An analysis by the Irish Farmers Journal of farm payments either side of the Irish border, shows there are significant differences, dependent on the sector.

The disparity in farm support is nothing new and dates back over many decades, with the Irish government able to negotiate a much more generous package of EU Rural Development Programme (RDP) funding than UK counterparts.

The Irish government is also much more willing to support farmers out of their national exchequer, resulting in well-funded schemes to help drive positive change on Republic of Ireland (ROI) farms.

Ultimately, NI farmers have similar costs to their southern Irish counterparts and sell into similar markets, which are usually dictated by global prices, so they are generally not able to get higher returns to compensate for lower levels of farm support.

Direct payments

The main support coming to NI farmers is the basic payment scheme (BPS).

In 2024, a total of 9% was taken off all payments to fund new beef schemes and in particular, the beef carbon reduction scheme (BCRS). The first BCRS payments are to be made before the end of the financial year (March 2025).

In our examples, we assume farmers are paid at the NI average, which with the 9% taken off, is around £273/ha.

That is still higher than direct payments in ROI, due to the fact that NI farmers historically drew down more money under EU legacy schemes, such as the suckler cow premium and beef special premium, on the back of a more intensive livestock sector.

In ROI, the average BPS was around €266/ha. That has now been replaced by a less generous Basic Income Support for Sustainability (BISS) scheme. It runs alongside a Complementary Redistributive Income Support for Sustainability (CRISS) of around €43/ha paid on the first 30ha and a new Eco scheme worth €65/ha, which requires farmers to do the likes of soil testing and cut nitrogen fertiliser use.

In our examples, we assume that ROI farms are able to draw down all this money.

In addition, most ROI farmers (around 100,000) still get Area of Natural Constraint (ANC) payments, across three different categories of disadvantaged land (Mountain, More Severe, Less Severe). Payments are limited to a total of 30-34ha, with the maximum payout per farm of €4,240.

However, we have not included agri-environment payments or capital grant schemes, as uptake is not consistent across farms.

That said, the amount of cash paid out to farmers in ROI under these schemes dwarfs anything available in NI.

The NI Environmental Farming Scheme (EFS) opened in 2017, with a total budget of around £100m and was expected to support just over 6,000 farmers in five-year agreements.

In the Republic, the five-year Agri-Climate Rural Environment Scheme (ACRES) is to provide payments totalling €1.5bn to around 50,000 Irish farmers.

Grants

The main capital grant scheme in NI has been Tier 1 of the Farm Business Improvement Scheme (FBIS), which by August 2023 had paid out just over £40m across four tranches. Maximum grant rate is 40% for equipment costing up to £30,000.

By contrast, the Targeted Agriculture Modernisation Scheme (TAMS) in ROI generally offers grants of 40% for investments up to €90,000, with higher grant rates (60%) and higher investment ceilings available to certain sectors.

The third iteration of TAMS opened in February 2023 and is to be in place for five years, with a budget of €370m.

Farmers in ROI also have access to a five-year €256m organic farming scheme and LEADER programmes worth €180m.

Biggest difference is in beef

Across the four farm sectors analysed, it is in beef where we found the biggest difference between north and south. Our example is a 50ha farm keeping 50 suckler cows, in a calf-to-beef system. The NI farm has had direct payments cut 9% in 2024, but will receive a BCRS payment by the end of the financial year. In our example, some of the cattle were slaughtered in the first quarter of the year, so did not receive the full £75/head payment.

Outside of direct payments, the ROI farm is able to draw down a Beef Welfare Scheme (BWS) payment worth €50 on the first 40 calves. The scheme is voluntary, with eligibility dependent on feeding concentrate to calves around weaning and vaccinating against pneumonia and/or blackleg. There is also a Suckler Carbon Efficiency Programme (SCEP), which aims to improve the genetic merit of the Irish suckler herd by encouraging farmers to breed from certain cows and bulls. Farmers have to record weights of animals and complete calving survey data. Our example farm is eligible for a payment of €8,669 in 2024. Once an ANC payment is included (for less severe land), the total payment, when converted to sterling, is 36% more than that received in NI.

However, this gap is likely to close in 2025. The overall BCRS payment will be higher, as all animals will be able to achieve the £75 payment, while there will also be a new payment for suckler cows, although it will be financed by a further deduction in direct payments (down 17% when compared to 2023).

Beef is also one of the few sectors where NI farmers consistently receive higher prices than ROI counterparts. Currently that price difference is worth approximately £200 on a 380kg steer.

NI sheep farms down 21%

Our example sheep farm is a 100ha unit carrying 600 ewes across a range of land types, including ‘more severely’ disadvantaged land.

In NI, this farm has seen direct payments reduced by 9% in 2024, and by next year payments will be down 17% on what was received in 2023.

In ROI, as well as direct payments, farmers can access a National Sheep Welfare Scheme (NSWS) and a Sheep Improvement Scheme (SIS). The welfare scheme is worth up to €8/ewe and dependent on actions such as shearing and clostridial vaccination. The SIS is worth up to €12/ewe, with farmers required to undertake tasks such as mineral supplementation and faecal egg counting.

Dairy farmers buck the trend

The only sector in NI to get higher payments than their ROI counterparts are dairy farmers.

Our 75ha dairy farm receives a BPS of £20,475. While that is down 9% on 2023, it is still a higher direct payment than in ROI, given the historic differences in area payment rates per ha north to south.

However, it should be noted that many ROI farmers have availed of TAMS grants in recent years to fund investments in new housing and dairy equipment.

In NI, the vast majority of investment is done from cash reserves and bank loans.

NI cropping farms down 22%

The arable/tillage farm in our example operates across 100ha, of which 95ha is in cereal crops and 5ha is eligible for protein crop schemes (Protein Crop Scheme in NI and Protein Aid Scheme in ROI).

Like their counterparts in sheep, the NI farm is seeing payments reduced 9% this year.

In ROI, the same farm can avail of a number of initiatives in 2024, including a Baling Assistance Payment (BAP). It has been introduced to provide support to growers who choose to bale straw on land that was eligible for the Straw Incorporation Measure (SIM). The payment rate is €175/ha up to a maximum of 40ha.

In April 2024, Irish Agriculture Minister Charlie McConalogue confirmed there will be a €100/ha Tillage Support Payment (TSP) made to those who plant field crops this year. While final details have yet to be confirmed, it is expected it will be paid on all crops, except protein crops.

In our example, the ROI tillage farm does not receive ANC money.