Farmers will be paid over €300/ha to make the switch to organic farming, Minister of state at the Department of Agriculture Pippa Hackett has announced.

They will also receive a lump sum payment of €2,000 if they decide to convert from January 2023 and following year one, the lump sum payment will decrease to €1,400 per annum for an unspecified number of years.

Farmers in the drystock sector will be paid €300/ha for up to 70ha in year one and two of converting, and in years three to five they will be paid €250/ha.

Tillage farmers looking to make the switch will be paid €320/ha to convert and €270/ha from year three. Dairy farmers are in line to be paid €350/ha to make the switch and €300/ha once they are fully converted.

Farmers in the horticulture sector will be paid €800/ha to convert and will receive €600/ha following conversion.

For farmers with any land above the 70ha, the payment rate drops to €60/ha in years one and two and to €30/ha once they are fully converted in years three to five.

The new payment rates are subject to approval by the European Commission as part of the ongoing discussions on approval of Ireland’s CAP Strategic Plan, and would apply from 1 January 2023.

Targets

The next Organic Farming Scheme has a total budget of €256m in the next CAP.

Minister Hackett said that the budget proposed for this scheme under the next CAP is a five-fold increase on what was previously available.

"This is my commitment to growing and investing in the Irish organic sector. Feedback from the CAP consultative committee, the reconvened Organic Strategy forum and interested stakeholders has made it clear that enhanced payment rates are needed to support farmers converting to and maintaining organic farming," she said.

Expenses

“Organic farmers incur additional expenses on an annual basis such as attending training and constantly upskilling themselves in soil health and animal management.

"In recognition of these costs I am proposing an annual participation payment which will be €2,000 in the first year of conversion and €1,400/year thereafter. This will support farmers as we achieve the targets set out in the Programme for Government of farming 330,000ha organically.”

She said she is confident that these new rates will entice in many new farmers to organic farming and encouraged every farmer to consider it and be ready for when the new scheme opens this autumn.