Jim O'Keeffe
Ceist:10 Mr. J. O'Keeffe asked the Minister for Agriculture and Food the progress, if any, made in the organic farm sector; and the steps, if any, he proposes to encourage further progress. [16527/99]
Other Questions. - Organic Farming.
My Department provides support to the organic farm sector in a number of different ways. Financial support is provided under the rural environment protection scheme – REPS – and the scheme of grant aid under the Operational Programme for Agriculture, Rural Development and Forestry – OPARDF – 1994-99. Under the REP scheme, farmers who convert to and subsequently engage in organic farming are eligible to receive additional payments on top of the basic REPS payment of 151 per hectare per annum. The rates of additional payment vary depending on the size of holding and the stage of organic status reached. The annual additional rates for applicants with more than three hectares of utilisable agricultural area are 181 per hectare for a maximum of 40 hectares for a two year period while converting to full organic status and 91 per hectare for a maximum of 40 hectares for a further three years when they reach that status. For applicants farming up to three hectares with at least one hectare under fruit or vegetables, the rates are 242 per hectare up to a maximum of three hectares for farmers in conversion and 121 per hectare up to a maximum of three hectares for those at full organic status.
The scheme of grant aid for the development of the organic farming sector under the Operational Programme for Agriculture, Rural Development and Forestry provides financial assistance to farmers, groups, companies or co-operatives for the provision of facilities for the grading, packing, storage and distribution of organic produce. Grant aid is at the rate of 50 per cent subject to a maximum investment of £70,000.
Payments of £3 million have been made to date to organic farmers under the REP scheme and a total of almost £224,000 has been paid under the organic grant scheme of the operational programme. My Department also provides annual funding to the three private organic inspection bodies, Irish Organic Farmers and Growers Association, Organic Trust Limited and Demeter Standards, and maintains a register of genuine organic producers licensed by the three organic inspection bodies. The number of producers on the register is in excess of 800.
The measures which I have outlined have encouraged more farmers to convert to organic farming practices and assisted the marketing of organic produce. I expect demand for organically produced food will continue to grow in the future and I am confident that, with the supports available, Irish producers will be well placed to meet the increasing demand.
Can I take it that approximately £3.25 million has been made available over the past five years?
Three million pounds has been made available.
And £0.25 million under the other scheme?
Yes.
What percentage of farm output is organic produce? Does the Minister of State accept that it is in our interest to encourage the further development of organic farming?
A total of £3,224,000 has been paid out. Organic production accounts for approximately 2 per cent of production. However, I carried out an exercise recently in an organic beef shop in town and I was shocked by the prices. A pound of fillet steak was £9. The number of consumers who are prepared to pay £9 per pound for fillet steak is limited.
I call Deputy Deenihan.
It is a disincentive to ask short questions when one is skipped over immediately.
Will the Minister of State confirm if he met the organic farming organisations recently and when that meeting took place? Is he aware that the recent changes in REPS under which people cannot convert from mainstream to organic farming during the five year REPS programme is creating a great deal of concern? It will arrest the growth of organic farming in this country. Farmers must start organic farming at the beginning of the plan or they cannot get involved. That prevents many of them getting involved in organic farming.
After three years, there is no refund so farmers can start on the other programme at that stage and open negotiations with the Department. The fact that they have been in the REPS would make it easier to convert when they finish their programme.
That is five years.
I appreciate that but those are the rules to which they contracted.
Did the Minister of State meet the organisations recently?
Not recently.
I prefer the Minister of State not to answer questions that arise by way of interruption.
I am replying to the original question. I would not dream of disobeying the Chair. The organisations sent a request to my office and I will meet them again shortly.
I am shocked to hear that the price of one pound of steak is £9. Does the Minister of State accept that the aim of organic farmers is to be able to produce at a comparable cost to mainstream farmers? Does he further accept that it is in the national interest to give greater encouragement to farmers to opt for organic production? In the context of the next tranche of funding, will he accept it is important to make a greater amount of funding available to encourage organic food production?
I accept there is an increased market for it. France imports 48 per cent of its total organic requirements. I do not anticipate an increase on the organic side but I anticipate more activity on the environmental side of farming. There is a slight technical difference between the two.
It is one step removed.
It means less fertiliser, chemicals and so forth are used. We have that image. It is just a matter of proving we can do it.