Ploughing News Autumn 2015

The latest information is available at www.ifa.ie, on the iFarm app or by following @ifamedia on Twitter

Dear Member,

IFA is working hard at home and in Brussels to address the serious income situation facing many farm businesses at this time.

Progress in Brussels

Following protests in Dublin and Brussels, progress has been made, including a 70% advance Basic Payment in October to help cashflow and APS for dairy and pork products. Together with a small national envelope and an increased EU promotion budget, these measures are a help. However, much more is needed as farmers cannot be left carrying the can for poor market prices resulting from political decisions and the Russian ban.

EU policy-makers also need to face up to the fact that the food chain is broken with retailers and input cartels squeezing the viability from productive farm businesses. Brussels must act decisively to stop supermarkets taking advantage of farmers’ difficulties and ban below-cost selling. Input providers, particularly fertiliser companies, are abusing their position and the Commission must hold them to account.

On trade, Minister Simon Coveney needs to make urgent progress on access to markets and clear the technical obstacles that are blocking significant volumes of Irish beef going to the US. This market also presents a real opportunity for our quality lamb.

Budget must deliver

At home, IFA has put the farm income issue centre stage and we are demanding full delivery of the Government’s commitments under the new RDP Programme of €580m per year to ensure that farmers get payment under all schemes in 2016. We are also demanding that issues of concern to farmers on the Knowledge Transfer and Beef Genomics schemes are fully addressed and that the TAMS scheme for

the grain sector is up and running early in 2016.

On taxation, IFA is lobbying hard for measures including the introduction of an income tax incentive for farm transfer partnerships and an earned income tax credit for the self-employed to restore tax equity. We continue to press for additional measures to deal with income volatility and for sectors such as forestry.

In recent discussions with Taoiseach Enda Kenny and Ministers Noonan, Howlin and Coveney, I have made it absolutely clear that the Budget will be a major test of the Government’s commitment to agriculture in the run up to the General Election.

I have written to the Chairman of every co-op in the country insisting that action must be taken on cost efficiencies and rationalisation to help return viable prices to farmers.

New Charter of Rights

The new Charter of Farmers’ Rights negotiated by IFA includes improved payment deadlines, proper notice

IFA pressures Government and Brussels on farm incomes

IFA President Eddie Downey addresses thousands of farmers at an IFA protest outside the EU Commission office in Dublin calling for action on farm incomes.

Unity - Strength - Delivery

and a clear separation between notice and no-notice inspections. IFA will insist that the Minister and the Department deliver prompt payment on all schemes this autumn and that all commitments to farmers are honoured.

In December, the UN Climate Conference takes place in Paris and IFA is working with the Government and in Brussels to ensure that sustainable food production in regions such as Ireland is recognised as an essential element of any agreement.

I look forward to meeting you on our stand at the Ploughing. Many thanks for your continued valued support for our Association and be assured of our determined commitment to do all in our power to deliver on the issues of the day.

Best regards,

Eddie Downey

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IFA is demanding that the Government invest in agriculture to drive economic growth by delivering a fully funded Rural Development Programme in this year’s Budget.

The full drawdown of Ireland’s annual RDP funding of €580m is a critical test of Government’s commitment to agriculture and the wider rural economy.

Budget 2016 - Government must invest in Agriculture

Agri-Taxation The outcome of the comprehensive review of agri-taxation in 2014 represented real progress, with the retention, enhancement and targeting of key measures to improve land mobility, farm restructuring and promote on-farm investment. Budget 2016 must build on this progress.

Agri Taxation Priorities in Budget 2016

• Introduction of an income tax incentive for families who farm in partnership for a given time period, at the end of which the farm is transferred to the next generation;

• Introduction of an Earned Income Tax Credit for self-employed workers to restore equity in the

income tax system; • Retention of 90% Agricultural Relief for farm transfers and adjustment of CAT thresholds to reflect asset price changes; and, • Extension of the Stamp Duty Relief for Young

Trained Farmers and all Stock Relief measures beyond December 2015.

Launching the IFA’s Pre-Budget Submission: Tom Doyle, Farm Business Chairman; Rowena Dwyer, Chief Economist; IFA President Eddie Downey; and Pat Smith, General Secretary.

RDP Funding A fully funded RDP Programme will deliver programmes of support for low-income farmers, support the provision of environmental services, encourage young farmers, promote on-farm investment and support farming in marginal areas.

Expenditure Priorities for agriculture in Budget 2016 • Funding of €250m must be allocated for agri- environment schemes with full payments for 50,000 GLAS and AEOS participants in 2016; • Funding of €65m for the suckler cow herd through the Beef Data and Genomics Programme; • Funding of €15m for the rollout of Knowledge Transfer programmes across all sectors; • €40m for the TAMS II programme in 2016, to cater for all sectors; • A targeted payment for the ewe flock, requiring a funding allocation of €25m; and,• An increased funding allocation for the TB Eradication Programme, to include increased consequential loss payments for farmers.

Clarification provided on tax treatment of Basic Payment Entitlements

IFA has met Ministers Simon Coveney, Michael Noonan and Brendan Howlin on IFA’s Budget 2016 proposals and is undertaking a nationwide lobby of Oireachtas members.

In late April 2015, the IFA received clarification from the Department of Agriculture on a number of issues relating to the tax treatment of the new BPS and the abolition of milk quotas.

As single payment entitlements are deemed to have expired at end 2014, with new basic payment entitlements established in 2015, there will be no capital tax implications for joint applicants for the basic payment scheme in 2015, as there has been no asset disposed.

For the majority of farmers there is no change to their circumstance.

Milk quotas In relation to milk quota purchased prior to the introduction of capital allowances in April 2000, Revenue confirmed that a ‘negligible value claim’ can now be made on these purchases. Farm Business Chairman Tom Doyle said this is a fair outcome for a group of farmers who had invested in milk quota in the past and who can now claim a capital loss.

More details are available at www.ifa.ie

BankingIFA has met with the heads of all banks on the need to support farmers though the current income crisis. Banks must provide competitive interest rates and reduce costs to farmers and, where necessary, restructure loan repayments to facilitate cashflow through this income crisis.

Dairies, retailers and consumers must understand that securing local high quality fresh drinking milk year-round requires recognition of the structurally higher costs incurred by specialist producers.

If producers are not remunerated adequately in winter, they will be forced to reconsider their systems, and now quotas are gone, many have the option to switch to producing more milk for export, processing at lower costs – causing potential shortages for consumers.

IFA Liquid Milk Chairman Teddy Cashman, recently elected Chairman of the National Dairy Council, said: “We must learn from the UK crisis: taking farmers for granted and failing to give them their fair share of retail returns drives them out of the business, and the ultimate loser is the consumer. There is solid research evidence that Irish consumers value their locally produced fresh milk. We need stronger regulation of the retail chain to enshrine farmers’ right to a fair share of the retail price”.

“Liquid milk producers, who need 40c/l annual average to break even, and whose milk retails at least at twice that much, must be guaranteed higher winter payments when base creamery prices fall in response to volatile global commodity markets as is happening this year”.

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Since April 2014, milk prices have been cut by 33%, knocking 92% off farmers’ margins, despite slightly lower costs. Dairy Chairman Sean O’Leary has warned that many farmers now operate below break-even and are looking with concern at next spring. GDT bottoming out strongly in late August and US and NZ futures also rising, mean we are seeing early recovery signs. However, it will take time to return stronger farm prices.

IFA autumn milk price campaign at home and in EU Co-ops must stop the milk price slide. IFA’s campaign domestically is putting pressure on co-ops to stop cutting prices and to review all business processes in-depth to identify savings and report those to shareholders by year -end. Co-ops must also explore consolidation and mergers in the best interests of dairy farmers.

At EU level, with our COPA counterparts, and having convinced Agriculture Minister Simon Coveney, we demanded a higher intervention safety net in line with production costs, the utilisation of the €800m+ superlevy funds to be collected this year to support dairy markets and farmers, and focused political negotiations to reopen trade with Russia and remove obstacles to EU dairy exports, particularly to Asian countries.

Longer term risk management measures needed While volatility is the new normality, farmers cannot manage its extreme impact on income without new strategies, instruments and supports.

In addition to the fixed/indexed milk price contracts already in place in some co-ops, industry must come forward with more options for farmers to hedge prices and margins.

Government must offer individualised taxation options allowing farmers to put funds away in good years to be used and taxed in harder times.

The EU must ensure its market supports are constantly in line with costs and market developments, improve the accuracy and timeliness of its market intelligence gathering through the Milk Market Observatory, and must review its state aids rules to allow Member States greater flexibility on tax measures.

Dairy farmers can take no more price cuts

No alternative to specialist producers for fresh milk supplies

Irish milk price is down 33% in 16 months – cutting producer margins by 92%

April 2014 July 2015

38.9c/l incl VAT

26.0c/l incl VAT

Margin

Production costs

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IFA protest highlights impact of dairy price cuts: Teddy Cashman, Liquid Milk Chairman; Pat Smith, General Secretary; Sean O’Leary, Dairy Chairman, IFA President Eddie Downey; Tim O’Leary, Deputy President; Caoimhe Murphy; Tom Turley, Connacht Chairman; and John Lynskey, Sheep Chairman lead a protest outside the EU Commission office in Dublin.

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A strong IFA campaign on lamb prices over the summer months held returns close to €100 per lamb for most of the main selling weeks. This type of price return is necessary to maintain viability, according to National Sheep Chairman John Lynskey.

When prices came under pressure, IFA met the factories and insisted that full market returns be restored. Working with Bord Bia, IFA secured increased promotions on both the domestic and export markets, with a new €7.7m EU generic lamb campaign.

John Lynskey said mid-summer slaughterings have been strong and with a solid store trade at the marts, supplies for the remainder of the year should remain tight. In addition, he said the strength of Sterling and the Muslim festival of Eid-ul-Adha on

September 24th, should help drive the trade.

Strong IFA Policy IFA has put forward a strong sheep policy for direct supports, equivalent to €20 per ewe, targeted at active producers. John Lynskey said Minister Coveney needs to be more ambitious about the potential of the sheep sector and this should be reflected in the forthcoming Budget.

EID and Tagging On proposals for the introduction of EID (Electronic Identification), John Lynskey said IFA is determined that the current situation where lambs under 12 months of age can be moved direct to slaughter with an ordinary conventional tip tag must be retained. He said full EID would cost sheep farmers €2.2m pa and sheep farmers cannot carry this cost burden.

IFA will insist that direct payments are delivered on time and in line with the deadlines agreed in the new Charter of Farmers’ Rights, Deputy President Tim O’Leary has assured.

The first of the payments will be the ANCs (formerly Disadvantaged Areas) payments, worth €195m to 95,000 farmers, which fall due on the third week of September. The new Basic Payment and Greening are due on October 16th. IFA’s demand for an increased advance of 70% has been taken on board at EU level.The remaining 30% wil be paid on December 1st.

New Charter of Rights Tim O’Leary said IFA made good progress on a number of key issues in the new Charter, including improved payment deadlines

across all schemes, proper notice and a clear separation between announced and unannounced inspections.

In addition, IFA secured improved tolerances and an opportunity where farmers can rectify some non compliances without penalty.

IFA Support Service IFA will insist that Minister Coveney and the Government deliver in full on the Charter commitments to farmers. In addition, IFA will strongly support members who encounter any problems on direct payments or inspections. - see page 12 for more

Defending agriculture in trade talks IFA President Eddie Downey has said the Irish Government must take a strong role and defend the interests of agriculture in EU trade negotiations under TTIP (US) and Mercosur (South America). He said the Government cannot countenance any trade deal that would damage farmers and Irish agricultural exports on the EU market. IFA will fight to ensure that the interests of European and Irish agriculture are not sacrificed and, as a fundamental principle, EU negotiators must insist on equivalence of standards.

Campaign on lamb prices and sheep sector supports

IFA will hold Minister and Department to account on Direct Payments

Calling for strong sheep supports: Pat Dunne, Hill Farming Chairman; Tom Turley, Regional Chairman; IFA President Eddie Downey; and John Lynskey, National Sheep Chairman launch the IFA’s new sheep policy at Sheep 2015 in Athenry.

The IFA Direct Payments team who negotiated the new Charter of Rights for Farmers (l-r):Tim O’Leary, Deputy President; Gerry Gunning, Rural Development Executive; President Eddie Downey; Henry Burns, Livestock Chairman; Flor McCarthy, Rural Development Chairman; and, Kevin Kinsella, Director of Livestock.

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Prime cattle numbers to tighten With cattle prices to date running at 9% above last year’s levels, National Livestock Chairman Henry Burns said the real tightness in prime cattle supplies of steers and heifers has still to kick in. This should ensure prices remain firm and improve towards the year end.

Henry Burns said the latest kill data shows that the reduction in supplies to-date this year has been in respect of bulls and cows and numbers of both steers and heifers are up on last year. However the AIMs data for June for cattle in the 12 to 36 month age category shows a clear reduction of 100,000 head compared to last year. This will leave steer and heifer supplies very tight for the remainder of 2015 and into 2016.

Markets Henry Burns said IFA has made it very clear to Minister Coveney that he must deliver real trade volumes from the announcements on access to new markets in the US and China. With calf registrations up 130,000 head in 2015, real access and exports to new markets are essential going forward.

The strength of Sterling is leaving returns from the UK market very strong, neutralising some of the lower prices from EU markets. IFA has also put market access issues and the EU fall out from the Russian ban firmly

on the Council of Ministers and EU Commission’s agenda in Brussels.

Beef Forum At the Beef Forum, IFA demanded the Minister and Bord Bia work harder on the 30-month age limit and live exports, which are vital for competition and to ensure a strong weanling trade in the autumn. In addition, IFA is demanding increased controls on carcase trim at the meat plants.

Quality Assurance IFA is working with Bord Bia on changes to the Beef and Lamb Quality Assurance Schemes. Henry Burns said IFA is pushing for changes that will include a more farmer friendly close out system to resolve inspection problems, which will avoid producers being expelled from the scheme.

Improving cattle market prospects

IFA President addresses members on Beef Data and Genomics Programme: Pictured during one of a series of IFA regional meetings on the BDGP are: Kevin Kinsella, Livestock Director; Henry Burns, Livestock Chairman; IFA President Eddie Downey; Pat Smith, General Secretary; and Andrew Dundas, Clare Chairman.

Lobbying on Beef: IFA President Eddie Downey and Henry Burns, Livestock Chairman explain farmers’ issues to Mayo Fine Gael Deputy John O’Mahony at a lobbying event on the Beef Data and Geonomics Programme.

Get the very latest cattle price updates on our iFarm app - www.ifarm.ie.

Beef Data and Genomics - progress to build on The IFA campaign on the Beef Data and Genomics Programme, involving an intense lobby of Minister Coveney and TDs, as well as six large regional meetings across the country, secured some important changes for farmers.

• Establishment of a review group to examine all aspects of the scheme to ensure the necessary changes are made to address farmers’ concerns as part of the mid-term review.

• The Minister extended the closing date to allow 29,000 applicants, and over 600,000 cows.

• Removal of the 6-year clawback if an applicant sells or leases his land or transfers it by inheritance or gift.

• 4 and 5 star animals currently in the herd qualify to meet the 2018/2020 requirements, regardless of age, overriding the 2013 requirement.

• 2015 allowed as the base year for new entrants and in force majeure and other circumstances.

IFA also secured a 27% reduction in genotyping costs down to €22 per animal. Henry Burns said more work has to be done to secure further changes in the review group set up by the Minister.

Support for Sucklers

IFA has set out strong demands for increased funding of €65m for sucklers from Minister Coveney in the forthcoming Budget, under the 2016 Beef Data & Genomics Scheme. Henry Burns said maintaining the suckler herd is vital to securing our higher value retail markets.

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Charter of Rights

Payment targets, fairer inspection regime and appeals protocols achieved in new Charter

Direct Payments in 2014

Secured prompt delivery of direct payments: €195m in DAs payments, €1.2bn in SFP

New Basic Payment

€1.214bn/year secured for new Basic Payment Scheme. Flat payments and regionalisation prevented. Irish convergence model minimised cuts to productive farmers

New RDP 2014-2020

€580m/year secured in national and EU funding - 46% national funding among highest in EU

Eligible land IFA secured independent appeals mechanism, new tolerances, and fairer implementation

GLAS opens Scheme worth €5,000 per year, €7,000 under GLAS+ - second tranche to open in autumn

TAMS €395m allocated for on-farm investment grants under RDP - €34m allocated for 2015. TAMS II open for all sectors

Farm Safety €12m allocated for Farm Safety Scheme under TAMS I - further scheme planned

Roads Restoration of goodwill payment as part of package of measures for landowners affected by road schemes

Agri-tax Review

Significant taxation reliefs & exemptions secured in Agri-Taxation Review – major impact on farm restructuring and land mobility and in promoting on-farm investment.

Horticulture €4.2m for horticulture investment in 2015

Retailer regulation

Pressing for stronger retailer legislation at home and abroad. Competition and Consumer Protection Act first step in regulating retailers, although tougher regulation is required including at EU level

Vegetable and potato prices

Ongoing strong campaigns maximise growers’ prices

Pylons Undergrounding under consideration in Government review. Agreed package of measures with ESB for landowners

Climate change

Government recognition that Ireland’s low carbon agriculture must be treated differently on emissions cuts carried out in Climate Bill

IFA - working hard for farmers

Pigs Chairman, Pat O’Flaherty and Poultry Chairman Nigel Renaghan lead a protest calling on consumers to check that retailers’ claims to support Irish suppliers match the reality (l-r): Jer Bergin, National Treasurer; James Murphy, Regional Chairman; Pat Hennessy, Laois Chairman; Pat O’Flaherty and Nigel Renaghan.

€1.37bn funding over 7 years for ANCs, €185m allocated for 2015. Increased payments for off-shore island farmers

Knowledge Transfer

New discussion group funding from 2015 - extended to tillage and other sectors. Higher payment for farmers & reduced fees agreed by Teagasc

Sheep payment

Sheep grassland funding retained as part of BPS and increased to €15m - seeking further direct supports

Pork DNA IFA’s DNA Certified programme has boosted volumes of Irish pigmeat purchased and supported pigmeat prices - estimated to be worth 10c/kg

ANCs

IFA representatives spell out the EU action needed to resolve the farm income crisis to Minister Coveney ahead of his meeting with EU Commissioner Phil Hogan and the Emergency Farm Council meeting.

Vegetable crops

Concession on planting dates for vegetable crops under greening

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Live exports Strong IFA campaign to assist live trade to North, increased exports to GB & North Africa

Beef Crisis Campaign of action and pressure on the Minister, processors, retailers and food service outlets led to increased beef prices and secured specification changes

Fertilisers IFA led international campaign on fertiliser cartels has had an impact on price.

TB National Deer Management Forum established & Department study on TB levels in deer published

BVD Secured extension to BVD supports for 2015 & increase in payments - €140 for suckler calves, €100 for dairy calves. Higher support payments of up to €250/ PI calf for farmers disposing of larger numbers

Brucellosis Removal of all Brucellosis testing during 2015 worth over 6m annually in savings

Seafood sector

Independent review of licencing to be carried out. New capital and other scheme for aquaculture in national plan

Superlevy 3-year Superlevy Repayment Scheme implemented

Commonages - RDP

Increase in RDP payment for commonage areas from €75 to €120 per ha; collective plan rejected, reduced to 50% target - active farmers only - with flexibility through Commonage Implementation Committee

Commonages - Basic Payment

SFP redistribution means extra €38m for commonage farmers

CGT exemption

Exemption from Capital Gains Tax for forced disposal of SFP entitlements, worth €25m

Forestry €482m over 7 years for new Forestry Programme

Farm Assist Secured disregard for GLAS payments in means assessment

Poultry Poultry included under TAMS in the RDP. Significant increases in payment packages for all Western Brand rearers, breeders & growers - progress with other processors

TAMS for grain

IFA campaign achieves commitment to deliver TAMS scheme for grain

Malting Barley Improved malting barley deal for 2015 - very strong uptake

Horticulture Committee discusses key issues and retailer regulation with Minister of State, Tom Hayes. Seated: Minister Hayes and Gerry Reilly. Standing: Val Farrell, Jimmy Kearns, Con Traas; Matt Foley; and, Eddie Doyle.

Keep updated at www.ifa.ie

Donegal Chairman Michael Chance and Westmeath Chairman Kenneth Bray discuss the changes needed on the Beef Data and Genomic Programme with Fianna Fail TD for Donegal, Charlie McConologue (centre).

IFA - working hard for farmers

Beef Data and Genomics Programme

Secured €95 per cow for the first 10 cows and €80 for remainder under 2015 BDGP - working hard to achieve changes to make scheme workable for farmers. Pressuring review group to achieve necessary scheme amendments under mid-term review

Country of origin

Now required on all fresh pork, poultry, lamb sold in supermarkets & butchers

Input costs Published over 100 price surveys to keep farmers informed of best available deals

Greening Priority access to GLAS secured for tillage farmers

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Brucellosis IFA Animal Health Chairman, Bert Stewart said IFA has secured the early removal of the pre-movement test for breeding animals over 24 months of age. This represents the removal of the last farmer testing requirement for brucellosis which, combined with the cessation of herd testing, is worth €6m in savings annually. The discontinuation of this test allows farmers to consider mart sales for female beef animals without the prohibitive costs previously associated with their sale.

TB As part of a review of the TB eradication programme with DAFM, IFA is seeking fundamental changes to the schemes in order to reduce the cost burden of the disease on farmers. IFA has provided detailed costings to DAFM, including increased consequential loss payments, the facilitation of purchase in to restricted holdings, removal of the prohibition on treating animals following notice to test, increased ceilings in the live valuation scheme, and clarity on farmers’ liability to pay for testing.

Bert Stewart said while the huge progress in reducing the levels of TB nationally is welcome, it is not acceptable for the Minister and his officials to continually hide behind these figures and ignore the trauma and huge financial impact TB continues to have on farms affected by the disease.

He said the TB eradication budget has been reduced from in excess of €60m in the late 90’s and early 2000’s to just €35m last year which includes farmers’ disease levy contributions and significant EU funding. There are ample resources to reduce the cost burden for farmers and Minister Coveney must address this issue as a matter of urgency.

BVD Bert Stewart said the early disposal of PI animals is critical if the programme is to achieve its objectives in the shortest timeframes possible. Huge progress has been made with 28,012 PI animals removed from the national herd since the beginning of the compulsory programme. More than 98% of all animals in the national herd now have a status determined for BVD.

The IFA Chairman said it is now crucial that farmers are given clear direction as to what the remainder of the BVD eradication programme will contain and what the farmer costs will be. The original programme announced by AHI has been proved to be unattainable following modelling work, with no viable alternative to

tissue tagging. However the cost of this testing must be reduced significantly and clarity provided as to when farmers will be in a position to cease testing for the disease.

The IFA Chairman said BVD testing is costing farmers €9m annually and while eradication will provide returns on this investment, these costs must be removed in the shortest timeframes possible. Bert Stewart said AHI must now provide clear and detailed plans including the type of measures and costs associated with the final phase of monitoring to achieve BVD free status.

Pigmeat DNA Programme delivers IFA continues to carry out DNA testing on pigmeat products in retailers, butchers, secondary processors and other food service providers. The successful campaign in 2015 resulted in increased volumes of pigmeat purchased on the home market. The scheme has impacted hugely on farmgate prices, delivering approximately 10c/kg to producers. Due to the DNA programme the quantity of QA product in supermarkets has increased to almost 100% of own brand products. IFA Pigs Committee Chairman Pat O’Flaherty said IFA will continue to encourage retailers to demand Irish Quality Assured product from their suppliers and will strive to ensure consumers are fully informed of the origin of the pigmeat they are buying.

Animal health cost burden must be reduced

Details of all animal health schemes are available at www.ifa.ie

Urgent action needed on TB in deer: Animal Health Chairman Bert Stewart, IFA President Eddie Downey and Wicklow Chairman Tom Shortt discuss the impact of an outbreak of TB with John Cullen, Rathdrum. IFA is calling for a strategy to reduce deer numbers around TB outbreaks.

IFA President Eddie Downey, together with General Secretary Pat Smith and Director of European Affairs Liam MacHale have undertaken a series of meetings with all the major farming organisations across Europe on the future of CAP. We are also working closely with our European colleagues, especially the powerful French organisation FNSEA, on the current income crisis in farming. Pictured during a bilateral meeting with the German Farmers’ Association in Berlin: (l-r) Liam MacHale, IFA Director of European Affairs; Bernhard Krüsken, General Secretary DBV; Joachim Rukwied, President DBV; Eddie Downey, IFA President; and Pat Smith, IFA General Secretary.

IFA drives EU campaign on future of CAP

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Rural Development Chairman Flor McCarthy says the full implementation of the 2014-2020 RDP is vital to support farm incomes particularly in regions where such support is a lifeline. With all measures now in place, the priority for Minister Coveney and the Government must be to provide the necessary resources of at least €580m in the 2016 Budget so that all schemes can play an important role. In our pre–Budget submission, IFA is seeking an annual allocation for all RDP supports.

GLAS An early re-opening of GLAS is vital so that another 20,000 farmers can join the scheme and get full payment in 2016. This is on top of the 27,000 who joined earlier this year. IFA is demanding a pay out of €20m later this year for this group of farmers for the period of time they are in the scheme in 2015. Changes are required for some of the specifications so that farmers can more easily qualify for the scheme.

TAMS With all TAMS measures now available it is important that the processing of applications at the end of the tranche periods is speeded up. IFA will be insisting that additional items are added in the first review of the RDP later this year. These include sheep fencing, underpasses and the introduction of a scheme for grain storage. An allocation of €40m is required in 2016 to pay all grant claims.

Knowledge Transfer

Flor McCarthy is insisting that changes are made to the €100m KT measure before it is introduced for 27,000 farmers. IFA wants farmers with more than one enterprise to be eligible for two KT groups. In addition KT groups must recognise partnerships with double payments where both partners participate, family members must be allowed to replace the main herdowner, the payment system needs to be closely monitored and farmers should not have to pay for the vet in the Animal Health requirement. KT groups are available for Beef, Dairy, Grain, Sheep, Poultry and Equine enterprises.

Areas of Natural Constraint (ANCs) ANCs are being reviewed as part of CAP implementation under new criteria. IFA will be insisting that existing areas are protected and that additional funding is provided so that rate of payment per hectare more fully reflects the land’s natural handicap. Restoration of the cuts in the 2008 Budget has got be a priority for Government.

Hill Farming

Following a long IFA campaign, the recently published Guide to carrying out Commonage Framework Plans should have sufficient flexibilities to ensure all farmers can join GLAS. Hill Chairman Pat Dunne said with 4,000 commonage farmers having joined GLAS the completion of CMPs will ensure that a further 5,000 will join when the scheme reopens in autumn. The main stumbling block has been the individual stocking requirement but with inbuilt flexibilities stable flocks can be protected. The min stocking level does not have to fully achieved. Where there are issues to be dealt with the independent Commonage Implementation Committee will adjudicate. IFA will be insisting on the maximum latitude so that no hill farmer is denied entry.

Burning Pat Dunne has called on Minister Heather Humphreys to fulfil her commitment to change the burning dates. In the Wildlife Act public consultation IFA has sought a extention to the burning date from end-Feb to mid-April.

Rural Development vital to support farm income

Full RDP implementation in Budget 2016 is vital for farm incomes, IFA tells Minister: Flor McCarthy, Rural Development Chairman; Tom Doyle , Farm Business Chairman, Minister Simon Coveney; and IFA President Eddie Downey.

Details of all RDP schemes are available at www.ifa.ie

Grant funding secured for poultry farms IFA Poultry Chairman Nigel Renaghan has welcomed a new TAMS II scheme offering 40% funding for investment on poultry farms for the first time. He said “The IFA Poultry Committee made strong representations at all levels on the need for investment at farm level to maintain the highest standards that processors and Bord Bia rightly insist upon. IFA representation also ensured that poultry was included in the Young Farmers Capital Investment Scheme, which opened in June and offers a higher rate of grant aid of 60%. The Committee will continue to work hard to represent poultry farmers and to maximise returns from the food chain.” A full list of eligible investments is available at www.ifa.ie.

Growers must be rewarded for hard work & investmentThe IFA Poultry section is also working hard to ensure growers and grower groups are adequately rewarded by processors for their hard work and investments.

EU must act on retailer regulation and input cartelsIFA President Eddie Downey has said the food chain is broken with below-cost selling and input cartels squeezing the viability from productive farm businesses. He said it is critically important that the EU steps up and bans below cost selling of food and addresses excessive input costs imposed on farmers. Action must be taken to ensure the EU single market is working properly.

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Remedial work required to tackle floodingFinalising the details of the CFRAMS for the River catchment areas has to be a priority, Floods Project Team Chairman Tom Turley has said. The first CFRAM study of real concern to farmers is the River Shannon where remedial and management work is urgently required. The onus is on OPW Minister Simon Harris to move on this vital issue for the 10,000 landowners affected.

SAC’s - Compensation where there are restrictions Tom Turley has called on Minister Heather Humphreys to put in place a proper compensation scheme for farmers who are affected by designations on their land. Key are Hen Harrier, Shannon Callows, and upland areas. In addition, the €70m agri-environment targeted output scheme in the RDP can play an important role by putting additional payments in place to reflect losses incurred. This Government has allowed compensation schemes to drift and a significant allocation in the Budget must be secured by Minister Humphreys.

Farm Safety is a top priority for the Association, our SAVE LIVES campaign, has been working to encourage farmers to assess the risks on their farms and take action by updating their farm Risk Assessments. IFA produced an easy to use Farm Safety Risk Assessment Planner to help farm families review safety on the farm - copies of which were distributed with the Farmers Journal and will be available at the IFA stand at Ploughing.

During this busy time on farms, it is important that farmers take precautions to protect their safety. PLAN: Allow an appropriate time for each job PREPARE: Make sure machinery is checked and properly maintained PREVENT: Always put on the handbrake, being crushed in the most comment cause of accidents with tractors and machinery.

Farm safety a top priority for Farm Family Committee

Fair Deal Scheme The Review of the Nursing Home Support Scheme was published this summer and made specific reference to IFA’s submission and the concerns of farm families in relation to the farm assets. The Review recommends that consideration be given to the treatment of non-residential productive assets passed on to a direct family member after, or in the five years prior to, the death of a farmer that has participated in the Fair Deal scheme, and the where the new owner carries on the farm business. IFA met with the Department of Health to make progress on how farm business are treated.

IFA poll finds 83% local support for fish farming

Farm safety in focus: Launching IFA’s Farm Safety Awareness Day 2015, held on July 21st: Ciaran Roche, Risk Manager with FBD; Maura Canning, Farm Family Chairperson; and, IFA President Eddie Downey.

IFA’s survey of public opinion on aquaculture - the largest ever carried out in Ireland - has found a sharp rise in public support for the sector.

Face-to-face interviews with more than 1,000 people at 63 locations delivered data on attitudes and sources to guide public communication strategy.

Key findings from the report include a jump since 2008 from 22% to 49% in the number of people ‘happy to see fish farming in their area’. There was no difference in support for shellfish and salmon farms and the main reasons local people want to see more aquaculture is

to provide jobs (59%), ensure fish stocks (27%) and provide healthy food (22%).

Aquaculture Executive Richie Flynn said the sector was well prepared to deal with the issues that led to any doubt about the industry and that future work would concentrate on communicating the facts to counter false beliefs about water pollution. “Compared to a similar survey in 2008 by BIM, there is a significant positive shift in public understanding of what a farm can mean for an area with jobs jumping from 31% to 59% as a reason to build a farm nearby.”

Difference in cost of making a will highlights need to shop around

James McCarthy, IFA Inputs Project Team Chairman, has encouraged farmers to shop around and challenge their solicitor for best rates when making a will.

This follows the publication of IFA’s nationwide survey of legal costs of making a will, which found costs ranging from €50 in counties such as Roscommon, Limerick and Galway to €150 in Donegal, Kildare and Kilkenny, with some solicitors not charging existing clients at all to make a will.

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IFA has called on international leaders, who will come together in Paris this December, to ensure that sustainable food production in regions such as Ireland is not displaced by more carbon intensive production systems in other countries.

IFA President Eddie Downey said, “Food security and the impact of resource stresses such as water availability on food production must be at the centre of these climate talks. It is no longer just about cutting emissions. The sector must also receive full emission reduction credit for carbon sequestration activity in agricultural soils, forestry and bioenergy when emissions from the sector are being reported.”

Compensation for new 38kV projects IFA has concluded discussions with ESB, which will result in farmers impacted by new 38kV projects and similar sub transmission lines receiving compensations for the first time. Harold Kingston, IFA Environment Chairman, has confirmed that the new package will apply to all new 38kV projects, including those under construction in Donegal, Cork, Longford, Cavan, Galway and Mayo.

Hedge cutting review must provide workable outcome During a recent meeting with Heritage Minister Heather Humphreys, a commitment to progress the current

review of hedge cutting and gorse burning dates was received. Harold Kingston, IFA Environment Chairman, has called for a workable outcome which delivers for farmers, as well as making roadside hedges safer for pedestrians and other road users, while safeguarding the environment.

Government must deliver on renewablesJames Murphy, Renewables Project Team Chairman has called on the Department of Energy to put in place necessary policy measures to support a vibrant community based solar energy sector, including a feed-in tariff which pays for all energy generated and increased feed-in tariff for roof-mounted solar panels, as well as priority grid access for community based renewable projects.

Rural Charter required to deliver balanced recovery

IFA has recently launched a rural affairs policy to support families and businesses in rural Ireland, which calls on Government to introduce a charter

for rural Ireland to drive economic recovery in all parts of the country.

As part of the charter, Tim O’Leary, Deputy President and Countryside Chairman, called for the delivery of high quality rural fibre broadband, the introduction of tax credits to encourage employers to take on apprentices, and incentives to address the decline of villages and town centres which have been decimated during the recession.

Climate talks must safeguard efficient food production

Meeting Minister Heather Humphreys on environment, hill and forestry issues: IFA President Eddie Downey leads a delegation including Tom Turley, Connacht Chairman; Pat Dunne, Hill Chairman; Flor McCarthy, Rural Development Chairman; Harold Kingston, Environment and Rural Affairs Chairman; and Mike Fleming, Forestry Chairman.

Working to protect the value of your forestry Farmers have established over 3,000 ha of new forestry since the introduction of the new Forest Programme.

The Afforestation Scheme provides 100% establishment grants and 15 years annual forest premiums. IFA Forestry Chairman Mike Fleming said the Association is working hard to get the restrictions on unenclosed land lifted and a land classification

system based on the land productivity introduced. It is IFA’s policy that land with the productive capacity to grow timber should be eligible to plant and paid an appropriate premium rate that reflects loss of earnings.

Learning from experience when selling timber can be very expensive. That is why the IFA has publishedBefore You Sell your Timber – A Practical Guide to Selling Timber

available in the forestry section at www.ifa.ie.

IFA is working to help farmers maximise the return from thinning by developing new services such as Forest Assessor, which provides an independent assessment of your forest and valuation report, and bi-monthly timber price reports so farmers get the best price for their thinnings.

Online Get your concerns on schemes, payments and inspections addressed online at www.ifa.ie. You’ll find comprehensiveinformation and FAQs on each scheme, as well as a payments calendar and a guide to inspections, including what to look out for. The news section is updated daily to keep you informed about all new developments.

IFA’s app, iFarm, gives you quick access to important information on your phone - www.ifarm.ie

Direct contact IFA has a strong support service for members, covering all aspects of Direct Payments and Inspections. The service offers help and assistance to farmers with any difficulties associated with the key areas of inspections or problems with payments.

If necessary, IFA can make representations on members’ behalf. IFA voluntary officers and professional staff have years of experience in dealing with inspections and direct payments problems. You can contact us either by email or by phone, call into any of our regional offices, or contact your elected IFA representatives. This backup support is one the many valuable benefits available to IFA members - for more see www.ifa.ie.

www.ifa.ie

www.ifarm.ie

IFA Member Supports on Direct Payments and Inspections

IFA Horticulture Chairmen have told Minister for Horticulture Tom Hayes that the Government has failed the fresh produce sector by not adequately regulating the retailers and not banning ‘below-cost selling’ of their produce - the main threat to the sustainability of Irish Horticulture. Gerry Reilly, Chairman said “Fresh produce growers cannot continue in an environment where their produce is constantly being used by retailers as ‘loss leaders’ and offered to consumers for way below the cost of production.” Potatoes Chairman Eddie Doyle has contacted all retailers outlining the considerable financial losses experienced by potato growers in the past two years and the current unstainable situation. 2015 potato plantings have decreased by a further 13% on last year and independent forecasts are predicting a 20% reduction in yield over 2014. “These factors have ensured equilibrium in the market of the early crop and this supply balance is predicted to continue for the main crop. The farm gate price of the main crop must reflect this situation. Growers will not tolerate a repeat in 2015 of the returns received by growers for the past two years” Potato Promotion Campaign Ireland and the UK received EU approval for a €4.6m potato promotion campaign over the next three years. The campaign will launch this October and will be aimed at halting the long-term decline in fresh potato consumption, and strengthening their image as health/nutritional and versatile.

EU inaction exacerbates grain income crisisLiam Dunne IFA National Grain Chairman said, “Europe has compounded the income crisis facing grain farmers by imposing significant cuts on our basic and greening payments. This, coupled with onerous greening requirements, will aggravate the situation.” “We are forced to grow crops to satisfy bureaucratic requirements rather than respond to the market, leading to local market distortion. The three crop rule has flooded the Irish and UK barley and oats market. The Commission needs to start listening to growers. Their inaction has fuelled speculative investment, accentuating income volatility leading to a boom and bust.

The Commission must now:

• Limit speculative investment in grains;• Relax greening rules and allow farmers to grow in response market signals;• Reduce the green cover requirement to 25%; and,• Introduce intervention for all grains at prices that reflect production costs.

TAMSIFA Grain Committee has secured a commitment by Minister Coveney to deliver a TAMS scheme for tillage farmers supporting investment in storage and drying facilities, equipment and technology to boost on-farm efficiencies. Liam Dunne said, “It is very important to have the scheme up and running as soon as possible as these measures will help

to improve long-term competitiveness”. Liam Dunne also welcomed the commitment to introduce a Knowledge Transfer scheme in 2016

Horticulture and potato update

IFA regional offices info@ifa.ie

1890 98 98 78

EU Competition Must Instigate Fertiliser Enquiry

IFA Inputs Project Team Leader James McCarthy has said, “EU DG Competition must instigate a sector investigation into the fertiliser industry immediately. Their failure to tackle major corporations allowing them to push through price increases for fertiliser at a time of dramatically reduced energy prices is a dereliction of duty. Collectively the Commission must suspend customs duties on non-EU sourced fertilisers without further delay.”

You can access all IFA input surveys on the iFarm app, where you can also share your price information and get commodity price updates – www.ifarm.ie.

James McCarthy, Inputs Project Team Chairman

Receive IFA news by email – sign up at www.ifa.ie

Edited by:Bryan BarryAssistant General Secretary

IFA, The Irish Farm CentreBluebell, Dublin 12Telephone: 01 450 0266Email: bryan.barry@ifa.ie

Compiled by:Brigid FitzgeraldPress & Digital Media Officer

@IFAmedia

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