Any further lowering of maximum stocking rates would “significantly reduce farm profitability” more than the cut to 220kg organic nitrogen/ha already has, according Teagasc’s director Prof Frank O’Mara.
Losing the derogation could lead to Irish dairy farmers losing the competitive advantage they hold over their international counterparts, the Teagasc boss told the Oireachtas Joint Committee on Agriculture on Wednesday evening.
A drop in milk output would likely follow further stocking rate restrictions and this would increase processing costs.
“These farm-level and processor effects would impact negatively on the competitiveness of the dairy sector and on rural communities,” O’Mara told the committee.
“They could also be an additional barrier to new entry into dairying and add to the challenge of generational renewal already faced.”
Last week, the committee heard from the Irish Co-operative Organisation Society that a fall in milk output and farmer demand for inputs could squeeze co-op margins.
Challenges
O’Mara also warned that the “fear of additional cuts” to stocking rate limits has emerged as a “significant obstacle to investment in farms to prevent nutrient losses to water”.
Challenges to retaining the derogation include the need for sufficient time to be granted to new nitrates measures to allow them to show results and having sufficient slurry tank capacity on farms.
Farmers could be required to increase slurry storage on the back of an ongoing Teagasc study. / Ramona Farrelly
On an ongoing Teagasc review of the volume of slurry produced on farms, he said that these trials are showing that “slurry production is higher than current slurry storage requirements”.
This review is expected to inform future changes to the tank space required on farms, with access to TAMS grants, low-cost credit and the continuation of accelerated capital allowances “critical to rectifying this problem”, according to O’Mara.
Derogation secure?
Both Teagasc and the Department of Agriculture indicated to the committee that retaining the nitrates derogation is possible, but the need for further improvements in water quality to be seen to safeguard the derogation was also stressed.
Ireland’s current nitrates action plan will face a full review at the end of 2025 and the Government in place then will have to submit a fresh application for a nitrates derogation to allow stocking rates above 170kg N/ha.
The European Commission is getting stricter on granting nitrates derogations.
“On the questions of whether it is possible to maintain Ireland’s nitrates derogation at its current level, while improving water quality and whether the nitrates action programme (NAP) is fit for purpose, the answer to both is ‘yes’,” the Department’s chief inspector Bill Callanan said.
“However, it will require all stakeholders to work together to deliver on improving water quality nationally,” he added.
The top Department official explained that the European Commission is applying “increased scrutiny when granting a derogation, especially as we approach the 2027 water framework directive deadline for achieving at least good status”.
“Most, if not all, member states will not achieve that target and, at an EU level, there has been limited overall progress on improving water quality over the last 10 years,” Callanan explained.
Above EU average
The Teagasc director commented that water quality in Ireland is relatively good compared with other EU countries, while acknowledging that “there are waters in the country that must be improved”.
O’Mara also stated that although there have been some changes to Ireland’s farming system since the first derogation was granted, systems still focus on grazing large quantities of grass over long growing seasons.
“Therefore, the fundamental basis underpinning Ireland’s justification for a derogation remains in place,” he said.
Read more
Derogation cut overshadows farm buyout fears in the Netherlands
Derogation loss would cut margins €980/ha in high-yielding herds - ICOS
'Under-utilised' private advisers want in on ASSAP
Any further lowering of maximum stocking rates would “significantly reduce farm profitability” more than the cut to 220kg organic nitrogen/ha already has, according Teagasc’s director Prof Frank O’Mara.
Losing the derogation could lead to Irish dairy farmers losing the competitive advantage they hold over their international counterparts, the Teagasc boss told the Oireachtas Joint Committee on Agriculture on Wednesday evening.
A drop in milk output would likely follow further stocking rate restrictions and this would increase processing costs.
“These farm-level and processor effects would impact negatively on the competitiveness of the dairy sector and on rural communities,” O’Mara told the committee.
“They could also be an additional barrier to new entry into dairying and add to the challenge of generational renewal already faced.”
Last week, the committee heard from the Irish Co-operative Organisation Society that a fall in milk output and farmer demand for inputs could squeeze co-op margins.
Challenges
O’Mara also warned that the “fear of additional cuts” to stocking rate limits has emerged as a “significant obstacle to investment in farms to prevent nutrient losses to water”.
Challenges to retaining the derogation include the need for sufficient time to be granted to new nitrates measures to allow them to show results and having sufficient slurry tank capacity on farms.
Farmers could be required to increase slurry storage on the back of an ongoing Teagasc study. / Ramona Farrelly
On an ongoing Teagasc review of the volume of slurry produced on farms, he said that these trials are showing that “slurry production is higher than current slurry storage requirements”.
This review is expected to inform future changes to the tank space required on farms, with access to TAMS grants, low-cost credit and the continuation of accelerated capital allowances “critical to rectifying this problem”, according to O’Mara.
Derogation secure?
Both Teagasc and the Department of Agriculture indicated to the committee that retaining the nitrates derogation is possible, but the need for further improvements in water quality to be seen to safeguard the derogation was also stressed.
Ireland’s current nitrates action plan will face a full review at the end of 2025 and the Government in place then will have to submit a fresh application for a nitrates derogation to allow stocking rates above 170kg N/ha.
The European Commission is getting stricter on granting nitrates derogations.
“On the questions of whether it is possible to maintain Ireland’s nitrates derogation at its current level, while improving water quality and whether the nitrates action programme (NAP) is fit for purpose, the answer to both is ‘yes’,” the Department’s chief inspector Bill Callanan said.
“However, it will require all stakeholders to work together to deliver on improving water quality nationally,” he added.
The top Department official explained that the European Commission is applying “increased scrutiny when granting a derogation, especially as we approach the 2027 water framework directive deadline for achieving at least good status”.
“Most, if not all, member states will not achieve that target and, at an EU level, there has been limited overall progress on improving water quality over the last 10 years,” Callanan explained.
Above EU average
The Teagasc director commented that water quality in Ireland is relatively good compared with other EU countries, while acknowledging that “there are waters in the country that must be improved”.
O’Mara also stated that although there have been some changes to Ireland’s farming system since the first derogation was granted, systems still focus on grazing large quantities of grass over long growing seasons.
“Therefore, the fundamental basis underpinning Ireland’s justification for a derogation remains in place,” he said.
Read more
Derogation cut overshadows farm buyout fears in the Netherlands
Derogation loss would cut margins €980/ha in high-yielding herds - ICOS
'Under-utilised' private advisers want in on ASSAP
This is a subscriber-only article
SHARING OPTIONS: