It was late evening on budget day when the Irish Farmers Journal spoke to Minister for Agriculture Simon Coveney to discuss the breakdown of the agriculture budget and the agri-tax review in more detail. At that stage, dust was starting to settle on the implications that Budget 2015 will have for farmers.

At first glance, the Exchequer spending allocation for agriculture showed a small increase of €32m compared to the 2014 budget. However, after taking out an increase in EU funding, there was actually a reduction in the sector’s Exchequer funding. Of the two big ticket items for farmers, the newly named Areas of Natural Constraint (ANC), formerly the Disadvantaged Area Scheme, was held at €195m, but agri- environment schemes dropped €38m to €150m. This area is still dominated by REPS and AEOS, with the much anticipated Green Low Carbon Agri-Environment Scheme (GLAS) allocated just €20m. This caused the most disquiet from farm organisations, so I asked about it first.

“There should be no surprise about GLAS. Our aim, in agreement with the farm organisations, was to get 30,000 farmers into the scheme in 2015,” the Minster quickly said. “Once we get agreement from the EU we will open GLAS in December but we need a five-month application process to allow planners to cope. We could have 35,000 to 40,000 farmers applying and when the closing date passes it will take a couple of months to process all the applications,” he said. It means they are budgeting to start making payments from November onwards. “Farmers have to remember that it is a five-year scheme. We intend to open it to another 20,000 farmers in 2016 and when they are in it will need up to €250m a year to fund it,” he said.

The Minister announced a €52m expanded beef genomic scheme targeted at the suckler sector, with an increase to €100/head for the first 10 cows. The remaining cows are eligible for €80/head. With the average herd size at 17 cows, the Minister said 296,000 cows, almost half the number expected to participate, will benefit. This takes into account the higher costs for smaller herds to fulfil the scheme.

The doubling of the Targeted Agricultural Modernisation Scheme (TAMS) from €17m to €34m was initially sold as a big boost to dairy expansion. However, the Minister said they will decide exactly how much will be allocated to each sector later in the year, with pigs and poultry also to be included. TAMS is set to open in January and February. Minister Coveney said slurry storage would definitely not be included. Young farmers who qualify for a 60% grant would have greater flexibility in what they can get funding for.

The farm safety scheme will be the first new scheme to open “within weeks”. The once-off scheme has a real focus on getting farmers to spend money to improve safety on their farms. He said the €12m is using up funds from the current rural development scheme but it will be pushed strongly and more money will be made available if needed.

Under the budget, the Department has increased the drawdown of EU money from €405m in 2014 to €439m next year. “In 2016 this will increase to at least €480m and farmers will see increased budgets for the next six years,” he said. “We are committed to co-funding the EU budget to 46% over the life of the programme but it would be unrealistic to think we could simply increase EU drawdown by €150m in the first year. We simply do not have the cashflow,” Minister Coveney added.

On the agri-tax review, he said: “If anyone is negative on the measures it is simply because they don’t understand the importance they will have. We have never had the number of measures and such a comprehensive package announced in one budget,” the Minster stated. Of the 25 measures, 12 are completely new, with a total package of €350m forgone by the Revenue Commissioners.

“In the budget speech, the Minister for Finance again highlighted the importance of agriculture both in income and employment. The new measures that were announced are of huge strategic importance, especially for young people, as they make long-term leasing more attractive. They have the ability to totally change the land market away from conacre. We are continuing to look at major initiatives like the phased transfer scheme and also the feasibility of introducing a risk deposit scheme that could be in place for the budget next year,” he said.