FARM SUPPORTS/PAYMENTS AND CONTROLS

Paul Dillon

Assistant Secretary General

Direct Payment Division

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Basic Payment Scheme Entitlements Division

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Direct Payments, Integrated Controls Division

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Colm Hayes

Assistant Secretary General

Agri-Environment, On Farm Investment and

Market Supports

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Forestry

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CAP Rural Development

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Paul Dillon, Assistant Secretary General

Office phone No: xxxxxxxxxxxxx

Mobile No: xxxxxxxxxxxxx

Responsible for the following Divisions

Division Head of Division Office No Mobile No

Direct Payments Division CAP Pillar 1 – Basic Payment Scheme

Fintan O Brien

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Direct Payment Division CAP Pillar 2 Payments – Beef Data & Genomics Programme, Knowledge Transfer and Area of Natural Constraint

Paul McKiernan

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Basic Payment Scheme Entitlements Division Bernadette Brennan xxxxxxxxxxxxx xxxxxxxxxxxxx

Direct Payments, Integrated Controls Division Thomas Keating xxxxxxxxxxxxx xxxxxxxxxxxxx

DIRECT PAYMENTS DIVISION

Heads of Division: Fintan O’Brien and Paul McKiernan, Principal Officers

Pillar 1 – Basic Payment Scheme / Greening

Introduction

DPU has responsibility for the implementation and management of the Basic Payment

Scheme (BPS), into which the Greening payment was integrated as part of the last reform of

the Common Agricultural Policy (CAP).

2016 BPS payments

The 2016 BPS payments are ongoing. As of end – May 2017, over €1.186 bn has been paid

to over 124,000 farmers. The BPS is directly funded by the EU, and the payment ceiling for

the 2016 scheme year is some €1.2bn.

2017 BPS preparations

The online application facility for the 2017 BPS opened mid-March. It is intended that

advance payments will commence on the 16th October which is the earliest date allowable

under EU regulations. Ireland is regularly among the earliest Member States to commence

BPS payments.

Increasing online applications

Ahead of the EU requirement that Member States have 100% online applications by 2018,

the Department has continued it’s efforts to promote greater online applications for the

2017 application period. Additional categories of farmers were required to apply online in

2017. The Department also had an intensive media campaign to raise awareness of the

The Direct Payments Unit’s (DPU) core business is the development, implementation and

management of a number of Rural Development (Pillar 2) and Direct Payment (Pillar 1)

support schemes for the agri-food sector.

requirement to apply online in 2018 and the supports the Department had in place to assist

those looking to apply online in 2017. Online applications have significant efficiency

benefits for the farmer and DAFM.

As a result of it’s efforts, the Department received almost 114,000 online applications in

2017, which represents 87% of total applications received in 2017.

Simplification of the CAP

Commissioner Hogan has identified CAP simplification as a key priority. To date he has

identified a series of measures that will among other things reduce the administrative

burden for farmers. These measures include the pre-checking of aid applications, a

reduction in penalties and the use of a “yellow card” system. Each of these has the potential

to impact positively on Irish farmers and they are currently being considered at Commission

level.

Pillar 2 – Schemes in the Rural Development Programme, 2014-2020 administered by DPU

Beef Data and Genomics Programme (BDGP)

The BDGP 2015 to 2020 is a six year programme introduced under Ireland’s Rural

Development Programme. It builds on the success of previous schemes including the €23

million Beef Genomics Scheme (BGS). €300m has been allocated for this scheme from the

Rural Development Programme over the 6 year period of the programme. It is intended

that the programme will improve the genetics in the beef herd, leading to greater carbon

efficiency and better profitability. Approximately 24,000 farmers continue to participate in

the scheme.

Payment Rates

While it is an area based scheme the payment effectively amounts to €100 per eligible

suckler for the first 10 and €80 per suckler thereafter subject to having the required area.

Current Position

Payments for each scheme year commence in December of the relevant scheme year and

continue as participants achieve compliance. A budget of €52 m has been made available

for 2017. Total payments to participants to date amount to €84.3m of which €43.8m refers

to 2015 scheme year and €40.5 to 2016 scheme year.

A new tranche of the scheme was recently launched, BDGP II 2017 – 2020, and the 1900

applications received are being examined to determine eligibility.

The Areas of Natural Constraint Scheme (ANC)

Introduction

The ANC scheme also forms part of the new RDP, 2014-2020 and replaces the old

Disadvantaged Areas Scheme and the Less Favoured Areas Scheme.

As with its predecessors, the ANC scheme is intended to ensure the continued conservation

of the countryside in mountain areas and other less favoured areas through the provision of

direct aid to mainly low income farmers who farm in such areas and face significant

handicaps deriving from inherent factors such as remoteness, difficult topography and poor

soil conditions.

2016 payments and future developments

2016 payments commenced in September, and to date in excess of €202m has been paid to

some 94,500 farmers. There is €202m provided in 2017 for the Scheme. Due to the

implementation of the Areas of Specific Constraint Island Farming Scheme and removal

some of the eligibility limitations which had been introduced under the Disadvantages Areas

Scheme in 2012 it has been necessary to retain the 2017 scheme budget at €202m per

annum.

Under EU Regulations, the ANC scheme will undergo a fundamental restructuring in 2018.

Under the existing regulatory provisions, eligible areas for payment under the scheme will,

from 2018, have to be re-designated using a range of biophysical criteria such as

temperature, dryness, soil drainage, moisture and stoniness, and slope of the terrain. Work

has commenced and is ongoing on this project. It is difficult to predict the impact of this

change, but it is foreseen as a fundamental change in approach by the EU Commission and

may have an impact on who will be eligible for payment from 2018.

The Programme for Government contains a commitment to an additional €25m for the

Scheme in 2018. This additional funding can be integrated into the design of the new

Scheme.

In the original Rural Development Regulation, the new ANC designation must be in place for

payment in the 2018 scheme year. This is the timeline DAFM has been working towards.

However, as part of the discussion on amendments to Regulations at EU level, a proposal

has been made to extend this deadline on an optional basis. This proposal is currently

passing through the relevant approval process at EU level, along with a number of other

regulatory changes in what is referred to as the 'omnibus proposal.'

In circumstances where the additional €25m is introduced to the ANC scheme in 2018 while

the re-designation is postponed until 2019, a formal amendment to the RDP will be required

to introduce any changes to payment rates or hectare levels which could be introduced to

allocate the €25m.

Knowledge Transfer Schemes (KT)

A central theme in the new RDP, 2014-2020 is the need to build on and develop the skills

and knowledge base in the agri-food sector. Accordingly, over €100m is allocated to a range

of knowledge transfer measures which are administered in DPU as follows:

a) Knowledge Transfer Groups in the beef, dairy, sheep, equine, tillage and poultry

sectors targets 2,000 farmers to be upskilled over the duration of the Rural

Development Programme. The approach builds on previous discussion groups as

well as best practice. Year One of the three year programme commenced on 1st

June, 2016 with the establishment of approximately 20,000 farmers in 1200 KT

Groups facilitated by an agricultural advisor.

b) European Innovation Partnerships (EIP) is a new measure in the RDP – essentially it

entails a range of actors in the sector coming together to develop and trial

innovative approaches and sharing the learning outcomes from same. The first of

two calls for proposals issued in December, 2016 and 22 projects of those submitted

have now been selected to produce a project plan. A further selection procedure will

identify approximately 10 projects for full implementation on the ground. A second

call for proposals is scheduled for later this year.

Sheep Welfare Scheme (SWS)

The Sheep Welfare Scheme is part of Ireland's Rural Development Programme 2014-2020

and provides for funding of €25 million per annum for eligible sheep farmers to undertake

actions which contribute to the welfare of the national flock. The scheme follows on from a

commitment contained in the Programme for Partnership Government, and reflects the

commitment of this Government to the sheep sector in Ireland.

The scheme, introduced in February 2017, provides support of €10 per ewe to farmers with

breeding ewes flocks. Farmers are required to undertake two actions in each year of the

scheme, with actions to be chosen from a menu of actions linked to lowland and hill type

flocks.

Over 22,000 farmers have applied for the Scheme and are currently undertaking their

chosen welfare actions. An advance payment will issue to beneficiaries in November 2017

with the balancing payment in spring 2018.

BASIC PAYMENT SCHEME ENTITLEMENTS DIVISION

Head of Division: Bernadette Brennan, Principal Officer

Entitlements Division is responsible for the management of entitlements held by farmers

under the direct payment system of income support for farmers. The Division is responsible

for the allocation of entitlements under the Basic Payments Scheme, the establishment and

management of a National Reserve and the implementation of the Young Farmers Scheme.

The Division also has responsibility for administering the Inheritance Enquiry Unit.

Allocating Entitlements under CAP reform 2015-2019

In determining the number of entitlements to be allocated under the Basic Payment

Scheme, Ireland opted to use the number of eligible hectares of eligible land declared in

2013 and 2015, whichever is lower. This option is of particular importance in Ireland where

much farming activity is based on leased land and where a future ‘land reference’ would

have resulted in very disruptive land speculation.

The ‘value’ allocated to entitlements is based on a fixed % of the value of entitlements

owned by a farmer under the 2014 Scheme year and the 2014 Grassland Sheep Scheme.

All Basic Payment Scheme entitlements were definitively established in May 2016. In

accordance with EU Regulations, a definitive statement of entitlements issued to farmers

outlining their individual convergence paths and entitlement values from 2015-2019.

Entitlements Division is responsible for the management of entitlements held by

farmers under the direct payment system of income support for farmers. The Division

is responsible for the allocation of entitlements under the Basic Payments Scheme, the

establishment and management of a National Reserve and the implementation of the

Young Farmers Scheme.

Convergence

The convergence model of the Basic Payment Scheme was proposed by Ireland during the

CAP negotiations in 2013 and is currently being implemented in Ireland. While initially

retaining the link with payments under the Single Payment Scheme, this model gradually

moves all farmers towards a national average value over the five years of the new scheme

but does not arrive at a ‘flat-rate’ by 2019. The purpose is to achieve a phased redistribution

of payments between those who held high value entitlements and those who held low value

entitlements under the Single Payment Scheme. It introduced a fairer more equitable

distribution of funds between farmers while avoiding the negative impact of a move to a

‘flat-rate’.

Entitlements under the new Basic Payment Scheme are allocated to individual farmers

based on the convergence model, which means that those farmers whose initial unit value is

below the national average will converge upwards while those farmers whose initial unit

value is in excess of the national average will see a reduction to the value of entitlements in

excess of the national average.

Any farmer with an Initial Unit Value below 90% of the national average entitlements value

will see the value of their entitlements increase. The ‘minimum entitlement value’ by 2019

has been set at 60% of the national average while a ‘maximum value’ will also be applied

whereby no farmer will receive a payment per hectare of over €700 by 2019. This maximum

limit will result in an estimated entitlement value of approximately €485.

Transferring Entitlements

Basic Payment Scheme entitlements may be transferred by submitting a Transfer of

Entitlements application to the Department. The methods of transfer include: Inheritance,

Gift, Lease, Sale, Merger/Division, Change of Legal Entity or Change of Registration details of

a herd number. Over 12,500 applications were received in 2016 to transfer entitlements.

The closing date for submission of applications to transfer entitlements in 2017 was 15th

May 2017. Almost 4,500 transfer applications in 2017 were submitted under the new online

transfer application facility in its first year of operation. While the final number of

applications for 2017 is yet to be calculated, it is likely to exceed the 2016 figure.

National Reserve and Young Farmers Scheme

Preferential treatment for young farmers and new entrants to farming under Pillar I was

initially proposed by Ireland as a mechanism for the European Union to address the aging

farming profile within all Member States. In Ireland in particular, where in 2010 over fifty

percent of farmers were aged over 55, the aging profile of our farming community has the

potential to hamper the regeneration of agriculture and consequently to hinder the

significant contribution that agriculture makes to our national economy.

The purpose of the ‘young farmer’ and ‘new entrant to farming’ categories of the National

Reserve introduced under the reformed regime of Direct Payments is to encourage and

facilitate the entrance of young, well educated persons into our farming community. This

initiative, along with the incentives available under the Rural Development in Pillar II, has

the potential to play a major role in the regeneration of agriculture in Ireland and will

provide a solid basis for the industry in the coming years. Persons who meet the definition

of ‘young farmer’ and ‘new entrant to farming’ will receive significant benefits in terms of

preferential access to the National Reserve. Young farmers can also qualify for an additional

payment under the Young Farmers Scheme.

Two schemes were introduced under Pillar 1 of the reformed Common Agricultural policy to

benefit these categories of farmers:

1. The National Reserve

3% of the Basic Payment Scheme ceiling amounting to €24 million was provided to

allocate entitlements primarily to young farmers and new entrants to farming in

2015.

2. The Young farmers scheme

An additional €24 million was put in place to fund the Young Farmer Scheme in 2015

and the same financing rate is applied for the years 2016 to 2019.

The National Reserve

The EU Regulations governing the operation of the National Reserve provide for support for

the two priority categories of ‘young farmer’ and ‘new entrant to farming’. Successful

applicants receive an allocation of new entitlements from the National Reserve on the basis

of one entitlement for one hectare at the National Average value of entitlements.

Applicants who already hold existing entitlements which are below the national average

value will receive a top-up whereby the value of those entitlements will be increased to the

national average value.

For the purposes of the ‘young farmer’ priority category of the National Reserve a young

farmer is defined as follows:

must be aged 40 or less in the year in which s/he first submits an application under

the Basic Payment scheme

must be setting up an agricultural holding for the first time in his/her own name or

has set up such a holding during the five years preceding the first submission of the

BPS application

In addition, Ireland also requires that successful applicants will have completed a

recognised course of education in agriculture giving rise to an award at FETAC level 6

or its equivalent.

A ‘new entrant to farming’ is defined as:

Having commenced the present agricultural activity the 2013 calendar year or any

later year;

Not have had any agricultural activity in his/her own name and at his/her own risk in

the five years preceding the start of the present agricultural activity;

In addition, Ireland also requires that successful applicants will have completed a

recognised course of education in agriculture giving rise to an award at FETAC level 6

or its equivalent.

Eligible applicants under the National Reserve must also have an off-farm income of less

that €40,000 in either of the most recent tax years.

The Young Farmers Scheme

The definition of a ‘young farmer’ for the purposes of eligibility for the Young Farmers

Scheme is the same as that which applies to the ‘young farmer’ priority category of the

National Reserve.

A young farmer will receive the payment under the Young Farmers Scheme for a

maximum period of five years. The ‘five years’ is dated from the year of setting up of

the holding in his/her own name (i.e. from when the young farmer is allocated a

herd-number). A young farmer who established his holding after 15 May 2014 would

receive the full five years of the Young Farmers payment.

The Young Farmers Scheme payment will be issued on a maximum of 50

entitlements.

Ireland has selected the method of calculation which will give the maximum

payment possible. The payment will be calculated as 25% of the national average

payment per hectare which we estimate will give a payment of approximately €68

per entitlement held by the young farmer.

The Young farmer’s scheme is available to eligible applicants each year of the scheme 2015-

2019

Example of financial benefit to young farmer eligible for National Reserve and the Young

Farmers Scheme

For example, a young farmer who established a thirty-five hectare holding in 2015 will

receive 35 entitlements from the National Reserve with an estimated value of €185 each

giving a total value of €6,475. His greening payment will add €2,850 while the payment

under the Young Farmers Scheme will give a further €2,380. In the first year of farming in his

own right, such a farmer would receive an estimated total payment of €11,700. A young

farmer who has more land available to him would receive a higher payment. The National

Reserve and Young Farmers schemes together with the value of associated Greening

payments provided for an allocation of Pillar 1 payments in excess of €52.5 million in Ireland

in 2015.

Applicants under the Young Farmer Scheme and the National Reserve

Some 9,000 farmers applied under the 2015 Young Farmers Scheme with almost 8,200

successful applicants. In 2015 some 7,250 farmers applied under the National Reserve with

6,250 successful.

There were some 9,150 applications received under the Young Farmers Scheme in 2016

with the majority of these applicants having been successful if 2015 and being eligible to

continue in the scheme in 2016. To date 8,250 have been successful and processing

continues on outstanding cases where applicants have been requested to submit further

information in support of their application.

National Reserve 2016 and 2017

There was no National Reserve in 2016 as all the funding had been utilised in 2015. EU

Regulations governing the operation of the National Reserve provide for the replenishment

of the fund by means of a linear cut to the value of all farmers’ entitlements, the proceeds

of clawback on the transfer of entitlements without land (sale without land in Ireland) or

from surrender of entitlements that remain unused by farmers for two consecutive years.

In 2017 just over €5 million has been provided in funding for the National Reserve following

a linear cut to the value of all Basic Payment Scheme entitlements. This amount is

equivalent to the amount of unspent funds under the Young Farmers Scheme in 2015 which

was added to the Basic Payment Scheme financial ceiling. As the National Reserve fund for

2017 is a very scarce resource, the scheme will be targeted specifically at Young Farmers

and New Entrants to farming who have successfully completed a recognised course of

education in agriculture giving rise to an award at FETAC level 6 or its equivalent by the 15th

May 2017. This decision was made in the context of the limited funds available in the

National Reserve.

Forgotten Farmers

The group of farmers referred to as the “Forgotten Farmer” have been vocal in their

insistence that they should not be excluded from access to the National Reserve. This group

of farmers are under 40 and have been actively farming for some time, in some cases as far

back as the mid 1990’s but claim they have no entitlements or low value entitlements.

Preliminary analysis by the Department was carried out in 2015 to determine the number of

farmers, who commenced prior to 2008, are under 40 in 2015 and hold low value

entitlements under the BPS. The result of this analysis shows some 3,900 farmers fulfilling

these criteria with an estimated cost of increasing the value of entitlements to the National

Average for these 3,900 farmers of €12.29m. Departmental records show that 898 of these

3,900 farmers availed of Installation Aid available at the time.

This group has sought to be accommodated under the ‘specific disadvantage’ category of

the National Reserve, which requires the approval of the EU Commission. The Programme

for a Partnership Government contains a commitment to further pursue the category of

‘forgotten farmers’ at an EU level. Following contacts with the EU Commission with regard

to funding of the ‘specific disadvantage’ category under the National Reserve, the

Commission has confirmed that Member States cannot use the proceeds of a linear cut to

fund the specific disadvantage category of the National Reserve. The only funding option

for the specific disadvantage category is to fund from natural replenishment of the Reserve

such as unused entitlements or the proceeds of claw back, but only after the two priority

categories of young farmer and new entrant have been catered for. It is extremely unlikely

that the amount of natural replenishment in future years will be sufficient to cater for a

specific disadvantage category once the priority categories of young farmer and new

entrant have been addressed.

Inheritance Enquiry Unit

The Inheritance Enquiry Unit provides a service to assist the representatives of deceased

farmers to secure outstanding payments to the estate of the deceased and where

applicable to arrange for the transfer of payment entitlements.

The Inheritance Enquiry Unit continues to advise and assist the families and legal

representatives of deceased farmers in the process of transferring agricultural schemes and

the issuing of outstanding payments. In 2016, it responded to requests for assistance from

over 2,265 families and released a total of €11,576,308.74m in payments to the estates of

deceased farmers.

DIRECT PAYMENTS, INTEGRATED CONTROLS DIVISION

Head of Division: Tom Keating, Senior Inspector

The inspection programme covers all on the spot inspection requirements in respect of:

The Basic Payment Scheme,

Cross Compliance,

Greening,

the Young Farmer Scheme,

Areas of Natural Constraints Scheme,

the Beef Data Genomics Programme,

Sheep Welfare Scheme and

Local Authority Nitrates Inspections.

In addition the Division has responsibility to ensure that a fully informed and EU audit

compliant Farm Advisory System in place to deliver accurate and up-to-date advice to

farmers as provided for in the Direct Payment Regulations.

Background

Under Article 74 of Regulation 1306/2013 each Member State is required to carry out

controls to verify the eligibility of an applicant’s claim for aid. Member States are required

to carry out administrative checks, and in addition must select a minimum number of cases

for on-the-spot controls in respect of the eligibility of declared lands. Member States may

use remote sensing by satellite to carry out the on-the-spot checks. In addition under Article

96 Member States must carry out on-the-spot checks to verify compliance with the rules on

cross compliance. Cross compliance is composed of thirteen Statutory Management

The Integrated Controls Division has responsibility for the implementation of the

national inspection programme for the Basic Payment and other Direct Payment

Schemes under Pillar 1 and the Areas of Natural Constraints Scheme under Pillar 2.

Requirements (SMRs) relating to public, animal and plant health, the environment, climate

change, animal welfare. In addition it covers compliance with seven standards relating to

Good Agricultural and Environmental Condition (GAEC).

Inspections

Under the new CAP, applicants can be selected for a range of inspection types in any given

year. A cascade approach is taken in selecting farms for inspection using a combination of

random and a risk based selection process. This cascade approach, provided for in the

regulations and while normally resulting in more than one inspection type per farm, reduces

the number of farms to be visited and consequently the costs associated with inspections.

Under the reformed CAP, additional inspections for Greening, the Young Farmer Scheme

and the Beef Data Genomics Programme and the Sheep Welfare Scheme in addition to the

normal land eligibility, cross compliance and areas of natural constraints inspections are

required.

Land eligibility and cross compliance inspections are the more sensitive inspections which

account for most of the financial sanctions or reductions applied. The cross compliance

checks are separate from land eligibility checks and cross compliance sanctions are applied

as a percentage reduction on the direct payment. It is a requirement that all eligibility

checks are conducted prior to the issue of payment to any applicant. In contrast, cross

compliance inspections must be conducted throughout the year and payment can issue to

applicants prior to the completion of all inspections.

Land Eligibility inspections

In the first instance it is a requirement that DAFM carries out standard land eligibility checks

on 5% of all farmers applying for direct payments. These can be conducted by remote

sensing or by ground inspection. Eligibility checks are required to ensure that the areas

declared are correct and that the land is being maintained in an eligible state. Ineligible

areas must be deducted to determine the eligible area upon which payment can be made.

In view of the scale of payment, Ireland is regularly audited both by the Commission and the

Court of Auditors to confirm compliance.

Cross compliance checks

1% of farmers and beneficiaries of direct payments to whom the Statutory Management

Requirements or GAEC apply are selected for cross compliance inspections. However, as

prescribed under the relevant Regulations, at least 3% of producers must be inspected

under the Bovine Animal Identification and Registration requirements. In the sheep sector

3% of producers must be inspected annually comprising of 5% of animals.

Cross compliance involves two key elements:

Compliance with 13 statutory management requirements (SMRs) as set down in

EU legislation in respect of the environment, (including the Nitrates Directive),

climate change, public, animal and plant health and animal welfare

and

A requirement to comply with the seven standards of good agricultural and

environmental condition (GAEC) provided for in the regulations

Under the cross compliance requirements, the nitrates provisions account for significant

non compliances. DAFM, as the Department with the necessary skills, conduct nitrates

inspections on behalf of the local authorities.

Farm Advisory System (FAS)

Ireland has an excellent farm advisory system provided both by Teagasc and private

agricultural consultants. The Department organises regular training for Approved Advisors

with particular emphasis on the Cross-Compliance and Eligibility requirements. Training for

newly trained Advisors is run, generally on an annual basis, based on demand for same.

ISSUES

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Number of farm visits (Integrated Inspections)

The farm bodies continue to be concerned by the inspection levels. The cascade approach

helps to minimise the farm visits.

Notice of inspections

Inspection notice has been an ongoing concern. While certain aspects of the inspections

must be conducted without any notice, agreement has been reached in negotiating the

latest farmers charter on a method of managing those inspections where a notice period is

provided for.

Colm Hayes, Assistant Secretary General

Office phone No: xx xxx xxxx

Mobile No: : xxxx xxx xxxx

Responsible for the following Divisions

Division Head of Division Office No Mobile No

Agri –Environment, On Farm Investment And Market Supports

Miriam Caldwell Ronan O’Flaherty(w/s) Liam Fahey

xxxxx xxx xxxx xxxxx xxx xxxx xxxxx xxx xxxx

Xxx xxx xxxxxx Xxx xxx xxxxxx Xxx xxx xxxxxx

Forest Service

Bridgeena Nolan

xxxxx xxx xxxx

Xxx xxx xxxxxx

Forest Sector Development

Eugene Hendrick

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Xx xxx xxxxxx

Forest Service – International

Stephen Fitzpatrick

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Xxx xxx xxxxxx

Forestry Inspectorate

Seamus Dunne

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Rural Development Division

Patricia Kelly

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AGRI –ENVIRONMENT, ON FARM INVESTMENT AND MARKET SUPPORTS

Heads of Division: Ronan O’Flaherty (w/s) and Miriam Cadwell, Principal Officers and

Liam Fahey, Senior Inspector

AGRI ENVIRONMENT

GLAS

In excess of 50,000 farmers have been approved into the GLAS scheme to date over the first

three tranches (known as GLAS 1, 2 and 3). The level of uptake under the scheme has been

significant with the target of 50,000 participants included in Ireland’s Rural Development

Programme being exceeded well ahead of the 2018 target date. The number of farmers

currently active in GLAS 1 is 25,390, in GLAS 2 is 11,332 with a further 13,600 recently

approved into GLAS 3 with effect from 1 January 2017.

GLAS is a much more targeted scheme than its predecessors and the environmental benefits

for biodiversity, water-quality and climate change mitigation will be significant. The tiered

system represents the categorisation of applications into three tiers or levels based on

Agri-Environment: To develop policy in regard to agri-environment, and implement

all related schemes (REPS, AEOS and GLAS) in an effective and efficient manner.

On Farm Investment: To develop policy in regard to on-farm investment schemes

and manage implementation of all such schemes (TAMS II measures) in an effective

and efficient manner.

Market Supports, Organics and Locally-Led: To implement EU market support,

organics and locally-led schemes in accordance with EU and national regulations in a

manner which provides for an effective customer service and allowing for clear

accountability.

environmental benefits and prioritise environmental assets on the holding over actions to

be taken on the holding.

2016 Payments to date

GLAS 2016 Advance Payments (85%) began to issue in December 2016 when over

71% of all payments due issued.

Subsequent payruns have brought the numbers paid to 95% of all payments due.

The Department has now completed initial processing of all applications and

additional information is awaited from approx. 1,400 applicants before further

progress can be made on their cases.

Cases are being cleared on an ongoing basis and payments are issuing on a weekly

basis in all cleared cases. At this stage this generally involves direct contact from

GLAS Division with the participant or their Advisor to resolve outstanding issues. As

this is the first full year’s payment under the scheme it is the first time these

individual issues are being addressed leading to a time consuming process.

Area-based schemes under the Rural Development Programme are subject to EU

Regulations which require detailed administrative checks on all applications,

including cross checks with the Land Parcel Identification System, to be completed

before payments can issue. These rigorous procedures, together with on-farm

inspections, apply to a number of scheme payments including GLAS and are

necessary to ensure that applications meet the scheme conditions and cross-

compliance requirements.

To date payments totalling in excess of €125m have issued. While it is acknowledged

that there have been delays with the 2016 payments, the first full year of payment

for participants in the Scheme payment had issued in over 71% of cases in December

2016, the highest percentage paid in initial payments under any Irish agri-

environment scheme.

Participating farmers are being urged to return any outstanding documentation,

such as interim Commonage Management Plans and annual Low Emission Slurry

Spreading Declaration Forms and to respond to queries as soon as possible to

facilitate payment. In cases where these and other outstanding issues with individual

applications are resolved payments will continue to issue on an ongoing weekly

basis.

The next stage in the process is to move towards making the balancing payment of

the remaining 15% to participants, with the intention being that this will be made in

June, subject to all IT functionality being ready. There is also an onus on applicants

and their advisers to return their Nutrient Management Plan before this payment

can be made.

AEOS/REPS

Both schemes are closed to new applicants. AEOS 1 closed at the end of 2015; AEOS 2 at the

end of 2016; and AEOS 3 will close at the end of 2018. AEOS 2 Cases exiting the scheme at

the end of 2016 that had some change in their payments over the lifetime of their contracts

must have all scheme year payments rechecked before the final payment is made. This is a

requirement following an EU Audit. Just over 900 cases in total across AEOS 2 & 3 remain to

be finalised for 2016 scheme year payments. This work is on-going and cleared cases are

paid on a weekly basis.

Organics

The new Organic Farming Scheme was launched in April, 2015 with a budget of €56 million.

It provides for significantly increased rates of payments to all Organic Farmers.

The new scheme has been hugely successful since its launch, attracting 942 applications in

its first tranche and 322 in its second tranche. To put this in context, the highest number of

applications ever received previously was 380 applications in 2010. In addition, most of

these are new converts to Organics (nearly four times as many new converts as ever

received before). Including those in the ‘old’ Organic Farming Scheme, we now have some

1,740 organic farmers in the system. This is a major step forward. Together, these farmers

manage c.72,000 hectares of land. Our target for the RDP was to attract some 16,000

hectares of new land into production and to support 46,000 hectares of converted land. We

have more than achieved this. In addition, the market value of the organic sector in Ireland

grew by 24% in 2016 to €142 million.

The Organic Farming Scheme is currently closed to new applications, as all funds allocated

under the RDP have been fully committed and all targets set have been achieved. There are

currently no plans to re-open the scheme. Should additional funds become available, the

Scheme could be re-opened in a very targeted fashion, focusing on areas in deficit and

where market opportunities exist.

Payments in 2015 amounted to €8m. Projected expenditure for 2016 is €13m. While there

have been delays in payment for some farmers, linked to penalties or queries on their

claims, 80% of all farmers have received their first instalment payment for 2016 amounting

to 85% of the total due to each.

Locally-led schemes

This is a new initiative, introduced under the EIP framework, and building on success of

Burren model. A budget of €74m has been made available over the lifetime of the RDP, inc

€15m for Burren, €35m for Henharrier/FWPM, €20m for locally-led Open call projects and

€4m for other Open Call EIPs.

The Burren Programme now an established 5 year agri-environment scheme for first time.

First intake of 200 farmers in January 2016. Second tranche in October 2016 brought in 126

farmers, and a final tranche in 2017 will bring the total to some 450 or 500. Burren widely

seen as a benchmark for environmentally focused farming in Europe. The Hen Harrier and

Freshwater Pearl Mussel Projects are based on priorities identified nationally, but will be

locally-led. Project Teams (2) are being recruited by RFT, with the Hen Harrier team now in

place. Both schemes are pilot projects targeting around 2,500 farmers in total who farm

habitats crucially important to these two endangered species. There is also a broadly based

‘bottom-up’ approach for other locally-led schemes: selected on the basis of at least two

calls for proposals, which will result in certain projects being shortlisted for funding –

initially for the development of detailed project plans, and then shortlisted again for full

project support. First of these closed in January with 118 projects submitted. Most of

these are environmentally driven and some include pilot projects for High Nature Value

farming, particularly in upland areas.

ON FARM INVESTMENT

In relation to on farm investment, the suite of six TAMS measures was launched in 2015.

The schemes available are:

Young Farmers’ Capital Investment Scheme

Dairy Equipment Scheme

Organic Capital Investment Scheme

Pig and Poultry Capital Investment Scheme

Low Emission Slurry-spreading Equipment Scheme

Animal Welfare, Safety and Nutrient Storage Scheme

Tillage Capital investment Scheme.

The Tillage Capital Investment Scheme was launched in March 2017 following Euroepan

Commission approval and includes items such as Minimum Disturbance Tillage Equipment,

Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers.

A total of €395m has been made available to Irish farmers under these measures. All

measures are currently available for online application. Interest in TAMS to date has

exceeded expectations with a total of 11,800 applications submitted to date. The scheme

operates in rolling three month tranches with the next tranche (Tranche 7) due to close on

30 June 2017. Approvals issue on an ongoing basis following closure of a tranche. A

breakdown of applications and approvals by measure is as follows:

YFCIS Dairy LESS AWNSS PPIS Organic

No of Applications 2771 2778 849 4647 152 604

Approvals issued 1842 2360 710 3021 110 432

The latest tranche closed on 7 April under which 1,089 applications were received. This

continues the downward trend in numbers of applications received, representing a sizeable

reduction on the previous tranche (1,656) and over 1,800 fewer applications than received

in the first tranche.

In order to encourage the drawdown of funding, provide increased budget certainty and to

ensure that all farmers can avail of funding over the entire period of the Rural Development

Programme, the length of time in which to undertake the works approved has been reduced

from the three year period previously allowed to six months for mobile equipment and

twelve months for fixed building works. The impact of this change may also be reflected in

the lower number of applications submitted under tranche 6.

Payments to date in the TAMS II Scheme

Projected expenditure for 2017 is €50m. The online payment system has been open since

July 2016 and to date payments amounting to €12m have been approved in respect of 943

applications. There are a small number of claims that have not yet been paid as the IT

functionality to reduce over claims is being developed. It is expected that this issue will be

resolved shortly. DPER together with this Department are currently undertaking a spending

review of the Scheme. This will include a survey to determine why the outstanding

approvals issued to date are slower than anticipated to mature to claim stage.

0

500

1000

1500

2000

2500

3000

3500

Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Tranche 6

MARKET SUPPORTS

Aid to Private Storage (APS) and Intervention

The Division operates two principal means of market intervention, i.e. Aids to Private

Storage and Intervention Purchasing. These schemes are used in times of reduced market

returns to the sector and are triggered when prices reduce to a certain level below which

thes schemes may be sued by industry to buy or store their product.

Aid to Private Storage (APS) Intervention

Pigmeat Scheme closed no product in storage Nil

Cheese Scheme closed no product in storage

Nil

Skimmed Milk

Powder (SMP)

Scheme closed no product in storage 37,065 tonnes in storage.

1,771 tonnes for sale

Licensing and Export Refunds

Under CAP Regulations, import licences are required for certain agricultural products

imported from outside the EU. The principal commodities for Ireland are poultry, cereals

and rice.

19,890 import licences were issued in 2015 which represents an increase of 13% over 2014

figures. 23,055 import licences were issued in 2016 which represents an increase of 16%

over 2015 figures. These increases are mainly due to new poultry products requiring

licences and new companies applying for poultry import tariff quota licences. Export

licences were issued for cheese to the USA and Canada and also for milk powder to the

Dominican Republic.

The Nairobi Agreement of 19 December 2015 has committed to the abolition of Export

refunds. Pigmeat remains the only product where an Export Refund may be set. It is

currently zero-rated.

FORESTRY

Heads of Division: Bridgeena Nolan and Stephen Fitzpatrick, Principal Officers and Seamus

Dunne and Eugene Hendrick, Senior Inspectors

Introduction

Forestry is playing an increasingly important economic, environmental and social role. The

forest industry, comprising the growing, harvesting and processing of forest products makes

a significant and increasing contribution to the Irish economy. The direct and indirect

contribution to the economy has been calculated at €2.2 billion with some 12,000 jobs

dependent on the sector. Timber production currently stands at just over 3milllion m3 per

annum, almost 20% of which is produced from private land owners.

Forests currently account for 10.8% of the land area of the country and, as outlined above,

support a vibrant, export-oriented forest products sector. The Department’s role is to assist

in the development of the Irish forest industry and its work in this area is undertaken by

four Divisional areas, namely:

Forestry Division;

Forest Service Inspectorate;

International Forest Policy Division, and

Forest Sector Development/COFORD

FORESTRY DIVISION

The Division is responsible for the development and implementation of forest policy, as well

as the administration of various schemes that provide funding for the planting and

maintenance of forests and for the development of forest roads. It also implements the

provisions of forestry legislation in relation to the control of felling as the Department is the

The strategic goal for forestry in Ireland is to ‘To develop an internationally competitive

and sustainable forest sector that provides a full range of economic, environmental and

social benefits to society’.

relevant regulatory authority under that legislation. Responsibility for Coillte also falls within

the remit of the Department with the corporate governance duties in relation to Coillte

undertaken by Forestry Section. Forestry Division is also responsible for the implementation

of EU Environmental Directives as they pertain to forests and forestry operations.

FOREST SERVICE INSPECTORATE

The Inspectorate is divided into the North, South and West Regions (each containing a

number of District Inspectors and supported by an Ecologist and Archaeologist), Forest

Health, Survey & Controls, and Forestry Inventory & Statistics. Working alongside the

Administrative Division, the Forestry Inspectorate is responsible for the technical

assessment of all applications for afforestation, forest roading, felling, aerial fertilisation,

etc., and for implementing necessary measures under the various legislation applying to

forestry, forest protection and forest reproductive material, and for directly overseeing

particular areas such as the National Forest Inventory. The Inspectorate also provides

technical input into the development of policy, legislation and support measures.

INTERNATIONAL FORESTRY DIVISION

The Division has responsibility for a wide range of policy issues at both European (including

EU) and international level. At national level, the Division is responsible for the

transposition of appropriate EU legislation into Irish law. It also represents Ireland at various

EU fora, including the European Council Working Party on Forestry, the Standing Forestry

Committee and the European Union Timber Regulation (EUTR)/ Forest Law Enforcement,

Governance and Trade (FLEGT) Committee. Furthermore it also represents Ireland at various

international fora beyond the European Union such as the pan-European Forest Europe and

the relevant United Nations groups, such as United Nation Forum on Forests and the Food

and Agriculture Organisation (FAO).

In addition, the Division is designated as Ireland’s national Competent Authority for

implementation, governance and enforcement of the FLEGT Regulation and the EUTR, both

of which are aimed at combating the global scourge of illegal logging and its underlying

negative effects on the environment, human well being and greenhouse gas emissions.

FOREST SECTOR DEVELOPMENT/COFORD

The Division dealing with Forest Sector Development/COFORD is another separate

administrative area dealing with forest sector development, including wood supply and

demand, wood product development, forest statistics, as well as climate change and

renewable energy issues as they relate to forestry. This area also deals with the COFORD

Council, a representative body from the forest sector, which acts in an advisory capacity to

the Department on the areas of forest sector development and research.

ISSUES

Forestry Programme 2014-2020 including funding

The Forestry Programme 2014-2020 offers an ambitious and attractive set of forestry

measures aimed at increasing timber production while at the same time improving the

quality of the natural environment. The achievement of these objectives involves the

commitment of €482 million to underpin the Forestry Programme over its duration. This

level of investment will facilitate an increase in forest cover by almost 44,000 hectares and

will provide funding to build 700 kilometres of new forest roads. Funding for forestry

development is 100% State Aid and is EU approved under the Forestry Programme 2014-

2020.

Afforestation levels and targets

The forest policy review “Forest Products and People, Irelands Forest Policy – a renewed

vision” published in 2014 was a key driver in the preparation of the Forestry Programme.

This policy document and “Food Wise 2025” have set out a number of recommendations

including expansion of the forest area to 18% of land area by mid century, to be achieved by

an annual afforestation target of 15,000 hectares per annum. However, on the basis of

current demand for afforestation and the available budget, the target for afforestation as

set out in the Forestry Programme is just over 8,000 hectares per annum by 2020.

Afforestation levels (on the basis of payments made in the year stated in respect of new

forestry planting) over the last number of years have averaged 6,400 hectares per annum

i.e. 6,653 hectares in 2011; 6,652 hectares in 2012, 6,252 hectares in 2013, 6,156 hectares in

2014, 6,293 hectares in 2015 and 6,500 hectares in 2016

The increased emphasis on planting targets is seen as important in the further development

of the forest processing and wood fuel industry in order to maintain a level of roundwood

production which is forecast to reach close to 6 million cubic metres by 2030, about double

the current level. Historically the State, through its ownership of Coillte, a commercial State

company, played a very significant part in meeting the planting target for the country.

However, Coillte was deemed ineligible in 1999 from receiving premiums and they no

longer plant new forests to any great degree. Planting by private individuals currently

accounts for almost 100% of all new forest plantings.

An ongoing challenge is the promotion of afforestation. Ireland has one of the lowest levels

of forest cover in Europe at 11% as opposed to the European (EU-28) average of about 34%,

notwithstanding that average tree growth in Ireland for certain species is almost double that

found in some parts of Europe.

A report prepared by Teagasc for the Department1 found that the main barriers to planting

forestry were the long term nature of forestry, land is considered too good for planting,

others want to farm for as long as possible regardless of the potential for better returns

from forestry and, once the land is planted, there is an obligation to replant and keep the

land in forestry.

Another ongoing challenge is the mobilisation of the private timber resource. The sawmills

and timber processors require a consistent supply of quality timber to serve their markets;

however, a consequence of the shift of new forest planting from the public sector (i.e.

Coillte) to the private sector is that private forest owners may not be as proactive in

thinning their forests and therefore require encouragement to do so. The formation of

forest owner and producer groups in recent years has addressed this need while the

Teagasc Forestry Development Department play an important role in the provision of

independent forestry advice and training to forest owners. The current good timber prices

may also act as an incentive.

1 An Examination of Studies of the financial and attitudinal factors affecting the farm afforestation decision

Climate Change mitigation and forest-based biomass

Ireland’s forests play an important role in helping with climate change mitigation, through

carbon sequestration in forests and the provision of renewable fuels and raw materials. At

the twenty-first session of the Conference of the Parties (COP21) held in Paris in December

2015, the EU committed to reducing greenhouse gas emissions by 40% by 2030 and

negotiations between Member States on burden sharing will commence shortly. Following

these negotiations, Governments of Member States will draw up their own plans to meet

national commitments and these plans will involve trade-offs between various domestic

sectors. While all sectors will have to produce less greenhouse gases, the Commission

Proposals for an Effort Sharing Regulation and a Land Use, Land-Use Change Regulation

provide for flexibilities in meeting Ireland’s proposed 30% reduction on 2005 levels of

greenhouse gas emissions by 2020. The amount currently allocated to Ireland under the

LULUCF flexibility is 26.7 million tonnes of CO2 over the period 2021-2030. Afforestation on

a rolling 30-year time period is expected to contribute some 22 million tonnes CO2 to the

target. This is based almost exclusively on existing forests, as given the nature of forest

growth, areas planted between now and 2030 will make little contribution to the overall

expected 22 million tonnes CO2. Overall afforestation is the most significant mitigation

option that is available to Ireland’s land use sector. The E and LULUCF legal Proposals

remain under active negotiation, with an expectation that an agreement will be reached by

the end of 2017.

Post 2030 the role of climate change mitigation by forest-based biomass and solid wood

products, particularly in the construction sector is likely to increase in line with the

projected increase in forest harvest.

FOREST HEALTH

a) Chalara fraxinea (Ash Dieback disease)

Chalara fraxinea / Hymenoscyphus fraxineus is the fungus which causes what is commonly

known as Ash Dieback disease, a chronic fungal disease of ash trees. It is a relatively new

disease in Europe, with its symptoms first identified in Poland in the early 1990s. Ireland’s

first positive finding of Ash Dieback was confirmed in October 2012. There are currently

confirmed findings of the disease in 322 forest plantations distributed over 24 counties. In

2016 alone there were new confirmed findings in 207 forestry plantations. Eighteen of the

new forestry plantation findings in 2016 were in counties where there had previously been

no confirmed findings in forestry plantations. In the same period there were three new

confirmed finding in commercial nurseries and two re-occurrences of the disease in two

other nurseries (bring the total number of findings in this context to 28), three confirmed

findings in farm landscaping / agri-environment scheme plantings (bringing the total for

such plantings to 28), one confirmed finding in a private garden (where the total is 4), and

24 individual samples taken from trees in roadside / motorway landscaping plantings, where

the disease in this context is now known to be distributed over 14 counties. Some 38

individual samples taken from trees in native hedgerows also proved positive, with disease

in this context is now known to be distributed over 17 counties. All in all, the new findings

over 2016 indicated a continual widening of the general geographic distribution of the

disease and that the disease is present, to a greater or lesser extent, in all 26 counties in

Ireland.

A Chalara Reconstitution Scheme was launched in March 2013 to help forest owners

affected by ash dieback to carry out works needed to address the disease and re-establish

their forest. Under the Scheme, a grant of up to a maximum of €1,500 per hectare is

available to cover the cost of clearing the site. Additional funding is also available to cover

the cost of replanting with an alternative species. By early 2016, the Department had spent

just short of €2.6 million on eradication and replanting efforts in young forestry plantations

affected by the disease under the Scheme. This involved treating over 733 hectares of

forestry plantations. It is expected an equivalent sum and area will be involved in treated

the plantations more recently identified as being affected.

In terms of controlling the disease, given its distribution, the increasing diversity of sites

affected and increasing cost associated with dealing with such sites, current policy is to seek

to slow the rate of spread of the disease and as far as practically possible mitigate the most

adverse environmental and economic impacts on the national forest estate and individual

landowners. This will be done by focusing large scale removal and replanting efforts on

younger ash plantations and other actions and supports on older plantations. Both the

Chalara Reconstitution Scheme and the Woodland Improvement Scheme (Tending and

Thinning) were revised in April of this year so as to place ash sites into one of three

categories, with eligibility as appropriate for one or both support schemes thereafter.

The impact or implications of the presence of Ash Dieback is the loss of ash plantations,

which has implications for the individual forest owners and nationally in terms of reduced

supply of ash for timber processing and hurls.

b) Phytophthora ramorum forest disease

Phytophthora ramorum is a highly contagious disease of tree and shrub species which was

first identified in the mid 1990s. The first finding of the disease in Japanese larch in Ireland

was in 2010. Since then, the Forest Service has continued to conduct annual ground and

aerial surveys of larch with the assistance of the Air Corps and Coillte. By December 2016

the disease had been confirmed present in Japanese larch at 48 locations affecting over 311

ha of forestry. The affected forest sites are mainly in the south-west, south-east and east of

the country.

Since 2010, the Forest Service has worked with Coillte (as the principal landowner affected)

in undertaking sanitation felling of infected larch in an effort to limit spread and in 2016 also

worked with private forest owners where their properties were affected by the disease.

Other tree species have been affected at these Japanese larch sites include beech, noble fir

and Spanish chestnut. Invasive wild rhododendron where it is infected is a major source of

inoculum. Although relatively speaking, there was a lower incidence of new findings of the

disease detected across the island during 2015 and 2016 the situation continues to be

worrying and surveying for the disease in public and private forests will be continued in

2017. Consideration is being given to developing a Reconstitution Scheme, similar to that for

Ash Dieback disease, to support private forest owners where their plantations are affected.

c) Dothistroma Needle Blight forest disease

Dothistroma Needle Blight (DNB), which in the past was referred to as Red Band Needle

Blight, is a fungal disease caused by the pathogen D. septosporum. In September 2016 DNB

was found in Ireland for the first time, on Scots pine trees at two private forest plantations:

one in Limerick and one in Cork. DNB had previously been found in Northern Ireland in

2011, on Corsican pine. Pine tree species are the primary host of DNB. In Britain, where the

disease has been present since the 1950s, Corsican pine has been the most severely

affected pine species but severe damage to lodgepole pine has also been reported. To date

Scots pine has been less severely affected in Britain. There are other less susceptible conifer

hosts.

The Forest Service is currently undertaking targeted surveys for DNB presence within pine

forests in Ireland and will intensify its survey efforts over the coming summer months. The

Horticulture and Plant Health Division of DAFM are also surveying for DNB in pine producing

nurseries. Further to the results of these surveys and within the context of the requirements

of the EU Plant Health Directive (the relevant provisions of which are currently under review

in Brussels) the long-term disease management policy will be determined.

Commencement of Forestry Act 2014

New forestry legislation to replace the Forestry Act 1946 was enacted in October 2014. The

commencement of the Forestry Act 2014, came into effect on Wednesday, 24th May 2017.

New forestry regulations, which provide the regulatory basis for a number of forestry

activities including the licensing of felling, aerial fertilisation, afforestation and forest road

construction, also came into effect on that date.

One of the main changes introduced by the Act and its associated regulations is the

streamlining of the felling licensing system. Since 24th May 2017, there is a single licence

process for tree felling, extended duration of felling licences and an increased list of

exempted trees which do not require a felling licence. The Act also introduced tougher

penalties for illegal felling of trees with the aim of maintaining the area of existing forest

and helping to prevent future deforestation. The Act and Regulations also require the

erection of site notices at proposed afforestation and road-works sites.

Update on Forestry Schemes – payments to end May 2017

Expenditure on the forestry schemes so far in 2017 is €2m lower than for the same period in

2016. The remaining amount available for the Schemes in 2017 is €36.9m (i.e. 33% of the

overall capital budget of €109m).

Payments in respect of the new planting of 2,006 hectares have been made to 26 May 2017,

compared to 2,229 hectares in the same period in 2016.

Reconstitution Scheme for Windblow

A Windblow Reconstitution Scheme, the purpose of which was to provide financial aid to

land owners whose plantations were damaged by storm force winds that occurred between

5 December 2013 and 12 February 2014, including ‘Storm Darwin’ on 12 February 2014, was

opened from September 2016 until February 2017 for applications. The frequency and

ferocity of these storm events, compounded by waterlogged soils on many sites, led to

extensive damage on forest lands, affecting some 8,000 hectares overall. Approvals under

this Scheme are currently issuing to applicants.

RURAL DEVELOPMENT DIVISION

Head of Division: Patricia Kelly, Principal Officer

The Programme is co-funded by the EU’s European Agricultural Fund for Rural Development

(EAFRD) and the national exchequer. EU support for the RDP via the EAFRD will amount to

€2.19 billion over the 7-year Programme lifespan and this EU funding will be supplemented

by exchequer funding to bring the total support available under the RDP to €4.024 billion. A

further €75m in respect of additional funding for ANCs, as per a PfG commitment, which

will be introduced as an amendment to the RDP will bring the total support available to

€4.099 billion.

Amendments of the RDP

Ireland’s 2014-2020 RDP was formally adopted by the EU Commission in May 2015

The first amendment covering, inter alia, a new tillage investment support measure,

a new Burren Scheme and changes to GLAS specifications, was approved by the

European Commission in June 2016.

The second amendment introducing the Sheep Welfare Scheme, EIPs and support

for Beef Producer Organisations along with further changes to Tranche 3 of the GLAS

was approved by the European Commission in January 2017.

The third amendment has not yet been submitted – minor technical changes are

proposed, as well an amendment to the ANC measure, but this could be affected by

proposals at EU level to extend the timeline beyond 2018 for the introduction of

new ANC scheme. A separate amendment for Financial Instrument could be

submitted this year, if a decision is taken to introduce one, but this depends on

several variables and would take time to agree and design.

Rural Development Division is responsible for the management and implementation of

Ireland’s 2014-2020 Rural Development Programme (RDP). Ireland’s 2014-202 RDP

was formally adopted by the EU Commission on the 26th of May 2015 and contains a

suite of extensive measures that address all farming sectors and support community

led local development by means of LEADER.

Monitoring and Evaluation

An Annual Implementation Report to the RDP outlines progress in terms of indicators. In

2017 this report will be supplemented by an Evaluation Report which will examine the

results of the implementation of RDP measures to date. The evaluation is in the form of a

Focussed Policy Assessment and will make use of baseline data from the NFS, additional

indicator data from Line Divisions, a survey of TAMS participants in order to establish

whether they intend to activate their approvals and other relevant information. In addition

preliminary results from a five-year longitudinal evaluation of the impact of the GLAS

scheme will form part of the evaluation.

Financial Instruments (FIs)

Financial Instruments aim to improve access to finance in the agricultural sector by targeting

projects through the provision of loans, guarantees, equity and other risk-bearing

instruments, possibly combined with interest rate subsidies or guarantee fee subsidies. An

ex-ante assessment on the possible use of financial instruments within the RDP and the

EMMF Programme has been carried out and a draft report is currently under consideration.

On the basis of this report a decision will be taken on whether to introduce FIs for capital

investment purposes (complementary to a grant) under the Targeted Agricultural

Modernisation Scheme (TAMS) and in respect of the seafood processing and aquaculture

sectors under the EMFF Operational Programme. Any such FI would be managed by an

financial intermediary and would require an amendment to the RDP.

Description and Progress of Measures in Ireland’s 2014-2020 RDP

A description and state of play of the measures rolled out under the RDP is contained below.

National Rural Network (NRN)

The establishment of a NRN is an EU legislative requirement as part of Ireland’s Rural

Development Programme and Irish Rural Link in partnership with the Wheel, NUI Galway

and Philip Farrelly and Co. was selected following a competitive tender process in January

2016.

The running of the NRN is funded under the technical assistance element of Ireland’s 2014-

2020 Rural Development Programme. The role of the NRN is to:

Increase the involvement of stakeholders in the implementation of the rural

development programme;

Improve the quality of implementation of the rural development programme;

Foster innovation in agriculture, food production, forestry and rural areas.

Measure 1 – Knowledge Transfer and Information Actions (€126m)

Knowledge transfer discussion groups for beef, sheep, dairy, equine, poultry and tillage

sectors.

Knowledge transfer discussion groups are farmer meetings facilitated by qualified advisors

that involve the transfer and exchange of information and best practice across the beef,

sheep, dairy, equine, poultry and tillage sectors. Approximately 20,000 participants in 1,193

Knowledge Transfer (KT) groups have been registered by associated group facilitators. The

majority of approved KT groups are currently holding meetings and preparing mandatory

Farm Improvement Plans for participants. The closing date for holding meetings and

submitting farm plans has been extended until 31 July next, after which first payments to KT

groups are expected to issue in the following quarter.

Under this measure, DAFM-approved advisors will also provide training for farmers in both

the GLAS & the BDGP in order to optimise delivery of these schemes. Training under the

BDGP began in early 2016 and is now complete. Teagasc was awarded the general training

and carbon navigator training contracts. Over 23,000 participating farmers have completed

the general training element. Advisors were trained on various aspects of the carbon

navigator allowing them to complete carbon navigators for BDGP applicants. Over 23,000

participating herds have completed the carbon navigator.

Training of GLAS farmers is expected to commence in Q3 of 2017.

Measure 2 – Advisory Services (€8m)

Continuous Professional Development (CPD) for Agricultural Advisors

The first element of CPD was for advisors who want to deliver training to farmers on

the carbon navigator for the BDGP and/or KT. This training was delivered in 2016 by

Teagasc.

The second element of CPD covers KT meeting facilitation skills. This training was

delivered in 2016 to approved KT Facilitators by Beacon HRM.

The third element of CPD relates to advisor training on Health and Safety for the

provision of the Farm Health and Safety Training Programme. Teagasc was selected

to provide this training element which is currently being undertaken by KT

Facilitators.

The fourth element of CPD is aimed at advisors who will deliver training to farmers in

the dairy sector on the Somatic Cell Check workshop. Animal Health Ireland will

provide this element of training which began in Q3 2016 and approximately 50 KT

Dairy Facilitators out of a proposed 68 in total have completed this training to date.

The remaining Dairy Facilitators will be trained in 2017.

Animal Health and Welfare Training for on farm advisors provides training to specialist

advisors to enable them deliver on-farm animal health and welfare advisory services. Animal

Health Ireland (AHI) is responsible for setting up and organising the provision of specialist

advice to farmers by trained veterinary practitioners. The diseases falling within the remit

of the service include Bovine Viral Diarrhoea (BVD), Johne’s Disease (JD), Infectious Bovine

Rhinotracheitis (IBR) and mastitis in dairy herds.

BVD training events were delivered by Animal Health Ireland in 2015, 2016 and 2017 with a

total of 616 private veterinary practitioners (PVPs) trained to carry out herd investigations.

By the end of 2016, a total of 1,102 BVD herd investigations had been requested by farmers

and 1,029 (93%) of these related to BVD positive animals identified in 2016. A further 1,155

investigations have been requested in 2017. To date, 1,622 of these investigations have

been completed and, as of 2 June 2017, the nominated PVP’s have been paid for 1,074 herd

investigations.

Training of PVPs in relation to JD was undertaken in Q3 of 2016 with a total of 26 training

sessions held and 326 PVPs trained. In addition, AHI trained 22 Department Veterinary

Inspectors in connection with the scheme.

Measure 3 – Quality schemes for agricultural products and foodstuffs

Funding for the provision of advice to Beef Producer Organisations (€0.3m).

The operation will involve the provision of advice to prospective Producer Organisations of

active beef suppliers

The Department is in the process of preparing a public procurement exercise in 2017, in line

with the public procurement rules, to identify suitable advisors that will provide advice to

prospective Producer Organisations to assist them with start-up requirements for formal

recognition. The public procurement exercise will involve a two stage process; (i) to ensure

eligibility conditions are met and (ii) the formation of a list of approved advisors based on

pre-defined selection criteria.

Groups of farmers wishing to come together within a Producer Organisation can apply for

advice from the approved list of advisors under two categories:

Advice on business planning, production planning, membership of PO;

Advice on establishment and registration of PO as a legal entity and drafting Statutes

of PO.

Funding will be provided to the advisors on a per advice basis – only one advice per category

will be eligible for payment at a maximum rate of €1,500 per advice per PO. Any further

provision of advice, beyond the one advice per category, will have to be borne by the PO

themselves. As a result, the maximum support provided to each PO will be €3,000 if the

prospective PO receives advice under category 1) and 2) above.

Measure 4– Investments in Physical Assets (€425m)

The Targeted Agricultural Modernisation Schemes (TAMS II) will make €395m available to

Irish farmers for investment in infrastructure, facilities and equipment.

Under the scheme, support is provided under a suite of seven measures:

Young Farmers Capital Investment Scheme;

Dairy Equipment Scheme;

Organic Capital Investment Scheme;

Animal Welfare, Safety and Nutrient Storage Scheme;

Low Emission Slurry Spreading;

Pig and Poultry Investment Scheme;

Tillage Capital Investment Scheme.

Applications

The scheme is open for applications in rolling three month tranches. The total number

of applications received in the first six tranches was 11,700 as follows:

The sixth tranche of the scheme closed on 7 April 2017. Approvals are issuing on an ongoing

basis with a total of over 8,470 applications now approved. The online payment claim

system opened in July 2016 and payments for approved investments continue to issue on an

ongoing basis with 1,442 payment claims received and 943 cases paid over €12m to date.

The lower number of applications received under the sixth tranche reflects the fact that

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Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Tranche 6

approvals are now more targeted in that from 14 January 2017, new TAMS II applicants

have:

6 months from approval to put mobile equipment in place; &

I year from approval to put fixed investments in place.

These requirements will apply to all TAMS II tranches from Tranche 6 onward.

Support under this measure is also provided for Non-Productive Investments that will be

delivered through GLAS. These non-productive investments form part of the GLAS tier 3 list

of actions and are therefore part of GLAS applications.

Measure 7–Rural Services and Renewal (€6m)

GLAS Traditional Farm Buildings builds on the success of the Heritage Buildings Scheme and

ensures that small traditional farm buildings and other structures are restored and

conserved for renewed agricultural use. This is a complementary measure to GLAS and

therefore participation in GLAS is the prime eligibility condition.

The scheme is administered by the Heritage Council on behalf of the Department and over

500 applications were received under the first tranche which opened in April 2016. The first

approvals of these applications began in July 2016 and 58 applicants have been approved

for works to commence this year. To date, 49 projects have already been completed and

payments made amounting to €725,000. A second tranche opened for applications in

November 2016. Further applications will be invited at regular intervals throughout the

programming period to end December 2020.

Measure 10– Agri-environment – climate (€1,585m)

The Green, Low-Carbon, Agri-Environment Scheme (GLAS) has a three-tier hierarchy that is

designed to ensure the targeted delivery of environmental benefits – specifically, in relation

to climate change, water quality and the preservation of habitats and species.

Tiers 1 and 2 are based on Priority Environmental Assets and Actions. Farmers were given

priority access to the scheme if they had one on their holding or choose to do a specific

action. Tier 3 is made up of more general actions which are weighted on the basis of

environmental benefit.

26,263 farmers were approved into GLAS under the first tranche which opened in March

2015 and a further 11,685 farmers were approved under the second tranche of GLAS, which

opened in October 2015. GLAS Tranche 3 which opened for a six-week period from 4

November 2016 attracted a further 13,964 applicants. A breakdown of GLAS 1 and 2

approved participants and GLAS 3 applicants by Tier is shown in the table below.

Expenditure to GLAS 1, 2 and 3 participants is estimated at €250m per year.

GLAS 1 GLAS 2 GLAS 3 Total % of total

Tier 1 10,919 7,205 7,021 25,145 48%

Tier 2 6,290 4,129 6,106 16,525 32%

Tier 3 9,054 351 837 10,242 20%

Total 26,263 11,685 13,964 51,912 100%

The Beef Data and Genomics Programme (BDGP) is an innovative programme which

reinforces our credentials in sustainable beef production on EU and world markets.

23,700 farmers continue to participate in the scheme. Payments amounting to €43.9m were

issued to 23,930 farmers in respect of 2015 scheme year. Payments in respect of the 2016

scheme year commenced in December 2016 with €36m issuing to some 19,592 herds. A

further €3.89m has been paid since then bringing total payments in respect of the 2016

scheme year to €39.89m for 21,364 herds and payments will continue to issue as herds

achieve compliance.

The BDGP allocation for 2016 was €52 but a total of €61m was paid when payments in

respect of the mandatory training course, carbon navigators and residual payments under

older schemes are taken into consideration.

The BDGP was reopened to new entrants in April with applications accepted until 8 May.

Like the first tranche, it will involve participants completing the same six actions over a six-

year period starting in 2017 with the training and carbon navigator actions brought forward

to the first year of the scheme.

The Burren Programme is an expansion of the Burren conservation scheme. Over 400

applications were received by the closing date of 21 December 2015 for the first tranche

with 199 farmers accepting the offer of a place. A second tranche opened in October 2016,

under which a total of 160 applications were received. 120 of these accepted the offer of a

place and have joined the scheme bringing the total of participants to 319 at present. A final

tranche will open towards the end of 2017 to bring total participation to 450-500 farmers.

Measure 11– Organic Farming (€56m)

The Organic Farming Scheme (OFS) aims to encourage farmers to convert from conventional

farming methods and to apply organic farming methods, as well as maintain these methods

after the initial period of conversion which will be a maximum period of two years. It aims

to deliver enhanced environmental and animal welfare benefits and to encourage producers

to respond to the market demand for organically produced food.

The first tranche of the Organic Farming Scheme (OFS) attracted a record 942 applications.

Approval letters issued to all successful applicants in late 2015 and early 2016. The second

tranche of the ‘new’ OFS, which closed on 31 December 2015, attracted 322 applicants. The

total number of organic farmers in the system now between the ‘old’ and ‘new’ schemes is

just under 1,800. The OFS has now met all targets for the present programming period in

terms of intake and area. Further applications can only be accepted if additional funds are

provided.

Measure 13– Areas facing natural constraint (€1.37bn)

The Area of Natural Constraints (ANC) measure is based on the previous Less Favoured

Areas and Disadvantaged Areas schemes. Its objective is to compensate farmers for income

foregone and additional costs linked to the disadvantage of the area concerned. A separate

category of support is available to compensate island farmers in recognition of the specific

constraints faced in these areas..

Under the 2015 ANC scheme, 96,600 applicants have been paid almost €205m. Payments

under the 2016 ANC scheme commenced, on schedule, during the third week in September

and to date 94,368 applicants have been paid in excess of €202m. The 2016 scheme year

budget of €202m was increased by an additional €6m, which was fully expended by year

end. Payments are continuing to issue to applicants as further cases clear eligibility

requirements.

ANC Re-Designation

Less Favoured / Disadvantaged Areas (with the exception of the islands) must be replaced

by newly designated Areas of Natural Constraint. From 2018, eligible areas must instead be

designated using a set list of bio-physical criteria.

The full set of biophysical criteria to be examined includes:

• Low temperature

• Dryness

• Excess soil moisture

• Limited soil drainage

• Unfavourable texture and stoniness

• Shallow rooting depth

• Poor chemical properties

• Steepness of the slope

The Department has commenced work on this project, and relevant technical experts are

currently working on analysing the data in relation to the new criteria. Once this process is

complete, the data will provide the basis for the identification of eligible areas in the ANC

scheme from 2018 onwards (though this timescale may change, depending on changes

which may be made to the Regulation and are currently under consideration as part of the

Omnibus Regulation).. Until this process is complete, it is not possible to predict what the

outcome will be.

In addition to the technical work on the biophysical criteria, the Regulation allows for a

linked process of fine tuning to finalise the determination of what lands will be eligible

under the new scheme.

Fine Tuning

Under the regulations, MS must also undertake a fine tuning exercise, based on objective

criteria, with the purpose of excluding areas which are deemed to have met the thresholds

for biophysical criteria but in which ‘significant natural constraints’ have been overcome by

investment, economic activity, normal land productivity, production methods or farming

systems. The process of sourcing data for this project is underway.

Phasing out

In cases where lands which were previously eligible under the scheme are no longer eligible

from 2018, it is open to Member States to put in place phase out degressive payments over

a period commencing in 2018 and ending in 2020 at the latest. These timescales may

change on foot of changes to the Regulation, which are currently under consideration in the

Omnibus Regulation.

Measure 14 – Animal Welfare Scheme (€100m)

The Sheep Welfare Scheme is a new measure targeted at making a meaningful contribution

to sheep welfare with particular regard to the production system and the environment in

which Irish sheep production takes place. Sheep farmers with breeding ewes can apply for

payment based on 2 actions they choose to undertake from a menu of options appropriate

to their flock type (i.e. hill or lowland).

The scheme was launched on 16 December 2016 with a closing date for applications was 31

January 2017. This closing date was extended to 3 February 2017 and at that date over

22,500 applications had been received for the scheme. All applicants have been advised of

their acceptance into the scheme and notified of their eligible breeding ewes as a Scheme

Reference Number and a Census Number. Payment under the scheme, subject to fulfilling

all scheme criteria, will be based on the lower of these two numbers.

Measure 16– Co-operation (€7m)

European Innovation Partnerships (EIPs) aim to create greater linkages between research

and on-farm implementation.

Locally-Led schemes for Hen Harrier and Freshwater Pearl Mussel will be brought in under

the EIP (European Innovation Partnership) framework which allows the maximum flexibility

available under the regulation. A tender request was published on eTenders on 14

November 2016 seeking an overarching project team to develop the actions at local level

across all areas and working with farmer representatives on the ground. The closing date for

tender submissions was 24 January 2017. Following an assessment of the received tenders,

a winning team has been selected for the Hen Harrier Project. Freshwater Pearl Mussel bids

remain under review. A total budget of €35 million is available for these schemes during the

lifetime of the present RDP.

Other Locally-Led Schemes – There is also a broadly based ‘bottom-up’ approach for other

locally-led schemes: these will be selected on the basis of open calls for proposals, which

will result in certain projects being shortlisted for funding – initially for the development of

detailed project plans and then shortlisted again for full project support. Proposals will

specifically be invited for projects addressing the conservation of upland peats. The first call

was made on 12 December 2016 with a closing date for applications of 31 January 2017.

Over 100 eligible applications were received and were assessed in late April 2017. 23

projects have been chosen to move to the second stage and a workshop designed to help

with the preparation of detailed project plans was held on 31 May 2017. This measure will

now be administered together with locally led AECMs under Measure 16 with a common

approach to delivering both strands of support.

Collaborative Farming – All new farm partnerships will be eligible to receive a contribution

of 50% towards the vouched costs of legal accounting and advisory costs involved in the

setting up the partnership, up to a maximum of €2,500.

To date, €310,000 has been paid towards the setting up of 264 farm partnerships under the

first and second tranches of the Collaborative Farming Scheme plus a further €323,000 paid

so far to 226 farm partnerships under the third tranche of the scheme.

Measure 19– LEADER (€250m)

LEADER is administered by the Department of the Environment, Community and Local

Government (DECLG). The measure supports actions in rural areas targeted at addressing

local needs under the broad themes of economic development, social inclusion and rural

environment. Local communities direct where this funding is provided through the

formation of, and participation in, Local Action Groups (LAGs), and the design and

implementation of Local Development Strategies (LDS). LAGs have now been selected in all

28 sub-regional areas and funding agreements signed with all groups (29 in total because

there are 2 LAGs in the Galway sub-regional area).

Measure 20 – Technical Assistance (€8m)

Payments of approximately €65,000 (excluding VAT) were made from the Technical

Assistance budget in 2015. The two main expenditure items were €20,000 for setting up a

database for the Animal Health and Welfare Advisory Service and around €41,000 for the

preparation of reports on the RDP ex-ante assessment and Strategic Environmental

Assessment. ADAS UK Ltd were contracted to carry out the GLAS Evaluation and Baseline

Study in September 2015.

Expenditure for Technical Assistance in 2016 amounted to €937,000. This includes payments

for the running of the National Rural Network, an Ex Post Evaluation of the 2007-2013 Rural

Development Programme, an Ex Ante Assessment on Financial Instruments, a GLAS Baseline

Evaluation Study, the training of advisors on animal health and welfare and other ancillary

costs.

Expenditure of €1,240m is anticipated under Technical Assistance in 2017. The main items

of expenditure relate to payments for the running of the National Rural Network, a GLAS

Baseline Evaluation Study, the training of advisors on animal health and welfare, an

Enhanced Annual Implementation Report and other ancillary costs.