I propose to take Questions Nos. 2014, 2015, 2016 and 2017 together.
Eco-Schemes were included in the EU CAP Strategic Plan Regulation for the first time as part of the next CAP (2023-2027).
Under the Regulation, they must be funded from within Pillar 1 of the CAP budget. In line with the CAP Strategic Plan Regulation, I have decided to allocate 25% of Ireland’s Direct Payments envelope to the Eco-Scheme annually, which equates to approximately €297 million per annum.
The Eco-Scheme is intended to reward farmers, from all farming sectors and levels of intensity, who undertake actions that are beneficial to the climate, environment, water quality and biodiversity. This annual scheme will be voluntary for farmers, and to qualify for payment they will have to undertake specific agricultural practices on their farms.
Farmers will apply for the Eco-Scheme at the same time as their application for the Basic Income Support for Sustainability (BISS) from 2023 onward.
The Deputy will be aware that Ireland's draft CAP Strategic Plan was submitted to the EU Commission on 31st December 2021. This plan, including the details of Ireland's proposed Eco-Scheme, is now being considered by the EU Commission and is subject to Commission approval. My Department will continue to engage with the EU Commission over the coming months as part of this approval process.
Payment under the Eco-Scheme will be an annual payment for all eligible hectares covered by the commitments undertaken. Based on 2021 Basic Payment Scheme figures, an expected 129,000 eligible farmers could participate in the scheme and the payment per hectare will be impacted by the actual participation rate. If all 129,000 farmers participate in the Scheme and bring in all their eligible land and assuming all eligible hectares on a farmer’s holding receive the same payment rate, it is estimated the rate would be approximately €66 per eligible hectare. If uptake is lower, for example, with 85% of farmers participating in the Scheme, then it is estimated the payment rate would increase to approximately €77 per eligible hectare, assuming all eligible hectares on a farm holding receive the same payment rate.
The list of eight agricultural practices proposed in Ireland’s Eco-Scheme is set out below in Table 1, with a farmer having to undertake two agricultural practices to receive an Eco-Scheme payment. The number of farmers that are potentially eligible to apply for the various agricultural practices is also outlined in Table 1 below.
All Eco-Scheme agricultural practices must go beyond the conditionality requirements laid down in the EU Regulations and must also go beyond baseline requirements set out in national legislation. Therefore, for example, Agricultural Practice 3 (Limiting Chemical Nitrogen) will not be available to Organic Farmers as they are already prohibited from spreading chemical fertiliser.
Similarly, as the requirement for all farmers under Good Agricultural and Environmental Condition (GAEC) No. 8 is to have 4% of their land devoted to Space for Nature (non-productive areas and landscape features) in order to qualify for the Basic Income Support Scheme, the Eco-Scheme will require it to be at least 7% of their land where a farmer is selecting it as one of their two agricultural practices or a minimum of 10% where they are selecting it as both their agricultural practices. In no case, will a farmer get paid for doing nothing in Eco-Schemes, for example even if a farmer already has greater than 10% space for Nature on their holding, they must maintain it while they are in the Eco-Scheme.
Table 1: Farmer Eligibility for various Eco Scheme Agricultural Practices
Agricultural Practice
|
Number of
Eligible Farmers based on 2021 Data
|
Percentage of
Eligible Farmers
|
Eligible Land
Area (Ha)
|
1 - Space for Nature
|
129,000
|
100%
|
4,516,000
|
2 - Extensive Livestock Production (excludes farmers who do not currently have livestock)
|
112,000
|
87%
|
3,928,920
|
3 - Limiting Chemical Nitrogen (excludes Organic Farmers)
|
127,000
|
98%
|
4,425,680
|
4 - Planting Native Trees/Hedgerows
|
129,000
|
100%
|
4,516,000
|
5 - Use of GPS controlled fertiliser spreaders/sprayers
|
129,000
|
100%
|
4,516,000
|
6 - Soil Sampling and Appropriate Liming (excludes Nitrates Derogation Farmers)
|
117,000
|
91%
|
4,109,560
|
7 - Planting of a Break Crop (includes only farmers with arable parcels)
|
17,000
|
13%
|
587,080
|
8 - Sowing a Multi-Species Sward
|
129,000
|
100%
|
4,516,000
|
Ireland's draft Eco-Scheme has been designed in accordance with guidance issued by the EU Commission, to encourage farmers to both modify
their management practices to become more environmentally friendly and to maintain environmentally friendly operations and farming systems where they already exist.
As the application for Eco-Schemes will not open until early 2023, the uptake of each agriculture practice is unknown at this stage. However preliminary estimates using 2018 - 2019 Nitrates data, indicate that approximately 65,000 livestock farmers are currently stocked below the upper limit required for Agriculture Practice 2 - Extensive Livestock Production (1.5 Livestock Units per hectare) and would qualify for this practice by maintaining this level of stocking rate.
I have been clear in the need to have a straightforward, practical Eco-Scheme that will ensure that my Department will be in a position to make payments on an annual basis to farmers, while also ensuring the Eco-Scheme delivers on its objectives in relation to climate, environment, water quality and biodiversity.