years.
8.52 - The Government is very conscious of the need to avoid confusion and duplication in the delivery of local and rural development initiatives and to ensure a co-ordinated and coherent approach in this area. With this in mind County Strategy Groups have been put in place and these Groups can, inter alia, facilitate co-operation by the different providers in relation to information and publicity, including the provision of single contact points for the public.
8.53 - The Government is committed to:
8.54 - The problems of poverty and social exclusion have a distinct impact in a rural context and will be addressed in the development of the National Anti-Poverty Strategy referred to in Chapter 4 of this Partnership.
Rural Environment
8.55 - Support for the provision of pollution control facilities continues under the CFP Scheme operated under the OPARDF 1994-1999. Some 18,500 applications were received before the scheme was suspended in April 1995, and will result in excess of £100 million being expended in grant aid. It is the Government's intention to re-introduce the scheme on a priority basis, if additional funds become available at the Mid-Term Review of Structural Funds.
8.56 - For the Rural Environment Protection Scheme (REPS), the target of 43,000 participants and spending of £350 million up to 1999 is likely to be achieved. The operation of the scheme is reviewed on a regular basis and changes implemented where necessary. There is also close liaison with the farm organisations on operational aspects of the scheme. In discussions with the European Commission, the Government will be seeking to have the scheme extended.
8.57 - The Birds and Habitats Directives impose an obligation on Member States of the EU to designate as Special Protection Areas (SPAs) or Special Areas of Conservation (SAC) areas that meet the criteria set down in the Birds and Habitats Directives. Direct contact will be made by the Department of Arts, Culture and the Gaeltacht with individual landowners/occupiers of the designated land for whom the designation is relevant:
8.58 - The following provisions will be made for a system which will allow for objections to designations or the level of proposed restriction on scientific grounds:
8.59 - The Minister for Arts, Culture and the Gaeltacht will introduce the necessary Statutory Instrument to give legal effect to the above provisions where appropriate.
8.60 - The Government is committed to the development of the organic farming sector.
8.61 - The Department of the Environment shall enter negotiations in 1997 with the relevant farm organisations with a view to reaching mutually acceptable conclusions on their concerns regarding the cost and scope of integrated pollution control licensing for intensive agricultural activities covered under the Environmental Protection Agency Act, 1992.
8.62 - Given the importance of maintaining an environmentally sound fanning sector, provision will be made by way of improved capital allowances for a targeted and monitored measure to support investment by farmers in necessary pollution control measures.
Administrative Efficiency
8.63 - The Government undertakes to meet the payment schedules and quality of service set out in the Charter of Rights for Farmers, except where it is unable to do so due to events outside of its control. The Government undertakes to enter into discussions with the farm organisations [ Fn*: Throughout this chapter reference to farm organisations relates to the IFA, the ICMSA, the ICOS and Macra na Feirme.] on measures to improve on the targets, and other issues, in the Charter over the life of the Partnership.
