Specific Details
Tillage Survival Scheme
Intended results
To highlight that, without urgent policy action, it is not inconceivable that the overall tillage area could decline by up to 11% in 2024 due to very low levels of autumn planting, tight availability of spring seeds and widespread negativity amongst growers.
This potential decrease comes on top of the 7% drop in the cereal area recorded in 2023 and a 26% reduction in overall volume produced (CSO). A double figure decline in area in 2024 could set a dangerous precedent for further declines into 2025 and beyond.
The effects of a declining tillage area on the supply of fodder for the livestock sector must also be considered. Poor weather in the 2023/24 period resulted in a lack of supply which directly effects the economics of livestock farms who rely on straw for animal bedding and feed. Sustaining and growing the tillage area is of paramount importance for the continuity of a domestic supply of fodder and feed which alleviates prices shocks for other farmers.
Teagasc has noted a 14% year-on-year increase in the amount of purchased fodder on profit monitor farms. A consistent supply of straw is directly related to stabilising this trend which can only be achieved through an economically viable tillage sector. A significant increase in the level of imported straw from the United Kingdom has also been noted in the 2023/24 period.
Imported straw is not subject to phytosanitary inspections for weed species such as Blackgrass and Ryegrass, which are, in many cases, highly resistant to herbicides. This poses a significant biosecurity threat to the sector and reinforces the immediate need to support tillage growers moving forward so domestic growers can meet the fodder demands of livestock farmers.
The 2023 Climate Action Plan sets out an ambition to increase the area under tillage to 400,000 hectares by 2030. However, instead of growing the area under tillage, this Government has presided over an ongoing decline which could become a decimation of the area under tillage without significant and urgent action.
Income Challenges for 2024
The economic viability of the Irish tillage sector is in an extremely precarious position heading into 2024. A number of factors, which are outlined below, have come together to leave farmers in the sector very financially vulnerable in the coming year(s).
(i) The amount of winter cereals planted in autumn 2023 has declined by an estimated 35,000ha, the lowest since the 2013 harvest.
ii) Yields on sown winter wheat and winter barley are likely to be well below average following poor establishment and a wet winter.
(iii) Trend yields on spring cereals will be heavily reliant on settled weather for planting in late March and early April. Delayed planting of 50% of the spring barley crop in late April 2023 reduced national yields by 15%.
(iv) A 15% decline in green feed barley forward prices to €170/t for harvest 2024 with no guarantee prices will not decrease further between planting and harvest.
(v) Input costs such as fertiliser, fuel and seed remain elevated above historical norms.
(vi) Convergence of entitlements under the CAP 2023-2027 programme which will further reduce BISS payments to most tillage farmers in 2024.
(vii) A reduction in the maximum allowable stocking rate under the nitrates derogation has totally distorted prices paid in the land rental market leading to higher land costs for tillage farmers.
Taking the foregoing factors into account, IFA believe that it is very unlikely that incomes on tillage farms will increase above the €30,000 estimate for 2023 and all current indications point to an even lower income in 2024 to levels not seen in over a decade. When inflation is considered, the economic impact of the decline income on tillage farms in 2023 and 2024 will challenge the very survival of the sector.
Sustainability
Tillage farming is lowest emitter of greenhouse gas per hectare for any agricultural sector in Ireland (Table 3). Irish growers are not properly rewarded for this favourable environmental footprint and the sustainable measures and actions that many are undertaking already on farm.
A recently conducted Life Cycle Assessment (LCA) methodology specifically developed for Irish grain on a wide range of commercially-grown Irish cereals has confirmed that Irish grown crops are among the most carbon efficient in the world.
For Irish oats, this was confirmed to be at 207kg CO2/t compared with 1,000kg CO2/t for countries like Italy and Spain 5. This reinforces the need to optimise the production of domestically grown crops in order to meet our climate change targets.
The sector has also proven itself to be highly policy responsive, achieving a 33% reduction in pesticide usage between the years of 2017-20216. and reaching Nutrient Use Efficiency parameters of over 70% for Nitrogen and in excess of 80% for Phosphorous. These measurements are all indicative of the need for a sustainable and financially viable tillage sectorto ensure climate change targets are met in future.
Government Funding to Tillage Sector
As it stands at present, when compared with 2023, 2024 will see a net loss of funding for schemes associated with the tillage sector. In Table 4, IFA analysis estimates there will be a net loss of almost €30 million from combined EU and National Exchequer funded tillage schemes and payments in 2024.
This is in addition to the decline in BISS payments in 2024 as result of convergence. IFA believes it is critical that this funding shortfall is addressed with the sector facing into a crisis situation.
IFA Tillage Support Proposals
IFA's primary proposal is the establishment of a 5-year Tillage Survival Scheme with an annual payment of €250/ha for commercial tillage farmers which must be introduced in 2024. This is vitally important to ensure the survival of the tillage sector.
It should be noted that €30m of this proposed budget of €67m is funding that was already committed to the sector in 2023. Therefore, it effectively equates to an increase of €37m on 2023 tillage sector funding.
Possible scheme conditions;
• Any payment per hectare under a tillage sustainability scheme must not be capped for individual growers but the overall budget should be based on a national reference tillage area at an appropriate point in time in order to limit disruption of the land market
• It is critical that the actions required to comply with any tillage sustainability payment are not overly onerous to comply with.
• Eligible crops should not be under-sown with grass to avoid leakage to non-tillage sectors.
• Possible sustainability actions and criteria for qualification for the multi-year payments could include
1. Grass margins beside watercourses (4-6m). 2. Flower rich margins or strips. 3. Minimum tillage. 4. Over winter cover crops. 5. Use of protected urea. 6. Use of liquid nitrogen. 7.Over winter stubbles. 8. Summer fallow cover crop.
IFA is also proposing a Tillage Expansion Scheme for the sector in an effort to reverse the decline in Irelands tillage area. The Expansion scheme could mirror payments to the previous Tillage Incentive Scheme. This is a must to encourage additional land and farmers into the sector and stem current land losses from the sector.
€400/ha should be paid on land converted into tillage in year one with a maintenance payment of €250/ha following in Year 2. The immediacy of significant financial support to the sector is vital as a large proportion of growers are operating off rented land bases.
As the land market remains in flux and becomes increasingly competitive, tillage farmers must be placed in a position to compete on this market to mitigate the continuation of the decline that has been experienced so far.
Points of Note
• It is vital that if land is incentivised for conversion into tillage under an expansion scheme, the land must remain in tillage for a 5-year period unless exceptional force majeure circumstances can be demonstrated.
Funding Mechanisms
The above proposals will require a significant provision of state aid from the National Exchequer for future funding of any expansion and sustainability scheme. The funding of agri-environmental commitments is compliant with De Minimis state aid rules for agriculture. Under Regulation 1408/2013 a maximum of €20,000 over a 3–year period per beneficiary is allowed, with a maximum amount of €98,460,375 euro under Annex I.
A derogation exists under Article 3a to enable this be increased to €25,000 per beneficiary over the same period with a total cumulative budget of €118,152,450 euro (Annex II) subject to a sectoral cap of 50% per product sector. IFA believe it is essential that DAFM secure a derogation to this regulation in order to increase the ambition and financial support possible for a tillage expansion and sustainability scheme.
Conclusion
The 2023 Climate Action Plan sets out an ambition to increase the area under tillage to 400,000 hectares by 2023. However, instead of growing the area under tillage in the coming decade, this Government has presided over an ongoing decline in area in 2023 and 2024. Without urgent and targeted financial intervention the sector could face decimation in the years ahead.
As it currently stands, this Government has reduced funding into the sector by €30m for 2024 compared with 2023. This is inconceivable given the crisis that the sector is facing. IFA is proposing, as a matter of urgency, the immediate establishment of a €67m Tillage Survival Scheme in order to prevent the complete demise of the tillage sector.
To stress that the tillage payment of €100 per hectare announced by the Minister for Agriculture, Food, and the Marine at the Fianna Fáil Árd Fheis is a long way short of what is required.
To propose that the Minister for Agriculture, Food, and the Marine should engage with the sector and come forward with proposals to address one of the biggest crises in the history of the tillage sector.
To highlight that the weather conditions have only served to amplify the deep problems that exist for the tillage sector.
Amii McKeever
Adviser to Minister (Department of Agriculture, Food and the Marine)
Barry Andrews
MEP (European Parliament)
Barry Cassidy
Special Adviser (Department of Agriculture, Food and the Marine)
Billy Kelleher
MEP (European Parliament)
Brian Leddin
TD (Dáil Éireann, the Oireachtas)
Charlie McConalogue
Minister (Department of Agriculture, Food and the Marine)
Chris MacManus
MEP (European Parliament)
Ciarán Cuffe
MEP (European Parliament)
Claire Kerrane
TD (Dáil Éireann, the Oireachtas)
Clare Daly
MEP (European Parliament)
Colm Markey
MEP (European Parliament)
Darran Brennan
Special Adviser (Department of Agriculture, Food and the Marine)
Deirdre Clune
MEP (European Parliament)
Denis O'Donovan
Senator (Seanad)
Frances Fitzgerald
MEP (European Parliament)
Grace O'Sullivan
MEP (European Parliament)
Jackie Cahill
TD (Dáil Éireann, the Oireachtas)
Joe Flaherty
TD (Dáil Éireann, the Oireachtas)
Johnny Mythen
TD (Dáil Éireann, the Oireachtas)
Luke Ming Flanagan
MEP (European Parliament)
Lynn Boylan
Senator (Seanad)
Maria Walsh
MEP (European Parliament)
Martin Heydon
Minister of State (Department of Agriculture, Food and the Marine)
Michael Collins
TD (Dáil Éireann, the Oireachtas)
Michael Fitzmaurice
TD (Dáil Éireann, the Oireachtas)
Michael Ring
TD (Dáil Éireann, the Oireachtas)
Mick Wallace
MEP (European Parliament)
Patrick Donohoe
Special Adviser (Department of Agriculture, Food and the Marine)
Paul Daly
Senator (Seanad)
Paul Kehoe
TD (Dáil Éireann, the Oireachtas)
Sean Kelly
MEP (European Parliament)
Simon Harris
Taoiseach (Department of the Taoiseach)
Tim Lombard
Senator (Seanad)
Victor Boyhan
Senator (Seanad)