The Department of Agriculture is to tell the European Commission that a further cut to derogation stocking rates will put Ireland’s grass-based dairy system at risk.

Reductions in allowable stocking rates could “result in a move away from grassland towards more cropping and indoor-bases systems”.

That is according to the draft Department report submitted to the Commission, which will be submitted in full when all compliance checks are complete on farms that applied for a 2022 nitrates derogation.

If this move towards indoor systems plays out, there will be negative consequences for biodiversity, water quality, animal welfare and climate targets, Department officials warned.

The move could be pursued by farmers going down the route of increasing yield per cow to increase output amid tightening stocking rate restrictions, the draft report states.

The report also claims that a move to confinement systems would pose risks to food security, as imported grains could replace grazed grass to boost yields.