According to Tom Arnold, chair of the 2030 agriculture strategy committee, a draft of Ireland’s Agri-Food Strategy to 2030 will go out to public consultation in the coming weeks. As Phelim O’Neill reports, the committee will make final recommendations to Government in late January.
Compared to Food Harvest 2020 and Food Wise 2025, the Agri-Food Strategy to 2030 will have a much more direct impact on farm incomes. It will form the foundation of the national strategic plan, which Government must submit to Brussels prior to the design and rollout of schemes and direct supports under the next CAP.
According to Arnold, the committee has been tasked with putting forward policy recommendations that will deliver economic, environmental and social sustainability across the agricultural sector. As evident from figures presented by Teagasc this week, it is a tough ask.
Tom Arnold, chair of the 2030 agriculture strategy committee.
The Teagasc figures show that in 2019, 41% of cattle and sheep farmers were classed as economically vulnerable, achieving an average return per annum of just €14,000 per family labour unit deployed. Dairying proved to be the most economically robust with just 12% of farmers shown to be economically vulnerable. Return per family labour unit was €51,000.
It is no surprise that the increased level of economic activity, fuelled through higher productivity, brings with it an environmental cost. At 8.7t of CO2 equivalents, Teagasc figures show the carbon footprint of dairying per hectare was over twice that of cattle and sheep and four times that of tillage. Ammonia emissions per hectare and nitrogen surplus for dairying were a multiple of other sectors, the latter reflecting the risk of nutrient loss into water courses.
Against this backdrop, developing a future strategy that delivers both economic and environmental sustainability across sectors is challenging. With such a profitability divide, there will understandably be a continuous migration towards dairying. But while the economic dividend is clear, so too is the negative impact on achieving national emissions targets. Although Irish dairying is one of the most carbon-efficient sectors when measured on euro of output and per kilo of human-edible protein, the ongoing expansion of the sector will see national agricultural emissions continue to increase.
Tough decisions
If the Agri-Food Strategy committee – which includes farmer leaders from the IFA, ICMSA, ICSA and Macra na Feirme – is to deliver on the goal of delivering both economic and environmental aspects, it will be required to make some tough decisions – in relation to how CAP payments will be distributed and in the design of farm schemes.
Teagasc figures show just 60% of total output on beef and sheep farms to be derived from the market. In this context, it is clear that while incentivising improved productivity at farm level will have an influence, economic vulnerability will only be tackled through the targeting of direct supports towards these low-income sectors.
The fact that such a small proportion of income is generated from the market would suggest that supports which rewarded farmers for reducing total emissions and emissions per kilogram of output could deliver an economic and environmental dividend. Would a recommendation to introduce a suckler payment based on a reduction in cow numbers, but linked to the introduction of a quota system which could be traded tax-free, be a step too far for the committee?
The same level of innovative thinking will be required in relation to the design and implementation of environmental schemes. The 57,000 hectares lost from tillage in the past decade has added over 400,000t of CO2 equivalent to agricultural emissions output. The environmental dividend of maintaining land within tillage has never been recognised or rewarded in any environmental scheme. Tillage farmers will be expecting a new strategy to address this – as indicated by the committee chair.
Livestock farmers will expect a new strategy to be science-led and reflect the evolving understanding of livestock’s contribution to global warming
Similarly, livestock farmers will expect a new strategy to be science-led and reflect the extent to which the understanding of grazing livestock’s contribution to global warming is evolving – in terms of the role played in the sequestration and retention of carbon in soils and the revised impact of methane on global warming. Should this also be reflected in future sustainability reports by Teagasc?
There will also be an expectation that recommendations within the 2030 report will reflect the commitment within the Programme for Government to ensure that the focus on national emissions targets does not have a negative impact on reducing the global environmental footprint of food production. This recognises the need to balance the objective of reducing national emissions with the need to optimise output from sustainable food production systems such as Ireland’s grass-based dairy, beef and sheep systems.
Of course, this does not exempt the dairy sector from the need to adopt new technologies that will reduce its footprint in terms of gaseous emissions, water quality and biodiversity. As detailed in this week's edition, a report commissioned by the Department of Agriculture suggests payments to more intensive farmers be increased to encourage participation in eco-schemes. It raises the question if instead of a blanket approach towards linking a set percentage of farm payments to eco-schemes, Ireland should adopt a sectoral approach that would see higher percentage of payments on dairy farms targeted towards incentivising the adoption of environmental measures. Delivery on the environmental agenda will be key to ensuring that we keep the pathway for future dairy expansion open and allow farmers maximise the profit-generating capacity of their land asset.
Trade: European Union Farm to Fork strategy to hit farm incomes
The assessment published this week of the EU’s Farm to Fork strategy by the United States Department of Agriculture’s (USDA) research service makes for sobering reading – not just for farmers but for anyone who is concerned about food security for vulnerable societies in Africa and Asia.
As detailed this week, the USDA analysis shows the loss of production from reducing pesticides and antibiotics by 50% and fertiliser by 20% will deliver an increase in annual food costs to EU consumers of €132 per person. At the same time, income on EU farms is forecast to drop by 16%. The analysis further reinforces the need for EU farmers to have access to additional financial support mechanisms beyond the CAP.
If economic viability is to be protected under the EU’s Green Deal, farmers will require significant access to financial supports under the EU’s Just Transition Mechanism. The extent to which the measures will also reduce the global competitiveness of EU agriculture cannot be ignored in the context of granting increased market access.
The report interestingly modelled what would happen if the EU Farm to Fork strategy was to become the global model for agricultural production.
In this case, the loss of production would lead to global food prices almost doubling. The cost to society of this strategy on a global basis would be increasing food insecurity for 185 million people – mainly in Africa and Asia.
The need for future agriculture policy to consider the impact on global food security should not be ignored.
Politics: US presidential election and Brexit talks
The outcome of the US presidential election is not likely to be known for a couple of days at least.
As we go to press, the result of the US presidential election remains unclear. The outcome will have a direct bearing on Irish farmers. The trade spat between the EU and US over support for Boeing and Airbus has seen the US impose 25% tariffs on dairy imports from the EU. A Trump victory is likely to see this maintained.
The EU would be hoping that a Biden presidency would look to rebuild relations with Europe.
There are also implications for Brexit. A Biden victory would be seen as a significant blow to the UK’s ambition of striking a quick trade deal with the US.
Meanwhile, there has been a notable absence of news coming from Brexit discussions. Hopefully it is a sign that real engagement on the issues is taking place. There is no way of avoiding Brexit pain at this stage but a deal that avoids tariffs and quotas next year would reduce it.
Agreeing to move from a transition into an implementation phase would also give both sides some breathing space while providing the necessary political cover.
Read more
Over 70% of emissions on tillage farms from cattle
Dairy markets: Irish and Polish milk production continues to grow
According to Tom Arnold, chair of the 2030 agriculture strategy committee, a draft of Ireland’s Agri-Food Strategy to 2030 will go out to public consultation in the coming weeks. As Phelim O’Neill reports, the committee will make final recommendations to Government in late January.
Compared to Food Harvest 2020 and Food Wise 2025, the Agri-Food Strategy to 2030 will have a much more direct impact on farm incomes. It will form the foundation of the national strategic plan, which Government must submit to Brussels prior to the design and rollout of schemes and direct supports under the next CAP.
According to Arnold, the committee has been tasked with putting forward policy recommendations that will deliver economic, environmental and social sustainability across the agricultural sector. As evident from figures presented by Teagasc this week, it is a tough ask.
Tom Arnold, chair of the 2030 agriculture strategy committee.
The Teagasc figures show that in 2019, 41% of cattle and sheep farmers were classed as economically vulnerable, achieving an average return per annum of just €14,000 per family labour unit deployed. Dairying proved to be the most economically robust with just 12% of farmers shown to be economically vulnerable. Return per family labour unit was €51,000.
It is no surprise that the increased level of economic activity, fuelled through higher productivity, brings with it an environmental cost. At 8.7t of CO2 equivalents, Teagasc figures show the carbon footprint of dairying per hectare was over twice that of cattle and sheep and four times that of tillage. Ammonia emissions per hectare and nitrogen surplus for dairying were a multiple of other sectors, the latter reflecting the risk of nutrient loss into water courses.
Against this backdrop, developing a future strategy that delivers both economic and environmental sustainability across sectors is challenging. With such a profitability divide, there will understandably be a continuous migration towards dairying. But while the economic dividend is clear, so too is the negative impact on achieving national emissions targets. Although Irish dairying is one of the most carbon-efficient sectors when measured on euro of output and per kilo of human-edible protein, the ongoing expansion of the sector will see national agricultural emissions continue to increase.
Tough decisions
If the Agri-Food Strategy committee – which includes farmer leaders from the IFA, ICMSA, ICSA and Macra na Feirme – is to deliver on the goal of delivering both economic and environmental aspects, it will be required to make some tough decisions – in relation to how CAP payments will be distributed and in the design of farm schemes.
Teagasc figures show just 60% of total output on beef and sheep farms to be derived from the market. In this context, it is clear that while incentivising improved productivity at farm level will have an influence, economic vulnerability will only be tackled through the targeting of direct supports towards these low-income sectors.
The fact that such a small proportion of income is generated from the market would suggest that supports which rewarded farmers for reducing total emissions and emissions per kilogram of output could deliver an economic and environmental dividend. Would a recommendation to introduce a suckler payment based on a reduction in cow numbers, but linked to the introduction of a quota system which could be traded tax-free, be a step too far for the committee?
The same level of innovative thinking will be required in relation to the design and implementation of environmental schemes. The 57,000 hectares lost from tillage in the past decade has added over 400,000t of CO2 equivalent to agricultural emissions output. The environmental dividend of maintaining land within tillage has never been recognised or rewarded in any environmental scheme. Tillage farmers will be expecting a new strategy to address this – as indicated by the committee chair.
Livestock farmers will expect a new strategy to be science-led and reflect the evolving understanding of livestock’s contribution to global warming
Similarly, livestock farmers will expect a new strategy to be science-led and reflect the extent to which the understanding of grazing livestock’s contribution to global warming is evolving – in terms of the role played in the sequestration and retention of carbon in soils and the revised impact of methane on global warming. Should this also be reflected in future sustainability reports by Teagasc?
There will also be an expectation that recommendations within the 2030 report will reflect the commitment within the Programme for Government to ensure that the focus on national emissions targets does not have a negative impact on reducing the global environmental footprint of food production. This recognises the need to balance the objective of reducing national emissions with the need to optimise output from sustainable food production systems such as Ireland’s grass-based dairy, beef and sheep systems.
Of course, this does not exempt the dairy sector from the need to adopt new technologies that will reduce its footprint in terms of gaseous emissions, water quality and biodiversity. As detailed in this week's edition, a report commissioned by the Department of Agriculture suggests payments to more intensive farmers be increased to encourage participation in eco-schemes. It raises the question if instead of a blanket approach towards linking a set percentage of farm payments to eco-schemes, Ireland should adopt a sectoral approach that would see higher percentage of payments on dairy farms targeted towards incentivising the adoption of environmental measures. Delivery on the environmental agenda will be key to ensuring that we keep the pathway for future dairy expansion open and allow farmers maximise the profit-generating capacity of their land asset.
Trade: European Union Farm to Fork strategy to hit farm incomes
The assessment published this week of the EU’s Farm to Fork strategy by the United States Department of Agriculture’s (USDA) research service makes for sobering reading – not just for farmers but for anyone who is concerned about food security for vulnerable societies in Africa and Asia.
As detailed this week, the USDA analysis shows the loss of production from reducing pesticides and antibiotics by 50% and fertiliser by 20% will deliver an increase in annual food costs to EU consumers of €132 per person. At the same time, income on EU farms is forecast to drop by 16%. The analysis further reinforces the need for EU farmers to have access to additional financial support mechanisms beyond the CAP.
If economic viability is to be protected under the EU’s Green Deal, farmers will require significant access to financial supports under the EU’s Just Transition Mechanism. The extent to which the measures will also reduce the global competitiveness of EU agriculture cannot be ignored in the context of granting increased market access.
The report interestingly modelled what would happen if the EU Farm to Fork strategy was to become the global model for agricultural production.
In this case, the loss of production would lead to global food prices almost doubling. The cost to society of this strategy on a global basis would be increasing food insecurity for 185 million people – mainly in Africa and Asia.
The need for future agriculture policy to consider the impact on global food security should not be ignored.
Politics: US presidential election and Brexit talks
The outcome of the US presidential election is not likely to be known for a couple of days at least.
As we go to press, the result of the US presidential election remains unclear. The outcome will have a direct bearing on Irish farmers. The trade spat between the EU and US over support for Boeing and Airbus has seen the US impose 25% tariffs on dairy imports from the EU. A Trump victory is likely to see this maintained.
The EU would be hoping that a Biden presidency would look to rebuild relations with Europe.
There are also implications for Brexit. A Biden victory would be seen as a significant blow to the UK’s ambition of striking a quick trade deal with the US.
Meanwhile, there has been a notable absence of news coming from Brexit discussions. Hopefully it is a sign that real engagement on the issues is taking place. There is no way of avoiding Brexit pain at this stage but a deal that avoids tariffs and quotas next year would reduce it.
Agreeing to move from a transition into an implementation phase would also give both sides some breathing space while providing the necessary political cover.
Read more
Over 70% of emissions on tillage farms from cattle
Dairy markets: Irish and Polish milk production continues to grow
This is a subscriber-only article
SHARING OPTIONS: