“We haven’t seen this level of interest in organic farming since Minister Trevor Sergeant was championing the sector” – that was one of the first comments when we started asking about the huge interest in organic farming emerging this spring.

Teagasc and the Organic Certification Bodies are predicting that anywhere from 300 to 500 new farmers could look to join the new organic farming scheme when it opens in mid-April. Given that the number of organic farmers has been hovering around 1,200, it would be a big percentage increase.

Organic farmers can get priority access to GLAS under tier 1. However, that is not the main reason for the interest. The Organic Farming Scheme (OFS) is a separate scheme under the Rural Development Plan with a budget of €56m. We are awaiting the final details but it is clear that there will be much higher payments for fully organic farmers and more targeted payments to encourage sectors such as horticulture and tillage.

The likely payments per hectare are shown in table 1. While the payment for two-year conversion period is similar to before, there is a 60% increase in maintenance payments from €106/ha to €170/ha up to 60ha. This lifts an organic farmer with 40ha from a payment of €4,240 to €6,800 a year. It’s a 60% boost worth €2,560.

Given that we import so many organic vegetables, the Department of Agriculture looks set to target the sector by giving a payment of €300/ha in conversion for the first 6ha. Growers also get a small boost on the yearly organic maintenance payment for the first 6ha.

The deficit in tillage is also being targeted, with arable crops getting an extra €40 per hectare in conversion, or €260/ha up to 20ha. The other top-up is for red clover, with farmers getting an additional €30/ha for up to 10ha.

Looking to the markets, the main organic beef and dairy buyers are giving positive signals. However, timing of supply is critical for these niche markets and there will always be debate about what premium price is actually needed. Sheep is a different matter, with most organic lambs sold conventionally due to supply issues.

Industry view

‘We have had an unprecedented level of interest’

“We have put over 450 farmers through the organic course over the last two years. We will also be running courses after April as farmers that apply for the organic farming scheme have up to 1 September to complete it,” said Teagasc organic specialist Elaine Leavy. While not all farmers that did the course will go ahead with organic farming, Elaine feels a high percentage actually will.

“Many of the farmers looking at the option are younger farmers, who have just taken over the home farm. They are mainly beef farmers but some dairy farmers are very interested. We have had a number of tillage farmers who are looking at putting in part of their farm to access the higher prices for organic crops, which is allowed.

“Doing the course allows farmers to see what organic farming really entails and allows them to develop a plan for their own farm.”

You must have an organic licence to get into the OFS, and that is the starting point for farmers who are really interested. The two main certification bodies – Organic Trust and Irish Organic Farmers and Growers (IOFGA) – have been very busy sending out application packs for organic certification and processing the ones that have been returned. An inspection is required before a licence can be issued and the application for the organic farming scheme must be submitted within four months of the start date of the organic licence.

Organic scheme

“We have had an unprecedented level of interest in the organic scheme this year,” said Helen Scully of the Organic Trust.

“Whilst the Organic Trust is primarily concerned with farmers who wish to avail of payments under the Organic Farming Scheme, we tell them they can attain priority access to GLAS on foot of their organic or in-conversion licence,” said Helen.

However, they have to be conscious that a land -based payment cannot be drawn down under two schemes under the double-funding criteria. “Every farmer must work out the financial benefits of priority access to GLAS based on the circumstances which prevail on their own individual farms – this will require detailed calculations which take into account the cost of entry to GLAS plus the cost of compliance with the GLAS measures versus the ultimate financial benefit,” said Helen.

Gillian Westbrook, IOFGA, confirmed the huge interest and said the biggest concern with the delay in the scheme opening is that all farmers that want to get in, will not. She is hoping the deadline of 30 April will be extended. “We are busy responding to applications from farmers looking to go organic or get existing farmers certification up to date,” said Gillian

“We pushed hard to ensure that existing organic farmers get priority access to the new scheme if they sign up for a new five-year contract,” said Gillian.

Voluntary

It is voluntary so farmers can stay with their existing organic contract.

The Department will be writing out to existing organic farmers asking them if they want to join. It is an online application and, unlike GLAS, a planner is not needed. This time around the Department has made application a lot easier by cutting out the need to submit a business plan, maps or farmyard sketches. “Farmers new to organics have to do an approved training course by 1 September 2015,” said Gillian

There is even no requirement to submit an organic licence as they get that information directly from the certifying bodies. In the cases of land not owned, a lease must be in place to cover the contract period.

This in not needed in GLAS, where a farmer must be sure he has control of the land for the GLAS contract period. The GLAS participant must be registered organic for the entire GLAS contract. If the organic farming scheme is oversubscribed, entry will be determined based on a number of factors:

  • Existing OFS farmers receive priority.
  • OFS participants whose contracts ended in 2013/14.
  • The sectorial balance.
  • Total conversion ahead of partial conversion.
  • Organic area submitted.
  • The enterprises on mixed farms.
  • Farmer focus

    Organic and GLAS in Monaghan

    Mark and Tanya Gillanders from Ballinagall,Co Monaghan, went into organics on their 32ha farm in 2009. They achieved full organic status in 2011 with the Organic Trust.

    Mark has been farming since taking over from his father in 2004. At that time, Mark changed from a dairy system to bull beef. The high costs of concentrates and fertilizers in the high-input bull beef system had become prohibitive and, after attending local farm demonstrations and walks, Mark realised that organic farming may be a more profitable system. “After careful consideration and attending a Teagasc Introduction to Organic Production course I decided to take the organic option,” he said. A farm walk held by Teagasc on his farm last week saw over 80 farmers also looking at the same option.

    There have been significant changes made to the farming system, and Mark continues to make adjustments.

    Since 2009, Mark’s suckler cow herd has been built up from 10 to 26 cows. The suckler herd is predominantly spring-calving with continental cross, mainly Limousin x Charolais.

    The stocking rate for the farm in 2014 was 1.5 LU/ha.

    “I am in a local discussion group with 10 conventional beef farmers and the adviser pointed out that I had the highest stocking rate,” Mark said. One reason is that Mark has implemented a rotation, growing 4ha of winter wheat for two years, then reseeding with grass and white clover ley.

    “I have been hitting 2.5t of winter wheat consistently and there is a good demand for the wheat locally that I don’t feed myself,” he said. Forage rape is also grown to out winter weanlings and red clover is grown for high-quality silage. Clover drives the nitrogen while free range poultry manure, sourced locally, helps to keep P and K up.

    The financial figures show that tillage is the most profitable. Mark plans to grow 4ha of wheat and 4ha of combi-crop, a mix of barley and peas, this year. “This will push the stocking rate of the cattle up to 1.7LU/ha,” said Mark.

    Being able to jump into the new organic scheme will be a big boost to Mark and Tanya, bringing in an additional €2,000 or €5,540 a year on the 32ha farmed.

    “I have looked at GLAS, but the main problem is my rotation. I don’t have any land that I could put into low-input permanent pasture or traditional hay meadow,” said Mark. With the double payment between organics and GLAS (see panel), he would lose the €170/ha organic payment taking one of these area actions, so would get just €144/ha more.

    “It is not worth dropping production from the current levels to do this. I do have 600 metres of watercourses which would pay €1.50/metre. My hedges need a lot of work, so I will do a lot of coppicing as well as 200 metres of new hedging,” he said.

    He will probably add in a number of bird and bat boxes to boost payment.

    “I will not hit the maximum of €5,000, but could end up with around €4,000 under GLAS,” he said.

    Double funding under GLAS and organics

    Farmers in organics are allowed to select any action under GLAS for their farm. However, under double payment criteria, they are not allowed to get land-based payments under two schemes.

    This means that if they select an area-based action such as low-input permanent pasture, traditional hay meadows or wild bird cover, they must forgo one payment, typically the lower one which is organic. For example, if they select low-input permanent pasture at €314/ha, they must forgo the €170/ha organic payment (or €220/ha in conversion). It means they are only getting an additional €144/ha over what they could have got under organics. It is the same for the other area-based measures.

    Where farmers have over 60ha, the area-based action could become more attractive as they are just dropping an organic payment of €30/ha (€60/ha in conversion) to get a much higher GLAS payment on the same area. To get paid on GLAS you must have submitted the parcel on your 2014 SFP. That is not the case under organics. You could bring in additional land under organics for conversion in 2015 and use parcels farmed in 2014 for GLAS.

    Farmers are allowed do the linear actions such as hedge laying, coppicing and maintaining traditional stone walls. Farmers should talk to their planner about the option.

    Watercourses

    Interestingly, farmers can get paid to fence watercourses from cattle and get the OFS payment but cannot do riparian margins on the same watercourse and get an organic payment on the parcel. Again the issue is area-based measures versus linear ones.

    So, just like Mark Gillanders has done, most organic farmers will look to the linear-based measures first to see what they can get out of GLAS.

    They will then make the trade-off to see if the additional money for area-based ones is worth the drop in production and additional costs that they bring.