A new REPS scheme could form part of the next programme for Government.

The Irish Farmers Journal has learned that Fine Gael negotiators have proposed that carbon tax revenue be dedicated to a new agri-environmental programme, described as “REPS Mark II”.

It would see farmers rewarded for reducing emissions from their farm, enhancing biodiversity, improving water, soil and air quality, and planting forestry rich in native species.

The carbon tax is set to bring in €600m per year by 2030.

The Green Party wants a “tax and dividend” rebate scheme, but both Fianna Fáil and Fine Gael want it invested in targeted schemes.

REPS was hugely popular with farmers, in a way that its successors AEOS and GLAS have not been.

Meanwhile, IFA president Tim Cullinan said “there will be war” if the Green Party succeeds in having live exports to third countries banned.

The issue was pushed hard by the Green Party delegation at Monday’s Government formation talks on agriculture, with a total ban on all live exports to countries outside the EU described as a “red line” issue.

Almost 33,000 cattle were exported from Ireland to countries such as Egypt, Libya and Turkey in the peak year of 2017, with 24,000 exported last year.

The UK would be designated a “third country” for Europe by the WTO should there be a no-deal Brexit at the end of the year.

This could complicate live exports across the border with Northern Ireland.