While the organic sector in Ireland is small in comparison with some other countries in the EU, it has grown in recent years with sales of organic food worth €38 million in 2003. At present there are 1,000 organic operators registered with the Department and approximately 30,000 hectares of land are being farmed to organic standards.
A national steering group, established on foot of a recommendation in the organic development committee report, acts as the driving force for the development of the sector. It also monitors progress on the implementation of the recommendations.
The Government is committed to the further development of the organic sector and has provided substantial funding to advance it. Grant aid towards investment in the organic sector is provided through the scheme of grant aid for the development of the organic sector, which was approved under the National Development Plan 2000-2006. 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. Grant aid is payable at 40% of the eligible cost. The maximum grant payable over the duration of the scheme for on-farm investment is €50,790 while the maximum amount for off-farm investment is €508,000.
Organic farmers are also eligible for financial support through the rural environment protection scheme, REPS. The scheme includes a supplementary measure for organic farming whose objective is to encourage producers to respond to the market demand for organically produced food. An organic farmer with 40 hectares in REPS can currently 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 an annual payment of up to €9,680, which also includes payment of the basic measure.
Subject to European Commission approval, organic farmers will also benefit from the higher payment rates and higher eligible areas agreed in Sustaining Progress that have been included in the proposed changes to the REP scheme. Under these proposals, the maximum annual payment while a holding is in conversion will rise to €18,505, and when full organic status is achieved the maximum payment will be €13,555. The agreement reached on reform of the Common Agricultural Policy should provide new opportunities for organic producers to respond to the market demand for quality food in this country.