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Dáil Éireann debate -
Thursday, 14 Feb 2002

Vol. 548 No. 4

Written Answers. - Organic Farming.

Matt Brennan

Question:

37 Mr. M. Brennan asked the Minister for Agriculture, Food and Rural Development the measures introduced and the progress to date in the implementation of the national development plan programme for the development of the organic sector; and if he will make a statement on the matter. [4273/02]

Financial support for the development of the organic sector is available through the rural environment protection scheme and the scheme of grant aid for the development of the organic sector, which was approved under the National Development Plan 2000-2006.

Under the rural environment protection scheme, financial support for organic producers is provided under a supplementary measure for organic farming. The objective of this measure is to encourage producers to respond to the market demand for organically produced food. An organic farmer with 40 hectares in REPS can receive up to €13,280 a year, which includes payment of the basic measure, while a holding is in conversion to full organic status. When full organic status is obtained, such a farmer may receive up to €9,680 which also includes payment of the basic measure. In the first REP scheme, which had some 45,500 active participants when it closed to new applications at the end of 1999, 821 availed of the organic supplementary measure receiving over €28 million in REPS payments. Of the 14,397 applicants who have been admitted to the new REP scheme, 186 farmers have opted for the organic supplementary measure. I am hopeful that the take-up will considerably surpass the levels in the first REP scheme as farmers become aware of the commercial opportunities that organic farming offers.

Some €8 million has been allocated to the scheme of grant aid for the development of the organic sector, which was launched on 15 May 2001 under the regional operational programmes for the Border, midland and western region and the south and east region. The scheme provides grant assistance for both on-farm and off-farm investment in equipment and facilities for preparation, grading, packing, storage and distribution of organic produce. For on-farm investment projects, grant assistance is available up to a maximum of about €50,000. For off-farm investment projects, grant aid up to a maximum of about €250,000 is available.
There were 69 grant applications in the first tranche of the development scheme in June 2001, and so far my Department has given approval for grant assistance totalling €235,172. The scheme will be reopened for applications shortly and I look forward to receiving a substantial number of applications so that my Department can give further support to organic farmers and other operators in this expanding sector.
The organic development committee which I established in November 2000 will be making its report shortly, and I will of course give most careful consideration to any recommendations about these support measures that the committee may make.
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