Intensive cattle farmers will only be eligible for nitrates derogation next year if they have enough effluent storage for the closed period.

This is stated in the new regulation for the fourth nitrates action programme (NAP) which is due to start in January. It was not explicitly stated in the current NAP which expires next month after four years.

The issue of storage capacity is becoming more important because of ongoing expansion of dairy herds. More dairy farmers are expected to apply for derogation in 2018 and in the following years in order to be able to stock land more intensively.

There is concern in the Department of Agriculture that some of these farmers will be close to the limit of their storage capacity.

Most farmers would prefer to invest first in cows and thereby generate cashflow to fund storage tanks and other facilities.

However, the new regulation makes it clear that, if limited by storage, they must invest in the concrete first. Likewise, farmers cannot qualify for TAMS grant aid unless they have all required storage capacity for slurry, manure and soiled water.

Penalties

Derogation farmers who are inspected and prove to have insufficient storage capacity may be penalised on Basic Payment and other schemes, under cross-compliance rules. But in addition they may render themselves ineligible for derogation, possibly adding further penalties.

Almost 7,000 farmers applied for derogation in 2016. There are estimates within the Department that this could increase to 10,000 by 2020.

The regulation for the next NAP is now out in draft form but is due to be finalised and signed in the coming weeks.