I thank the Senator for raising this important matter. I am glad to be able to speak on a topic of such interest to farmers within the context of implementation of the nitrates directive here. The revised farm waste management scheme will provide a very satisfactory financial package for those farmers who are required to carry out investment works to comply with the terms of that directive.
As the proposed grant-rates are in excess of the regulatory limits applied to European Union co-funded schemes, EU state-aid approval was required prior to implementation of the scheme and such approval was sought for the revised scheme in September 2005. Since that time, ongoing negotiations have taken place between the Department and the European Commission regarding the approval of the state-aid application. These culminated in the Minister for Agriculture and Food, Deputy Coughlan, having a very helpful meeting with Commissioner Fischer Boel on 9 February 2006 during which the Commissioner recognised the importance for Ireland of the early introduction of the revised scheme. Following this meeting, the Minister is satisfied that EU approval for the revised scheme will be available very shortly.
Subject to receipt of the required approval, the scheme will provide the following measures. It will introduce a standard grant rate of 60%, with 70% being available in the four zone C counties, Cavan, Donegal, Leitrim and Monaghan, for both animal housing and slurry storage. The current standard grant rate for such work is 40%. In addition, top-up grants will be available for young farmers in certain cases. The scheme will provide for the extension of the maximum income unit ceiling for farmers from 450 to 650 income units, with no upper income limit being applied in the case of pig and poultry farmers. The maximum eligible investment will increase from €75,000 to €120,000 per holding. However, investments carried out under previous versions of the scheme are deducted from this ceiling.
The minimum income requirement from farming will be eliminated from the scheme so that all small farmers can participate in the scheme. At present, farmers must have a minimum of 30 income units, of which 20 income units must come from farming. The scheme will be extended to include horses, deer, goats, pigs and poultry, and mushroom compost. These sectors have not previously been eligible for grant aid under the scheme. A new 40% grant rate will be introduced for specialised equipment with specific environmental advantages subject to a maximum eligible investment of €80,000 in the case of decanter centrifuge systems and dry feeding systems for pigs, and €40,000 in the case of specialised slurry spreading tankers and related equipment. Under the current scheme, all mobile equipment is grant-aided at a rate of 20%. Investments under these headings will be deducted from the €120,000 investment ceiling per holding referred to previously. The maximum eligible investment for standard mobile equipment will increase from €11,000 to €15,000 with the grant rate remaining at 20%.
Farmers should prepare for the introduction of the revised scheme by arranging for the necessary planning permissions, etc., as soon as possible. The prior written approval of the Department of Agriculture and Food will, of course, be necessary before work can be commenced. Application forms will be available in the local offices of the Department as soon as the scheme is launched.
In addition to the revised farm waste management scheme, it is also proposed, subject again to receipt of the required EU approval, to introduce a pilot waste processing facilities scheme which will provide grant aid to support the demonstration of new technologies to help the agriculture sector, particularly the pig and poultry sectors, meet the requirements of the nitrates directive. The scheme envisages the granting of financial support for up to ten projects throughout the country which would demonstrate the advantages of emerging technologies in reducing the volume of livestock manures or their nutrient content. Such examples could include fluidised bed combustion or treatment plants comprising anaerobic or aerobic digestion systems. The maximum investment ceiling per project will be €1 million and the total State contribution to these projects, at a grant rate of 40%, would accordingly be up to €4 million.
The combination of both these schemes confirms the continuing commitment of the Government to the farming sector and will ensure that a very significant and wide-ranging financial package is available to those farmers who intend to carry out investment works in order to meet the requirements of the nitrates directive.
