Finding money to keep the suckler cow payment at €200 per cow and finding an additional €8 per ewe are two of the big wins for farmers in Budget 2024 according to the Minister for Agriculture Charlie McConalogue.

Speaking exclusively to the Irish Farmers Journal on Tuesday night, the minister said, “€50 of the current €200 suckler cow funding was delivered with Brexit Adjustment Reserve (BAR) funding in 2023, so I’m delighted to be able to find this additional national funding to maintain total funding at €200/cow into 2024.”

The minister would not be drawn on the exact detail required to avail of the €50/cow in 2024 in the National Beef Welfare Scheme, however there is speculation to suggest that IBR testing will not be part of the 2024 scheme.

The minister was also very pleased to achieve an additional €8/ewe to sit with the current €12/ewe, bringing the total payment to €20/ewe. Again, the detail of what farmers must to do to draw down the €8/ewe is not yet specified, but some industry speculation suggests there may be a shearing incentive involved.

“In the last two years we have jumped from €10 to €20 per ewe so I think this underlines the importance of the sector in rural Ireland,” Minister McConalogue said.

The newly established separate ceiling for additional grant aid on slurry storage investment could be a big positive, depending on where the ceiling sits. Again the threshold ceiling or any detail is not yet available.

If the suckler cow, sheep and grant aid for slurry storage are the highlights, then reduced year-on-year funding for the tillage sector, very limited additional ACRES spaces, retirement relief moving from a maximum of 65 to 70 years of age, and little or no mention of capital funding for anaerobic digestion are some of the lowlights.

The Tillage Incentive Scheme announced in last year’s budget was BAR-funded so that is gone for 2024. However, farmers who availed of the €400/ha last year in this scheme are set for a payment of €200/ha in 2024 instead.

This will amount to about €1.5 million of funding in total. Another €6.5m in funding is set for the tillage sector, but exactly how this will be drawn down is again, as yet unclear.

It means year-on-year, the Tillage Incentive Scheme, which was over €10m is set to be closer to €8m in 2024. Minister McConalogue said, “this new €8m fund, the straw incorporation measure, doubling of the protein aid, our new proposal around slurry grant aid and proposals coming from the Tillage Food Vision Group will help underpin the tillage sector into 2024.”

ACRES

The CAP strategic plan outlined a maximum of 50,000 places for farmers to go into environmental schemes. With 46,000 farmers already in ACRES, the suggestion is that there will only be another 4,000 places open this autumn.

The move to allow those up to 70 years of age to avail of retirement relief flies in the face of trying to get the older generation to transfer farm assets to the next generation at a younger age.

The minister suggests this move from 65 to 70 years of age reflects what is happening in wider society of working and living longer.

Minister McConalogue on:

Future of BAR funding

“[It] ends this year. My Department has got a large slice of this funding (mostly fisheries). However the Beef Welfare Scheme and genotyping have been positives.”

Land leasing change

“The objective is to target and support active farmers. If purchased in 2024, in order to draw down tax relief you will have to own it for seven years. We don’t want to incentivise land purchase from an investment point of view.

The finance bill will contain the finer detail. The principle in terms of what I asked the Department of Finance, where land is purchased they must own it for seven years before getting tax reliefs – the intention to restrict options for those inheriting land is not the ask here.”

The chances farmers who are not in ACRES have of getting in this autumn

“We have committed to have 50,000 places in environmental schemes between 2023 and 2027 in our CAP strategic plan and we now have that profiled in for next year in terms of delivering 50,000 places in ACRES. Any adjustment over 50,000 would have implications, 2025 is another year and another negotiation.”

The new ceiling for slurry storage

“I’ll be applying to the European Commission for an amendment of our CAP strategic plan to allow a separate ceiling for slurry storage for all farmers. Also then we plan a specific targeted support for those that have a ‘contract’ to import slurry. [We’re] expecting a contract in the region of maybe a five-year lease agreement so that there is certainty for the dairy farmer that may be in derogation, but also the tillage farmer in terms of nutrient availability. It will help reduce costs, improve integration, and help spread nutrients over land rather than farmers having to acquire more land.”

Organic Farming Scheme

“Uptake very strong so far. [There is an] allocation of €57m for 2024 – this is a lift of €20m on 2023 funding.”

Forestry and tree planting

“The fund to cater for the new planting season - that is up and running in the last few weeks to target 8,000 hectares per year at a minimum. I also expect big uptake in the Native Forest Scheme that can be on small plots (1 hectare).”

Other solutions to nitrates issues

“[We’re] looking at a number of measures such as the organic nitrogen loading of calves less than three months of age, reducing protein in feed, nutrient value of slurry, accelerated capital allowance relief and up to 70% funding for those importing slurry.”

The Irish Farmers Journal put it to the Minister that in real terms we are seeing a 3% increase in budget and 5% inflation, therefore the net effect is this is a cut in available money. “Reduced budget funding from reduced BAR funds, reduced COVID-19 funds and special Ukrainian fund reduced the total amount in the 2024 budget, however, at the same time there is €300m extra in annual spending this year compared to the budget of three years ago.”