Key/Topical Issues - Agriculture · Key/Topical Issues 1. Priorities for 2017 - Progress Report 2....

Key/Topical Issues 1. Priorities for 2017

- Progress Report 2. Key Scheme Milestone and Dates 3. Brexit 4. Marine Issues 5. International Trade 6. CAP Reform 7. Meat and Dairy Markets 8. Food Safety/Animal Health Strategy 9. Climate Change 10. Nitrates Action Plan Review and Water Quality 11. Scheme Inspections and Payments 12. ANC Redesignation 13. Knowledge Transfer (KT) On-line systems 14. Compensation for Cereal Growers 15. ICBF – Proposal for funding through tag levy 16. Illegal Burning of Agricultural Land 17. Glyphosate Approval under PPPR

DAFM High Level Priorities 2017

A. Brexit: Monitor short-term impacts and work with industry and agencies to devise

appropriate responses. Work closely within whole–of-Government structures. Continue

engagement with stakeholders and with UK and Northern Ireland. Intensify engagement

with other Member States and EU institutions on all aspects of EU/UK negotiations.

B. CAP and Environment Policy: Develop policy position on the CAP after 2020 through

detailed analysis and engagement with stakeholders; engage with other MS and EU

institutions. Maintain strong input to negotiation of EU climate change policy to 2030.

Finalise national ag/forest sector mitigation and adaptation plans. Consider mechanisms for

meeting 2030 target. Ensure strong coordination and communication of DAFM and agency

work on climate change, water quality and biodiversity.

C. Rural Development Programme: Make payments on all RDP schemes and ensure high

customer service and accreditation standards. Rollout further schemes: AHW advice, KT,

Glas 3, TAMs including tillage, EIPs (ie Hen Harrier, Freshwater Pearl Mussel and Locally Led

Open Call projects). Finalise 2016 amendment and submit 2017, including ANCs. Follow-up

on ex-ante evaluation of Financial Instruments.

D. Direct Payments: Make payments on all DP schemes and ensure high customer service

and accreditation standards. Maximise use of the on-line system and preliminary checks.

Progress the LPIS re-build including a two county pilot project. Complete ANC technical

review, consultation with stakeholders and policy proposals with a view to introduction in

2018. Roll out Sheep Welfare and Beef Producer Organisation Schemes;

E. Animal Health & Welfare/Food Safety: Publish National Farmed Animal Health Strategy

and initiate action plan for delivery, including formal consultative process. Launch Animal

Health Surveillance strategy. Renew TB eradication programme with target date for

eradication of 2030. Develop a long-term strategy for the laboratories through consultation

on review and CBA on regional laboratory options. Engage with FSAI on the implementation

of the Official Controls Review of the FSAI Scientific Committee. Develop and publish a

DAFM food safety and authenticity strategy. Explore options for inter-agency data-sharing

on “one health” issues. Complete National Antimicrobial Resistance Action Plan and initiate

appropriate actions

F. FW2025/PFG and other Sectoral Policies: Pursue implementation of food industry

development and other aspects of FW2025 and PFG through HLIC and engagement with

industry and other stakeholders, and publish second annual report. Finalise Greyhound

Industry Bill and progress through Oireachtas. Develop strategy for mushroom industry, and

review oversight and management of organic sector. Review national strategy for fruit and

veg POs. Lead inter-agency process for ‘2017- year of sustainable grassland’. Support the

delivery of a new Nitrates Action Programme, particularly the renewal of the national

derogation

G. Trade: Pursue market access to a range of international markets. Plan and lead agri-food

trade missions in a focused effort on diversification of agri-food and beverage markets.

Actively monitor & contribute to negotiations on Free Trade Agreements and WTO.

H. Marine: Implement discards ban and prepare for full implementation in 2019. Put in

place legislation to implement the EU points system for skippers and licence holders.

Implement amending legislation on the Voisinage Agreement. Continue rollout of the

Seafood Development Programme with BIM. Manage fishery harbours in light of PAC

commitments and deliver the Harbours Capital Programme. Facilitate completion of the

Independent Aquaculture Licencing Review and follow up actions. Progress licence

determinations and reduce backlog. Advance Haulbowline remediation in line with available

funds. Manage fisheries quotas.

I. Forestry: Roll out new Land Classification System and Environmental Requirements and

review Forestry Programme 2014- 2020 in light of climate change goals, participation rates,

environmental impact, rural communities and land use policy.

J. DAFM/Agency Strategy: Continue full implementation of agreed actions of the 2016

DAFM internal organisational review (OR) and consider further specific actions in the five

business areas. Reflect Strategy Statement 2016-2019 in business area and division plans.

Implement internal and external communications strategy. Strengthen coordination of

policy and operational work of DAFM, other Departments and agencies on key Government

priorities. Ensure appropriate written framework and performance agreements are in place

with State agencies.

K. Corporate Development: Publish new DAFM IMT strategy in early 2017. Initiate project

to develop IMT system to support Common Fisheries Policy. Ensure continuing ISO 27001

certification as required by EU. Establish Data Analytics Unit – initially on a pilot basis.

Establish programme management office as envisaged under the organisation review.

Continue roll out of policies in the HR Strategy including new L&D Plan. Submit Workforce

Planning return to DPER. Manage delegated sanction in DAFM and agencies.

Progress Report

This document is withheld under Sections 29 (1) and 30 (1) (c) of the FOI Act 2014

Key Scheme Milestones and Dates

This document is withheld under Sections 29 (1) and 30 (1) (c) of the

FOI Act 2014

Brexit - Summary Brief

Effect of Brexit on Irish economy and Agri food sector

The agri-food sector is of critical importance to the Irish economy. Its regional spread

means it underpins the socio-economic development of rural areas in particular. The sector

employed approximately 173k people (8.6% of total employment) in 2016, and the total

value of agri -food exports was almost €12.2bn in 2016.

Agri food trade with UK

Some €4.8bn of Irish agri food products (39%) was exported to the UK in 2016. The value of

imports was €3.7bn (46% of total agri food imports). 50% of Irish beef exports and more

than one-third of dairy exports (53% of cheese exports, 29% of butter and 12% of SMP) go

to the UK market. Exports of cheddar cheese are about 80,000 tonnes, representing about

80% of all cheddar imported by the UK. The mushroom and forestry sectors are also highly

dependent on the UK market, with about 90% of exports by value going there. 13% of our

seafood is exported to the UK.

Challenges

Immediate: the significant drop in the value of sterling against the euro.

Longer-term: tariffs and trade, divergence in regulations and standards, border

controls with NI, and certification (including veterinary and health certification). For

example, estimated WTO tariff rates for beef and dairy exports are 61% and 52%,

respectively, representing an estimated cost to those sectors of €687 million and

€502 million, respectively. These difficulties would be compounded by the increased

costs associated with the implementation of border controls, particularly if there is a

divergence from EU regulations and standards in the UK after Brexit.

Difficult challenges in relation to potential restricted access to fishing grounds and

resources. On average, 36% of Irish landings are taken from UK waters. For mackerel

and prawns, which account for nearly 50% of the total value of Irish fish quotas, 64%

and 39%, respectively, are caught in the UK zone.

Steps Taken to Date

A dedicated Brexit Unit has been established to co-ordinate all activities - this now

forms part of a new Brexit and International Trade Division;

A Brexit Response Committee comprised of all relevant (14) DAFM Divisions is now

active – most recent meeting 8 June 2017;

A Stakeholder Consultative Committee has been established – most recent meeting

11 April 2017 - and frequent contact being maintained with representative

organisations and companies;

Brexit has been added as a standing item to the agenda of the Food Wise 2025 High

Level Implementation Committee, allowing ongoing monitoring and response to

Brexit in the context of the implementation of FW2025;

Close consultation with Bord Bia, Bord Iascaigh Mhara and Enterprise Ireland is

ongoing - significant additional resources allocated to Bord Bia (€1.6m in 2016 and

€2m in 2017) in Budget 2017 in order to provide Brexit-related supports to affected

companies;

Other Budget 2017 supports for the sector include a new €150 million low-cost loan

scheme, agri-taxation measures, and increased funding under the Rural

Development Programme and Seafood Development Programme;

The Department is feeding into the overall Government response being co-ordinated

by the Department of the Taoiseach, including through participation in the IDG on

Brexit and the Economy and Trade Work Group, and, in the case of the latter,

through its chairing of the Agri-Food Sub-Group (next meeting will be held on 14

June 2017);

Since last December Minister Creed has hosted four All-Island Civic Dialogue events

for the eleven different agri-food enterprises and a Civic Dialogue event for the sea

fisheries sector.

The agri food enterprises involved are cattle, sheep, pigs/poultry, horticulture/plant

health, forestry, animal feed, prepared consumer foods, alcohol, beverages, equines

and greyhounds.

DAFM officials are engaging closely with their NI counterparts through the NSMC

and bilateral meetings, including on specific areas of co-operation; DAFM has held a

number of meetings with key officials in the Commission, the UK and other Member

States, and this process will intensify in the coming months;

Political engagement with NI and UK counterparts has also increased, including

through Minister Creed’s meetings with NI Minister Michelle McIlveen and UK SoS

Andrea Leadsom (most recently in Berlin on 22 January 2017);

Minister Creed also met UK Minister of State George Eustice in the margins of the

AgriFish Council in Luxembourg on 3 April ;

At EU level, Minister Creed has had regular contact in recent months with

counterparts at AgriFish Council meetings. He is also currently engaged in an

intensive round of bilaterals with key Member State counterparts – Germany,

Netherlands and Denmark from 16-17 March, Estonia and Poland from 28-29 March,

and France, Luxembourg and Austria from 3-5 April; Belgium on 23 May;

Minister Creed has also spoken regularly to Commissioner Hogan, and officials have

taken part in meetings with the Commission and the Barnier Task Force (most

recently on 9 March 2017);

On the market front, Minister Creed has met with the CEOs of major UK retailers

(Tesco, Sainsburys and ASDA);

DAFM is also active on third country markets with a view to developing new business

opportunities for Irish food companies - Minister Creed recently led a successful

trade mission to Saudi Arabia and the United Arab Emirates following a visit last

autumn to South-East Asia; a further trade Mission is being finalised for the USA and

Mexico commencing on 19 June.

Additional resources have been allocated to the Department’s market access

activities in order to further improve Ireland’s agri-food footprint globally.

DAFM’s network of agriculture attachés is also engaged as appropriate in agri-food-

related Brexit follow-up, through the Embassies in London, Paris and Geneva, and

the Perm Rep in Brussels.

Ireland’s Key ‘asks’ from the negotiations

Continued free access to the UK market, without tariffs and with minimal additional

customs and administrative procedures.

Minimisation of the risk from UK trade agreements with third countries.

Maintain current access to fishing grounds in the UK zone in the Irish Sea, Celtic Sea

and north of Donegal and protect Ireland’s quota share for joint fish stocks.

Appendix below

APPENDIX

UK EXIT PROCESS

In accordance with Article 50 of the EU Treaty, the UK informed the European Council on

Wednesday 29 March of its intention to leave the EU. This in effect means that, in the

absence of an agreement between both parties to extend the negotiation period, the UK

will leave the EU at the end of the two year negotiation period, viz 29 March 2019.

A Resolution on the negotiations was voted on and approved by the European Parliament

on Wednesday 5th April.

The EU27 leaders met at a special European Council on Saturday 29 April to agree and

adopt their negotiating guidelines. The guidelines included a paragraph in relation to the

particular circumstances of Ireland.

The EU negotiating mandate was adopted at a meeting of the EU General Affairs Council on

22 May 2017. Neither it nor the negotiating guidelines give rise to any issues from an agri-

food and fisheries perspective. We welcome in particular the inclusion of text in relation to

the need for transitional arrangements. It is not yet clear at what point this question will be

addressed - although it may take place at the end of 2017, after what is termed as

“sufficient progress” in the exit negotiations has been made - but a lengthy transition

period, during which trading arrangements would remain as they currently stand, would be

desirable from an agri-food perspective.

On 23 May Council Working Party on Article 50, began its work with a session devoted to

working arrangements and the potential impact of Brexit on international agreements. This

was followed by further meetings on 30 May, 1 June and 8 June to discuss draft position

papers prepared by the Task Force on the issues of citizens’ rights and the UK financial

settlement.

PM May’s Article 50 letter

The main points of PM May’s Article 50 letter are:

The UK want the UK-EU trade deal to be more wide-ranging than any previous

trade deal.

The UK want to negotiate its future partnership with the EU (ie, the new trade

deal) alongside the exit deal.

The UK insists that the vote to leave the EU was “no rejection of the values we

share as fellow Europeans”.

The UK claims the vote was “not an attempt to harm the European Union”.

The UK expects Brexit to lead to a “significant increase in the decision-making

power of each devolved administration”.

The Prime Minister has committed to give Parliament a debate on the final deal and a non-

binding vote before the EU Parliament votes on the deal.

UK White Paper

Following submission of the Article 50 letter, the UK Government published a White Paper

Legislating for the United Kingdom’s withdrawal from the European Union . This sets out the

Government’s approach to ensuring the UK’s laws function post Brexit.

Key elements of the White Paper include:-

The Great Repeal Bill will fulfil three main functions:-

o Repeal the European Communities Act 1972;

o Convert EU law at the point of exit into UK law, before the UK leaves the EU, to

“provide fairness to individuals, whose rights and obligations will not be

subject to sudden change”; and

o Create powers to make secondary legislation to enable corrections to take into

account the UK no longer being an EU MS, and also to enable domestic law to

reflect the content of any withdrawal agreement reached under the Article 50

negotiations.

The Charter of Fundamental Rights will not be converted to UK law. The UK has no

plans to withdraw from the ECHR.

It states that in areas where the devolved administrations and legislatures ‘have

competence’, such as agriculture and the environment, they are responsible for

implementing the common policy frameworks set by the EU.

In relation to overseas territories, it says the Government remains ‘committed to

engaging with the Crown Dependencies, Gibraltar and the other Overseas Territories

as we leave the EU,’ specifically in relation to free movement of agricultural goods

and derived products between the islands and the EU.

The UK remains a full member of the EU until Brexit, with the rights and obligations

of a MS;

Work to “correct” the UK’s current legislation will take place in advance of exiting

the EU, to ensure it is fully operational on the first day outside the EU.

Where new UK laws are passed, they will have primacy over EU-derived laws on the

statute books at the time of exit. However, where there is a clash between domestic

and EU-derived laws which both existed pre-departure, the EU law takes

precedence.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604516/Great_repeal_bill_white_paper_accessible.pdf

Conservative Party Election Manifesto

There were limited references to Brexit in the Manifesto but some points to note include:

“we will no longer be members of the single market or customs union but we will

seek a deep and special partnership including a comprehensive free trade and

customs agreement.”

“ We want fair, orderly negotiations, minimising disruption and giving as much

certainty as possible – so both sides benefit”.

“We believe it is necessary to agree the terms of our future partnership alongside

our withdrawal, reaching agreement on both within the two years allowed by

Article 50 of the Treaty on European Union.”

“The negotiations will undoubtedly be tough, and there will be give and take on

both sides, but we continue to believe that no deal is better than a bad deal for the

UK.”

Outcome of UK Election

Following the loss by PM May’s Conservative Party of its overall majority in the House of

Commons, the PM is now in the process of forming a minority Government, with the

support of Northern Ireland’s Democratic Unionist Party. She has reappointed most of her

senior Cabinet ministers to their existing portfolios, with the exception of Andrea Leadsom

in DEFRA, whom she has replaced with Michael Gove.

The emerging early consensus on the implications of the election result is that the hard line

Brexiteers are in a weaker position than they were before the election, and that the public

did not want the hard Brexit that PM May was advocating. Industry is already becoming

more vocal in favour of a softer Brexit since the election, and the idea of the UK staying in

the Customs Union is being seen as a credible way of preventing the UK from “heading off

the cliff”.

Although there is still some uncertainty, it appears likely that the first round of negotiations

with the EU will go ahead as planned in the week commencing Monday 19 June. Michel

Barnier will report in this regard to the European Council on 22/23 June.

Topical Issues - Marine Area

Brexit

Brexit poses a potential enormous threat to the Irish Seafood industry. On average, over

one third of our current landings are from inside the UK zone. While some benefits may

accrue in terms of increasing market share in EU Member States, overall these will be offset

by three main threats – loss of access, loss of quota share and displacement –as well as a

high level of uncertainty in the short term.

On average, 34% of the Irish landings are taken from UK waters.

For some of our most important stocks (Mackerel (64%), Prawns (42 %) the figures are

even higher.

13% of our Seafood is exported to the UK

A worst case scenario is that the UK would seek to increase its current quotas to match

the amount of fish currently taken by non UK vessels in the UK zone. This would lead to

serious over exploitation of stocks at everyone’s expense.

France, Germany, Netherlands, Belgium, Sweden, Spain and Denmark all face similar

problems and are working together to support a common platform in the negotiations.

Seafood exports

The seafood sector offers huge potential for expansion as global demand for seafood as a

healthy premium protein increases. Over the next decade, consumption is projected to

grow by 42 million tonnes per annum according to the FAO as the world population is set to

reach 8 billion by 2025. It is clear that a huge expansion in food production, including

seafood, will be required world-wide to meet this need.

Over the last 6 years, the performance of the Irish seafood industry in export markets has

been very positive. Total seafood exports have increased in value terms by 51% between

2010 and 2016. This is against a backdrop of a decrease in export volumes of 10% over this

same period. These figures reflect a jump of 67% in average unit export prices reflecting the

strength of demand for Irish seafood in export markets.

EU Points System for Licence holders and masters of fishing vessel

Since January 2012, new controls are in place involving allocating points for serious

infringements leading in some cases to a master being suspended for a period of time.

2014 secondary legislation implementing a points system for licence holders was

successfully challenged in the High Court. The State has appealed the judgements to the

Supreme Court – hearing dates of 3 and 4 October 2017 have been confirmed.

Following the advice of the Attorney General Office, a new amended legal instrument to

implement the points system for licence holders was put in place in March 2016 which

took on board, to the extent possible, issues of concern in relation to procedures and

process which had been highlighted in the High Court cases. The 2016 SI has not yet

been operationalised.

The Office of the Attorney General also advises to introduce primary legislation to give a

sound legal basis to a scheme that implements the points system for licence holders and

further legal advice has been sought. Primary legislation is also required to implement a

points system for masters of fishing vessels.

A Pilot infringement case has been taken against Ireland in respect of the Masters Points

System. The case has now expanded to include the points system for licence holders.

There are also significant implications with regard to the release of funding under the

European Maritime and Fisheries Fund (EMFF) since the operation of a points system is a

pre-condition for the release of funding.

Landing Obligation/Chokes

The landing obligation (also referred to as the ‘discards ban’) was introduced as part of

the reformed Common Fisheries Policy (CFP). The landing obligation is a legal

commitment and it must cover all quota species by 1 January 2019. The concern is that

the landing obligation could “choke” some mixed fisheries whereby a fishery is closed as

soon as the quota of one of the stocks in the catch has been exhausted. In order to

assist with the rollout of the landing obligation and to understand the issues for our

fleet, the Department and marine agencies have actively engaged with industry through

a number of assistance and outreach measures, including hosting workshops and

delivering presentations around the country.

The next phase of work is to explore in detail by sea basin what measures can be taken to

avoid choke situations and in particular to try and identify those species which will still

present a choke danger even after all possible options have been applied. It will be

essential to find solutions that prevent the development of “choke” situations.

Voisinage

Following the ruling by the Supreme Court on 27 October 2016 in the “Barlow 2” case

fishing by Northern Ireland boats within the 0 to 6 nautical mile zone of the territorial

waters of the State under long-standing Voisinage arrangements is not currently

provided for in domestic law. Northern Ireland boats currently do not have access to

fish for mussel seed in Ireland. Access continues to be accommodated for Irish sea-

fishing boats to fish within the Northern Ireland 0 to 6 nautical mile zone.

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xxxxxxxxxx Irish sea-fishing boats cannot be authorised to fish on behalf of aquaculture

farm sites not based in this jurisdiction. This has implications for the management of the

mussel seed fishery.

The Sea-Fisheries (Amendment) Bill 2017 and the associated memorandum, was

published and circulated on 13/02/2017 (Bill Number 19 of 2017). The Bill is currently in

the Seanad at Committee stage. The Bill is intended to provide a legal basis for the

access aspects of the arrangements; further measures to apply conditions on the access

equivalent to those with which Irish sea-fishing boats must comply will be required by

means of regulations.

Other Issues

EU infringement proceedings have been initiated in relation to health standards applied

to scallop being brought to market in Ireland.

The Report of the Independent Aquaculture Licensing Review Group was received on

31 May 2017. Recommends 30 actions for implementation to improve the licensing

process.

http://www.agriculture.gov.ie/press/pressreleases/2016/december/title,104663,en.html

Haulbowline Island Remediation Project is set to intensify with the aware of a contract

for the controversial East Tip disposal site expected to be signed in the coming weeks.

Trade Missions

We are currently working with Bord Bia and Enterprise Ireland to finalise the arrangements

for a trade mission to the US and Mexico for the week beginning 19th June. It will feature

extensive trade contacts as well as political discussions with counterparts in the both

countries. (See Appendix 1 for draft itinerary)

These missions serve to enhance and improve our existing levels of market access in these

regions. They also help to promote Ireland’s reputation as a producer of high quality, safe

and sustainably produced meat and dairy products.

A range of other destinations are being considered for the remainder of 2017, although no

decision has yet been made in terms of content or timing. Again, markets in Asia and Africa

are likely to feature prominently in these considerations.

Free Trade Agreements

Mercosur (Brazil, Argentina, Paraguay and Uruguay)

These talks were in suspension for a number of years, but political developments in late

2015, particularly in Argentina, generated a new momentum from the Mercosur side to

make progress. A number of EU Member States, including Ireland, have consistently raised

concerns with the European Commission about the negative impact that an agreement with

Mercosur is likely to have on the EU’s agricultural sector, particularly in the beef sector.

A draft offer circulated by the Commission to Member States in April 2016 contained a tariff

rate quota (TRQ) for beef of 78,000 tonnes, broken down into 39,000 tonnes of fresh

(including high quality) beef and 39,000 tonnes of frozen beef, including for processing.

Ireland worked very closely with other Member States in both Agriculture and Trade

committees of the EU, and at Council of Ministers level, seeking to have this TRQ removed

and to have a comprehensive assessment of the cumulative impact of other Free Trade

Agreements on the agriculture sector carried out by the Commission before any substantial

offer is made. Following this intense lobbying, the Commission decided to exclude a TRQ for

beef when it exchanged offers with Mercosur on 11 May 2016.

While the removal of the TRQ is a welcome development, there is a need for continued

vigilance in relation to the conduct of these trade negotiations. We will also ensure that the

timing and content of any beef TRQ offer is handled appropriately, and in a manner that

safeguards the interests of the Irish and European beef sector in particular, taking into

account the Commission’s cumulative impact assessment of trade agreements (see below).

The first round of negotiations in October 2016 included a general exchange of views on the

respective market access offers. The next round was held in March 2017 in Buenos Aires,

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A third round of negotiations will take place in Brussels in July, following an inter-sessional

meeting in Buenos Aires in late May. France, supported by Ireland and some others, have

tabled an aob point for Council on Monday 13th June requesting that the talks should not be

progressed further until member states have had an opportunity to assess the impact of any

any offers proposed.

EU-JAPAN

There has been 19 rounds of negotiations so far with the most recent being held in Brussels

during the week of the 15 May 2017. While a full report has not yet been issued it is

expected that after this meeting, 50% of chapters will be considered closed. Xxxxxxxxxxxxxx

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Ireland is fully supportive of the EU position in these trade negotiations and would support

an early conclusion of these negotiations. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx






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CAP Reform

CAP Post-2020

Discussions on the future of CAP Post-2020 have been afoot since the middle of 2016 at

many fora including an Informal Council in May last year hosted by the Netherlands

Presidency, an Informal meeting of Agriculture Ministers hosted by the French Minister in

September, followed by the European Conference on Rural Development in Cork. The

future orientation of CAP was also discussed at the Agricultural Outlook Conference in

Brussels in December 2016 and it gave a good overview as to the Commission’s thoughts on

CAP post 2020 with Commissioner Hogan identifying three key principles that the future

must achieve – greater market resilience, more sustainable agricultural production and

progress on generational renewal.

Since then, the Commission launched its public consultation process (modernising and

simplifying the CAP) on the future of CAP post 2020 on the 2nd February 2017 and which

closed on the 2nd May 2017. The Commission will now hold a stakeholder conference on the

7th July 2017 in Brussels, which will feed into a Commission communication on the future

shape of CAP post 2020 in late November / early December 2017.

The Commission is considering five possible policy options for the future design of CAP, as

outlined in its Inception Impact Assessment, also published on the 2nd February 2017. The

draft options are:-

1. Maintain current EU farm rules;

2. Full liberalisation – removal of CAP support and “globally integrated food markets”;

3. Shift from area-based payments towards rural development and risk management

tools;

4. Area based payments as leverage to achieve economic and environmental benefits

in a simplified way;

5. Radical overhaul focusing on small-holders, environmentally-friendly farms and local

food.

Ireland’s views

One of the key challenges facing CAP post 2020 will be to facilitate an increase in food

production levels by up to 70% by 2050 in order to meet the requirements of a growing

global population, while at the same time facilitating adaptation to climate change and

mitigation against further change. Other challenges include the need to implement modern

and innovative measures to help mitigate the impact of increased global market volatility on

farmers’ incomes; the need to more effectively promote and support generational renewal;

and, the need to sharpen the focus on outcomes and to reduce the regulatory and auditory

burdens on Member States and farmers as they implement measures to achieve these

outcomes. However, in order to address these challenges, it is important that a strong CAP

budget is maintained.

We believe the CAP has evolved considerably and effectively in recent years in response to

changing market, consumer and environmental demands to address the challenges set out

above. It also plays a central role in delivering the smart, sustainable and inclusive growth

sought under the Europe 2020 strategy. However, the challenges are ongoing and relentless

especially on climate change, with the result that continued and ongoing funding is

paramount.

A discussion on policy principles will not reach conclusions in the absence of clear

indications on financing, but it is too early to predict what the EU budget situation will be in

2018 or 2019 when CAP negotiations are fully under way. However, it is likely that there will

not be additional funds available for EU agriculture and it cannot be ruled out that beyond

2020 there will be less support available for the CAP.

Meat and Milk Markets

Price Volatility in international dairy markets

Price volatility will continue to be a feature of international dairy markets. The

Minister and DAFM will need to continue to work with industry, with other member

states and with the EU Institutions to consider how we can refine and improve

mechanisms to help farmers to cope with downward price cycles when they arise

(market support tools, flexible approach from banks, longer term fixed price

contracts from co-ops, futures markets, etc).

In spite of signals of market recovery in the sector, the situation remains somewhat

precarious and uncertain in certain product sectors, such as SMP, where intervention

stocks overhang the market and are acting as a drag on any prospective recovery for

this specific area. Developments here and in all sectors will therefore require

continued and detailed monitoring, with the conviction to act again should volatility

re-emerge more broadly.

IFA campaign for additional supports for Suckler Cows

The BDGP programme builds on the success of previous suckler schemes including

the €23 million Beef Genomics Scheme (BGS). €300m has been allocated for this

scheme from the RDP over the 6 year period of the programme.

In April 2017 the Minister announced the re-opening of the BDGP scheme for beef

suckler farmers who are not already members of the scheme. The scheme will be

known as BDGP II. Just under 1,900 applications were received by the Department

for BDGP II before the closing date for applications.

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Dawn/Dunbia proposed merger

The Department understands that Dawn Meats Group is to acquire Dunbia’s

operations in Ireland with a joint venture to be established in the UK comprising the

UK operations of both organisations.

This is a matter for evaluation by the relevant competition authorities. The proposed

takeover will be referred to the EU Commission and evaluated either there or by the

National Competition and Consumer Protection Commission.

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Revisions to the Pig Salmonella Control Programme

The Department is currently finalising proposals for refining the Pig Salmonella

Control Programme.

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China - Beef Access

DAFM has made significant progress towards opening the Chinese market for Irish

beef. The BSE ban in respect of Irish beef was lifted by the Chinese authorities in

early 2015. A subsequent systems audit by the Chinese authorities resulted in

generally positive feedback with a number of corrective items required.

A Protocol between Minister Creed and AQSIQ Minister Zhi Shuping, on the

Inspection, Quarantine and Veterinary Sanitary Requirements for Frozen Beef to be

exported from Ireland to China, was signed earlier this year.

Now that the Protocol has been signed DAFM has an obligation to ensure that

systems of integrity can be put in place to allow for certification. This includes an

evaluation of the relevant Chinese legislation, given references in the protocol to

compliance with Chinese legislation, a process that is underway but may take

DAFM/VPHIS a number of months. A veterinary heath certificate also needs to be

agreed with AQSIQ.



xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 26 Beef plants

have expressed an interest in exporting beef to China and have submitted

applications to DAFM for CNCA. However this visit has not been confirmed yet. Beef

exports cannot commence until all the necessary steps have been completed.

Food Safety/Animal Health Strategy

1. Antimicrobial resistance (AMR)

The rise in anti-microbial resistance (AMR) is recognised at global and European levels as

one of the greatest potential threats to human and animal health, with possible serious

consequences for public health, animal welfare and the agriculture and food sectors. The

advances achieved as a result of anti-microbial drugs are now seriously jeopardised because

of the emergence and spread of resistant strains of microbes, against which an increasing

number of such drugs are ineffective. AMR already represents a significant human health

threat and contributes to increased morbidity, mortality and healthcare costs. A National

Interdepartmental AMR Consultative Committee has been established to help co-ordinate

actions under a ‘One Health’ banner and actions are underway to reduce the level of

bacterial infections on farms, particularly in intensively reared animals, and to ensure that

antimicrobials are used prudently. The Department is working with the various stakeholders

in pursuit of these goals.

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4. Avian Influenza

In Europe, HPAI H5N8 was first confirmed on 26th October 2016 and in poultry on 3rd

November 2016 in Hungary. Since then 29 European countries have had outbreaks in

poultry and captive birds, and cases in wild birds. Although the number of outbreaks in

Europe has reduced significantly in recent weeks, cases continue to occur. In Ireland, no

outbreaks of H5N8 have been confirmed in poultry. A total of 12 cases were confirmed in

wild birds, in 10 locations in 6 counties (Wexford, Galway, Tipperary, Leitrim, Roscommon

and Cork). There have been no cases since 24 February 2017.

A number of protective measures were introduced in ROI during 2016 and 2017, to prevent

the spread of HPAI H5N8 from wild birds to Irish poultry flocks, including;

Housing and biosecurity controls which remained in place from the 23rd December

2016 to the 25th April 2017;

Activation of a dedicated Avian Influenza Telephone Helpline;

Implementation of a high level national and regional media and press campaign

Frequent communication with all relevant stakeholders

Advanced notice and requirement for bird gatherings

Publication of up to date informative Avian Influenza booklets and leaflets to the

Department website and distribution of same via regional networks;

Formation of a temporary, dedicated Poultry Registration and Update Unit to ensure

poultry registration data accurate and up to date.

Current risk - The last case of H5N8 in a wild bird in Ireland was confirmed on 24th

February 2017. Most of the waterfowl that migrated to Ireland during the winter will

have departed Ireland by the end of April (NPWS/BirdWatch Ireland). However flock

owners in Ireland are still being advised to be vigilant and to implement good biosecurity

measures.

5. New Johne’s Disease (JD) Programme

Animal Health Ireland (AHI) is currently making strenuous efforts to finalise a new J D

Programme taking account of developments in competitor countries. The new Programme

will take the place of the Pilot Programme which ran between the years 2014 to 2016. It is

envisaged that the new Programme will have 4 objectives as follows:

I. Enhance the ability of participating farmers to keep their herds clear of JD and to

reduce infection in their herds, if present.

II. Provide additional reassurance to the marketplace in relation to Ireland’s effort to

control JD.

III. Improve calf health and farm biosecurity in participating farms.

IV. Establish robust mechanisms to measure antimicrobial usage in participating farms and

monitor trends over time, with a view to optimising usage.

With a view to getting the new Programme up and running, DAFM has put forward a

number of options that include funding of 500k in respect of 2017 on a 60 (State) : 40

(Industry) ratio. DAFM has also promised funding for the years up to until 2021 on the basis

of increased industry contribution as time progresses.

It is anticipated that the main element of DAFM’s funding will go towards meeting the first

year testing costs for up to 1,500 dairy farmers. For their part, the dairy co-ops have offered

to fund the Knowledge Transfer element of the new Programme.

AHI has recently come forward with a fresh proposal that differentiates between test-

positive and test-negative herds that incorporates the remaining elements of the

Programme viz on-farm risk assessments and a targeted Advisory sessions - the latter are

funded under the RDP 2014 – 2020.

It is hoped that the JD Implementation Group, made up from the various industry

Stakeholders including the Department, can reach an early agreement on the various

elements of the new Programme.

6. Launch of National Farmed Animal Health Strategy (NFAHS)

Last Autumn Minister Creed announced a public consultation on a document entitled “A

National Farmed Animal Health Strategy”. The consultation process is now over and the

finalised strategy document is now ready to be launched. Heretofore, no one single

repository document existed in the animal health area. The strategy acknowledges that

livestock production is at the core of our agri-food industry and makes a very significant

contribution to our regions.

The creation of a national strategy will guide and provide a framework for the development

and implementation of policies and programmes towards making a lasting and continuous

improvement in the health of farmed animals in Ireland. In turn, it will provide direct

benefit to farmers, industry and the economy, while also giving greater protection to public

health with reduced risk from zoonotic diseases and less recourse to antibiotics. The

environment will also benefit as a result.

In order to achieve its aims, the strategy is guided by 4 key principles:

Working in partnership – ensuring the views of all relevant stakeholder are taken

into account.

Acknowledging roles and Responsibilities – the aim being that the specific roles and

responsibilities of Government and other stakeholders will be published.

Reflecting Costs and Benefits - with clarification of the role of Government regarding

financial supports for animal health.

The application of the principle that ‘prevention is better than cure’, thus seeking

to change the focus from one of post-event response to the management/treatment

of disease that promotes animal health as a driver of optimised production.

The launch of this policy initiative is coming at an important time for Ireland’s agriculture

sector as it responds to abolition of milk quotas, an increased global demand for meat

and the huge challenges posed by Brexit.

CLIMATE CHANGE

EU 2030 Climate and Energy Framework

Ireland’s target under the recent Paris Agreement is part of the EU target of an “at least 40%

reduction in domestic greenhouse gas emissions compared to 1990”, which was agreed at

European Council and presented to the United Nations Framework Convention on Climate

Change (UNFCCC) as part of the European intended nationally determined contribution in

March 2015.

As the push for agreement in Paris is now over, European focus has now turned to internal

negotiations on Member States’ share of the effort under the EU 2030 Climate and Energy

Framework.

The proposal for an Effort Sharing Regulation (ESR) provides a binding annual GHG

emissions target for Ireland of 30% below the 2005 level by 2030. While this is equivalent to

the proposed EU average target, it will be a challenge for Ireland.

The proposal is detailed in terms of national targets for each Member State and contains a

number of proposed flexibilities.

Under the proposal, Ireland has potential to use up to a cap equivalent to 5.6% of 2005

emissions (2.7 Mt CO2eq per annum) from LULUCF in order to meet its emission reduction

requirements, based on a combined contribution of net afforestation and cropland and

grassland management activities.

This flexibility should not be seen as an offsetting proposal but rather as an effort to

broaden the “toolbox” of abatement options available to achieve targets. This is particularly

the case for Member States where existing abatement measures are costly and action in the

LULUCF sector, that encourages removals and limits emissions, may present a more cost

effective option.

http://ec.europa.eu/energy/green_paper_2030_en.htm

Ireland felt that the current rules under Decision 529/2013 should be the basis for

accounting for LULUCF post 2020 as they simultaneously provide the best recognition and

incentives for mitigation effort. However, the Commission’s LULUCF proposal uses a land-

based accounting system, which is consistent with the views of the other Member States

who voiced their opinion.

The move in the 2030 proposal to a land based accounting system over the Kyoto Protocol

accounting system (activity based) results in the potential credits from afforestation being

reduced from 4.5mt per year to 2.2mt.

Effort Sharing Regulation Process

The Maltese Presidency has proposed a compromise text. The Environment Council will

meet on 19 June to hear the present progress report and there will be a policy debate on

the two climate files. The purpose of this policy debate is an attempt by the Presidency to

have the outstanding concerns of Member States discussed with a view to finding the

common ground which will enable work ahead of the October 2017 Environment Council to

facilitate the agreement of a general approach.

The European Parliament ENVI Committee adopted its report on the ESR file on 31 May. The

ENVI Committee vote on the LULUCF proposal is scheduled on 22 June 2017. The plenary

votes on both proposals (LULUCF and ESR) are expected to take place in July.

The Climate Action and Low Carbon Development Act 2015

The Climate Action and Low Carbon Development Act 2015 provides a statutory basis for

Government policy on climate change. As required by the Act, the Department has

contributed agriculture and forest sector mitigation measures for input to the National

Mitigation Plan which is due to be presented to Government by 10 June. We are also

preparing adaptation plans for the agriculture and forest sector and for the marine sector.

These documents are being informed by scientific evidence and research findings. The plans

will specify the policy measures to be undertaken for both mitigation and adaption and will

be fundamental pillars of future national policy. Given its importance on food production

and economic grounds, the Irish agriculture sector must be in a position to anticipate and

http://faolex.fao.org/docs/pdf/eur125073.pdf

adapt to the negative impacts of climate change, as well as looking to maximise the benefits

for the food production system.

Ammonia Emissions: Clean Air Package

Ireland is a Party to the Convention on Long Range Transboundary Air Pollution (CLRTAP)

under which certain transboundary air pollutants including ammonia are controlled. As a

member of the EU, implementation of the Gothenburg protocol is achieved through limits

set out in the National Emissions Ceilings Directive (NECD, 2001/81/EC & NECD, 2016/2284).

Ireland met its target for 2010 under the NECD, reducing to approximately 105kt relative to

the actual target of 116kt. In 2012, under a revised Gothenburg protocol, Ireland’s target for

ammonia emissions is a 0.5% reduction on 2005 levels by 2020 which equates to a value of

108.6kt of ammonia in 2020.

As Irish agriculture contributes 98.5% of national ammonia (NH₃) emissions, target

reductions are of concern especially in light of Food Wise 2025 projections. Reductions to

other air pollutants such as methane (CH₄) and fine particulate matter (PM2.5) will also need

to be monitored closely to ensure they have minimal impacts.

At the end of 2015, negotiations took place in respect of a revised National Emission Ceilings

(NEC) Directive culminating at the Council of the Environment Ministers in December which

saw Ireland successfully negotiating a reduction in our proposed ammonia target from -10%

to -5% (which equates to a ceiling of 104.5kt NH3), with equivalent total increase in the

particulate matter and Sulphurous emissions (SOx).

The new National Emissions Ceilings (NEC) Directive entered into force on 31 December

2016. Member States (with the Department of the Communications, Climate Action and

Environment, DCCAE, being Ireland’s lead Department) must transpose it into national

legislation by 30 June 2018. The main implementing measure is the National Air Pollution

Control Programme, which the Member States must produce by 31 March 2019.

Consideration of the national approach to implementing and delivering these targets will be

a central consideration of the national Clean Air Strategy. A public consultation on the Clean

Air Strategy was launched in March 2017 by DCCAE and closed on 28 April 2017.

Nitrates Action Programme (NAP) Review 2017

Ireland’s Nitrates Action Programme (NAP) is designed to prevent pollution of surface

waters and ground water from agricultural sources and to protect and improve water

quality. The quality of Irish water is among the best in Europe, agriculture is nevertheless a

key pressure.

Member States are required to review their NAP at least every four years. In 2017, the

Minister for Housing, Planning, Community and Local Government (DHPCLG) which is the

lead authority, assisted by the Department of Agriculture, Food & the Marine (DAFM)

embarked on a third review of Ireland’s NAP with the European Commission, with a view to

having in place by 2018 the fourth NAP which will run from 2018 to 2021. The further

objective is that, subject to approval of the fourth NAP, the agreement with the Commission

of the renewal of Ireland’s nitrates derogation for the period 2018 – 2021. The continuance

of the derogation, which allows more intensive farmers to exceed the 170 kg/ ha nitrogen

from livestock limit, is considered vital to achieve targets set out under Food Harvest 2020

and Food Wise 2025.

The NAP review process commenced in early 2017 with a bi-lateral with the Commission

and a presentation to the Nitrates Management Committee, with a focus on the most

recent water quality data. The process involves the setting up of an Expert review group

comprised of DHPCLG, DAFM, EPA and Teagasc to formulate a new Nitrates Action

Programme, as was the case in previous reviews

A public consultation took place in Q1 2017; 28 submissions were received which have been

reviewed and considered by the Expert Group, consisting of personnel from DHPCLG,

Teagasc, EPA and DAFM. These form the basis for proposals to the Commission for a new

NAP.

The next presentation to the Nitrates Management Committee, on Irish Agriculture and the

Nitrates Regulations, takes place in June; followed with a bilateral with the Commission on

the proposals for a new NAP.

The last presentation will be made in September. Subject to agreement with the

Commission on a fourth NAP, the vote on Ireland’s derogation application will be made at

the December Committee meeting.

Agreeing a new NAP and securing the derogation are priorities. Although having been

successful in all previous derogation requests, this review will be complicated by the recent

EPA report on Water Quality 2012 – 2015. Previous reports all revealed improvements in

water quality albeit a slow and gradual improvement. This report, however, reveals a

stalling of this trend of improvement, and indicates a slight deterioration in the water

quality of certain waterbodies.

Water Quality Information

Nationally, the Environmental Protection Agency has acknowledged the important role the

GAP Regulations play in the protection of water quality. The most recent EPA publication

available, which is yet to be published as the “Water Quality Report 2013-2015”, , indicates

an overall sense of a stalling in the improvement of water quality situation. Waterbodies

classified at good or high WFD quality status include:

69% of river channel length

46% of lake area

37% of transitional waters

76% of coastal waters

99% of groundwaters

Furthermore, the EPA has reported that the levels of Nitrogen and Phosphorus in Irish

rivers, groundwaters, transitional and coastal waters, have been mostly decreasing since

2007; the GAP Regulations came into force in 2006.

Departmental Initiatives to Protect and Improve Water Quality

Of the remaining waters that are not reaching good WFD quality status, diffuse pollution

from agriculture, along with municipal sources of pollution, is believed to be the cause. In

addition, it is acknowledged that implementation of the GAP Regulations baseline alone

may not be enough to protect High Status and other vulnerable water areas.

In order to address these issues, DAFM, in conjunction with DHPCLG, carries out a

comprehensive statutory review of the GAP Regulations on a regular basis; the next Nitrates

Review is currently underway in 2017. Findings from the ACP will contribute to informing

the Nitrates Review and to further enhancing the accuracy and effectiveness of the GAP

Regulations.

In addition, and following wide consultation by DAFM, the new Rural Development

Programme (RDP) has included supplementary measures which build on the progress made

by farmers under the GAP Regulations in protecting and improving water quality. Optional

measures for the protection of water include

the Green Low Carbon Agri-Environment Scheme (GLAS) which is a targeted agri-

environment scheme with a budget of €1.3 billion, and with 50,000 participants.

Farmers in high status water areas and other vulnerable water areas received

priority access into GLAS. 45% of GLAS actions are targeted at the protection and

enhancement of water quality, including compulsory nutrient management planning.

The Knowledge Transfer (KT) Programme is aimed at over 20,000 farms with the

objective of improving understanding of environmental and economic efficiencies

and the adoption of best practice including the good agricultural practice for the

protection of water.

Outputs-based Agri-Environmental Schemes including the Freshwater Pearl Mussel

Scheme and Locally-Led Agri-Environmental Schemes are also available for optional

farmer uptake.

Under the Targeted Agricultural Modernisation Scheme (TAMS) there are specific

schemes available relevant to the protection and enhancement of water including

the Low Emission Slurry Spreading Equipment Scheme (LESS) and Animal Welfare,

Safety and Nutrient Storage Scheme.

The Beef Data Genomics Programme (BDGP is targeted at the climate emissions

from beef farms, with consequential benefits of reducing losses of nutrients to

water.

Outputs-based locally led schemes such as the Burren Farming for Conservation

Programme and the RDP commitment to establish a Freshwater Pearl Mussel

scheme.

Scheme Inspections and Payments

Introduction

In the context of delivering the Direct Payment Schemes and Rural Development measures

the Department is required to carry out on-the-spot inspections on a number of farms

covering such issues as eligibility under the Scheme and compliance with Cross

Compliance/GAEC requirements, as set down in EU legislation.

Level of Inspections

The EU regulations governing the inspections under the MAIN Direct Payment Schemes are

as follows:

Basic Payment Scheme (BPS)/Greening/ANC/YFS/BDGP/SWS – 5% of beneficiaries

Cross Compliance – 1% of beneficiaries in relation to all cross compliance

requirements/standards. 3% of farmers in relation to Cattle identification &

registration requirements and 3% of farmers in relation to Sheep identification and

registration requirements, covering 5% of the flock.

In addition to the above inspections, Local Authority Nitrates inspections are carried out

annually, under the agreement between DAFM and the Department of Environment,

Community and Local Government.

2017 Inspections

The process to select the 2017 inspection cases is ongoing. To date the process has selected

some 1,650 Local Authority Nitrates inspections; some 6,600 Eligibility inspection cases of

which some 5,750 or 87% approx. will be undertaken by means of Remote Sensing; some

4,500 Animal (Bovine & Ovine) IDR inspections, of which 530 approx. have been ‘stacked’ on

Ground Eligibility inspections; some 1,350 Full Cross Compliance inspections and some 350

inspections under the new Sheep Welfare Scheme of which 30 approx. cases have been

‘stacked’ on Ground Eligibility inspections.

The selections to date will be reviewed when final 2017 populations across all schemes

become available so as to ensure that the regulatory requirement on levels of inspections is

being met. This may result in the above figures being amended. In addition, inspections for

schemes not yet selected, e.g. YFS will be completed.

The 1,650 Local Authority Nitrates inspections commenced in January. The Animal IDR

inspections commenced in April and will continue throughout the year. Full Cross

Compliance inspections will commence in June and will be completed throughout the year.

Eligibility inspections will commence in June.

Scheme Payments

Knowledge Transfer Programme

Under the new Rural Development Programme, 2014-2020 €100m is being provided to

support upskilling and training of farmers via Knowledge Transfer Groups. The scheme

design has been informed by the experience of previous Dairy Advisory Schemes and Beef

and Sheep Discussion Groups which concluded in 2015.

Participating farmers in Knowledge Transfer Groups attend meetings hosted by an approved

Knowledge Transfer Facilitator and complete a tailored Farm Improvement Plan.

Approximately 1200 Knowledge Transfer Groups comprising 20,000 farmers have been

established across 6 sectors – beef, dairy, sheep, tillage, equine, and poultry. Meetings have

taken place and work has commenced on Farm Improvement Plans. Inspections of almost

300 meetings have been completed with inspections of individual Farm Improvement Plans

to commence after the end of the scheme year on 31st July, 2017. The Knowledge Transfer

Programme is a three year programme, with payment issuing following successful

completion of each year. Year one payments are scheduled to commence in September,

2017.

Areas of Natural Constraints (ANC) Scheme

Payments commenced under the ANC scheme on schedule in September 2016. To date,

payments in excess of €202m have issued to 94,493 beneficiaries.

Beef Data and Genomics Programme

Payments for each scheme year commence in December of the relevant scheme year and

continue as participants achieve compliance. A budget of €52 m has been made available

for 2017. Total payments to participants to date amount to €84.3m of which €43.8m refers

to 2015 scheme year and €40.5 to 2016 scheme year.

Basic Payment Scheme

Ireland is among the earliest to pay the BPS in the European Union and commenced

payments on 17th October 2016. To date, 124,128 farmers have received payments totalling

€1.186 billion. This covers over 99% of eligible applicants.

There are very small numbers of applications for the BPS and ANC that have yet to be

processed for payment. As outstanding cases are processed and are cleared of any

outstanding error, they will be sent for payment.

Preparations for the 2017 ANC and BPS are well underway, with the closing date for receipt

of applications for these schemes having been the 15th of May. The Department

concentrated on again increasing the level of online BPS applications this year, with the

result that almost 114,000 applications (87%), were submitted online. EU regulations

require all applications for BPS to be online in 2018.

2016 Inspections Programme – Outcome

(i) Land Eligibility Inspections

The following table details the outcome of the 2016 Land Eligibility inspections. Some 87%

of these inspections were undertaken by Remote Sensing

Number Completed Number with No

Reduction

Number with

Reduction & Penalty *

7,034

5,974 (84.93%) 1,060 (15.07%)

* Includes cases where no payment due

The above data is based on the current position and will be subject to change as the

outcome of Review Requests and Appeals to Agriculture Appeals Office are finalised.

(ii) Full Cross Compliance Inspections

The following table details the outcome of the 2016 Full Cross Compliance inspections.

Number Completed Number of

Clear Cases

(no breach)

Number with

Minor

Breach*

Number with

Penalty

(Monetary

Sanction)

1,361 367 (26.96%) 445 (32.70%) 549 (40.34%)

* ‘Minor Breach’ refers to cases with minor non-compliances resulting in no monetary sanction/penalty

(iii) Animal IDR Inspections

The following table details the outcome of the 2016 Animal IDR (Bovine/Ovine) inspections.

Number Completed Number of

Clear Cases

(no breach)

Number with

Minor Breach*

Number with

Penalty (Monetary

Sanction)

4,536 1,730 (38.14%) 1,722 (37.96%) 1,084 (23.90%)


(iv) Local Authority Nitrates Inspections

The following table details the outcome of the 2016 Local Authority Nitrates inspections.

Number

Completed

Number of

Clear Cases

(no breach)

Number with

Minor Breach*

Number with

Penalty (Monetary

Sanction)

1,454 969 (66.64%) 97 (6.67%) 388 (26.69%)


The above data in relation to Full Cross Compliance, Animal IDR & Local Authority Nitrates

inspections is based on the current position and will be subject to change as outstanding

cases are finalised and the outcome of Review Requests and Appeals to Agriculture Appeals

Office are finalised.

Data on Financial Reductions as a result of Area Reductions/Penalties and Cross

Compliance Penalties following all categories of checks, i.e. administrative checks and

Inspections

2016 Basic Payment Scheme, Greening & Young Farmers

Number of

Eligible

Applicants

Number

Paid To

Date

Value of

Gross

Payments

Due

€

Value of Monetary

Deductions - Area

Over-Claim

Penalties

€

Value of

Monetary

Deductions –

Cross Compliance

Penalties

€

Value of Net

Payments

Issued to

Date

€

*

125,521 124,151 1.204 bn 269,145 (0.02%) 2,727m (0.22%)

1.199bn

The above data is based on applications processed to date. The value of payments, area

deductions and cross compliance penalties will change when the final entitlements position

is established. In addition the value of reductions/penalties may change as the outcome of

Review Requests and Appeals to Agriculture Appeals Office are finalised.

2016 Areas of Natural Constraints Scheme

Number of

Eligible

Applicants

Number

Paid To

Date

Value of

Gross

Payments

Due

€

Value of Monetary

Deductions - Area

Over-Claim

Reduction/

Penalties

€

Value of

Monetary

Deductions –

Cross Compliance

Penalties

€

Value of Net

Payments

Issued to

Date

€

*

100,769 94,493 202.233m 0.295m (0.15%) 0.168m (0.08%)

201.693m

The above data is based on applications processed to date. The value of payments, area

deductions and cross compliance penalties will change as further cases are processed to

finalisation. In addition the value of reductions/penalties may change as the outcome of

Review Requests and Appeals to Agriculture Appeals Office are finalised.

ANC Redesignation Project

Background The Areas of Natural Constraints (ANC) Scheme was introduced under the 2014 -2020 Rural

Development Programme as a replacement for the previous Disadvantaged Areas and Less

Favoured Areas schemes which had been in please since 1975. Currently over 75% of the

country is designated as constrained. The annual budget for the ANC scheme currently

stands at €202 million which is paid to approx 96,000 beneficiaries.

Re-designation Requirements Under the Rural Development Regulation each Member State must designate areas eligible

for payments under the Areas of Natural Constraints (ANC) scheme. The ANC scheme

replaces the previous Disadvantaged Areas Scheme / Less Favoured Areas Scheme. The

designation of eligible areas under these schemes to date has been based on a range of

socio-economic factors. Under the existing regulatory provisions, from 2018 eligible areas

must instead be designated using a set list of bio-physical criteria. In cases where a Member

State does not introduce this new system for payment, the old scheme remains in place but

payments must phase out on a digressive basis.

The biophysical criteria set out in the legislation to underpin the new system of designation

are:

Low temperature

Dryness

Excess soil moisture

Limited soil drainage

Unfavourable texture and stoniness

Shallow rooting depth

Poor chemical properties

Steep slope.

Current Position The Department has commenced work on this project, and relevant technical experts are

currently working on sourcing and analysing the data in relation to the new criteria.

Department officials have also been in contact with the Joint Research Centre (JRC) and DG

Agri in the EU Commission in relation to technical issues arising. This analysis will identify

areas deemed to be facing natural constraints, which will in parallel be subjected to a

refinement process. It is envisaged that stakeholders will be consulted as this process

develops.

Timelines and Proposed Regulatory Changes In the original Rural Development Regulation, the new ANC designation must be in place for

payment in the 2018 scheme year. This is the timeline DAFM has been working towards.

As part of the discussion on amendments to Regulations at EU level, Austria raised the

possibility of extending this deadline to 2019 on an optional basis. This proposal was

supported by Ireland along with Latvia, Slovenia, Poland, Luxembourg, France, Germany and

Slovakia. A number of other countries sought clarification.

This proposal is currently passing through the relevant approval process at EU level, along

with a number of other regulatory changes in what is referred to as the 'omnibus proposal.'

Knowledge Transfer Programme online systems

Under the Rural Development Programme, 2014-2020 €100m is allocated to support

upskilling and training of farmers via Knowledge Transfer Groups. The scheme design has

been informed by the experience of previous Department funded discussion groups as well

as best practice.

Participating farmers in Knowledge Transfer Groups attend meetings hosted by an approved

Knowledge Transfer Facilitator and complete a tailored Farm Improvement Plan.

Approximately 1200 Knowledge Transfer Groups comprising 20,000 farmers have been

established across 6 sectors – beef, dairy, sheep, tillage, equine, and poultry.

There are three sets of clients within the Knowledge Transfer Programme: farmers, advisors

and vets. Approximately 20,000 farmer participants are currently registered to Knowledge

Transfer (KT) Groups in six sectors. Three separate online systems are in ongoing

development to manage and record data related to KT Group meetings, Farm Improvement

Plan and Animal Health Measures. The KT online system is available around the clock both

during and outside of office hours.

DAFM has designed the Farm Improvement Plan and Animal Health Measures with

customised online systems built to support each of them. While these systems were

temporarily suspended for a short time last month to investigate an issue they have now

been re-activated for use by facilitators and vets.

The extension of the KT deadline to 31st July will allow facilitators and vets further time to

finalise actions for KT group participants. It is anticipated that payments in this scheme will

be made as scheduled for the autumn of this year.

Compensation for Cereal Growers

This document is withheld under Sections 29(1), 30 (1) (c) and 35(1) of FOI Act 2014

ICBF – Proposals for funding through tag levy

The ICBF was established in 1998 following a number of years of industry consultation

among all stakeholders in the cattle breeding industry.

The objective of the ICBF is to achieve the greatest possible genetic improvement in the

national cattle herd for the benefit of Irish farmers, and the dairy and beef industries, and its

own members, by collecting, collating and distributing available information and data of

practical and scientific interest, and by promoting the exchange of all such information and

data amongst breeders of cattle in Ireland.

The ICBF delivers a public good in the area of cattle breed improvements which is the

foundation of a profitable and sustainable dairy and beef herd.

The funding model used by ICBF for many years involved one-third of income coming from

farmers, one-third from service organisations and one-third from funding provided by the

Department through an annual grant block and project- targeted support for specific

developments. The State support was grounded in the fact that prior to the ICBF’s

establishment, animal breeding research was conducted by the Department itself. This

model has served ICBF well, placing the organisation as one controlled by farmers and for

the benefit of all farmers.

The voluntary Tag levy has been a critical funding source for ICBF over many years

constituting approximately 20% of core funding, or €900,000. Recent policy changes in

relation to the approval of tag suppliers in this country and changes in Tag order forms

resulted in a significant drop in levy collection and further reductions are expected.

Discussions on a possible solution have been on-going over the past number of months. The

Department has been working with ICBF and bovine tag providers in this regard. A solution

here would maintain the general principle that ICBF should be funded by revenue collected

across the sector which benefits from its work and the current funding model. This

approach has been broadly accepted by all including farming representatives and would

involve (if agreed by all tag suppliers) that the bovine tag supply companies would make a

contribution equivalent to the previous 38c per tag to ICBF.

Some progress has been made on this matter but discussions are still on-going.

Illegal Burning of Agricultural Land

Key Points

In accordance with Section 40 of the Wildlife Act, 1976 (amended by the Wildlife

(Amendment) Act, 2000, the burning of growing vegetation is not permitted

between 1st March and 31st August each year.

Recent incidences have identified that illegal burning of agricultural and forestry land

has been carried out causing an outbreak of serious fires in a number of counties. To

date approximately 450 herd owners have been identified as being affected by this

issue. This figure is likely to change as the Department’s investigation is progressed.

Land found to have been burned during the specified closed season for burning is

considered automatically as ‘ineligible land’ under the various support schemes.

Under EU Cross Compliance requirements, where an applicant is found, at inspection

or on receipt of a Cross Report from NPWS, to have been responsible for breaching

these requirements a penalty can be applied to payments due under these schemes.

The Department has always advised farmers to remove ineligible areas from their aid

applications. A number of issues now arise where the land was burnt through no

fault of the herd owner, either through the fire being illegally started by a third party

or the fire spreading to the herd owner’s land. In these circumstances, a

determination must now be reached as to how to proceed with these cases in terms

of area reductions and/or penalties, where applicable.

DAFM Investigation

The Department recently commenced a comprehensive examination of data and satellite

imagery received from a range of sources worldwide, e.g. EU Copernicus, US NASA,

Sentinel & Radar imagery and also imagery received from the Commission for use in

Remote Sensing controls. All of this data/imagery is received at no cost to the

Department.

The aim is to produce a single map from within the Department of areas recently

burned. This then can be shared with the other State Agencies such as NPWS and Coillte.

Detailed examination of this data/imagery will allow the Department to:

Produce a set of polygons that show the impacted land;

For each polygon the aim will be to identify when the fire started (if possible), the

area impacted (digitised area), the area being paid on by BPS/GLAS, etc. and forestry

(MEA);

Produce for each burned area a list of herds and parcels impacted.

As new sentinel imagery becomes available it will hopefully allow more certainty in the

process. There may be a need to undertake some ground inspections on the identified

burnt land to verify the accuracy of the data being generated.

This examination is a very complex process and will take a number of weeks to complete.

Each case will need to be examined on an individual basis to determine the position for

the land and the applicant concerned.

EU Regulations - Key Points

(i) Eligibility of Agricultural Land

Eligible Land for Area Aid schemes is land that is used for an agricultural activity

-Art 33 of 1307/2013

Land that was burnt outside of the legal period – i.e. burnt after 1st March – is

ineligible and should not be included in an application.

- Section 40 of the Wildlife Act, 1976 (amended by the Wildlife (Amendment) Act,

2000; and Article 32(2) of Regulation 1307/2013.

Administrative penalties are applicable where the ineligible portion of the area

within a claim is greater than 3%

-Article 63 of 1306/2013.

The Department is responsible to the EU Commission to administer the Area-based

Schemes in accordance with the EU Regulations and failure to do so exposes the

State to potentially huge overpayments as a result of audit.

(ii) Exceptions

a. Exceptions may be considered by the Department in respect of ineligible land

-Art 32.4 of 1307/13 – “Areas shall be considered to be eligible hectares only if they

comply with the definition of eligible hectare throughout the calendar year, except

in the case of force majeure or exceptional circumstances”. Similar is cited in Art 33.1

b. Exceptions may be considered by the Department in respect of administrative

penalties – Art 64(d) and Art 77.2(d) of 1306 – “ No administrative penalty shall

be imposed: ....(d) where the person concerned can demonstrate to the

satisfaction of the competent authority that he or she is not at fault for the non-

compliance with the obligations referred to in paragraph 1 or if the competent

authority is otherwise satisfied that the person concerned is not at fault”;

(iii) Burden of Proof

Force Majeure -Commission Notice C(88) 1696 advises that:

“a circumstance outside the control of (the applicant) is one which is beyond his

control in the broad sense (a natural disaster, a sovereign act, a wildcat strike etc)”;

“It should be noted...that the use of the expression ‘except in case of force majeure’

has the effect of imposing the burden of proving that such a case exists on the

(traders) who rely on it.

Since cases of force majeure are an exception to the legal rules, the standard of

proof required must be at least as high as that required on the modes of proof that

the obligation has been fulfilled. Consequently, incontrovertible documentary

evidence must generally be required”.

Land Eligibility – Area-based Schemes

Article 32(2) of 1307/2013 defines an eligible hectare as follows:

For the purposes of this Title, 'eligible hectare' means:

(a) any agricultural area of the holding, including areas that were not in good agricultural

condition on 30 June 2003 in Member States acceding to the Union on 1 May 2004 that

opted upon accession to apply the single area payment scheme, that is used for an

agricultural activity or, where the area is also used for non-agricultural activities, is

predominantly used for agricultural activities;

The 2017 Basic Payment Terms and Conditions define eligible land as “land that is used

for an agricultural activity”. An agricultural activity is defined as, inter alia, “maintaining

an agricultural area in a state suitable for grazing or cultivation without preparatory

action going beyond usual agricultural methods and machineries”.

The Department’s “Guide to Land Eligibility” document clearly states that land which is

burned is not eligible as it is not in a state suitable for grazing or cultivation and therefore

not eligible for payment under Basic Payment and the various other area-based schemes.

The Department recently advised all applicants under the Basic Payment Scheme and

other area-based schemes, who have submitted their 2017 applications, that they should

review their applications and identify if their application includes land which has been

burned in the closed period and consider removing this land from their application.

GLAS

Notwithstanding all of the detail above regarding BPS land eligibility and force majeure

that apply to land in GLAS, the specific provisions under the terms and conditions of GLAS

indicate

“Where a beneficiary is unable to continue complying with the commitment(s) given for

reasons beyond his/her control, a case may be made under force majeure and the

respective payment shall be proportionately withdrawn for the relevant year(s).

Reimbursement of support paid in previous years shall not be required and payment may

be continued in subsequent years.”

Reductions/Penalties

The relevant European regulations allow for penalties not to be imposed where the

applicant can demonstrate that he or she is not at fault for non-compliance. The

regulations also provide for exceptions in relation to the land eligibility requirements in

cases of force majeure and exceptional circumstances. However the Department is

constrained by European law which requires these exceptions to be interpreted

narrowly. In the case of the eligibility requirements it would be for the applicant to

demonstrate to the satisfaction of the Department that such exceptional circumstances

arise. This may require, where appropriate, the applicant to demonstrate that all

reasonable measures have been taken to prevent such damage. The Department will

examine every such case on an individual basis to determine if these exceptions are

applicable.

Furthermore, applicants under the Basic Payment Scheme and other area-based schemes

are obliged to comply with Cross Compliance which includes requirements in relation to

the burning of vegetation and the consequential damage to designated land. Where an

applicant is found, at inspection or on receipt of a Cross Report from NPWS, to have been

responsible for breaching these requirements, a penalty can be applied to payments due

under these schemes.

Approval of Glyphosate under the Plant Protection Products Regulation

A final decision on renewing the approval of glyphosate under the Plant Protection Products

Regulation (Regulation (EC) No 1107/2009) is due to be taken by the end of 2017.

The European Commission extended the approval of glyphosate for a limited interim period

in June 2016 to allow the Committee for Risk Assessment (RAC) of the European Chemicals

Agency (ECHA) to complete an assessment to provide the legal basis for the appropriate

chemical hazard classification of glyphosate in Europe. The RAC delivered its opinion in

March 2017 and concluded that glyphosate does not warrant classification as carcinogenic,

mutagenic or toxic for reproduction. This will mean that legally glyphosate does not meet

any of the substance non-approval criteria specified in Regulation 1107/2009. The RAC

Opinion was adopted by consensus with the full support of all members.

The RAC Opinion, which is expected to be formally submitted to the Commission by ECHA in

June 2017, will provide the Commission with a scientific basis to make a final proposal about

the renewal of glyphosate under Regulation 1107/2009. The proposal will be voted on by

Member State technical experts in a standing committee meeting, with a first discussion

possibly taking place during July 2017. If, when the process concludes, any further changes

to glyphosate authorisations in Ireland are necessary the Department will take the required

action.

Key/Topical Issues - Agriculture · Key/Topical Issues 1. Priorities for 2017 - Progress Report 2....

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