FARM SUPPORTS/PAYMENTS AND CONTROLS
Kevin Smyth
Paul Dillon
Assistant Secretary General
Assistant Secretary General
Direct Payment Division
Basic Payment Scheme
Entitlements Division
Direct Payments, Integrated
Controls Division
-
Agri-Environment, On
Farm Investment and
Market Supports
Forestry
-
Kevin Smyth, Assistant Secretary General
Office phone No:
Mobile No:
Responsible for the following Divisions
Division
Direct Payments Division
CAP Pillar 1 – Basic Payment
Scheme
Direct Payment Division
CAP Pillar 2 Payments – Beef
Data & Genomics Programme,
Knowledge Transfer and Area of
Natural Constraint
Basic Payment Scheme
Entitlements Division
Direct Payments, Integrated
Controls Division
Head of Division
Fintan O Brien
Gordon Conroy
Bernadette Brennan
Al Grogan
Office No
Mobile No
DIRECT PAYMENTS DIVISION
Heads of Division: Fintan O’Brien and Gordon Conroy, Principal Officers
The Direct Payments Unit’s (DPU) core business is the development, implementation and
management of a number of Rural Development (Pillar 2) and Direct Payment (Pillar 1)
support schemes for the agri-food sector.
Pillar 1 – Basic Payment Scheme / Greening
Introduction
DPU has responsibility for the implementation and management of the Basic Payment
Scheme (BPS), into which the Greening payment was integrated as part of the last reform of
the Common Agricultural Policy (CAP).
2015 BPS payments
The 2015 BPS payments are ongoing and as of mid – February over €1.1 bn has been paid to
over 123,000 farmers. The BPS is directly funded by the EU, and the payment ceiling for the
2015 scheme is some €1.2bn.
2016 BPS preparations
The online application facility for the 2016 BPS opened at the beginning of March. It is
intended that advance payments will commence in mid –October. This is the earliest date
allowable under EU regulation, and Ireland is regularly among the earliest Member State to
commence BPS payments.
Increasing online applications
In 2016 DAFM is promoting greater online applications and is requiring certain categories
of farmers to apply online. Online applications have significant efficiency benefits for the
farmer and DAFM, and EU regulations require 100% online applications by 2018 (we are
currently at 93,000 or 68%).
Simplification of the CAP
Commissioner Hogan has identified CAP simplification as a key priority. To date he has
identified a series of measures that will among other things reduce the administrative
burden for farmers. These measures include the pre-checking of aid applications, a
reduction in penalties and the use of a “yellow card” system. Each of these has the potential
to impact positively on Irish farmers and they are currently being considered at Commission
level.
Pillar 2 – Schemes in the Rural Development Programme, 2014-2020 administered by DPU
Beef Data and Genomics Programme (BDGP)
The BDGP is a six year programme introduced under Ireland’s Rural Development
Programme. It builds on the success of previous schemes including the €23 million Beef
Genomics Scheme (BGS). €300m has been allocated for this scheme from the Rural
Development Programme over the 6 year period of the programme. It is intended that the
programme will improve the genetics in the beef herd, leading to greater carbon efficiency
and better profitability. A total of 26,000 farmers are currently in the scheme which is in line
with previous suckler based schemes.
Payment Rates
While it is an area based scheme the payment effectively amounts to €100 per eligible
suckler for the first 10 and €80 per suckler thereafter subject to having the required area.
Current Position
The Department commenced payments in December 2015, with further payment runs
continuing on an ongoing basis. As at end January close to 19,000 farmers had received in
excess of €33m. A budget of €52 m has been made available for 2016. This will facilitate
payment of the outstanding 2015 cases and also allow for the payment of those that verify
compliance with the 2016 requirements.
Current participation levels will result in an average annual spend of approximately €45m
from the annual budget of €52m. The under spend raises the possibility of reopening the
scheme to facilitate additional participants as requested by some stakeholders. The extent
of the under spend will be known with more clarity by the end of March when compliance
levels with the 2015 scheme requirements will be known with more certainty.
The Areas of Natural Constraint Scheme (ANC)
Introduction
The ANC scheme also forms part of the new RDP, 2014-2020 and replaces the old
Disadvantaged Areas Scheme and the Less Favoured Areas Scheme.
As with its predecessors, the ANC scheme is intended to ensure the continued conservation
of the countryside in mountain areas and other less favoured areas through the provision of
direct aid to mainly low income farmers who farm in such areas and face significant
handicaps deriving from inherent factors such as remoteness, difficult topography and poor
soil conditions.
2015 payments and future developments
2015 payments commenced in September, and to date some €200m has been paid to over
94,000 farmers. There is €202m provided in 2016 for the Scheme. There are budgetary
challenges in relation to the ongoing management of the scheme, and the allocation in the
RDP financial plan (which is separate to our national vote procedure) is €195m per annum.
Under EU regulations, the ANC scheme will undergo a fundamental restructuring in 2018.
Eligible areas for payment under the scheme will, from 2018, have to be designated on a
range of biophysical criteria such as temperature, dryness, soil drainage, moisture and
stoniness, and slope of the terrain. Work has commenced and is ongoing on this project. It is
difficult to predict the impact of this change, but it is foreseen as a fundamental change in
approach by the EU Commission and may have an impact on who will be eligible for
payment from 2018.
Knowledge Transfer Schemes (KT)
A central theme in the new RDP, 2014-2020 is the need to build on and develop the skills
and knowledge base in the agri-food sector. Accordingly, over €100m is allocated to a range
of knowledge transfer measures which are administered in DPU as follows:
a) Knowledge Transfer Groups in the beef, dairy, sheep, equine, tillage and poultry
sectors will see some 26,000 farmers upskilled. The approach builds on the previous
Discussion Group model. Launch of these KT Groups will take place in Quarter 2 of
2016, with Knowledge Transfer Meetings expected to commence from July.
b) European Innovation Partnerships (EIP) are a new measure in the RDP – essentially it
entails a range of actors in the sector coming together to develop and trial
innovative approaches and sharing the learning outcomes from same. It is expected
to launch a stakeholder event to identify priority areas for EIPs in Quarter 2.
BASIC PAYMENT SCHEME ENTITLEMENTS DIVISION
Head of Division: Bernadette Brennan, Principal Officer
Entitlements Division is responsible for the management of entitlements held by
farmers under the direct payment system of income support for farmers. The Division
is responsible for the allocation of entitlements under the Basic Payments Scheme, the
establishment and management of a National Reserve and the implementation of the
Young Farmers Scheme. The Division also has responsibility for administering the
allocation of entitlements under the Scottish Derogation.
Allocating Entitlements
In determining the number of entitlements to be allocated under the Basic Payment
Scheme, Ireland opted to use the number of eligible hectares of eligible land declared in
2013 and 2015, whichever is lowest. The ‘value’ that will be allocated to entitlements is
based on a fixed % of the value of entitlements owned by a farmer under the 2014 Scheme
year and the 2014 Grassland Sheep Scheme.
2013: Establishing an Allocation Right:
To be eligible for the automatic allocation of entitlements under the new scheme, a farmer
must have been eligible to receive a direct payment greater than €100 under the 2013
scheme year.
Convergence of Entitlements
Entitlements under the new Basic Payment Scheme are allocated to individual farmers
based on the convergence model, which means that those farmers whose initial unit value is
below the national average will converge upwards while those farmers whose initial unit
value is in excess of the national average will see a reduction to the value of entitlements in
excess of the national average. Any farmer with an Initial Unit Value below 90% of the
national average entitlements value will see the value of their entitlements increase. The
‘minimum entitlement value’ by 2019 has been set at 60% of the national average while a
‘maximum value’ will also be applied whereby no farmer will receive a payment per hectare
of over €700 by 2019. (This maximum limit will result in an estimated entitlement value of
approximately €485). The purpose of this model is to achieve a phased redistribution of
payments between those who held high value entitlements and those who held low value
entitlements under the Single Payment Scheme. The BPS National Average entitlement unit
value can only be definitely calculated when all 2015 entitlements are allocated. In this
regard a final calculation to establish a definitive set of entitlements for all farmers will take
place on the 31st March 2015. In accordance with EU Regulations, a definitive statement of
entitlements will issue to all farmers by 1 April 2016. It is necessary to retain a final payment
of 3% of payments until April 2016 until all the entitlements are definitively established.
Scottish Derogation and Fruit & Vegetable Provisions
Farmers who never held entitlements under the Single Payment Scheme, either owned or
leased, but who were actively farming on the 15th May 2013 are eligible to receive an
allocation of entitlements under the ‘Scottish Derogation’ measure of the Basic Payment
Scheme. Only persons who, on 15th May 2013, produced an agricultural product in one or
more of the sectors supported by Pillar 1 i.e. beef, dairying, sheep and arable, will be
considered as eligible. In addition farmers that were not eligible to receive a Direct Payment
in 2013 (and therefore do not have an automatic allocation right) but who produced fruits
and vegetables in 2013 are eligible to receive an allocation of entitlements under the new
reform. A minimum area of one hectare will be applied to this group.
Allocation of Entitlements under 2015 BPS Scheme
To date, 123,000 farmers have entitlements established under the new CAP reform and
have received 97% payment. There are 1,500 cases still to be processed under the 2015
Transfers measure. The remaining transfers are mainly where changes have taken place in
relation to Inheritance, change of legal entity, Partnership, Merger, Scission and Private
Contract Clause (PCC). These remaining cases require individual examination to ensure the
2013 allocation rights, the 2014 value and the 2015 eligible land are all aligned and
transferred correctly to the transferee.
The National Reserve
The EU Regulations governing the operation of the National Reserve measure of the Basic
Payment scheme provide for support for the two priority categories of ‘young farmer’ and
‘new entrant to farming’. Successful applicants receive an allocation of new entitlements
from the National Reserve on the basis of one entitlement for one hectare at the National
Average value of entitlements. Applicants who already hold existing entitlements which are
below the national average value will receive a top-up whereby the value of those
entitlements will be increased to the national average value.
For the purposes of the ‘young farmer’ priority category of the National Reserve a young
farmer is defined as follows:

must be aged 40 or less in the year in which she/he first submits an application
under the Basic Payment scheme

must be setting up an agricultural holding for the first time in his/her own name or
has set up such a holding during the five years preceding the first submission of the
BPS application

In addition, Ireland also requires that successful applicants will have completed a
recognised course of education in agriculture giving rise to an award at FETAC level 6
or its equivalent.
A ‘new entrant to farming’ is defined as:

Having commenced the present agricultural activity the 2013 calendar year or any
later year;

Not have had any agricultural activity in his/her own name and at his/her own risk in
the five years preceding the start of the present agricultural activity;

In addition, Ireland also requires that successful applicants will have completed a
recognised course of education in agriculture giving rise to an award at FETAC level 6
or its equivalent.
Eligible applicants under the National Reserve must also have an off-farm income of less
that €40,000 in either of the most recent tax years.
The Young Farmers Scheme
The definition of a ‘young farmer’ for the purposes of eligibility for the Young Farmers
Scheme is the same as that which applies to the ‘young farmer’ priority category of the
National Reserve.

A young farmer will receive the payment under the Young Farmers Scheme for a
maximum period of five years. The ‘five years’ is dated from the year of setting up of
the holding in his/her own name (i.e. from when the young farmer is allocated a
herd-number). A young farmer who established his holding after 15 May 2014 would
receive the full five years of the Young Farmers payment.

The Young Farmers Scheme payment will be issued on a maximum of 50
entitlements.

Ireland has selected the method of calculation which will give the maximum
payment possible. The payment will be calculated as 25% of the national average
payment per hectare which we estimate will give a payment of approximately €66
per entitlement held by the young farmer.
DIRECT PAYMENTS, INTEGRATED CONTROLS DIVISION
Head of Division: Al Grogan, Senior Inspector
The Integrated Controls Division has responsibility for the implementation of the
national inspection programme for the Basic Payment and other Direct Payment
Schemes under Pillar 1 and the Areas of Natural Constraints Scheme under Pillar 2.
The inspection programme covers all on the spot inspection requirements in respect of:

The Basic Payment Scheme

Cross Compliance

Greening,

the Young Farmer Scheme,

Areas of Natural Constraints Scheme, the

Beef Data Genomics Programme and

Local Authority Nitrates Inspections.
In addition the Division has responsibility to ensure that a fully informed and EU audit
compliant Farm Advisory System in place to deliver accurate and up-to-date advice to
farmers as provided for in the Direct Payment Regulations.
Background
Under Article 74 of Regulation 1307/2013 each Member State is required to carry out
controls to verify the eligibility of an applicant’s claim for aid. Member States are required
to carry out administrative checks, and in addition must select a minimum number of cases
for an on-the-spot controls in respect of the eligibility of declared lands. Member States may
use remote sensing by satellite to carry out the on-the-spot checks. In addition under Article
96 Member States must carry out on-the-spot checks to verify compliance with the rules on
cross compliance. Cross compliance is composed of thirteen Statutory Management
Requirements (SMRs) relating to public, animal and plant health, the environment, climate
change, animal welfare. In addition it covers compliance with seven standards relating to
Good Agricultural and Environmental Condition (GAEC).
Inspections
Under the new CAP, applicants can be selected for a range of inspection types in any given
year. A cascade approach is taken in selecting farms for inspection using a combination of
random and a risk based selection process. This cascade approach provided for in the
regulations and while normally resulting in more than one inspection type per farm reduces
the number of farms to be visited and consequently the costs associated with inspections.
Under the reformed CAP, additional inspections for Greening, the Young Farmer Scheme
and the Beef Data Genomics Programme in addition to the normal land eligibility, cross
compliance and areas of natural constraints inspections are required.
Land eligibility and cross compliance inspections are the more sensitive inspections which
account for most of the financial sanctions or reductions applied. The cross compliance
checks are separate from land eligibility checks and cross compliance sanctions are applied
as a percentage reduction on the direct payment. It is a requirement that all eligibility
checks are conducted prior to the issue of payment to any applicant. In contrast, cross
compliance inspections must be conducted throughout the year and payment can issue to
applicants prior to the completion of all inspections.
Land Eligibility inspections
In the first instance it is a requirement that DAFM carries out standard land eligibility checks
on 5% of farmers applying for direct payments. These can be conducted by remote sensing
or by a ground inspection. Eligibility checks are required to ensure that payments are only
made on land meeting agricultural area standard and being maintained in an eligible state.
Ineligible areas must be deducted to determine the eligible area upon which payment can
be made. In view of the scale of payment, Ireland is regularly audited both by the
Commission and the Court of Auditors to confirm compliance.
Cross compliance checks
The rate of on-farm inspection required for cross compliance is 1% of those farmers to
whom the Statutory Management Requirements or GAEC apply and are beneficiaries of
direct payments. However at least 3% of producers must be inspected under the Bovine
Animal Identification and Registration requirements as this level is prescribed under the
relevant Regulations. In the sheep sector 3% of producers must be inspected annually
comprising of 5% of animals.
Cross compliance involves two key elements:

A requirement for farmers to comply with 13 statutory management
requirements (SMRs) set down in EU legislation in respect of the environment,
(including the Nitrates Directive), climate change, public, animal and plant health
and animal welfare
and

A requirement to comply with the seven standards of good agricultural and
environmental condition (GAEC) provided for in the regulations
Under the cross compliance requirements, the nitrates provisions account for significant
non compliances. DAFM, as the Department with the necessary skills, conduct nitrates
inspections on behalf of the local authorities.
Farm Advisory System (FAS)
Ireland has an excellent farm advisory system provided both by Teagasc and private
agricultural consultants. The Department organises training for these advisors on the Farm
Advisory System requirements with particular emphasis on the Cross-Compliance
requirements and this is provided annually by DAFM staff. The training provided covers all
the Statutory Management Requirements (SMRs) and Good Agricultural and Environmental
Condition associated with cross-compliance together with the land eligibility requirements,
under the new CAP.
ISSUES
Resource levels
Increased inspection requirements under new CAP within a constrained inspection resource
has resulted in a carryover of 2015 inspections into 2016 which could create audit concerns
in the future. It has also resulted in the increased use of remote sensing in cases where a
ground inspection is the most appropriate method. Ireland will have to reduce its reliance
on remote sensing as it currently poses a serious audit risk.
Number of farm visits (Integrated Inspections)
The farm bodies continue to be concerned by the inspection levels. The new cascade
approach helps to minimise the farm visits which the farming bodies are happy with.
Notice of inspections
Inspection notice has been an ongoing concern. While certain requirements must be
conducted unannounced, agreement has been reached in negotiating the latest farmers
charter on a method of managing those inspections where a notice period is provided for.
Paul Dillon, Assistant Secretary General
Office phone No:
Mobile No:
Responsible for the following Divisions
Division
Agri –Environment, On Farm
Investment And Market
Supports
Head of Division
Miriam Caldwell
Ronan
O’Flaherty(w/s)
Liam Fahey
Forest Service
Bridgeena Nolan
Forest Sector Development
Eugene Hendrick
Forest Service – International
Stephen Fitzpatrick
Forestry Inspectorate
Seamus Dunne
Office No
Mobile No
AGRI –ENVIRONMENT, ON FARM INVESTMENT AND MARKET SUPPORTS
Heads of Division: Ronan O’Flaherty (w/s) and Miriam Cadwell, Principal Officers and
Liam Fahey, Senior Inspector
Agri-Environment: To develop policy in regard to Agri-environment, Organic and
Early Retirement Schemes and implement all related schemes in an effective and
efficient manner.
On Farm Investment: To develop policy in regard to On-Farm Investment (OFI)
Schemes and manage Implementation of all such Schemes
Market Supports: To implement EU market support schemes in accordance with EU
and national regulations in a manner which provides for an effective customer
service and allowing for clear accountability.
AGRI ENVIRONMENT
GLAS
The introduction of this new agri-environmental scheme has been a major success, with a
total of 38,000 farmers approved into the scheme to date over the first two tranches - a
record number of entrants to any agri-environment scheme in a single year. Our objective is
to have a third tranche in 2016, bringing the total participation level to some 50,000
farmers. This will equate to annual payments of at least a quarter of a billion euros every
year when the scheme is operating at full capacity. GLAS is a much more targeted scheme
than its predecessors and the environmental benefits for biodiversity, water-quality and
climate change mitigation will be significant.
The tiered system represents the
categorisation of applications into three tiers or levels based on environmental benefits and
prioritise environmental assets on the holding over actions to be taken on the holding.
GLAS 1
26,935 applications of which 26,263 approved. Tier breakdown as follows: Tier 1: 10,919,
Tier 2: 6,290 and Tier 3: 9,054). 400 rejection letters also issued in respect of applications
which did not meet the minimum criteria for the Scheme;
GLAS 2
14,041 applications of which 11,500 approved or pending approval. To date the Tier
breakdown of approved applications is as follows: Tier 1: 6,838; Tier 2: 4,035; Tier 3: 351. In
addition the Department is currently reviewing a further 400 applications with a view to
making a final decision on their eligibility into the Scheme. All available places were taken
by Tier 1 and Tier 2 applications, with Tier 3 intake confined to new entrants and
partnerships, who were unable to apply online under GLAS 1 due to technical issues. To date
there are 7 applications which failed Scheme validation checks and 2,265 Tier 3 applications
which were not selected as all available places had been taken by higher ranking
applications.
Process for those not selected under GLAS 2
We are required in every instance to prioritise Tier 1 above Tier 2 and Tier 2 above Tier 3.
Anyone who was not selected this time is perfectly free to submit again in the autumn, and
indeed to revisit their application to see can they take the actions required to promote
themselves to a higher tier. If there are insufficient applications in Tiers 1 and 2 to fill the
places available, then applications from Tier 3 come into play. The Department has fully
allocated the available budget for GLAS for 2016 (average cost of a GLAS 2 plan was
significantly higher than GLAS 1: €4,600 versus €4,200).
GLAS 3
GLAS 3 will be launched later this year and the contracts will start in 2017. Applicants who
have been unsuccessful in Tranche 1 or Tranche 2 can reapply under Tranche 3. When fully
subscribed, the total GLAS spend will be €250 million per annum.
GLAS Plus
Nearly 1,500 out of first tranche qualified for GLAS Plus, and 1,000 out of second tranche.
Most will receive between €6,500 and €6,800 per annum.
Payments to date
Payments in 2015 amounted to €11.5m, being a part-year, part-payment only for those
approved GLAS participants with a 1 October start date. Projected expenditure in 2016 is
€136m (an additional €5m will also be paid out in respect of GLAS-related training, mostly to
farmers).
AEOS/REPS
Both schemes closed. Payments in 2015 amounted to €80m for AEOS and €30m for REPS.
Projected expenditure for 2016 is €40m for AEOS (residual payments on REPS only – less
than €100K).
Organics
The new Organic Farming Scheme was launched in April, 2015 with a budget of €52 million.
It provides for significantly increased rates of payments to all Organic Farmers.
The new scheme has been hugely successful since its launch, attracting 870 applications in
its first tranche and 330 applications in its second tranche. To put this in context, the
highest number of applications ever received previously was 380 applications in 2010.
In addition, over 650 of the 1,100 applicants are new entrants to organic farming. The
highest number of new entrants to organic farming heretofore was 158, in 2009. By any
standards, the new scheme is a major success and we have already met most if not all of our
targets for the entire RDP period in the response to these first two tranches of applications.
Payments to date
Payments in 2015 amounted to €8m. Projected expenditure for 2016 is €11m.
Locally-led schemes
These schemes promote local solutions to specific environmental issues and complement
the much more broadly-based GLAS measure. A total budget of €70m has been made
available over the period of the RDP.
The expansion of the Burren conservation scheme is the first such locally-led scheme and
farmers will be recruited into it in 2016. Over 400 applications were received by the closing
date of 21st December, 2015. As projected, some 200 of these have been accepted into the
scheme from 1 January 2016 for a five year contract period. Further tranches will increase
participation to at least double that number. Projected expenditure in 2016 is some €1m on
the Burren.
Other projects which will in due course be funded include a specific complementary hen
harrier scheme for farmers with large tracts of hen harrier land and a specific Freshwater
Pearl Mussel scheme. The possibility for early introduction of an uplands peat measure is
also being examined.
We would hope to see the hen-harrier scheme open for applications in the latter half of
2016, along with the Freshwater Pearl Mussel Scheme, while a call for proposals for upland
projects should also be launched. However, all of this is subject to ongoing negotiations
with the European Commission, which are underway at present.
ON FARM INVESTMENT
In relation to on farm investment, the full suite of new TAMS measures was launched in the
middle of 2015. The schemes available are:

Young Farmers Capital Investment Scheme (YFCIS)

Dairy Equipment Scheme

Organic Capital Investment Scheme

Capital Investment scheme for the Pig and Poultry sectors (PPIS)

Scheme to encourage the Purchase of Low Emission Slurry-spreading Equipment
(LESS)

A broad scheme of investments covering Animal-Housing, Welfare, Slurry Storage,
and Safety Equipment. (AWNSS)
In addition, a formal amendment to the Rural Development Programme has been submitted
seeking Commission agreement to the introduction of a new Tillage Scheme, as well as
approval to add Sheep Fencing to the list of other investment items included under the
various TAMS schemes.
A total of €395m has been made available to Irish farmers under the terms of these new
schemes and all schemes are open for online application.
Interest in TAMS to date has
exceeded expectations with a total of 2,969 applications. These are being examined and
approvals are issuing on an ongoing basis, but priority has been given to dairy-related cases
where facilities and equipment urgently required to be put in place. Applications for Low
Emission Slurry Spreading equipment are also being prioritised now, as most of these
directly link to GLAS plans and are needed as soon as possible. Breakdown by scheme
follows:
YFCIS
Dairy
LESS
AWNSS
PPIS
Organic
No of Applications
513
1075
194
938
57
192
Approvals issued
147
784
191
0
0
0
Balance
366
291
3
938
57
192
Payments to date
Expenditure in 2015 (TAMS 1) amounted to €25m. Projected expenditure in 2016 is €35m.
MARKET SUPPORTS
Aid to Private Storage (APS) and Intervention
The Division operates two principal means of market intervention, i.e. Aids to Private
Storage and Intervention Purchasing.
Due to the ongoing depressed world market situation for dairy products, intervention
measures for Skim Milk Powder were activated in Ireland in August 2015 and intervention
continues to be offered. See table below.
Intervention Butter – the butter prices are still 25% above the intervention ceiling, but as
the dairy market continues to fall, butter intervention may begin later in 2016.
Aid to Private Storage (APS)
Pigmeat
Intervention
1,575.6 tonnes put into storage
Nil
Scheme suspended on 21/1/2016. It is
likely that Pigmeat APS will reopen
during 2016.
Cheese
Scheme
introduced
on
19/10/15.
Ireland received an allocation of 1,835
Nil
tonnes, all of which was taken up
Skimmed Milk
7,500 tonnes in storage. No SMP put
6,000 tonnes in storage.
Powder (SMP)
into storage since November 2015
Expect similar quantity to be
offered
in
Q1
2016.
Suggestions that a further
20,000
tonnes
will
be
offered into Intervention in
the first half of 2016.
Licensing and Export Refunds
Under CAP Regulations, import licences are required for certain agricultural products
imported from outside the EU. The principal commodities for Ireland are poultry, cereals
and rice.
17,592 import licences were issued in 2014 which represents an increase of 34% over 2013
figures. This was mainly due to new poultry products requiring licences and new companies
applying for poultry import tariff quota licences. Export licences were issued for cheese to
the USA and Canada and also for milk powder to the Dominican Republic.
Export refunds for all products are zero-rated and the export refunds instrument is likely to
be eliminated in the future.
FORESTRY
Heads of Division: Bridgeena Nolan and Stephen Fitzpatrick, Principal Officers and Seamus
Dunne and Eugene Hendrick, Senior Inspectors
The strategic goal for forestry in Ireland is to ‘To develop an internationally competitive
and sustainable forest sector that provides a full range of economic, environmental and
social benefits to society’.
Introduction
Forestry is playing an increasingly important economic, environmental and social role. The
forest industry, comprising the growing, harvesting and processing of forest products makes
a significant and increasing contribution to the Irish economy. The direct and indirect
contribution to the economy has been calculated at €2.2 billion with some 12,000 jobs
dependent on the sector. Timber production currently stands at just over 3milllion m3 per
annum, almost 20% of which is produced from private land owners.
Forests currently account for 10.8% of the land area of the country and, as outlined above,
support a vibrant, export-oriented forest products sector. The Department’s role is to assist
in the development of the Irish forest industry and its work in this area is undertaken by
four Divisional areas, namely:

Forestry Division;

Forest Service Inspectorate;

International Forest Policy Division, and

Forest Sector Development/COFORD
FORESTRY DIVISION
The Division is responsible for the development and implementation of forest policy, as well
as the administration of various schemes that provide funding for the planting and
maintenance of forests and for the development of forest roads. It also implements the
provisions of forestry legislation in relation to the control of felling as the Department is the
relevant regulatory authority under that legislation. Responsibility for Coillte also falls within
the remit of the Department with the corporate governance duties in relation to Coillte
undertaken by Forestry Section. Forestry Division is also responsible for the implementation
of EU Environmental Directives as they pertain to forests and forestry operations.
FOREST SERVICE INSPECTORATE
The Inspectorate is divided into the North, South and West Regions (each containing a
number of District Inspectors and supported by an Ecologist and Archaeologist), Forest
Health, Survey & Controls, and Forestry Inventory & Statistics. Working alongside the
Administrative Division, the Forestry Inspectorate is responsible for the technical
assessment of all applications for afforestation, forest roading, felling, aerial fertilisation,
etc., and for implementing necessary measures under the various legislation applying to
forestry, forest protection and forest reproductive material, and for directly overseeing
particular areas such as the National Forest Inventory. The Inspectorate also provides
technical input into the development of policy, legislation and support measures.
INTERNATIONAL FORESTRY DIVISION
The Division has responsibility for a wide range of policy issues at both European (including
EU) and international level.
At national level, the Division is responsible for the
transposition of appropriate EU legislation into Irish law. It also represents Ireland at various
EU fora, including the European Council Working Party on Forestry, the Standing Forestry
Committee and the European Union Timber Regulation (EUTR)/ Forest Law Enforcement,
Governance and Trade (FLEGT) Committee. Furthermore it also represents Ireland at various
international fora beyond the European Union such as the pan-European Forest Europe and
the relevant United Nations groups, such as United Nation Forum on Forests and the Food
and Agriculture Organisation (FAO).
In addition, the Division is designated as Ireland’s national Competent Authority for
implementation, governance and enforcement of the FLEGT Regulation and the EUTR, both
of which are aimed at combating the global scourge of illegal logging and its underlying
negative effects on the environment, human well being and greenhouse gas emissions.
FOREST SECTOR DEVELOPMENT/COFORD
The Division dealing with Forest Sector Development/COFORD is another separate
administrative area dealing with forest sector development, including wood supply and
demand, wood product development, forest statistics, as well as climate change and
renewable energy issues as they relate to forestry. This area also deals with the COFORD
Council, a representative body from the forest sector, which acts in an advisory capacity to
the Department on the areas of forest sector development and research.
ISSUES
Forestry Programme 2014-2020 including funding
The Forestry Programme 2014-2020 offers an ambitious and attractive set of forestry
measures aimed at increasing timber production while at the same time improving the
quality of the natural environment. The achievement of these objectives involves the
commitment of €482 million to underpin the Forestry Programme over its duration. This
level of investment will facilitate an increase in forest cover by almost 44,000 hectares and
will provide funding to build 700 kilometres of new forest roads. Funding for forestry
development is 100% State Aid and is EU approved under the Forestry Programme 20142020.
Afforestation levels and targets
The forest policy review “Forest Products and People, Irelands Forest Policy – a renewed
vision” published in 2014 was a key driver in the preparation of the Forestry Programme.
This policy document and “Food Wise 2025” have set out a number of recommendations
including expansion of the forest area to 18% of land area by mid century, to be achieved by
an annual afforestation target of 15,000 ha/annum. However, on the basis of current
demand for afforestation and the available budget, the target for afforestation as set out in
the Forestry Programme is just over 8,000 hectares per annum by 2020. Afforestation levels
over the last number of years have averaged 6,400 hectares per annum i.e. 6,653 hectares
in 2011; 6,652 hectares in 2012, 6,252 hectares in 2013, 6,156 hectares in 2014 and 6,293
hectares in 2015.
The increased emphasis on planting targets is seen as important in the further development
of the forest processing and wood fuel industry in order to maintain a level of roundwood
production which is forecast to reach close to 6 million cubic metres by 2030, about double
the current level. Historically the State, through its ownership of Coillte, a commercial State
company, played a very significant part in meeting the planting target for the country.
However, Coillte was deemed ineligible in 1999 from receiving premiums and they no
longer plant new forests to any great degree. Planting by private individuals currently
accounts for almost 100% of all new forest plantings.
An ongoing challenge is the promotion of afforestation. Ireland has one of the lowest levels
of forest cover in Europe at 11% as opposed to the EU average of 37%, notwithstanding that
average tree growth in Ireland for certain species is almost double that found in some parts
of Europe.
A report prepared by Teagasc for the Department1 found that the main barriers to planting
forestry were the long term nature of forestry, land is considered too good for planting,
others want to farm for as long as possible regardless of the potential for better returns
from forestry and, once the land is planted, there is an obligation to replant and keep the
land in forestry.
Another ongoing challenge is the mobilisation of the private timber resource. The sawmills
and timber processors require a consistent supply of quality timber to serve their markets;
however, a consequence of the shift of new forest planting from the public sector (i.e.
Coillte) to the private sector is that private forest owners may not be as proactive in
thinning their forests and therefore require encouragement to do so. The formation of
forest owner and producer groups in recent years has addressed this need while the
Teagasc Forestry Development Department play an important role in the provision of
independent forestry advice and training to forest owners. The current good timber prices
may also act as an incentive.
1
An Examination of Studies of the financial and attitudinal factors affecting the farm afforestation decision
Climate Change mitigation and forest-based biomass
Ireland’s forests play an important role in helping with climate change mitigation, through
carbon sequestration in forests and the provision of renewable fuels and raw materials. At
the twenty-first session of the Conference of the Parties (COP21) held in Paris in December
2015, the EU committed to reducing greenhouse gas emissions by 40% by 2030 and
negotiations between Member States on burden sharing will commence shortly. Following
these negotiations, Governments of Member States will draw up their own plans to meet
national commitments and these plans will involve trade-offs between various domestic
sectors. While all sectors will have to produce less greenhouse gases, Ireland is hoping that
its efforts to plant more trees will be recognised as a way of offsetting emissions from
commercial agriculture. Irish forestry is a major carbon sink and afforestation is the most
significant mitigation option that is available to Ireland’s land use sector. The role and
contribution of forests to meeting greenhouse gas emission reduction targets is currently
under discussion with the European Commission, in the context of the forthcoming legal
proposal on the Community Framework to 2030. If the role of forestry is recognised in
offsetting emissions, Ireland could well be on track to meet its 2020 obligations.
Forest Health
a) Chalara fraxinea (Ash Dieback disease)
Chalara fraxinea, or ash dieback as it is commonly known, is a relatively new disease which
affects ash trees with Ireland’s first positive finding of Ash dieback confirmed in October
2012. There are currently confirmed findings of the disease in 115 forest plantations
distributed over 19 counties. In 2015, there were some 52 individual positive samples from
trees in native hedgerows and some 76 individual positive samples from trees in roadside/
motorway landscaping plantings. There are currently confirmed findings of the disease in
native hedgerows in 12 counties and confirmed findings of the disease in roadside/
motorway landscaping plantings in 13 counties. Taken together, this means that, in terms of
forestry plantations, private gardens, roadside/ motorway landscaping plantings, and farm
landscaping/agri-environment scheme plantings, the presence of the disease has been
confirmed in 24 of the 26 counties in Ireland.
In terms of controlling the disease, arrangements have been put in place to remove all ash
trees from the forest sites where the disease has been confirmed and from the associated
sites where trees from the same infected batches have also been planted. A Chalara
Reconstitution Scheme was launched in March 2013 to help forest owners affected by ash
dieback to carry out this work. Under the Scheme, a grant of up to a maximum of €1,500 per
hectare is available to cover the cost of clearing the site. Additional funding is also available
to cover the cost of replanting with an alternative species. By the end of 2015, the
Department had spent just short of €2.6 million on eradication and replanting efforts in
young forestry plantations affected by the disease under the Scheme.
The impact or implications of the presence of Ash Dieback is the loss of ash plantations,
which has implications for the individual forest owners and nationally in terms of reduced
supply of ash for timber processing and hurls.
b) Phytophthora ramorum forest disease
Phytophthora ramorum is a highly contagious disease of tree and shrub species which was
first identified in the mid 1990s. The first finding of the disease in Japanese larch in Ireland
was in 2010. Since then, the Forest Service has continued to conduct annual ground and
aerial surveys of larch with the assistance of the Air Corps and Coillte. At the start of 2015,
the disease had been confirmed present in Japanese larch at 44 locations, up from 26 at the
start of the previous year. By the end of 2015, the disease has been confirmed present at an
additional 3 locations, bringing the total number of confirmed locations in Ireland to 47, and
affecting approximately 311 hectares of forestry. These sites are mainly in the south-west,
south-east and east of the country.
Since 2010, the Forest Service has worked with Coillte (as the principal landowner affected)
in undertaking sanitation felling of infected larch in an effort to limit spread and continues
to do so. Four statutory disposal notices were issued in 2015 in relation to forest properties
infected with the disease. Other tree species have been affected at these Japanese larch
sites including beech, noble fir and Spanish chestnut. Invasive wild rhododendron where it is
infected is a major source of inoculum. Although relatively speaking, there has been a lower
incidence of new findings of the disease detected across the island during 2015, the
situation continues to be worrying.
Commencement of Forestry Act 2014
New forestry legislation to replace the Forestry Act 1946 was enacted in October 2014. The
regulation needed to facilitate the commencement of the new legislation i.e. the Forestry
Act 2014 is nearing completion. Work is concurrently progressing on the new felling
requirements and processes for the new system of licensing arising from the Act. It is hoped
to complete this process in the near future thereby facilitating the commencement of the
Act.