The policy communication and implementation of the Nitrates derogation by the Department and minister lurched to a new low this week.

The farcical continuation of previous poor decisions looks set to make this one of the most badly handled, yet critical policy decisions affecting all farmers for decades.

Two years ago, derogation farmers took on a more scientific measure of nitrogen produced by the cow (banding). They were forced to take their foot off the grass accelerator with a lower bag nitrogen allowance.

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Shortly after that they got hit, late in the day, with an overall stock reduction plan. The stocking rate ceiling was brought down from 250kg to 220kg almost overnight. No compensation, no logic, no transition.

Target cohort

It is important to remember that the target cohort are some of the best nutrient managers in the country with no track record of bad management, and are small businesses with millions invested in nutrient storage.

The carrot dangled at the time was to show steady and improving water quality and it will play positively into the next derogation. The politicians weighed in with political promises.

This stock reduction crisis described above emerged after a June 2022 leak that a mid-term review of the derogation was necessary.

It wasn’t scientifically ideal or correct to allow a water quality comparison from one year to the next, but we were told the Department officials were backed into a corner.

In June 2023, the EPA published a map showing restricted zones (most of the country), and in September 2023, the stock reduction was confirmed.

The EU Commissioner was flown over to offer last ditch hope, but just rubber stamped the stock drop.

The minister of the time came out and said he was confident he could put the conditions in place that could improve water quality and put Ireland in a situation of better strength when renegotiating.

Last week, we had positive news on water quality, showing a 10% reduction in nitrates in water and lower phosphates. This is despite what An Taisce spokespersons peddle about year-on-year declines and intensive stocking nonsense.

Then we come to the minute before deadline moment on this derogation application and the industry is told we need to change how we measure impact.

Uncertainty

The Department says we need to include a habitats plan in our derogation application plan. From what we understand, nobody is quite sure what that looks like or the cost.

Is it any wonder farmers have lost trust in politicians and the Department’s ability to protect what is now left of the derogation?

Talk to the farmer in Monaghan that this year spent an additional €10,000 on land rental to keep cows indoors longer and import more feed from South America.

Talk to the farmer in west Cork that had just invested in a new parlour and a new slurry tank and then was forced to cut cow numbers by 20% because she couldn’t get more land.

The handling of this by the Department is damaging to farmers and the sector, and on the outside is just baffling to say the least.

Ultimately, the Department is charged with making the decisions and applications. There was genuine hope and investment building within the industry of improving water quality, but with the minister’s announcement, it has now turned back into complete uncertainty.

Shock

For milk processors, farmers and industry professionals, this latest change is a significant shock.

We know it has the potential to divide farmers, communities and drive land rental prices and values. It has the potential to make the tillage, beef and sheep sectors smaller and smaller.

The State’s recent track record in delivering forestry licensing, driver licences, and paying ACRES money isn’t good.

The Department must come with clarity and certainty. The Department must publish the latest economic assessment of the cost of the derogation loss. The Department needs to relate and explain why rules on 10% of the farmland hold such a disproportionate influence on the whole sector, the future of the industry, and ultimately margins and livelihoods of farmers.