I am accompanied by officials from the operational side who are in charge of payments. If there are questions about progress with payments, I might defer to my colleagues. I thank the committee for giving me an opportunity to update it on the progress that is being made with the beef data and genomics programme, or BDGP. As Deputies will be aware, the BDGP was launched by the Minister, Deputy Coveney, on 5 May 2015. The BDGP forms part of Ireland's current rural development programme, which runs from 2014 to 2020. This programme, which is known as the RDP, has funding of €300 million over its lifespan.
The BDGP builds on previous investment in suckler farming through schemes such as the nationally funded beef data programme and the beef genomics scheme. Suckler farming is the only sector in the RDP with its own targeted RDP scheme. The principal objective of the BDGP scheme is to encourage the introduction of animals of a higher genetic merit into the national beef herd. This will reduce the greenhouse gas intensity of beef production in Ireland by improving production efficiency on suckler farms. We know there is a particular spotlight on the role the agriculture sector plays in national emissions. The Minister has made it clear that the agriculture sector is not looking for a free ride on the backs of the efforts of other sectors, but must be willing to adapt and innovate in response to environmental imperatives. The BDGP is exactly the kind of innovative and meaningful response the sector requires if Irish agriculture is to lay claim to being among the most sustainable in the world.
The BDGP is an important vehicle for improving production efficiency and profitability on suckler farms. Of course there are many factors affecting profitability, including global demand and supply, exchange rates and input costs. Neither farmers nor the State can have any significant control over these factors. However, there has been significant Exchequer investment through the provision of research, advice and education by Teagasc, the provision of funding for knowledge transfer to farmers and the provision of funding for the Irish Cattle Breeding Federation, which can help to increase profitability and output and reduce input costs at farm level. Research, innovation, technology adoption and education will have a critically important role to play in improving the lot of suckler farmers. The focus has to be strategic. Poor profitability in the beef sector is not a new phenomenon and will not be resolved by short-term measures. Improving the genetics of the beef herd will have a long-term and cumulative impact.
In designing the BDGP, the Department took the best available scientific advice on the steps needed to improve the genetics of the beef sector. Fertility is key. On average, Irish beef farmers produce just eight calves for every ten cows at present. Farmers are keeping non-productive animals on their farms - they are feeding them, housing them, vaccinating and bearing all of the costs associated with them - even though such animals are not contributing to the profits of farms at all. When the calving interval of over 400 days, which is increasing, is considered, it is clear that something needs to be done. The best advice from experts in Teagasc and the Irish Cattle Breeding Federation is that the predominant focus on terminal traits needs to be adjusted so that a more rounded multi-trait breeding strategy can be pursued.
Representatives from the Irish Cattle Breeding Federation, ICBF, came before the committee recently and explained the possible improvements in genetics. Improving the genetic profile of the suckler herd should result in more calves per cow per year, better cow survival rates, more mother's milk for calves before weaning, reduced calving intervals and reduced age at first calving. These are all critical success factors for suckler farming. The key focus is to look at profitability over the lifetime of the suckler cow and the beef data genomics programme, BDGP, is designed with these objectives in mind.
I set out the requirements of the scheme in June, and I will not go into the same detail as before, but just to recap, farmers will be required to record calving data on the animal events sheet. This is in addition to normal tagging and registration requirements, and it can be completed online or through the animal events book provided by the ICBF. They must also complete surveys on important traits in the maternal index, such as milking ability and docility. This is vital information for the database behind the breeding indexes that are developed by the ICBF and will strengthen the robustness of the breeding advice provided to farmers. Farmers must also carry out genotyping on selected animals within their herds. This involves tagging an animal and returning the genomic sample. They must ensure a percentage of the female animals on their farms are of the highest quality, four or five-star, with regard to the replacement or maternal index. They must also ensure there is a four or five-star stock bull on either the terminal or replacement index. This requirement is phased in over time. They must also complete a carbon navigator with an approved adviser and attend a training course on all aspects of the BDGP in 2016. The Department along with the ICBF and other relevant agencies will provide long-term support for participants on the scheme and advice on the requirements in the programme. Farmers should not hesitate to get in contact if they have any queries.
With regard to progress on the scheme, the Department has received 29,780 applications, having extended the closing date by an additional week to 5 June. Approval letters were issued to scheme participants in August, at the same time as a detailed ICBF report on their herd profile. As of Friday last, approximately 2,900 herds have withdrawn from the scheme, though some of these have subsequently asked to re-enter. Withdrawals from a scheme such as this are, of course, not unusual, particularly when one considers the simple application procedure and the high volume of applicants. There are eligibility issues with a further approximately 500 applicants, which are being worked through at present. The withdrawal rate is broadly in line with previous suckler herd schemes, including the suckler cow welfare scheme and the beef genomic scheme.
At this stage, the 26,321 herds which are fully eligible for the scheme are working hard to meet the implementation requirements. Almost all of the tags required for genomic sampling have been sent to herd owners and, to date, 275,800 tags have been returned. This accounts for 83% percent of herd owners in the scheme. A total of 17,613 applicants have submitted survey forms by post, and a further 5,672 applicants have completed their surveys online. Therefore, an overall total of 23,285 participants have submitted some or all of their survey data. To be eligible for a payment in 2015, applicants must have submitted at least 60% of the required survey data and completed 90% of the required genomic sampling. As of last Friday, more than 16,000 applicants met this basic test for payment in 2015. Payments will simply roll into 2016 as farmers meet their compliance obligations. There is no question of people who are paid in December having to wait until the end of next year to be paid. The payments will roll on through January and there will be regular payment runs as additional data comes in. This is an important point.
The educational component of the scheme is a critical element. Building awareness among applicants of the importance of the correct genetics and providing them with a roadmap on how to achieve the best results will be key. A request for tenders for the training element of the scheme has closed, and while the successful tenderer has been notified we are now in the statutory cooling-off period of 14 days before the tender can be awarded. This training will not cost the farmer anything, and he or she will receive €166 for completing the course. This is in addition to the normal per hectare payments under the scheme. Farmers will also need advice on the completion of the carbon navigator. A list of advisers that applicants will be able to call upon to assist in completion of their carbon navigator requirement will be sent to herd owners in the new year. This will also be free of charge to the farmer.
The Department proposes to commence payments in December, with further payment runs following on at regular intervals in 2016 as applicants reach the compliance requirements after the first payment run has been completed. Farmers who have completed their full genotyping requirements and submitted their survey data on animals born up to the 30 June this year will be paid in December, following successful completion of the area-based crosscheck with their basic payment scheme application and completion of the required regulatory inspections as appropriate. The payment is calculated at €142.50 for the first 6.66 ha and €120 for each hectare thereafter, up to a maximum payable hectarage. In essence, this approximates to €95 for the first ten calved cows and €80 for each additional calved cow. I explained previously that when we went to the Commission with the scheme we had the very simple idea of paying for actions, but the only available article under the rural development regulation for a payment of this nature was Article 28, which is the environmental article, and payments under this must be on an area basis. We were then required to come up with a coefficient for translating what we had intended to be an action-based payment to a hectare-based payment. This is how the €95 and €80 payments were reached.
The maximum payable hectarage is calculated by dividing the number of calved cows in the herd in 2014, the reference amount, by a standard stocking rate of 1.5 calved cows per hectare. On the basis of this stocking rate, the vast majority of farmers have far more land than they require to obtain the maximum payment under the scheme. Almost half of farmers have a stocking rate of 0.5 or less and 90% have a stocking rate of less than one. For example, an average farmer with ten cows and a stocking rate of 0.5 will have 20 ha but he or she will require less than seven of these for full payment under the scheme. Farmers were concerned that their land would be tied up for six years under the scheme but for the vast majority of farmers to attract the full payment they will need only a very small proportion of their land and they can do what they like with the rest. They can sell it or lease it if they wish.
When we last came before the committee we spoke about communications, and members correctly said it is a very important part of the scheme. This is complicated and farmers need to be managed carefully and we need to bring them into the mindset. The Department, with the ICBF and Teagasc, has concluded a nationwide series of 12 information meetings for participants in the scheme. These meetings were all extremely well attended. The feedback was positive and, importantly, farmers had the opportunity to discuss their own herd on a one to one basis with the ICBF and the Department. At the ploughing championships we met farmers who were quite concerned about their ability to comply with the scheme, but they went away quite reassured when we dealt with them on a one to one basis and examined the profile of their herd. This type of communication has taken place and it will continue. Such close engagement with farmers will be critical as the scheme progresses. The Department has also published on its website an extended frequently asked questions document using the questions raised at the various information meetings. The ICBF has been in direct contact with farmers, as has Teagasc which has run several farm walks on the scheme and will do so again next year. The ICBF has a series of information articles in The Farmer's Journal every week. There is much information and communication.
The Minister committed to establishing a monitoring group of relevant stakeholders and this group held its first meeting on Friday, 27 November. Attendees included farming organisations, the ICBF, Teagasc and the Department. The group will continue to review the operation of the scheme and the intention is to reconvene in early 2016. The work of this monitoring group can feed into the planned mid-term review of the BDGP. The idea is to see how the scheme operates - it is up and running - and whether any operational anomalies or difficulties arise. We will try to adjust the scheme as necessary, to the extent it is possible to do so. We must bear in mind this scheme has been approved by the Commission and we are anxious to keep it moving. Commission approval involved not only engagement with DG Agriculture and Rural Development but also DG Environment and DG Climate Action. It was complicated to get it through.
The BDGP is established and has a strong cohort of participants. The first payments under the scheme will issue this month. Payment runs will continue into January as participants comply with the scheme. The Department, along with the ICBF and Teagasc, is committed to continuous engagement with the scheme participants for the duration of the programme, which is very important, to assist them in maximising their gain under the scheme. I am happy to discuss any issues that arise.
