The Department of Agriculture’s high aspirations in increasing the area of land farmed organically is evident in both the level of funding being apportioned to the sector and the changes being introduced before the scheme opens for the next intake on Wednesday 9 February.

The level of funding set aside for the scheme in 2022 has been increased by €5m, bringing total funds available to €21m.

This follows a similar increase in 2020, meaning the funding available has increased by 100% in the last two years.

This pales in comparison to plans for the scheme under the CAP Strategic Plan 2023-2027, where some €256m, or over €50m per annum, is being ringfenced to support the target of increasing the area of land farmed organically to 7.5% of the utilisable agricultural area.

Scheme changes

The number of farmers participating in the scheme currently stands in the region of 1,700.

The 2021 scheme intake targeted in the region of 400 new participants and included new selection criteria to prioritise horticulture, tillage and dairy applicants.

It was envisaged that this would have been required to rank applications, but there were only in the region of 320 applicants, with all eligible applicants accepted.

The selection criteria and terms and conditions are awaiting final approval and have not yet been published.

The area of ground receiving a higher level of payment is being increased from 60ha to 70ha

It is expected that dairy, horticulture and tillage producers will continue to be prioritised entry and two significant changes are being introduced for the 2022 intake to try and attract more interest from these sectors and also from lowly-stocked enterprises.

The area of ground receiving a higher level of payment is being increased from 60ha to 70ha.

This will increase the level of payment for large enterprises by €1,600 during the two-year conversion phase and by €1,400 once deemed full organic status. Tables 1 to 3 detail the payment regime as per 2021 terms and conditions and including the higher payment area.

The new stocking rate requirement of 0.15LUs/ha will open the door to a significant cohort of farmers

It is expected that higher payment rates for horticulture and tillage participants for the first six and 20ha respectively will remain in place.

The other major change influencing payment rates is a significant reduction in the minimum stocking rate requirement.

This had been set at 0.5LUs/ha for livestock, with holdings with a lower stocking rate paid on a pro-rata basis.

The new stocking rate requirement of 0.15LUs/ha will open the door to a significant cohort of farmers with a figure of an extra 1m hectares farmed at less than 0.5LUs/ha mentioned.

Enhanced payments

The 2021 terms and conditions also listed the potential for a top-up payment of €30/ha per annum where red clover is included up to a maximum of 10ha.

The objective of this measure is to provide a high-quality protein feed while enhancing soil fertility and biodiversity on-farm.

Organic producers will continue to be prioritised through a dedicated entry route to the Targeted Agricultural Modernisation Scheme (TAMS) and the future On-Farm Capital Investment Scheme, along with a 10% higher rate of grant aid of 50% compared to the conventional level.

Furthermore, it is proposed that organic farming will be categorised under Tier 1 of the future Agri-Environment Climate Measure, meaning organic producers will be prioritised for entry in to the new agri-environment scheme introduced under the next CAP in 2023.

Eligibility criteria

Eligibility criteria have not yet been confirmed, but the following are the main eligibility criteria producers had to satisfy to be accepted under the 2021 intake.

  • Be an active farmer – the scheme conditions set out that producers must farm a minimum area of 3ha organically, with the exception of horticultural producers where the minimum area is 1ha. The payment rates section contradicts this statement, as it states payment rates applicable where 6ha or more tillage area is farmed organically.
  • Land must either be owned or leased for the duration of the contract. It must also be declared on an applicant’s Basic Payment Scheme application for the duration of the scheme.
  • Be registered with the Organic Unit of the Department of Agriculture, Food and the Marine.
  • Be registered with and be approved as an organic operator by one of the OCB’s and hold a licence on or before the date of submission of the OFS application, or at the latest hold a licence from the commencement date of their OFS contract.
  • Be aged 18 years or over on the date of application.
  • Have already participated in Supplementary Measure 6 (SM6) of REPS 1, REPS 2 or REPS 3, or previous OFS or must successfully complete an Approved Training Course.
  • All applicants must reach a minimum ranking of 25 marks to be deemed eligible for consideration for inclusion in the scheme. This is covered in detail below.
  • Application decisions

    Some producers have already raised questions as to whether or not the organic scheme in place under the next CAP reform will be more favourable, and as such, if they should delay applying until then.

    A Department source says the scheme will remain broadly in line with the current model and that any changes implemented are likely also apply to current participants, as is the case with changes being introduced in 2022.

    More information will be known once the terms and conditions are released, but any farmers strongly considering applying would be best placed to start making arrangements, with the two-month window to apply quickly passing.

    Further updates on the scheme will be available on www.farmersjournal.ie as soon as the terms and conditions are released.