Briefing to Fresh Milk Producers

Thomas Ryan Fresh Milk ProducersIFA Environment Executive Central Executive

Irish Farm Centre

14th March 2018

2

Topics

• CAP Update

• Outcome of nitrates review

• Smart Farming

• Renewables – what’s new?

3

4

5

Tassos Haniotis Director, Strategy and Policy Analysis, DG Agriculture, European Commission, Agriculture

“Maintaining expenditure levels of around EUR 400 billion5 over the period for the

Common Agricultural Policy, corresponding to approximately 37% of the current

Multiannual Financial Framework, would through better targeting allow support in

particular for small and medium sized farms to be increased with positive knock-on

effects for rural areas.

A reduction of support for the Common Agricultural Policy by 30% would represent

around EUR 120 billion over the period of the next Multiannual Financial Framework,

or approximately 11% of the current Multiannual Financial Framework. This scenario

could see average farm income drop by more than 10% in a number of Member States

and potentially more pronounced income drops in specific sectors.

A reduction of support for the Common Agricultural Policy by 15% would represent

around EUR 60 billion over the period of the next Multiannual Financial Framework, or

approximately 5.5% of the current Multiannual Financial Framework. In this scenario,

the reduction of average farm incomes would be more limited but could still have a

noticeable impact in certain sectors depending on the choices made.”

9

10

Consultation themes

• Simplification• Direct Payments• The Environment • Risk Management• Young Farmer Support• Research, Innovation, Technology transfer• On Farm Investment• Strengthening the socio-economic fabric of rural areas• Health, Nutrition, Food Waste and Animal Welfare• Position of the Farmers in the Supply Chain

Key issues - 1

• CAP Budget – An increase in the MFF up to 1.2% of GNI (EU Gross National Income).– CAP Budget has to increase in line with this and the recovery and growth in

European economy.– Any shortfall from Brexit must be made up in full by Member states.– Any proposals to finance new EU measures (migration, defence) – must

involve new funding – CAP budget must protected.

• Farm Incomes and Direct Payments– Direct payments are critical to farm incomes– Payments on average make up 75% of farm incomes– Ranging from 38% on dairy farms to 115% on cattle rearing farms. (Teagasc

NFS)– Targeted payments for vulnerable sectors – sucklers, sheep.– No leakage of farmer direct payments to non-farming professionals.

• Importance of strong Pillar 1 and Pillar 2(RDP) structure.• Importance of continued, well funded market management/support

mechanisms for sectors subject to price volatility

Key issues - 2• Active Farmers

– Direct payments should go to active farmers based on objective criteria (agricultural production and provision of public goods)

• Simplification – Real simplification at farm level is essential. – The cross compliance and inspection regime must be simplified

and subsidiarity (allowing member states draw up their own rules) must provide this opportunity.

– Close-out approach instead of automatic penalty system

• Young farmers and generational renewal– Young farmers and new entrants must be encouraged – National

Reserve and Young Farmer Top Up. Installation aid.– CAP must assist farmers who wish to retire. – Government role in Taxation and Social protection policy.

4th Nitrates Action Programme 2018 -2021

N & P Trends in Rivers

Nitrogen

Phosphorus

Water Quality

• Issues in hot spot areas

• Soils, geology and rainfall important factors

• 43% of monitored river water bodies < good ecological status, 1,015 river water bodies

• “Dairying intensification is a major challenge”

6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

2011 2012 2013 2014 2015 2016 2017

Total bovine herd

Total herd

Herd Summary

• Total herd 7.4m (June ‘17)

• Last 7 years (+13.4%)

0

500

1000

1500

2000

2500

3000

2011 2012 2013 2014 2015 2016 2017

Cow Numbers in June ('000 Head)

Cows

Dairy cows

Other cows

Cow summary

•Dairy cows (+28%)

• Sucklers (-4%)

Irish soil fertility trends

10% of soils good overall fertility

62% very low to low P status

Lime usage - fallen significantly

New water protection measures

Exclusion of bovines from watercourses

Fence 1.5m from top of watercourse bank

Water troughs set back 20m + from watercourses

Both measures effective from 1st January 2021

For grassland stocking rate >170kgs/ha

Accounts for 12,350 farms and 1/3 of national bovine

New water protection measures

Prevention of direct runoff from farm roadways to waters

• Average length of farm roadway is 1.4km – dairy farm

• Effective from 1st January 2021

• DAFM specifications

Prevention of run off resulting from poaching

• Livestock management

• Preventing nutrient and sediment loss

• Brings GAP regs in line with GAEC

Soil Analysis

• Reduced area and increased frequency

• Previously soil sample per 8 hectares every 5 years

• Now 5 hectares every 4 years

Phosphorus build-up

• Currently 62 % of Irish soils in P index 1 and 2

• New build up rates for farms > 130 kg N/ha stocking rate

– New table 13B (P build up)

– Index 1 – extra 30 kg P/ha/year

– Index 2 – extra 20 kg P/ha/year

• Built in safeguards to prevent P transfer to water

- NMP

- KT

- Four year programme

P Build-up

• Farmers availing of P build-up allowances required to participate in new KT programme

– Soil analysis incl SOM unless mineral soils, NMP

– One-to-one contact with agricultural advisor

– Attendance at training

– Farm safety

Nitrates Derogation

2014 2015 2016 2017

No. Derogation Farms 5,800 6,300 6,800 7,000

Area under Der. Farms (ha) 332,200 351,900 409,800 432,300

Average Farm Size (ha) 58 56 60 62

Livestock Units/ Der. Farm 139 146 149 157

• No. der. farms increased 20% from 2014 to 2017• Area under der. farms increased by 30%• Livestock units/ der. farm increased by 13%

Derogation

The new conditions applying for derogation -

• 50% of all slurry produced on a derogation farm must be applied by the 15th June annually. After this date slurry may only be applied using low emission equipment.

• Derogation farmers must have sufficient storage for all livestock manure and soiled water produced on the holding.

Possible challenges for farming in the future - Teagasc

– Protected Urea for farmers using high fertiliser N rates from 1st January 2021 (Ministerial decision)?

– Could normal urea be banned in the future? (Germany & France)

– Could CAN be banned due to GHG’s?

– Will grants/build still be available for uncovered tanks due to emissions?

– Derogation limit down to 210Kg’s N/Ha? (Or no Derogation Agreed)

– Limit on Number of dairy Cows/Herd number?

– Dairy cow = 85kgs N/head Ireland (110kgs N/Head Denmark)?

– Denmark 2 year derogation? Dutch culled 50,000 cows

– Restricted expansion in areas of bad water quality/perfect water quality?

26

2017 – Results

27

Seminar

• April 10th 2018

• Midlands Hotel (formerly Heritage Hotel) Portlaoise• 2pm – 6pm• Soil Fertility, Grassland, Energy and Feed Management • Speaker include:

• David Wall (Teagasc), Karina Pierce (UCD) • Clodagh Cavanagh (Abbey Machinery) • Liam Sheedy (Bank of Ireland and former Tipperary Hurling

Manager)

28

Renewables electricity

• 25,000 acres of land under some from a solar contract• Over 5GW of energy

• Proceed with caution• No price support currently

• Auction system?• CRU no longer accepting grid applications• Role of communities

• Good sound legal advice required

• Pilot Roof-top scheme • Summer 2018?• Energy consumed on-farm?

Thank You

Key issues - 3

• ANC’s– ANC’s must be adequately funded – restore all cuts

– 2019 Review of areas must ensure all areas are protected and payment rates reflect the Natural handicap.

• Environmental

– Agri- environment scheme with potential to draw down up to €10,000.

– Higher payments for farmers with designated lands where severe restrictions apply.

– Maximising the uptake of existing measures

4th NAP

Strong action programme

– New measures breaking the loss pathway

– Addressing soil fertility

– Simplification

– KT

Change to timing of P application on winter cereals

• Application of 20 kg P/ha on index 1 or 2 soils up to 31st October

– Must be incorporated at or before sowing time

– Only on index 1 and 2 soils

Change to vegetable allowances

• Potato and vegetable allowances updated

• N and P limits brought in line with Teagasc Green Book 4th Edition 2016

• Small areas – approx 0.3% of total farmed area

Transitional Provisions

• Allowed for the application to land of phosphorus in excess of crop requirements, provided that the excess arose from the application of spent mushroom compost or manure produced by pigs or poultry

• Finished in 31 December 2016Date Excess Phosphorus (kg/ha)1 January 2013 51 January 2015 31 January 2017 0

• Initiatives in 2017 to encourage use of pig manure- Promotion by Teagasc of value of pig manure- Text messaging farmers within 30 km of pig farmers

Proposed 4th NAP measure to replace transitional provisions – not acceptable to Commission

• Importing pig slurry above 170 kg N/ ha limit proposal

• For farmers with stocking rate >130 kg/ha

• Low emission slurry spreading

• Optimise pig slurry to displace chemical P

Fourth NAP - Transitional arrangements for pig manure

Date Excess phosphorus (kg/ha)

I January 2017 3

1 January 2018 3

1 January 2019 2

1 January 2020 1

1 January 2021 0

Simplification

Facilitate better understanding of requirements, improved implementation

• Simplification of calculations for max N and P allowances

– Removal of requirement to deduct N & P in grazing livestock manure in storage period

• Basing nutrient management plans on previous years stocking rate data

Sustainability Support and Advisory Programme

• Establishment of a Sustainability Support and Advisory Programme for farmers

• Collaborative, whole-of-government and whole-of-sector response to challenges

• Aimed at driving behavioural change towards best sustainable practices

• Focus on prioritised Critical Source Areas (CSAs) on farms

• Unique & innovative approach

Department of Housing, Planning and Local Government Department of Agriculture, Food and the Marine

Local authorities Teagasc

Environmental Protection Agency Bord Bia

Dairy Co-ops Farming bodies

nitrates@agriculture.gov.ie053-9163444

Nitrates action programme (NAP)Main measure to prevent pollution of water from agricultural sources under the WFD

Max 170 kg manure N/ha

closed period for spreading of organic and chemical fertilisers

Max N and P fertilisation rates Minimum manure storage requirements

‘Maintain buffer zones adjacent to watercourses

Green cover requirement on tillage crops

Bovine herd expanding Derogation farms must soil sample and get NMP

Derogation farm Max 250 kg

manure N/ha

Nitrates Action Programme (NAP) Review

• Review Group– Department of Housing, Planning and Local Government,

– Environmental Protection Agency,

– Department of Agriculture, Food and Marine,

– Teagasc

• Public consultation

• Expert group report https://www.agriculture.gov.ie/ruralenvironment/environmentalobligations/nitrates/

• New Nitrates Regulation (2018-2021)

- S.I. No. 605/2017

New water protection measures

• Soil OM testing in designated peaty areas

(Teagasc – EPA subsoils map) unless using index 3

• Minimising the risk of P losses from risky peaty soils