€12 million package on way to support farmers planting more crops

LAST UPDATE | 22 Mar 2022

AS IRELAND LOOKS to stave off potential food shortages, the government has approved a €12 million package to help tillage farmers in the planting of new crops.

Minister for Agriculture Charlie McConalogue brought the package to cabinet today, to support tillage farmers to increase the volume of crops grown in Ireland.

The move is being taken due to the fact the crisis in Ukraine has had an impact on Irish agriculture and supply chains, with hyper-inflation in the price of energy, animal feeds, fertiliser, fuel, silage plastics and other farm input prices.

“We are living in unprecedented times. The illegal invasion in Ukraine has put our supply chains under enormous pressure,” said the Minister.

“I quickly put in place the National Food and Security Committee to examine how best to advise the sector to manage the disruptions.

“There is a need to focus our supports on the tillage sector given the narrow window we have to plant crops. I committed to standing by our farm families during this crisis and I will continue to do so in the time ahead.” 

There are three initial measures being brought by Minister McConalogue to support farmers and the planting of crops.

The tillage incentive scheme will incentivise farmers to grow additional tillage crops (eg barley, oats, wheat) in 2022, and a payment of €400 per hectare is proposed.

The rate may be higher for certain crops – for example, maize and fodder beet – as the cost of production is under review but considered to be higher.

It’s anticipated that a possible 25,000 additional hectares of these crops could be grown in 2022, leading to a total budget of €10 million.

There will also be protein crops supports, to encourage farmers to grow protein crops (peas, beans and lupins). With this, a payment of €300 per hectare is proposed.

It’s also proposed that combi-crops (cereal/protein mix) would be included in this initiative. The target is to increase the volume of hectares under protein crops from 10,000ha to 14,000ha.

Finally, there’s the multi-species sward scheme, which would see €2m to support the planting of multi-species swards (these are short grasses). A target of 16,000 hectares planted is expected here.

It’s expected the specifics of the schemes will be addressed in the coming days, and additional support for the growing of grass silage is expected to be explored in the coming weeks.

Meanwhile, a food ombudsman-type office is taking a step closer to being established.

Minister McConalogue secured approval from the cabinet today to prioritise the drafting of the Agricultural and Food Supply Chain Bill 2022 to create an office to monitor transparency in the food supply chain.

This Bill will establish a new independent statutory authority, which would be known as the Office for Fairness and Transparency in the Agri-Food Supply Chain.

Its objective will be to promote fairness and transparency in the agricultural and food supply chain. It would do this a few ways – like having a performing a price/market analysis and reporting function.

It would also be responsible for ensuring that fairness is observed in the agricultural and food supply chain by becoming the State’s designated enforcement authority over the rules on unfair trading practices in business-to-business relationships in the agricultural and food supply chain.

“This new Office will bring greater transparency all along the agricultural and food supply chain,” Minister McConalogue said.

“It will do this by performing a price and market analysis and reporting function – publishing reports on price and market information on all sectors in the agri-food supply chain.

“It will engage with retailers, processors, wholesalers, farmers, fishers, and others on matters effecting fairness and transparency in the agri-food supply chain,” McConalogue said.

The office, which is expected to pass through the Oireachtas before the summer, will be led by a Board and will have a Chief Executive Officer. It will operate independently but under the aegis of the Department of Agriculture similar to bodies such as Bord Bia.