Ireland Rural Development
National Strategy Plan
2007-2013
Loaded on SFC 8 December 2009
Chapter 1
Baseline analysis of the economic, social and environmental situation and setting
of the baseline indicators
Overall Economic Situation
In the period 1997-2007, Ireland experienced sustained economic growth averaging
over 7% of Gross Domestic Product (GDP) rising to over €167 billion. Exceptionally
unfavourable global economic and financial conditions coupled with a weakening in
domestic demand (linked to the construction sector) meant a contraction of GDP of
2.3% in 2008. In 2009, the Irish economy faces into a second consecutive year of
reduction in GDP currently forecast at 7.5%. . Further negative growth of 1.5% is
anticipated in 2010.1
The Irish population stands at 4.23 million. The labour force in Ireland peaked at
2.247m in 2007, with unemployment at 4.6% and a participation rate of 65% (based
on persons aged over 15). Employment since 2008 has begun to fall sharply.
Unemployment averaged 6.1% for 2008 compared to 4.5% in 2007. In 2009 this
trend has worsened with an average unemployment rate estimated at 11.75% and
13.75% in 2010.
The economic downturn has caused a significant fall in Government revenues
creating a structural imbalance in Government Accounts. The General Government
Deficit is estimated at 12 % of GDP in 2009 and if no corrective action is taken this
would be likely to rise to around 14% of GDP in 2010. However, to address these
structural imbalances the Government has increased taxation levels and introduced
spending cuts for 2008 and 2009. Significant further expenditure cuts of € 4 billion
per annum are expected to be implemented in 2010 across all public expenditure areas
and measures. This will stabilise the 2010 deficit at the 2009 level.
Despite the downturn in the economy, many farmers and their spouses continue to
supplement their on-farm income with earnings from off-farm employment. The
Government is addressing the increase in unemployment by putting in place a series
of measures, both short and long-term, to help stabilise economic activity and to
implement measures/strategies which support economic recovery in sectoral
enterprise policy, competitiveness and the labour market. These measures will help
stabilise opportunities for farm families as well as the general populace. Economic
stabilisation measures introduced include the establishment of the National Asset
Management Agency and who will facilitate the availability of necessary credit for
business enterprises. Other measures used to support employment include a range of
labour market activation (training, work experience, further education, etc.) measures,
an Enterprise Stabilisation Fund for viable manufacturing companies (many of whom
are in the agri-food sector) and an Employment Subsidy Scheme.
The economic context through which the Rural Development Strategy 2007-2013 was
devised is now wholly different than the one being experienced currently. Changes
1
Updated figures from the Department of Finance, Pre-Budget Outlook (November 2009), available at
http://www.finance.gov.ie/documents/publications/prebudget09/PBOfinal.pdf
2
made in the National Strategy and Programme, therefore, must respect new financial
constraints and respond to the difficulties experienced in agricultural and rural
economies based on these new circumstances.
Ireland’s Rural Development Strategy is revised to reflect both the “CAP Health
Check” agreement in November 2008 and the approval of an Economic Recovery
Package at EU level. The Strategy also sets the context for a more focussed and
targeted approach to competitiveness issues, so as to ensure the continued
effectiveness of the Rural Development Programme (RDP) in the face of a difficult
economic and budgetary environment.
Ireland’s overall growth for the period 1997-2007 period masks some disparity
between the two NUTS2 II regions - Border, Midlands and West (BMW) and the
Southern and Eastern (SE). Based on 2006 data 73.2 % (3.105 m) of the population is
concentrated in the SE region, while the BMW region accounts for 26.8% (1.134 m)
of the population. In 2004 the per capita level of disposable income in the BMW
region was 9% lower than in the SE region (estimated at €19,244 and €17,509
respectively). The rate of unemployment in the BMW region is marginally higher
than that in the SE region.
The following table summarises the position regarding economic development and
labour force participation.
Indicator
2000
2001
2002
2003
2004
2005
2006
2007
GDP @ Current
Prices (€bn)
104
117
130
139
148
160
167
191
125
128
133
134
137
138
142
145
GDP per inhabitant
115
in PPS (EU 15 =100)
118
122
123
127
128
131
134
Labour force (m)
1.74
1.79
1.84
1.88
1.92
2.01
2.11
2.20
Employment Rate %
Labour force
95.7%
96.4%
95.8%
95.6%
95.6%
95.8%
95.6%
95.4%
Employment Rate %
Population
65.2%
65.8%
65.4%
65.4%
66.2%
67.7%
68.6%
69.2%
GDP per inhabitant
in PPS3 (EU25=100)
2
3
Nomenclature of Territorial Units for Statistics (NUTS)
Purchasing Power Standard
3
The Agri-Food and Forestry Sectors
Introduction/ General
The agri-food sector continues to be one of the most important and dynamic
indigenous manufacturing elements in the Irish economy. It is estimated that the agrifood sector 4 accounted for approximately 6.6% of Gross Value Added (GVA) at
factor cost in 2007. The primary agriculture, fisheries and forestry sectors together
accounted for approximately 2.5% of GVA. The food (including fish) and beverage
industry, together with the wood-processing sector, accounted for circa 4.1% of GVA
in 2007.
Due to its very strong export orientation and low import content, it is responsible for a
significant proportion of the country’s net foreign earnings. The agri-food sector is a
very significant contributor to national development and accounts for a significant
share of GDP, employment and exports.
Agricultural Structures
The total land area of Ireland is approximately 6.9 million hectares of which 4.3
million hectares or 62% is used for agriculture and approximately 710,000 hectares
for forestry or about 10% of total land. 79% of agricultural area is devoted to grass,
11% to rough grazing, 7% to cereals and 3% to other crops.
The principal changes in agricultural land area usage in the 2000 – 2007 period were a
4% decrease in the total amount of land used for agriculture including a 3% decrease
in the area devoted to pasture and a 3% decrease in the area devoted to silage
production.
As regards the age structure, 7% of Irish farmers are under 35 years of age and 51%
are over 55 years of age. Table 1 below provides detail of the age profile in Irish
farming in 2007.
Age Profile of Irish Farmers, 2007
<35
7%
35-44
18%
>65
25%
<35
35-44
45-54
55-64
>65
45-54
24%
55-64
26%
4
The Agri-Food Sector is taken to include primary production (Agriculture, Fishing and Forestry)
along with the food and beverage and wood processing sectors (excludes tobacco).
4
Given trends in the general economy (to 2007) and the attraction of alternative
employment – as evidenced then by the growth in part-time farming – there was an
ongoing need to promote agriculture to young people. This can be done through a
combination of incentive measures and an overall increase in the competitiveness and
profitability of farming. Education also plays a crucial role and, according to the
Agricultural Science Association, the number of young people enrolling in
agricultural education is now at its highest level in more than two decades. There has
been a rise of over 70 percent in enrolments in agricultural courses since 2006.5This
could help to further change the age profile of agriculture in Ireland in future years.
Since 2007 there has been a significant downturn of the economy. The decline in the
manufacturing base together with a slump in construction employment has
significantly reduced off-farm income and opportunities for farm families. 6
Data from the Irish Central Statistics Office (CSO Farm Structures Survey) for 2007
indicates that farming was the occupation for 66,600, or 52%, of farm holders.. 47%
of farmers had another either major or subsidiary occupation while 1% were farm
holders who did not work on or off farm.
One of the major obstacles to increasing farm size is the low level of land mobility
with only 6,146 hectares of agricultural land sold in 2004, combined with very high
land prices.
In 2007, the total number of farms was 128,200 (CSO, Farm Structure Survey 2007).
Since 2000, there has been a decline in the number of farms in all size categories, but
most notably in the smallest size group. Average farm size increased marginally to
just over 32 hectares, with one-fifth of farms less than 10 hectares and 63% less than
30 hectares. Overall, the rate of decline over the period is estimated to have been
1.4% per annum, which is a slight reduction on the rate of decline over the previous 7year period and at a lesser rate than in several other European countries.
Farm Size Structure in Ireland, 2007
>100ha
4%
50-100ha
14%
<5ha
7%
5-10ha
13%
30-50ha
21%
10-20ha
24%
<5ha
5-10ha
10-20ha
20-30ha
30-50ha
50-100ha
>100ha
20-30ha
19%
5
http://www.asaireland.ie/Home/tabid/485/ctl/Detail/mid/2586/xmid/4065/xmfid/23/Default.aspx
See Teagasc, Examination of the Contribution of off Farm Income Study, 2008. Teagasc is the
agriculture and food development authority in Ireland responsible for providing integrated research,
advisory and training services to agriculture and the food industry.
6
5
The 2000 Census of Agriculture data highlighted a high level of farm fragmentation
with only 28% of farms in a single parcel of land, while 18% of farms consisted of 5
or more parcels. At farm level, land mobility, consolidation and early transfer of land
and flexible quota management are important aspects in facilitating structural change.
Another relevant factor concerning agriculture is that labour productivity in
agriculture measured in gross value added per annual work unit amounted to €14,057
in 2006.
As part of the CAP Reform process Ireland opted for full decoupling of direct
payments from production with effect from 1 January 2005. A general reduction in
stocking levels was forecast as a result, however, the extent of the reduction, is not
quite as substantial as was first estimated. The most recent projections available
indicate that the decline in sheep numbers is likely to be slightly greater than
originally forecasted7.
The likelihood, therefore, is that, in general, a sector which is already predominantly
extensive, will now put even less pressure on the environment and biodiversity. (For
example, the expected reduction in livestock numbers and consequential reduction in
the use of mineral Nitrogen (N), along with improvement of efficiency of fertiliser use
will deliver further reductions in greenhouse gas emissions from the sector.)
However, a minority of farmers, mainly in the dairying and tillage sectors, are likely
to become more intensive in response to market opportunities. While a certain
minimum income is guaranteed for the time being in the form of the Single Farm
Payment (SFP), to maximise opportunities farmers have to be competitive in the
production of safe, hygienic, high quality, products attractive to demanding
consumers while at the same time respecting tight environmental and animal welfare
conditions
Food – Production, Exports and Structure
In 2007 goods output at producer prices was € 5.7bn, the main contributors were milk
(29%), cattle and calves (26%), forage plants (16%) and pigs (5%).
In terms of self-sufficiency, Ireland is self sufficient in beef (820%), pigmeat (163%),
sheepmeat (303%), poultrymeat (101%), butter (1054%), cheese (354%) and milk
powder (1088%). In the case of cereals, Ireland’s level of self-sufficiency is 90%.
Agri-food exports for 2007 were in the region of €8.6 billion. Beef, dairy products
and ingredients account for over 45% of this amount. Trade with other EU-158
countries accounts for approximately 75% of Irish agri-food exports. Within this, the
UK is Ireland’s single biggest market representing over 46% of sales. Increased trade
liberalisation as a consequence of both recent CAP reforms and the Doha Round of
World Trade talks will lead to a more competitive environment for Irish agricultural
7
In 2003 FAPRI Ireland predicted that sheep numbers would fall by 23% by 2012 as a result of
decoupling; The most recent trends established by FAPRI suggest that the fall in sheep nos, by 2012
will be slightly greater at circa 24.5%
8
Defined as Member countries in the European Union prior to the accession of ten new member
countries on 1 May 2004.
6
exports. Given the importance of beef and dairy product exports to Ireland’s total
agri-food exports, issues such as the competitiveness and scale of these sectors will
continue to be critical factors.
There are over 700 food companies in Ireland; most are in the small and medium
sized category. The industry as a whole has a reasonable geographic spread and is an
important source of employment throughout the country. The meat industry is most
strongly represented in the border area, mid-east and southeast of the country, while
the dairy industry is primarily concentrated in the southeast and southwest.
The following factors are also relevant to the food industry:


Labour productivity in the industry measured in gross value added per person
employed amounted to €137,043 in 2006.
The gross fixed capital formation in food industry amounted to €672m (incl.
breeding9) in 2006.
The tables at Appendix I set out in more detail the position summarised in this
section.
Agri-Food: Future
For the agri-food sector, the overall objective is to develop a competitive, consumerfocused sector, which contributes to a vibrant rural economy, society and
environment. It is clear that further major changes in international and EU policy and
in market trends are in prospect and, indeed, under way. These changes will create
more competitive EU and world commodity markets and more complex and
innovative food product markets. An already demanding and tough marketplace will
become even more so. These trends will be intensified by the increased trade
liberalisation that will emerge from a new WTO round.
To prosper in environment requires a commitment to continual improvements in the
agriculture and food industry at every level. In particular Ireland must:





Continue to take advantage of the 'freedom to farm' for the market arising
from the decoupling of direct payments,
Maintain focus on the requirements of the consumer at every stage in the value
chain, especially in ensuring the highest standards of food safety,
Continue, and accelerate, the process of structural change at farm and
processor level to achieve the most competitive structures possible,
Ensure that the knowledge base and technical skills of the sector are developed
to place it in a world leading position, and
Match these capabilities with an entrepreneurial focus on exploiting market
opportunities.
To assist in addressing these challenges the rural development strategy will aim to
maintain/enhance competitiveness both at farm and food processing level. This will
be done by reference to the available support measures and their limitations.
9
Breeding or Live capital is the value of the breeding herds of cows, ewes, sows and poultry.
7
Dairy Sector
The dairy industry is one of Ireland’s most important indigenous industries and
comprises a vital part of the agri-food sector. In 2007 milk accounted for the largest
share of Ireland’s gross agriculture output at 29%. It is an export driven sector with
85% of dairy products exported representing one quarter of all food and drink exports.
In 2007 the value of these exports reached a record €2.36 billion10 with the UK and
Continental Europe accounting for 35% and 26% respectively of these exports.
Ireland enjoys a comparative advantage in the production of milk within the EU and
the industry is renowned both for its relatively high productivity and for being an
early adopter of new technologies at producer level
The recent agreement on the CAP Health Check confirmed the commitment to abolish
EU milk quotas in 2015 with agreement also reached on measures to prepare the EU
dairy industry for this scenario. The industry now needs to focus itself in order to
deal with the challenges and opportunities that the abolition of milk quotas will bring.
In order to do this the industry must play to its strength of grass-based production to
ensure low cost production and to market its green image. This can be achieved
through maximising the intake of grazed grass in cows’ diets. Equally the industry’s
weaknesses must be tackled through achieving greater scale in milk production,
processing and marketing to reduce costs while also examining Ireland’s overall
product mix.
Furthermore the industry will have to develop while dealing with
environmental and regulatory requirements, such as climate change and the Water
Framework Directive.
Pigmeat Sector
The Irish Pigmeat industry is worth around €360m annually and is the third most
important sector in terms of agricultural output after beef and dairy with 7,500 jobs
supported in production, slaughter, pork processing, feed manufacture and services.
The domestic market accounts for over 57 % of Irish pigmeat output.
A report prepared by Teagasc in 2008 highlighted the key challenges facing the
sector. In order to remain competitive, the industry requires a highly skilled, trained
workforce and must achieve high levels of efficiency. Investment is required to
produce pigmeat to the highest standards of quality and safety, and to meet new EU
animal welfare requirements, while adequately remunerating pig producers.
Sheepmeat Sector
Ireland’s sheep meat sector is an important traditional indigenous industry. Export
markets in 2007 were valued at €200 million. Annual sheep slaughterings amount to
approximately 3 million. According to the June 2008 CSO Livestock Survey the Irish
sheep flock stood at 5.09 million head, with the breeding flock numbering 2.71
million head.
During 2008, Ireland exported an estimated 41,500 tonnes of sheepmeat which was
valued at approximately €166 million. France is the main market for Irish sheepmeat
10
Export Performance and Prospects, published by Bord Bia the Irish Food Board.
8
exports, accounting for approximately 51 % of total exports in 2008. The UK is also
a substantial export market, taking 30% of shipments.
The challenge now is to sustain a viable industry in Ireland and to have a level of
production capable of ensuring a strong and competitive processing industry. This
requires an efficient and profitable production base.
The Sheep Industry
Development Strategy published in 2006 identified a range of measures which would
assist in developing a sustainable sector. Efficient stock control and handling facilities
are central to reducing labour input and improving farm efficiency.
Poultry/Eggs
The poultry industry was valued at €253m in 2007. Exports of processed poultry
continue to account for over 60 % of the total in value terms. The UK continues to be
the key market for Irish poultry, accounting for almost 80% of total exports.
Challenges for the industry include the high cost of feed and high level of imports into
the EU at 200,000 tonnes of cooked poultry per annum. Irish producers are operating
against a significant cost disadvantage against third country competitors.
There are 247 egg producers in the country and, taking account of packing and
ancillary activities, around 830 people are employed in the sector. The farmgate value
of egg production is estimated at €40m annually. About 85% of the eggs consumed in
Ireland are home-produced. Egg producers have shown themselves to be efficient and
progressive11. Irish eggs enjoy an excellent salmonella status. A critical mass of
output is required to support a viable egg packing industry and to service the
requirements of the multiple retailers’ central purchasing practices.
Beef
The beef industry is one of Ireland’s most important indigenous industries and
comprises a vital part of the agri-food sector. In excess of 100,000 Irish farms have a
beef enterprise with the national sector comprising over one million suckler cows (in
65,000 herds) and the surplus progeny from the dairy herd.
Ireland is the largest exporter of beef in Europe with exports valued at €1.57 billion in
2007. The Irish beef industry has achieved significant diversification across the EU
marketplace, with the EU market now accounting for 97% of our exports, up from
50% in 2000. The industry has made significant progress in the last 5-10 years in
moving from frozen to fresh output and in terms of increasing its sales to continental
EU markets by 70%.
Despite this rapid transformation it is vital that the sector continues to respond to
change with farmers facing challenges on many fronts, not least those concerning
profitability and sustainability. In this regard there is a significant variation both in
output, with decoupled farm payments comprising over 50% of gross farm output, and
in returns per hectare. Further challenges include the threat of increased competition,
reduced levels of support and environmental constraints.
11
Most egg producers are participants in the Bord Bia Egg Quality Assurance Scheme which requires
strenuous standards on quality, traceability etc
9
Cereals Sector
Despite the relatively small size of the Irish cereals sector, at less than 1% of total EU
production and 3% of national gross agricultural output, it makes an important
contribution to the agricultural sector and to the economy as a whole. This
contribution arises from the fact that grain is both an agricultural output, thus
contributing to farm income, and a farm input in the form of animal feed. While more
than two-thirds of the grain produced is used for animal feed purposes, the remainder
is a valuable raw material for Ireland’s brewing, distilling and flour milling industries.
Cereal production contributed €195.4 million to agricultural output at farm gate prices
in 2008. The most recent Teagasc Crop Report provided an initial estimate of total
grain production of around 1.8 million tonnes for 2009. This would be somewhat
below the average annual 2 million tonnes grain production in Ireland over the past
number of years.
While Ireland is a net importer of cereal grains there is a very specialised and efficient
group of growers producing grain in Ireland for the home market. In 2008, all cereal
and oilseed crops accounted for 7.6% of the area farmed in Ireland, with cereals
representing 97% of this area with 309,400 hectares. Spring barley is the most popular
cereal crop grown by farmers and is used for the malting, seed and feed industries in
the country. Winter and spring wheat, winter barley and winter and spring oats are the
other important grain crops produced for the agri-food industry.
It is not possible to report on the effects of the ending of setaside as it is too soon
since its ending in 2008. However, the impact on the environment and biodiversity
will be monitored.
Organic farming
The organic sector in Ireland is comparatively small by EU standards. There are
encouraging signs, however, that the sector is growing. At present there are
approximately 1,450 organic operators in Ireland, with 48,000 hectares of land under
organic production methods, or approximately 1.1% of agricultural land.
The market for organic food has grown strongly in recent years. At the end of 2003
the Irish organic retail market was estimated to be worth €38 million. The current
estimate, based on research carried out by Bord-Bia, the Irish Food Board, is €124
million. However, a large portion of this is imported and one of Ireland’s main
objectives is to substitute Irish produce for imports.
Organic beef and lamb production in Ireland is currently more than sufficient to meet
demand in the home market. While at present there is sufficient total volume to
service a sustainable export market, especially in beef, there are problems of
seasonality of supply. . In tillage and horticulture, however, production falls well
behind domestic demand (In the case of tillage crops, while the output is increasing
gradually, cereals for food e.g. breakfast cereals and also cereals for feed for dairying,
beef, poultry and fish continue to be imported. In addition to not being fully in
accordance with the organic ethos, high transport costs have to be borne by the user.
10
The European Action Plan for Organic Food and Farming (EAP) clearly identifies
Rural Development Programmes as a mechanism for supporting organic farming. The
measures in new Rural Development Programme, in tandem with initiatives such as
organic demonstration farms, formal training courses for new entrants and business
plans for all, outsourcing of agronomy expertise and national consumer information
campaigns, will assist Ireland in achieving the objectives of the EAP.
Processing sector
Most food companies are in the small-and medium-sized category. The industry as a
whole has a reasonable geographic spread and is an important source of employment
throughout the country. Approximately 44% of food and drink manufacturing units
are in the Border, Midlands and West (BMW) region compared to less than one-third
of the rest of the manufacturing sector. The meat industry is most strongly represented
in the border and mid-east area while the dairy industry is primarily concentrated in
the southern regions, particularly the south-west.
Forestry
Forestry will not be supported under the Rural Development Programme but will
receive complementary assistance through exchequer funding under the National
Development Plan (NDP). Forestry will be financed outside the Programme as a
higher level of funding will be possible under this approach and it is considered that
this will enhance the likelihood of achieving the current target set for increasing the
land area under forestry. While there will be assistance for increased competitiveness
the focus will be on the environmental contribution of afforestation.
Ireland’s forestry sector comprises not only an expanding growing sector but also a
vibrant forest industry. Over 90% of all new planting is now undertaken by farmers,
which is significantly changing the structure of forest-ownership in Ireland, with some
16,000 private plantations now established.
The following summarises forestry’s contribution in economic and employment
terms:
 The sector accounts for 0.3% of GDP.
 Over 2,000 people are currently employed directly in forestry (not including
the labour input from the 15,000 farmers who own private plantations);
 A further 6,300 people are employed in downstream industries such as saw
milling and manufacture of wooden board products;
 Over 17,000 people are either directly engaged in growing and using forest
products or are engaged in related sectors;
 An additional 5 jobs created within forestry will lead to an additional 3 jobs
elsewhere in the economy.
 Labour productivity in the forestry measured in gross value added per person
employed amounted to €49,047 and €54,691 for wood processing sector in
2004.
 The gross fixed capital formation in forestry amounted to € 33.8m (including
logging) in 2004.
11

Forestry has contributed positively to biodiversity. The NDP will develop this
trend and will address ways to support forestry with enhanced environmental
objectives.

Forestry has a significant role to play in combating climate-change, with a
target set in Ireland’s National Climate Change Strategy of 1.01 million tonnes
of carbon dioxide sequestered per annum by 2010.

Forestry also represents a secure and renewable source of energy, which can
help reduce our dependence on imported oil, and which has the added
advantage of being carbon-neutral.
Based on the level of afforestation established since the mid-1980s, the
contribution of forestry thinnings to the national energy supply chain will increase
from 0.8 PJ (Peta Joules) in 2006 to 2.6 PJ in 2020. This is indicative also of the
potential future contribution of forestry to energy needs.
12
Environmental Situation
Irish agriculture is predominantly extensive and grass-based. Farms involved in
cereal production account for just under 10% of all farms and less than 7% of the total
utilisable agricultural area (UAA); most of the remainder is devoted to cattle and
sheep farming. At the commencement of the RDP, 75% of UAA could be categorised
as disadvantaged and 77% of farmers qualified for Less Favoured Areas payments.
Traditional farming practices have produced a landscape that is rich in biodiversity
but recent trends and developments, particularly the decoupling of direct payments
from production, threaten to cause a decline in farming activity with an accompanying
loss of biodiversity, for example if land abandonment occurs.
As Ireland had opted for full decoupling of direct payments from production with
effect from 1 January 2005, a general reduction in stocking levels was forecast.
Current baseline projections produced by FAPRI Ireland suggest that animal numbers
will fall from around 6.19 million in 2006 to around 5.8 million by 2013, a fall of
around 6.4%. Over the length of the RDP from 2007 to 2013 this fall would be from
around 6 million, or around 3.5%. These are the latest publicly available and
published figures, from FAPRI Ireland. However, it should be noted that the FAPRI
baseline projections are not ‘forecasts’ or ‘predictions’. Rather they represent a
projection of commodity prices, production and quantities traded, by applying a welldefined set of assumptions to commodity models. (Appendix three also provides these
figures linked to the latest Greenhouse gas emission projections from the
Environmental Protection Agency (EPA).)
Table: Irish Livestock Supply Projections (million head) 12
Total Cattle
Dairy Cows
All Other cattle
2006
6.19
1.10
5.09
2007
6.00
1.09
4.91
2008
5.90
1.09
4.81
2009
5.89
1.09
4.80
2010
5.89
1.08
4.81
2011
5.87
1.07
4.80
2012
5.84
1.06
4.78
2013
5.79
1.05
4.74
Therefore, a sector which is already predominantly extensive will now put even less
pressure on the environment and biodiversity. However, a minority of farmers mainly
in the dairying and tillage sectors are likely to become more intensive in response to
market opportunities.
Since 1994, Ireland has operated an agri-environment measure called the Rural
Environmental Protection Scheme (REPS). REPS is a comprehensive whole-farm
undertaking in which farmers follow a suite of eleven mandatory measures according
to a plan drawn up for each farm by a professional adviser approved by the
Department of Agriculture, Fisheries and Food (DAFF). It also includes
supplementary measures aimed at achieving greater biodiversity at farm level. While
the scheme has been modified a number of times REPS has retained its basic shape
since 1994.
12
Source: FAPRI-Ireland, Baseline 2008 Outlook for EU and Irish Agriculture, 29th September 2008
http://www.tnet.teagasc.ie/fapri/downloads/pubs2008/Paper1_Final.pdf
It has attracted high levels of participation (over 60,000 farmers), and both farmers
and their advisers are well educated in the objectives and details of the scheme. A
considerable number of new farmers have joined REPS as a consequence both of
decoupling and of the implementation of the Nitrates Directive. REPS is now a wellestablished and important means of delivering benefits in water management,
biodiversity and climate change, and Agri-Environment schemes will continue to be a
core element of Ireland’s evolving rural development strategy.
Appendix II summarises the outcome of recent evaluations of REPS.
The Ex-Post Evaluation of the Rural Development Plan 2000-2006, in evaluating the
contribution of the plan to protecting and improving the environment, noted the close
relationship between REPS and the Compensatory Allowance Scheme (CAS). The
CAS has “had a positive impact on maintaining the farming population in more
marginal agricultural areas and keeping the land in agricultural use is positive for
the protection of the environment………Enhancement of environmentally friendly
practices has then also been encouraged through participation in REPS. Improved
uptake of REPS 3 will have helped to increase the extent to which the measure has
been able to impact on environmental resources and quality”.
Ireland’s rural development strategy will continue to provide for a scheme to support
farmers who, on a voluntary basis, make agri-environmental commitments that go
beyond the relevant national and EU mandatory environmental requirements
(including all requirements of cross-compliance under the Single Payment Scheme).
What follows is a consideration of trends, problems and policy interventions
connected with priority areas under the environment heading.
Water Management
Water Quality
Ireland’s water quality compares well with that of most other EU countries although
there is evidence of slight or moderate pollution in certain rivers and lakes. The
Environmental Protection Agency (EPA) presents the most recent overview of
conditions in the state’s rivers and water bodies in the National Water Quality Report
for the period 2004–2006. It shows a substantial increase in the proportion of channel
classed as unpolluted in the current for the period 2004–2006 compared to the
previous period (2001-2003) and a small increase in the slightly polluted waters13.
The main findings are set out below, with data from earlier surveys shown for
comparison where appropriate.
Rivers
Comparison of approx 13,250 km of river channel sampled for biological
characteristics over the last 12 years as per EPA surveys:
13
Water Quality in Ireland 2004-2006, EPA 2008
14
Class A (Unpolluted)
Class B (Slightly Polluted)
Class C (Moderately Polluted)
Class D (Seriously Polluted)
1995–
1997
67%
18%
14%
0.9%
1998–
2001
70%
17%
12%
0.9%
2001–
2003
69.2%
17.9%
12.3%
0.6%
2004–
2006
71.4%
18.1%
10.0%
0.5%
Lakes
EPA states that almost 92% of lakes (by surface area) examined in 2004–2006 were in
satisfactory condition. The previous survey judged 91% to be in satisfactory
condition.
Groundwaters
The latest report (2004-2006) recorded that nitrate concentrations exceeded the annual
mean nitrate threshold concentration for groundwater (37.5 mg/l NO3) at 9.5% of the
monitoring stations and, of these locations, 2% exceeded the mandatory limit (50 mg/l
NO3). While groundwater quality is generally good, nitrate and phosphate
concentrations are significantly higher than background concentrations in places,
which have the potential to contribute to eutrophication.
Phosphorous Regulations
The national implementation report on the Phosphorus Regulations published by the
EPA in 2005 concluded that of the 496 lakes with updated trophic status information
available, 401 (80.8%) currently comply with the targets set. The EPA considered that
agricultural activities were the source of the nutrient enrichment affecting most of the
non-compliant lakes but pointed to other sources such as sewage discharges in the
other cases.
Water Conservation/Harvesting
Rising population levels and continued socio-economic development has led to
increased demand on the water supply, both from domestic and commercial users.
While ongoing investment in water infrastructure throughout the country is required,
there is also a need to develop innovative solutions for improved water management
at a decentralised, local level, including at individual farm level.
Rainwater harvesting in a farm setting has both economic and environmental benefits.
Given the large volume of water used on farms, rainwater harvesting is a practical
solution to cutting down on water costs, conserving mains water supply and
improving water quality. The conserved water can be used for a variety of on-farm
purposes that do not require high quality mains water (e.g. drinking water for
animals). Rainwater harvesting was also mentioned as a possible supplementary
15
measure to reduce abstraction pressures in the draft river basin management plans
issued by the River Basin Districts (RBD)14.
Water Harvesting therefore has the potential to lower abstraction pressures, reduce
water charges for farmers and lessen the reliance on the public water supply thereby
reducing public expenditure on water treatment. Water Harvesting also feeds into the
requirements of the Nitrates Regulations (SI No 101 of 2009), which include ensuring
that clean water from roofs is diverted away from soiled yards.
Agricultural Catchment Programme (ACP)
An initial 4-year Agricultural Mini-Catchment Monitoring Programme (2008-2011)
http://www.teagasc.ie/agcatchments/ is being undertaken by Teagasc with funding
from DAFF, the objective of which is to evaluate the measures contained in the
National Action Programme (NAP) under the Nitrates Directive, and also the
derogation in terms of water quality and farm practices. This programme will provide
a basis for a scientific review of NAP measures with a view to adopting modifications
where necessary.
Water Framework Directive
Ireland is currently on target to meet its commitments under the Water Framework
Directive (WFD). There have been some local improvements in water quality as a
result of the implementation of local authority measure programmes under the
Phosphorus Regulations although the improvement has not been universal. Local
authorities will play a key role in the implementation of the Water Framework
Directive in Ireland, including in the development and implementation of measures.
The River Basin Management projects, which have been established to facilitate
implementation of the Directive, will help provide local authorities with the
information necessary to protect and improve water quality within their functional
areas.
The Water Framework Directive (2000/60/EC) was transposed into national law in
2003. Implementation is being led by the competent authorities, namely the
Environmental Protection Agency (EPA) and local authorities. River Basin District
(RBD) projects have been established by local authorities to implement the
requirements of the WFD in National River Basin Districts. In December 2006,
programmes of monitoring will be made operational (led by the EPA). In July 2007,
local authorities published a summary overview of the significant water management
issues in each RBD for the purpose of consultation. In December 2008, local
authorities published draft River Basin Management Plans, followed by a public
consultation period which ended in June 2009. The Department of Agriculture,
Fisheries and Food finalised its formal response in relation to the draft plans in June
2009. The final plans are expected to be published before the end of 2009.
In December 2009, local authorities will adopt and publish the final River Basin
Management Plan (including objectives for all water bodies and programmes of
River Basin District is defined as “The area of land and sea, made up of one or more river basins,
together with the associated groundwater and coastal waters, identified by the Water Framework
Directive (WFD) as the main unit for the management of river basins.”
14
16
measures to meet those objectives) following consultations and amendments as
appropriate. In December 2012, the programmes of measures will be made
operational by the relevant public authorities; and in June 2015 and every six years
thereafter, the local authorities will review and if necessary, update the River Basin
Management Plan and the programmes of measures.
Draft Management Plans for Freshwater Pearl Mussel are also currently being
prepared by local authorities, in accordance with Article 13 (5) of the Water
Framework Directive. The objective of the plans is to restore the freshwater pearl
mussel populations in 27 rivers, or stretches of rivers, that are within the boundaries
of Special Areas of Conservation.
Nitrates
In 2003 the Government decided to adopt a whole territory approach to the
implementation of the Nitrates Directive and the necessary regulations were made,
identifying the whole national territory as the area for which an action programme
would be established and applied in accordance with the Directive. The Directive
itself was transposed into national law in February 2006.
The whole-territory approach was designed to ensure a comprehensive approach to
the reduction and prevention of pollution from all agricultural sources, from
phosphorus as well as from nitrogen.
Revised Nitrates Regulations were signed into law by the Minister for the
Environment, Heritage and Local Government. The European Communities (Good
Agricultural Practice for Protection of Waters) Regulations (SI 101 of 2009)15 revise
and replace the previous Regulations made in 2006 and 2007. They provide for
strengthened enforcement provisions and for better farmyard management in order to
comply with an ECJ judgement in relation to the Dangerous Substances Directive.
They also provide the legal basis for the operation of a derogation under the Nitrates
Directive granted to Ireland by the European Commission. The Regulations came into
force on 31 March 2009.
The main new features incorporated in the Regulations are:
 Strengthened enforcement powers for local authorities;
 Enhanced cross-reporting arrangements between local authorities and the
Department of Agriculture, Fisheries and Food;
 Requirements for improved farmyard management;
 Provisions relating to making application to the Minister for Agriculture,
Fisheries and Food for a derogation;
 Temporary exemption to allow an extension of time for establishment of green
cover following ploughing competitions.
15
S.I. 101 of 2009 can be found at http://www.attorneygeneral.ie/esi/2009/B26793.pdf
17
In relation to the farmyard and the prevention of pollution arising from it, under the
Regulations all farmers are legally obliged to:




Minimise the amount of soiled water produced on the holding and take all
reasonable steps to ensure that rainwater from roofs, unsoiled paved areas and
water flowing from higher ground is diverted to a clean water outfall and
prevented from entering onto soiled paved areas, etc;
Ensure that storage facilities for livestock manure, other organic fertilisers,
soiled water and effluents from dungsteads, farmyard manure pits and silage
pits are maintained free of structural defect and are of such standard as is
necessary to prevent run-off or seepage into ground or surface water;
Ensure that new storage facilities meet the above criteria;
Meet the minimum manure storage capacity requirement for livestock manure
produced by cattle of 16, 18, 20 or 22 weeks, depending on location. A general
requirement of 26 weeks applies for pig and poultry units.
In addition to storage and prevention of pollution, the Regulations place exacting
requirements on all farm holdings in terms of the landspreading of organic and
chemical fertilisers:



Limits on application of fertilisers determined by soil type and crop
requirements;
Timing and method of landspreading, including closed periods for application
of organic and chemical fertilisers;
Specific buffer zones for wells, watercourses and lakes within which the
spreading of fertiliser is prohibited.
Air Quality
The EPA’s fourth state of the environment report, “Ireland's Environment 2008”,
brings together the most recent information on the quality of Ireland’s environment.
It assesses the factors that affect the environment and discusses protection policies,
both national and international. In this report the EPA states, “Ireland is one of the
only countries in Europe to have had no exceedances of any ambient air quality limit
values in recent years. None of the current EU or national air quality standards have
been breached, and levels of pollutants have remained stable for the past five or more
years”.
Agriculture accounts for most ammonia emissions within the Irish economy, arising
primarily from animal manure and nitrogen based fertilisers. Reductions in ammonia
emissions from organic wastes are taking place due to declining numbers of animals
and ongoing improvements in efficiency at farm level.
These factors combined means that the ammonia emissions ceiling for 2010 of
116,000 tonnes, set by the EU’s National Emission Ceiling Directive 2001/81/EC,
will be achieved. Ammonia emissions from agriculture in 2007 amounted to 103.04Kt
and are projected to have fallen to 101.5 Kt by 2010 but will increase slightly again in
subsequent years. (See Appendix III: Ammonia Recorded Emissions & Projections).
The Department is actively engaged in contributing to international efforts to reduce
emissions from agriculture through participation in initiatives under the Convention
18
on Long Range Transboundary Air Pollution (CLRTAP). It is likely that further
efforts will have to be made in future years to meet revised targets for 2020 and
beyond to be set in a revision to the NEC Directive and the CLRTAP’s Gothenburg
Protocol
The main sources of ammonia from agriculture are emissions from animal housing
and land spreading of animal manures. The Regulations giving effect to the Nitrates
Directive lay down fertiliser limits which will give farmers an economic incentive to
use nutrients as efficiently as possible, both through more careful selection of
spreading periods and possibly by using spreading technologies that reduce
emissions to the air. In turn these measures will also reduce inputs of nitrogenous
fertilisers.
The main air quality issue of concern to agriculture is ammonia emissions associated
with the animal housing and the storage and spreading of animal manures. Elevated
concentrations of atmospheric ammonia in the vicinity of large intensive units can
result in higher levels of ammonia deposition locally and can also result in increased
longer-range transport and deposition.
The Department of Agriculture, Fisheries and Food is conscious of the dual
environmental benefits (i.e. reducing both GHG and ammonia emissions) of efficient
slurry spreading techniques e.g. early spring spreading of manure or the use of trailing
shoe or other technology. Accordingly, the Department will, where possible, promote
the use of these approaches amongst farmers.
Climate Change
Under the Kyoto protocol Ireland has agreed to limit greenhouse gas emissions to
13% above 1990 emissions levels.
Agriculture remains the single largest contributor to the overall emissions, where
emissions of methane and nitrous oxide account for almost 26.8% of the national total
of CO2 equivalents. However this is significantly down from 1990 when agriculture
contributed 35.9% of the total.
A new National Climate Change Strategy (NCCS), published in 2007, acknowledged
the continuing fall in emissions from the agriculture sector. For the Kyoto period,
2008 – 2012, the strategy projected a reduction of 2.4Mt CO2 eq compared to 2005
emissions levels, from 19.6 Mt to 17.2 Mt. This was based, primarily, on the
expectation that decoupling of farm support payments from production would result
in a reduction in animal numbers with an attendant fall in mineral fertiliser use.
Recent projections by EPA (March 0916), based on updated FAPRI livestock activity
analysis, suggests that although emissions in 2007 were 5.1% below 2005 levels, the
reduction in emissions anticipated in the NCCS will not be as great as originally
forecast. This can be explained, to some extent, by the relaxation of the milk quota
regime, which led to farmers not reducing cattle numbers to the degree initially
16
EPA report “IRELAND’S GREENHOUSE GAS EMISSION PROJECTIONS 2008-2020” March 2009
http://www.epa.ie/downloads/pubs/air/airemissions/GHG_Emission_Proj_08_12_30032009.pdf
19
expected. The EPA now forecasts a reduction in the order of 1.4Mt, with average
annual emissions for the Kyoto period projected to be 18.2 Mt CO2eq. Nevertheless,
by 2012, emissions from the sector will be 8.5% lower that 1990 levels compared to a
National target, which is 13% above 1990 levels.
The Climate Change Strategy highlighted the use of the Rural Environmental
Protection Scheme as a vehicle to promote awareness amongst farmers of the urgent
need to address climate change mitigation and adaptation. Accordingly, the
introduction of REPS 4 in 2007 included measures aimed at meeting Ireland’s
obligation in that regard.
Forestry also has a significant role to play in combating climate-change. The latest
estimates indicate that the level of sequestration in Kyoto-eligible forests, which are
mainly those newly established since 1990, will actually reach some 2.1 million
tonnes of CO2 per annum during the first Kyoto commitment period 2008-2012.
Forestry also represents a secure and renewable source of energy, which can help
reduce our dependence on imported oil and which has the added advantage of being
carbon-neutral.
Since the introduction of the Forest Environment Protection Scheme (FEPS), which
encourages the establishment of high nature value forestry REPS farms, almost 300
landowners have afforested a combined total area in excess of 3,000 hectares with
broadleaf trees.
The Table at Appendix III provides more detail on the trends in greenhouse gas
emissions from agriculture for the period 1990-2020.
Flood management
Increasing attention is being given to the occurrence of extreme events. The impacts
of extreme floods, storms and heat waves have been observed globally in recent years.
They can be more damaging than gradual or average changes, which are more easily
predicted by climate models. New approaches to statistical and probabilistic analysis
of extreme events are being developed to better inform decision making on associated
risks and likely impacts.
The 2004 report of the Flood Policy Review Group recognised the need to devise a
clearly defined and comprehensive policy approach to flooding nationally and a
precise definition of the roles and responsibilities of the various stakeholders
involved. The report identified climate change as one of the important elements that
need to be addressed when assessing future flood relief measures in Ireland.. Since the
2004 Policy Review the Office of Public Works (OPW) has developed and
implemented a wide range of integrated and comprehensive work programmes to
ensure effective management of flood risk into the future including programmes to
maintain drainage works carried out in the past and construct new flood relief
schemes.
Heavy flooding in Ireland is being addressed in line with Directive 2007/60/EC on the
assessment and management of flood risks, which entered into force on 26 November
2007. This Directive requires Member States to assess if all water courses and coast
20
lines are at risk from flooding, to map the flood extent and assets and humans at risk
in these areas and to take adequate and coordinated measures to reduce this flood risk.
This Directive also reinforces the rights of the public to access this information and to
have a say in the planning process. Ireland has already carried out preliminary
assessment on three river basins at risk of flooding with a view to developing a
template for flood risk management plans for river catchments. In accordance with
the terms of the new Directive, significant emphasis will be placed on the role of
flood plains and sustainable land use practices. Climate change adaptation will also be
considered in the first implementation cycle, starting in 2011 with the preliminary
flood risk assessment.
Coastal Erosion and Coastal Protection
Responsibility for coastal protection and coastal erosion was transferred from DAFF
to the OPW at the start of 2009. Since then the OPW have been liasing closely with
Local Authorities to prioritise coastal protection projects that require immediate
measures or studies. All coastal Local Authorities were invited to complete a detailed
Coastal Protection Projects questionnaire and the responses were evaluated by OPW
officials. Based on these responses and a Qualitative Risk Assessment, that was
carried out by OPW, funding is being allocated to six Local Authorities for works and
studies which can be substantially completed in 2009. Priority was given to areas
where there was a known risk to human life and/or a substantial risk to the
infrastrucutre of the area. These minor projects are part of a comprehensive Coastal
Protection Programme and details of the schemes that can be substantially completed
as part of this programme in 2010 are expected to be announced shortly.
The National Coast Protection Strategy Study (ICPSS) which will provide
information on coastal flooding and coastal erosion vulnerability is ongoing. Draft
outputs in the form of coastal erosion and coatal flood risk maps for the East and
South coasts are now completed and work will continue on the West and Northwest
coasts in 2010. When completed the Study and associated risk maps will be a valuable
aid to planning authorities to support the implementation of the Guidelines on “The
Planning System and Flood Risk Management”. 17
In October 2009 the Minister for the Envrionment, Heritage and Local Government
lanuched a joint report by the Heritage Council and Fáilte Ireland (the National
Tourism Development Authority) report on ‘Climate Change, Heritage and Tourism:
Implications for Ireland’s Coast and Inland Waterways’. This review will inform
policy, research and grant support. It noted that with climate change, rising sea levels
and increased frequency of storms, that coastal erosion will become more widespread.
‘Hard’ coastlines are more resilient but coasts made up of sands, clays and gravels are
more vulnerable.
The report makes a number of recommendations including vulnerability mapping to
identify geographic areas at the greatest risk of coastal erosion (this work is underway
as mentioned already) and further integration of climate change policies with other
policies. The development of a national policy on Integrated Coastal Zone
Management is noted as being critical in devising a coherent, appropriate response to
17
http://www.opw.ie/en/PressReleases/2009/Title,12148,en.html
21
rising sea levels and coastal erosion. The example of the Water Framework directive
and the OPW flooding guidance is a step towards a more joined-up approach and
should be used to inform policy.
Biodiversity
At present there are two interlinked programmes of government action designed to
protect our natural heritage within Natura 2000. The area designated under the Wild
Birds and Habitats Directives is some 650,000 hectares of the whole territory, and
15% of agricultural land. Further detail on these is set out at Appendix IV.
National Biodiversity Plan
The first National Biodiversity Plan (2002-2006), published by the Department of the
Environment, Heritage and Local Government (DEHLG), identified over 90 actions
deemed necessary to help halt the loss of Ireland’s biodiversity. Thirty-nine of those
actions fell within the remit of the Department of Agriculture, Fisheries & Food,
under broad headings such as agriculture, forestry and conservation of genetic
resources. An Interim Review published in 2006 recorded actions already taken.
These include:




The rollout of REPS 3 (and now REPS 4) which includes a far greater
emphasis on biodiversity and, for example, has specific measures for the
conservation and maintenance of hedgerows, with options to rejuvenate
existing hedgerows and to establish new ones;
The implementation by the Department of Agriculture, Fisheries and Food of a
co-ordinated programme for the conservation and utilisation of genetic
resources in agriculture, food and forestry, overseen by a National Advisory
Committee on Plant and Animal Genetic Resources;
The employment of forest ecologists by both Coillte and the Forestry Service
of the Department of Agriculture, Fisheries and Food;
The completion of over 4000 Commonage Framework Plans designed to
eliminate overgrazing resulting from excessive sheep numbers.
In May 2008 the DEHLG published a major study that it had commissioned,
examining the social and economic aspects of biodiversity in Ireland. It considered
various major sectors including agriculture, forestry, climate change and
infrastructure development. By comparing the value of ecosystem services provided
by biodiversity and the cost of biodiversity protection policies, this report established
a marginal value of biodiversity in Ireland of at least €2.6 billion per year.
The National Parks and Wildlife Service within DEHLG has already been working
extensively on the second National Biodiversity Plan. They carried out a wide-ranging
consultation process and sought submissions from interested stakeholders. Results
from these from submissions were then circulated to relevant departments including
DAFF. DAFF will shortly be meeting with DEHLG to discuss the relevant issues with
a view to publication of the new Plan in early 2010.
22
Traditional landscapes in Ireland reflect the fact that Irish agriculture is predominantly
grass-based and extensive. Though a small proportion of the more intensive dairy and
tillage farmers may intensify further, there are a number of factors that will preserve
traditional landscapes:



Decoupling, which will encourage farmers to keep their production at existing
levels or even to reduce it;
The continued high level of participation in the Rural Environmental
Protection Scheme;
The continued growth of part-time farming.
Any risk to the preservation of traditional landscapes is in fact more likely to take the
form of abandonment of land as a result of decoupling and the trend towards part-time
farming. That risk will be offset by the obligation under the Single Payment Scheme
to keep land in good agricultural and environmental condition, but this will be
supplemented in the Rural Environmental Protection Scheme by a requirement for a
minimum level of farming activity.
In late 2008 the Heritage Council commissioned a case study on High Nature Value
(HNV) farming in Ireland. The study will examine a sample of farms from the
perspective of HNV and will look at issues such as land abandonment. The study,
which is due for completion later in 2009, will also contain recommendations to
address the issues. The Department of Agriculture, Fisheries and Food has provided
financial support to the project and is represented on the project steering group along
with the National Parks and Wildlife Service and Teagasc.
Well-planned forestry can contribute positively to biodiversity. Existing Guidelines
describe practical measures to achieve biodiversity objectives. These include the need
to identify existing habitats and fauna of particular interest; the importance of species
selection; and the incorporation of open area and retained habitat in the forest. The
pattern of Irish forestry is changing to one of smaller forests with greater species
diversity embedded in a mixed landscape of cropland, pasture, wetland and upland.
This is yielding a mosaic of different habitat types.
Less Favoured Areas account for 75% of agricultural land and a similar proportion of
High Nature Value areas are situated in them. The maintenance of farming in these
areas is therefore extremely important from a biodiversity perspective.
A recent assessment (Lynas et al.,2007) of the population status of Ireland’s birds
indicates that of the 199 species assessed, 25 were placed on the red list (i.e. of most
conservation concern), 85 on the amber list (generally of unfavourable conservation
status) and 89 on the green list (of least concern). The number of red-listed species
has increased by seven and amber-listed species by eight since the first review in
1999. The roseate tern and the hen harrier are the only red-listed species identified in
1999 to have since improved in conservation status. The corn bunting has become
extinct as a breeding bird in Ireland and several of the remaining red-listed species are
in danger of extinction in Ireland, including the common scoter, black-necked grebe,
quail, red-necked phalarope and nightjar. This survey of the population of Ireland’s
bird species is wider in scope than the more specific ‘farmland’ bird index. On-going
evaluation of the RDP and a thorough review of the baseline indicators of the RDP
23
carried out earlier in 2009 resulted in a change to the classification and index that will
be used for monitoring the trends in farmland birds. It is now proposed to use this
‘farmland’ bird index of 33 species of common farmland birds and a slight
improvement in this is envisaged over the length of the RDP.
Although DAFF is not the primary responsible authority for the preservation of
diversity in bird species, it works closely with DEHLG and organisations such as Bird
Watch Ireland on this issue. Ireland’s agri-environment measures, protect wild bird
and animal populations through several of its elements, particularly the requirements
for retention and management of hedgerows and habitats. There are also
supplementary measures designed specifically to conserve bird populations, such as
measures for protection of the corncrake and for the growing of food for wild birds
through the LINNET18 project.
Other Agri-Environment measures aimed at enhancing and protecting biodiversity
generally also benefit bird populations through preserving habitats and food supplies:
e.g. measures dealing with hedgerows, habitats, field margins, and biodiversity
options such as nature corridors, species-rich grassland, tree planting and
environmental management of set-aside. The emphasis on biodiversity has been
retained and increased in REPS4, which was introduced in 2007.
Furthermore, under the proposed new Agri-Environmental Options scheme (AEOS), a
specific measure relates to the conservation of wild bird habitat for the corncrake, for
which farming practice developed by Bird Watch Ireland must be followed. Wild bird
cover will help to further encourage the small-scale production of cereal plots as a
food source for farmland bird populations.
Biodiversity Research – ‘Ag Biota’
The “Ag-Biota” research project, which was prepared for the Environmental
Protection Agency (EPA) by University College Dublin (UCD), was completed in
2009. It set out to develop a greater understanding of the relationships between Irish
agriculture and biodiversity in its widest sense and focused strongly on the generation
of practical knowledge to inform REPS policy development. Four key indicator
species (i.e. wasps, bumblebees, birds and aquatic invertebrates) were identified
which reflect the impacts of agriculture on biodiversity at different scales.
The project also fed directly into a Department of Agriculture-funded project ‘AgriBaseline’ (Stimulus Research Fund 2006) which is now surveying biological
indicators, farm management and REPS participation statistics for large samples of
farms.
Renewable Energy
It is already clear, despite the relative youth of the renewable energy sector in Ireland,
that agriculture and forestry will have a major role to play in meeting future targets.
The bioenergy sector in particular offers the opportunity to redress Ireland’s
dependence on imported fossil fuels, and reduce Ireland’s Greenhouse Gas Emissions,
18
“Land Invested in Nature, Natural Eco-Tillage”
24
while at the same time providing a new set of market opportunities for the agricultural
sector.
Under the terms of the EU Renewable Energy Directive, the national target for
renewable energy is now set at 16% by 2020. On a sectoral basis, this will require
around 40% renewable electricity, 10% renewable energy in transport, and 12%
renewable heat. It is expected that much of the electricity target will be provided by
wind generation, itself a provider of jobs and income in what are often marginal rural
areas. The 10% renewable transport target, which also exists as a separate requirement
in its own right, will primarily be met through the use of biofuels, although it is
expected that electric vehicles will also play a role. A biofuel obligation, which will
require all fuel suppliers in the state to include a certain percentage of biofuels in the
fuel mix, will come into effect in 2010. This will be progressively increased through
time, as markets and sustainability of supply allow, to ensure that the 2020 target is
met.
Renewable Heat, perhaps the most challenging of all of these sectors, has already seen
considerable growth in Ireland since the introduction of a package of measures in
2006. These measures, including the Greener Homes Domestic Renewables Support
scheme, the Renewable Heat Deployment Programme (or Reheat), and the Combined
Heat and Power (CHP) programme, are collectively designed as market development
measures combining outright capital support to stimulate demand, with quality
control, publicity and awareness raising, and installer training. Already these schemes
have significantly expanded the market for biomass products in Ireland, leading to the
construction of two new production facilities.
Precisely how the 2020 targets will be met is the subject of an inter-Departmental
group, the BioEnergy Working Group, the membership of which is drawn from all
relevant Government Departments, as well as from the relevant State Agencies and
the private sector. This group is currently preparing a BioEnergy Roadmap, which
will set out the resources that are available to meet the targets, and the additional
measures that will be required to deliver them.
One scheme developed by the Department of Agriculture, Fisheries & Food, called
the Bioenergy Scheme, supports the planting of miscanthus and willow for energy
purposes. Both miscanthus and willow can be used to generate heat and power,
typically in the form of pellets and wood chip, for domestic and commercial boilers.
The Bioenergy Scheme (2007 -2009) provides establishment grants to farmers for up
to 50% of establishment costs, subject to a maximum grant of €1,450 per hectare,
with the balance being invested by the applicant. In the first two years of the Scheme,
220 applicants were grant aided to plant 1,600 hectares of miscanthus and willow. A
further 185 applicants have been granted approval to plant in excess of 1300 hectares
in 2009. One element of the proposed new Targeted Agricultural Modernisation
Scheme (TAMS) concerns additional investment in Bioenergy. With the aim of
helping to meet renewable energy production targets, the area planted with Willow
and Miscanthus will be increased. It is envisaged that this would replace and follow
on from the existing Bioenergy Scheme.
25
Further information on the overall renewable energy situation in Ireland is available at
Appendix V.
Socio- Economic Situation
A National Spatial Strategy (NSS) was adopted in 2002 as part of the National
Development Plan 2000 – 2006. The NSS is a twenty-year planning framework
designed to foster more balanced physical, economic and social development across
regions and areas. Infrastructural and economic investment under the NSS is targeted
on the development of key gateway and hub cities and towns in the different regions.
Priorities identified in the NSS for rural areas include the need for appropriate
community infrastructure, provision of economic opportunities and the need to
develop further leisure and cultural facilities.
The Rural Development Programme will complement the NSS by focusing on all
rural areas outside these main gateway and hub cities and towns. These areas account
for 72% of the national population, see table 6 Appendix 1. A number of small to
medium sized towns that do not meet the OECD definition of rural areas i.e. less than
150 persons/km2 will continue to be included in rural programming. Many of these
towns are located in close proximity to the greater Dublin area and so experience
significant threat from urban sprawl. The remainder are located in key regional areas
where population stabilisation is a priority.
The NSS describes five broad rural area types in Ireland:
1.
2.
3.
4.
5.
Areas that are strong – mainly in the South and East where agriculture will
remain strong, presently over 30% of the labour force is engaged in
primary agriculture, but where pressure for development is high and some
rural settlements are under stress. Many of these settlements are peri-urban
in nature and have the highest population densities in this area type of over
40 persons/ km2.
Areas that are changing – including many parts of the South and East but
also parts of the Midlands, the Border, the South and West where
population and agricultural employment have started to decline and where
replacement employment is required. These areas are characterised by
having the lowest level of self-employment outside agriculture at 13% of
the available labour force
Areas that are weak – including more western parts of the Midlands,
certain parts of the Border and mainly inland areas in the West, where
population decline has been significant and the ratio of those aged 65 and
over exceeds 15% of the total population of the area.
Areas that are remote – including parts of the west coast and the islands.
A feature of these areas is that they represent the highest proportion of
part-time female workers at 29% of the total female population at work.
Areas that are culturally distinct and highly diversified – including parts of
the west coast and the Gaeltacht, which have a distinct cultural heritage
and amenity value. Due to their widespread distribution across the other
areas, socio-economic needs vary from isolation to peri-urban pressure.
26
The first three rural areas are of approximately equal territorial size with each
accounting for more than one quarter of the total rural territory as measured on the
basis of District Electoral Division. The remaining 2 areas are of similar size but
together account for less than 20% of the national rural territory. Common to all areas
is the horizontal territorial classification of peri-urban. This area type is more
common to the first two rural topographies and accounts for just under 30% of the
rural population.
Population Trends
The most recent national census of population recorded an increase in the national
population from 3.9 million in 2002 to 4.2 million in 2006 or an increase of 8.2%. The
rate of growth was greatest in urban areas and along the east coast. This growth was
accompanied by a continued concentration of population clusters along newly
upgraded transport corridors between major cities and surrounding regional towns.
The Central Statistics Office (CSO) has projected a national population of 5.7 million
by 2026. This would represent an increase of about 35% over the population recorded
at the start of the RDP. However, regional disparities in this growth are predicted with
above average increases in Dublin and the Mid-east and below average increases
elsewhere.
In 2002 the proportion of rural residents commuting to work was 40% and rising. The
incidence of long distance commuting (50 km or more) has risen markedly in the
outer rings around the major urban centres and along the inter city routes. To sustain
communities in their own areas requires access to employment opportunities,
availability of mainstream services locally and adequate leisure and cultural
infrastructure.
Areas of Weak Population Structure
A priority is the need to halt population decline in more remote rural areas. In the
period 1926 – 2002 significant rural areas at local administration level in 18 out of 26
counties experienced a population decline in excess of 50%. Research into population
patterns in Ireland shows that some 30% of rural dwellers can be described as living
in areas experiencing weak population structure and a consequent diminishing
economic base.
Off-Farm Employment Patterns
A growing feature of farming patterns is the increase in the number of “part time”
farmers. In 1991, some 73.4% of farmers described “farm work” as their sole
occupation, with the remaining 26.6% having another (either major or subsidiary)
occupation. The trend towards what is generically entitled “part time farming” is
illustrated by the latest available CSO data (2007 Farm Structures Survey) , which
indicates that farming was the sole occupation for 66,600, or 52%, of holders. 47% of
farmers had another either major or subsidiary occupation while 1% were farm
holders who did not work on or off farm.The Teagasc National Farm Survey 2008
estimates that 79% of farmers and/or their spouses had an off-farm source of income
27
either from employment, pensions or social assistance. On 40% of farms the holder
had an off-farm job. 19
The most recent Census of Agriculture, carried out in 2000, showed that just under
5% of farms (6996) were involved in non-agricultural activity on the farm. The
breakdown of this figure is outlined below:
Forestry
Farm Tourism
Recreational Activities
Home Crafts
Other
2,849 farms
1,240 farms
374 farms
173 farms
2,871 farms
Rural Economy and Employment Patterns
Ireland’s regions are predominantly rural – characterised by medium-sized and small
market towns, villages and open countryside. One of the most fundamental
challenges facing rural economies is the impact of restructuring in agriculture and
traditional industry and the associated need for diversification and growth in the nonfarm rural economy.
GVA/person in the BMW was about 72% of the state average in 2006 compared to
110% in the S&E region. GVA at Basic Prices per person in the BMW region, at 72%
of the state average, was down from 77% in 1996. Although the region accounted for
a little over 25% of the people at work, it contributed less than 20% of the GVA 20.
Research by the ESRI (Economic and Social Research Institute) notes that the
“difference between the ‘poorest’ and ‘richest’ counties increased over the period
1995 to 2002, suggesting that there was income divergence during the ‘Celtic Tiger’
era”. However it also notes that the operation of the fiscal system reduced income
disparities across counties – the gap in income is significantly reduced once subsidies
and taxes are taken into account.21
Employment in the secondary sector (e.g. manufacturing and construction), which is
predicted to decline in coming years, is particularly important in rural areas – it
accounts for 32% of employment in rural areas compared to 28% nationally. The
downturn in construction combined with a decline in traditional manufacture impacts
significantly in rural areas. These sectors represent considerable proportions of fulltime employment and are also important outlets for the growing numbers of part-time
farmers. This underscores the need for training and education amongst those in
vulnerable sectors.
Rural tourism, which has traditionally been a mainstay of rural employment also faces
serious challenges. The tendency for tourists to concentrate in the greater Dublin and
Eastern region highlights the need for a regionally balanced tourism 22.
19
The results from the CSO Farm Structures Survey and Teagasc National Farm Survey differ due to
different methodologies, sample sizes and so on.
20
CSO County Incomes and Regional GDP 2006
21
Morgenroth, E. (2009) “Who is Paying for Regional Balance in Ireland”, ESRI Research Bulletin
2009/1/3
22
Tourism Action Plan Implementation Group
28
BROADBAND
‘Building Ireland’s Smart Economy – A Framework for Sustainable Economic
Recovery’ acknowledges that broadband is a key enabling infrastructure for
knowledge-intensive services activities on which future prosperity will increasingly
depend. Broadband can provide ready access to national and international markets and
help with employment creation and fostering an entrepreneurial spirit, which is
essential to the knowledge economy. Rural broadband in particular can help to
improve the quality of life for rural residents and strengthen rural communities.
Ireland currently has over 1.3 million subscribers to broadband 23 so that penetration
levels are approximating EU and OECD averages. There has been a large increase in
uptake in recent years. For example, in 2005, 45 percent of households (with at least
one person aged 16 – 74) had a computer connected to the Internet and 7 percent of
households had broadband access. By 2008 these figures had both increased and 62
percent of households had a computer connected to the Internet, and 43 percent of
households had broadband access. More than two-thirds of Internet connections in
2008 were broadband, whereas in 2005 this was less than 20 percent. 24 However
there are differences in the level of broadband access between densely populated
(urban) areas and thinly populated (rural) areas. Almost 90 percent of households with
an Internet connection in densely populated areas had broadband compared to less
than 45 percent in thinly populated areas.
While investment in broadband is mainly a matter for the private sector, there are a
number of areas where the State should incentivise or facilitate investment, in line
with the Consultation Paper on Next Generation Networks published in July 2008.
For example, the Department of Communications Energy and Natural Resources
(DCENR), with the support of Commission for Communications Regulation
(ComReg), are running the National Broadband Scheme (NBS). It aims to provide
broadband services to the areas of Ireland that are currently not served by any
broadband provider, and ensure that every reasonable request for broadband in these
unserved areas is met. This is around 10 percent of the population and approximately
33 percent of the area of the country, or around 223,000 residential, commercial and
business premises.
DCENR carried out extensive and detailed mapping exercises of the areas covered by
the existing Digital Subscriber Line (DSL), fixed and mobile wireless broadband
operators, as part of the planning and design of the NBS 25. Approximately 12,500
premises, which were not covered by existing broadband service providers, were
excluded from the scheme, as the area in which they were located were already
deemed substantially covered. However, it has since been recognised that due to local
obstacles or technical issues there are also premises that would appear to be in a
23
Commission for Communications Regulation Trend/Statistics unit (Comstat)
http://www.comstat.ie/data/data.472.1267.data.html
24
CSO, Information Society Statistics First Results 2008
25
See
http://www.dcenr.gov.ie/Communications/Communications+Development/National+Broadband+Sche
me.htm State Aid decision 475/2007 http://ec.europa.eu/community_law/state_aids/comp-2007/n47507.pdf
29
covered area, but are not able to avail of the coverage from the existing broadband
operators. While there is no substantiated estimate of the number of consumers who
find themselves in this situation, DCENR expects that the total number is unlikely to
exceed the number of unserved premises identified in the NBS mapping exercise.
Accordingly, DCENR expects, for planning purposes, that approximately 25,000
premises (56,000 people) might be eligible for the Rural Broadband Reach Scheme
(RBR).
Despite the substantial coverage in the local areas in which these premises are located,
these premises remain unserved. The unserved premises in question are generally in
low population density rural locations, and are dispersed in nature, and the
deployment of additional infrastructure to serve these isolated customers would be
difficult to justify under normal open market economic criteria.
Some relevant indicators in relation to the rural social economy include:
 47% percent of farmers have another (either major or subsidiary) occupation
in the wider rural economy
 The services sector accounts for 55% of GVA in rural areas compared to 65%
nationally.
More detailed indicator data in relation to this Chapter is set out in Appendix VI.
30
Chapter 2
Overall Strategy, Translation of Community Priorities and Setting of National
Priorities
Introduction
In its White Paper on rural development published in 1999, the Irish Government
underlined its commitment to ensuring the economic and social well being of rural
communities. It defined the policy agenda as all Government policies and
interventions that are directed towards improving the physical, economic and social
conditions of people living in rural areas. It emphasised that policies would aim to
facilitate balanced and sustainable regional development while tackling the issues of
poverty and social inclusion.
The above is relevant on two counts. Firstly, the White Paper’s vision has guided and
will continue to guide rural development policy. Secondly, the recognition of diverse
influences (transport, environment etc.) on rural development is an important one.
While this strategy is based on the EU rural development framework, the role of other
influences and the need for complementarity with them has to be borne in mind.
Overall Strategy
Ireland considers that the priorities set at EU level are consistent with its own. In the
case of the agri-food sector, its Agri Vision 2015 Action Plan is premised on a vision
of a competitive, consumer-focused sector. Competitiveness is a primary objective of
the plan. To that end, support under this strategy will be targeted on restructuring and
farm modernisation. It is recognised that this focused commercial approach must be
pursued in a way that is economically, environmentally and socially sustainable. The
sector’s ability to contribute wider environmental and social objectives is recognised
in the “European model of agriculture”. In this context, Ireland proposes to build on
the success of current measures relating to agri-environment and less favoured areas.
In the case of the wider rural dimension - diversification/quality of life - priorities for
support will include on-farm diversification; rural/agri tourism; rural enterprise;
provision of cultural and leisure infrastructure; community initiatives in areas such as
renewable energy and IT access; village and countryside enhancement and
conservation of rural and cultural heritage.
The indicative % allocation of EU co-funded resources between the three EU
priorities is:



10% competitiveness
80% environment
10% diversification/ quality of life.
10% of EU co-funded resources will be reserved for actions implemented using the
Leader approach. This amount represents the indicative percentage allocated to the
diversification/quality of life priority.
This allocation bears in mind the following:





The baseline analysis indicates the contribution of agriculture to the
environment. It is important to maximise that contribution and to compensate
farmers for the public good aspects of their enterprises. It is hoped to build on
the success of current relevant successful measures and to deliver results in the
areas of water quality (agri-environment) and biodiversity (agri-environment,
compensatory allowances in less favoured areas.)
The European model of agriculture emphasises its multi-functional role and
that development must be underpinned by sustainability. Ireland endorses that
view and considers that the actions foreseen under Axis 2 must underpin those
provided elsewhere in the Rural Development framework.
The measures under Axis 2 have proven their worth and are already co-funded
by the EU. From the financial management and control viewpoint it makes
sense to concentrate EU funding on them. There will also be a significant
carry over of commitments to Axis 2 from the current round.
The Axis 2 funding is aimed at environmental enhancement, but also has an
economic dimension that is relevant to the other areas. It is important as a
platform for actions in other areas such as diversification, agri-tourism etc.,
The “environmental” support for farmers will be concentrated under this
strategy whereas the other priorities will benefit from policies adopted outside
of the specific EU rural development remit that will make an important
contribution to the economic and social well being of rural areas.
Link to the Lisbon Agenda
In its Lisbon Reform Programme, published in October 2005, Ireland agreed with the
focus on jobs and growth. The programme also stresses, however, the importance of
achieving social equity and ensuring environmentally sustainable development as
inter-related goals. Within a stable macroeconomic environment the following are
included as priorities:






Promote, protect and enhance competitiveness.
Increase R&D investment, capacity and output.
Encourage greater innovation and entrepreneurship across the enterprise sector.
Continue to address the physical infrastructure deficit, particularly in the transport
sector.
Continue to roll out regulatory reform.
Support social inclusion and sustainable development.
The rural development strategy reflects the Lisbon Reform Programme. Through its
support under Axis 1, it will enhance the competitiveness of the agri-food sector. It
will also complement Ireland’s overall strategy for science, technology and
innovation, which runs until 2013 and which provides a major commitment for
research and development in agriculture and food, focusing particularly on research in
sustainable agricultural production; food quality, safety and nutrition; product
innovation and the rural economy. Sustainable development will be encouraged
through the actions foreseen under Axis 2. In the case of Axis 3, actions will include
those targeting research/innovation and development, diversification, and
32
culture/leisure/community facilities. In addition to promoting competitiveness, the
Axis 3 measures will also contribute to social inclusion.
From the overall perspective, the rural development strategy will be a balanced coordinated one that will promote growth, sustainable development and social equity. It
will thus reflect the Lisbon agenda and Ireland’s related reform programme.
Compatibility with EU Strategic Guidelines.
For Axis 1, the relevant guideline provides that resources should focus “on the
priorities of knowledge transfer, modernisation, innovation, and quality in the food
sector and priority sectors for investment in physical and human capital”. . The
significant contraction in the economy since 2008 and difficult budgetary situation
experienced has led to the suspension of measures relating to the setting up of young
farmers and early retirement from farming. A more targeted, sector specific focus on
market orientation and competitiveness for Axis 1 will be implemented for the
remainder of the Programme. The new Targeted Agricultural Modernisation Scheme
(TAMS) will assist the Agri-food sector address current opportunities and threats.
The new measures will address the need for associated capital investment at farm
level focusing in particular on improved animal welfare standards, increased
efficiencies in the dairy and sheep sectors, water conservation and the promotion of
renewable energies.
For Axis 2, the focus is on enhancing natural resources and landscapes. The measures
in mind – agri-environment and support for farmers in less favoured areas – address
this priority. The agri-environment measure will protect biodiversity and traditional
agricultural landscapes and will build on the now well-established success of REPS.
The support for less favoured areas will promote the continued use of agricultural
land thus maintaining the countryside and improving sustainability.
For Axis 3, the overarching priority of creation of employment opportunities will be
addressed specifically by the rural enterprise measure but fully supported through all
the other indicative actions e.g. analysis and development, on-farm diversification,
rural/agri-tourism measures and Information and Communication Technology (ICT)
utilisation. Village enhancement along with conservation of rural heritage and
provision of culture and leisure facilities will significantly improve the quality of life
of rural areas. Promotion of social inclusion and targeting of women, young people
and minority groups will be addressed further through the composition of the local
action groups employed to deliver axis 3 measures, as well as the Leader axis.
Health Check and European Economic Recovery Plan Funding
The revised Rural Development Strategy reflects changes in priorities of the EU
Strategic Guidelines in order to focus on:





Climate Change adaptation and mitigation
Renewable energies
Water management
Biodiversity
Innovation relating to previous four measures
33


Restructuring of the dairy sector
Broadband internet infrastructure in rural areas
In the context of sustainability, the EU strategic guideline pertinent to the
environmental objective stresses three issues – water quality, biodiversity and climate
change. Ireland attaches particular importance to these matters and will build upon the
successes achieved to date under existing schemes such as REPS, Natura 2000 and
disadvantaged area payments, in order to further support sustainable development in
rural areas and to respond to society’s increased demand for environmental services
and public goods.
Under the Health Check agreement and the European Economic Recovery Plan
(EERP) additional EU funding of €146m has been made available for investment
under the Rural Development Programme in Ireland. Of the €146m allocation an
amount of €119m will be sourced under the Health Check fund with the balance of
€27m from the EERP. Ireland consulted with approximately 80 designated
stakeholders on how best to meet these new challenges in accordance with the
objectives of the Health Check and the EERP. Having reviewed the various proposals
received and consulted with the Rural Development Monitoring Committee it is was
agreed that the total modulation fund and half of the EERP fund should be allocated
to an agri-environment measure, titled “Agri-Environment Options Scheme” (AEOS).
This investment amounts to €132.9m made up of €119.5m (Health Check) plus
€13.4m (EERP). Having considered the range of challenges Ireland has opted to
prioritise biodiversity, water management and climate change within AEOS, as these
are considered the most appropriate to Ireland.
The emphasis on biodiversity has been maintained in order to consolidate the benefits
already achieved to date in this area and referred to already in chapter 1. In line with
Ireland’s commitments under the UN Convention on Biological Diversity, the EU’s
Strategy for Halting the Loss of Biodiversity and ongoing work on Ireland’s second
National Biodiversity Plan, the primary focus of the Scheme is biodiversity
conservation.
The secondary focus of the Scheme is water management (including measures to
improve water quality). This takes into account the fact that substantial measures
have already been taken to limit the threat to water quality from farming through
Regulations giving effect to The Nitrates Directive concerning the protection of
waters against pollution caused by nitrates from agricultural sources. A programme
of investment in farm waste management, partly grant-aided by some €1.2 billion in
national funds, has resulted in the construction of some 5.8 million cubic metres of
additional waste storage since 2006. Recognising the requirement under the Water
Framework Directive to achieve “good quality water status” by 2015, however, and
the part that farmers can play in achieving that objective, the Scheme will promote
actions that contribute to the quality of our waters.
The third chosen priority is climate change. The Scheme includes actions that would
offer some reduction in greenhouse gas emissions from tillage farming and raise
awareness of the issue amongst farmers.
34
The balance of the EERP fund of €13.4m is being allocated to a broadband measure.
The importance of broadband to facilitate access to high-speed online internet
services is well documented and universally accepted. Online access is equally
important, if not more so, to rural businesses and homes. Access to online services
such as banking, revenue, and other e-government services as well as wide ranging
information services can give rise to significant time saving and convenience for rural
dwellers. The situation regarding broadband coverage and access in Ireland as well as
‘unserved premises’ has been outlined in chapter 1.
A new scheme will ensure that all citizens of Ireland will be given the opportunity to
access broadband regardless of geographic location. This initiative will incentivise the
provision of broadband services to individual premises which, for reasons outlined in
chapter one, are unable to receive a broadband service from any of the service
providers (SP) already operating in their areas. The proposed intervention would be a
scheme whereby a grant (to cover the cost of extending an SP’s network to the
premise, subject to a defined maximum) would be payable to any service provider that
extended its network to cover the “unreachable” premise. The grant would also be
payable to any service provider who is currently serving the area but whose initial
connection costs are deemed to be prohibitively expensive (e.g. satellite service
providers). The scheme would complement Ireland’s previous broadband intervention
initiatives and would, subject to the market responding to the grant scheme, ensure
that all premises in Ireland would be served by a SP.
The table below sets out the level of priority and allocation of funding to meet the
new challenges.
New
Challenges
Biodiversity
Water
management
Climate
Change
Broadband
internet
infrastructure
in rural areas
Total
Amount of
Allocation
€89m
€25.6m
As % of Total
Funding of €146.3m
61 %
17.5 %
€18.3m
12.5 %
€13.4m
9%
€146.3m
100%
Apart from the allocation of the Health Check and European Economic Recovery Plan
funds Ireland is addressing the new challenges relating to dairy restructuring,
renewable energies and water management with the introduction of a new scheme
entitled “Targeted Agricultural Modernisation Scheme [TAMS] under measure 121 of
Axis 1 of the RDP. This will complement the funding under agri-environment
measures. The amounts to be spent are:
35
Scheme
Dairy Enterprises
Sheep Enterprises
Pig Welfare
Poultry Welfare
Water Conservation
Bio-energy
Total Investment:
EAFRD
Fund
€22.5m
€4m
€6.5m
€8m
€4m
€10m
€55m
36
National
Funding
€22.5m
€4m
€6.5m
€8m
€4m
€10m
€55m
Total
€45m
€8m
€13m
€16m
€8m
€20m
€110m
Chapter 3
Strategy per axis, including quantified targets and objectives and indicators to
be used
1.0 Competitiveness
There are major changes impacting on the agri-food sector. These include the shift in
EU policy to decoupled payments, the increased competition in the market place,
lifestyle changes, the increased significance of R&D and technology, and changes in
food preferences and in the structures of farming and retailing. To respond to these
changes, the sector must be competitive, innovative and consumer focused. Within the
scope of Axis 1, the following are the intended measures with that in mind.
1.1 Structural Improvement
Since the Rural Development Programme and Strategy were originally approved in
2007 there have been profound changes in the Irish economy, occurring as a result of
both international and domestic factors. The resulting scarce availability of national
finances, due to a growing budget deficit, has required a fundamental re-prioritisation
of resources. The significant negative change in the economic climate has necessitated
the change in approach to the nature and type of activities focused under Axis 1 of the
Rural Development Programme. This resulted in the 14th of October 2008 decision
under the Budget to suspend the Early Retirement and Installation Aid for Young
Farmers Schemes. (However existing commitments under these schemes will be met.)
While the Early Retirement and Young Farmers Installation Aid Schemes have both
been worthwhile and valuable schemes to help with the transformation of Irish
agriculture, they could not address the new priorities and challenges as well as a new
specific scheme such as the Targeted Agricultural Modernisation Scheme (TAMS)
could.
However, various farm tax measures that were put in place in recent years to bring
about improvements in land mobility and that will, in turn improve productivity and
efficiency, were renewed in Budget 2009. These particular reliefs include the renewal
of stamp duty relief for four years until 31 December 2012 (worth an estimated €53
million in a full year), the renewal of stamp duty relief for farm consolidation for two
years from 1 July 2009 to 31 June 2011, the renewal of both the general and the
young trained farmers rates of stock relief for a further two years (estimated cost to
the Exchequer of €2 million in a full year) and the extension of the accelerated capital
allowance for necessary farm pollution control facilities from 31 December 2008 to
the 31 December 2010 (worth estimated €10 million in a full year). When combined
these farm tax measures are estimated to be worth over €65 million in a full year.
Furthermore the top rate of stamp duty on agricultural land transactions is being
reduced from 9% to 6% on amounts over €80,000 which should reduce the cost of
agricultural land to purchasers and encourage higher number of transactions. All these
37
measures will help to improve land mobility, land swaps and higher environmental
standards.26
As was referred to in chapter one, increased trade liberalisation as a result of both
recent CAP reforms and WTO negotiations, will lead to a more competitive
environment for Irish agricultural exports. Major changes in international and EU
policy and in market trends are under way, which will create more competitive EU
and world commodity markets. These trends will be intensified by the increased trade
liberalisation that will emerge from any new WTO round. Therefore, it was felt that
an increased focus on market orientation and competitiveness was appropriate. The
Targeted Agricultural Modernisation Scheme (TAMS) is aimed at these addressing
these challenges.
With regard to the pig and poultry welfare measures, these two sectors are both facing
significant pressures to meet requirements in various EC Animal Welfare Directives.
These elements of TAMS should help those producers to overcome pressures to meet
these strict deadlines. Investment in willow and miscanthus planting under the scheme
will help to address the renewable energy, and in turn the climate change, priorities.
Furthermore a current bio energy scheme run by DAFF is coming to an end. Water
management can be improved through investment in water harvesting and
conservation facilities and equipment. This will assist directly in the achievement of
the water management priority. When combined the various elements under TAMS
should help to assist in the transformation towards a more efficient and competitive
agricultural sector, which addresses the new priorities as described in the Community
strategic guidelines.
The Rural Development Strategy outlines the need for investment under Axis 1 to
focus on a new, targeted scheme for on-farm investment to assist a number of tightly
defined categories of farmers and focused on supporting productive investment. The
measures include support for young dairy farmers to make the necessary investment
to adjust to expanding dairy opportunities (with increased quota); support for pig and
poultry producers to adapt to new EU welfare requirements which represent a major
challenge for these sectors; continued aid for farmers planting willow and miscanthus
whose existing support schemes were discontinued under the Health Check
Agreement. The financial allocation for these measures is €110m.
The financial allocation for these measures is €483.5 m (€241.8 m EAFRD and
€241.8 m national exchequer).
1.2 Indicators and Targets
The following table summarises the baseline situation and the targets for Axis 1.
26
http://www.agriculture.gov.ie/press/pressreleases/2008/october/title,16047,en.html
38
Indicator
Measurement
Baseline
Target
Training and
education in
agriculture
Percentage of farmers
with basic and full
education in agriculture
Basic 17%
Full 14%
17%
14%
Age structure in
agriculture
Ratio: farmers under
35years of age/farmers
aged 55 years or over
Gross value added per
annual work unit
(GVA/AWU)
Gross value added per
person employed in
food, drink and tobacco
industry
Gross value added per
employee in forestry
0.17
0.15
€14,057 GVA per AWU
Increase
€137,043
Increase
€39,200
Increase
Labour
productivity in
agriculture
Labour
productivity in
food industry
Labour
productivity in
forestry
2.0 Improving the Environment and Countryside
The emphasis on a competitive consumer-oriented agri-food sector cannot be at the
expense of the environment or the countryside. Agriculture has a critical role to play
in the provision of “public goods” that would otherwise be under-provided.
The overall financial allocation for Axis 2 is €4,073 m (€ €2,001 m EAFRD and
€2,072 m national exchequer).
2.1 Compensatory Allowances in Less Favoured Areas
The compensatory allowances scheme will continue. It encourages sustainable use of
agricultural land in less favoured areas and takes account of environmental protection
requirements. The scheme ensures continued agricultural land use thereby
contributing to maintaining the countryside. Within the Less Favoured Areas,
agriculture is predominantly extensive, grass-based and mostly devoted to cattle and
sheep production.
Ireland opted for full decoupling of direct payments from production with effect from
1 January 2005 and a general reduction in stocking levels is forecast. The likelihood
therefore is that, within the Less Favoured Areas, where agriculture is already
predominantly extensive, even less pressure will now be put on the environment and
biodiversity. The application of cross-compliance (including the requirement to
maintain land in good agricultural and environmental condition) to the Compensatory
Allowance scheme with effect from 2007 will further enhance protection for the
environment, improvement of the countryside as well as achieving high standards in
food safety and in animal health and welfare.
39
In October 2008 a reduction was made to the total 2009 allocation for the scheme of
Area-Based Compensatory Allowances payments, to around €220 million. This
reduction was made in a targeted manner by reducing the maximum hectarage limit
on which payments are made, from 45 hectares to 34 hectares. No changes were made
to the stocking density requirements. No major changes to the outputs, results or
impacts of the scheme are envisaged and around 100,000 farmers will continue to
benefit from the scheme. Environmental benefits will continue to be provided through
the total area under successful land management and contributing to: biodiversity,
water quality, climate change, improvement in soil quality and the avoidance of
marginalisation and land abandonment.
The financial allocation for this measure is €1,648m ( €634m EAFRD and €1,014m
national exchequer).
2.2 Rural Environmental Protection Scheme (REPS) / Natura 2000
The Scheme will be operated and will build on the success of the 2000-2006 measure.
Payments will be made to farmers who, on a voluntary basis, make agrienvironmental commitments that go beyond the relevant national and EU mandatory
environmental requirements (including all requirements of cross-compliance under
the Single Payment Scheme). Payments under the scheme will cover the additional
costs and income foregone resulting from the commitments made.
Under the new scheme, the existing biodiversity options will be reviewed and the
range of options will be extended. Further supplementary measures will also be
proposed. In devising both new supplementary measures and new biodiversity
options, Ireland will seek primarily to deliver benefits in the areas of climate change,
water quality and biodiversity.
The decoupling of direct payments from production, along with the rapid growth in
the Irish economy outside farming, brings the risk that many farmers – particularly in
the parts of Ireland that are richest in biodiversity – will reduce the level of their
farming activity to a point where there will be negative environmental effects. While
the cross-compliance obligations of the Single Payment Scheme will mitigate these
effects on farms that have one owner, it will be practically much harder to prevent the
abandonment or partial abandonment of commonage land (which is found mainly in
Less Favoured Areas). REPS will therefore complement the Compensatory
Allowances measure by including specific requirements to prevent undergrazing and
land abandonment.
The Natura 2000 Scheme is designed to compensate farmers with utilisable
agricultural land in designated Natura 2000 sites for the mandatory restrictions related
to the designation. It is a condition that each participant puts in place and implements
a sustainable management plan, prepared by trained ecologists/agronomists. This
should outline farming activities which are compatible with the protection of the site
in order to enhance the conservation status of the sites.
40
Agricultural Environmental Options Scheme (AEOS)
The Rural Environment Protection Scheme (REPS) has operated as the main agrienvironment measure. As of mid-2009, there are approximately 62,000 farmers
participating in REPS. Given this high participation rate relative to the original target
of 60,000, and the resulting budgetary implications, REPS was closed to new
applicants as of 9th July 2009. However payments will continue to current
participants in REPS until the end of their existing five-year contracts, thus ensuring
that environmental benefits will continue to be provided through REPS.
A new agri-environment measure, the Agri-Environment Options Scheme (AEOS)
will be introduced in 2010, which will target those proposed undertakings with the
greatest environmental value with particular reference to the challenges and priorities
of conserving and promoting biodiversity, encouraging water management and water
quality and combating climate change. The objectives chosen are in line with
meeting EU and international commitments and requirements, such as the UN
Convention on Biological Diversity, EU Strategy for Halting the Loss of Biodiversity
and the Water Framework Directive.
AEOS will be more targeted and thus provide for more tangible environmental
benefits than REPS, thus building upon the environmental benefits already provided
to date. Farmers who have previously farmed to REPS standards will be able to apply
under the new Scheme, as they have already become accustomed to their role of
environmental stewardship and have the knowledge to deliver tangible environmental
and public good benefits. Farmers who were not in REPS will also be able to apply
for AEOS. Each application will be assessed upon the environmental benefits that it is
expected to provide. Also priority will be afforded to those farms whose holdings are
in areas of the greatest environmental importance, in terms of biodiversity and water
quality. However, the Scheme will be open to all farmers.
The table below shows an outline of the options that will be available under AEOS,
the challenges that they address and also the potential effects. The reasons for
addressing the particular challenges of biodiversity, water management and climate
change were already mentioned in chapter two. Specific details on actions, objectives
payment rates and control measures are set out in the RDP itself.
41
Axis/
New
Measure Challenge
Addressed
214
Biodiversity
214
Biodiversity
214
Biodiversity
214
Biodiversity
214
Biodiversity
214
Biodiversity
214
214
214
Biodiversity
Biodiversity
Biodiversity
214
Biodiversity
214
Biodiversity
214
Water
Management
Water
Management
214
214
214
Climate
Change
Climate
Change
214
Climate
Change
214
Climate
Change
Type of operation
Potential Effects
Commonage land
outside Natura
network
Enhancement and
creation of habitats:
 Existing
habitats
 New grass
habitats
Tree Planting &
Management
Traditional Hay
Meadows
Species Rich
Grassland
Animal genetic
resources.
Traditional Orchards
Wild Bird Cover
Hedgerow Planting
and Rejuvenation
Traditional Dry Stone
Wall Maintenance
Control of Invasive
and Alien Species
Riparian Margins
Protection of birds and other
wildlife and improvement of
biotope network, reducing entry
of harmful substances in
bordering habitats, conservation
of protected fauna and flora
Provision of
alternative water
source for bovines
Arable Margins
Green Cover
Establishment from a
sown crop
Use of trailing shoe
technology
Min Till
42
Conservation of species-rich
vegetation types, protection and
maintenance of grasslands.
Conservation of genetic
resources
Protection of birds and other
wildlife and improvement of
biotope network, reducing entry
of harmful substances in
bordering habitats, conservation
of protected fauna and flora
Protection and improvement of
water quality
Contributing to combating
climate change
Contributing to combating
climate change, Reduction of
nitrous oxide (N2O) and
Ammonia emissions
Contributing to combating
climate change
The financial allocations for the various measures in Axis 2 are set out in the table
below.
EAFRD (€m)
National (€m)
Total (€m)
REPS
993
817 *
1,810
AEOS
124
41
165
Natura 2000
241
197
438
Natura 2000 (new) 9
3
12
LFA
634
1,014 ^
1,648
Totals
2,001
2,072
4,073
All figures have been provided in € millions and have been rounded up/down
* Includes National top up of €5 million.
^ Includes National top up of €495 million
The overall financial allocation for Axis 2 is
€2,072m national exchequer).
€4,073m (€2,001m EAFRD and
2.3 Indicators and Targets
The following table summarises the baseline situation and the targets for Axis 2.
Indicator
Measurement
Baseline
Target
Biodiversity:
population of farmland
birds
Biodiversity: high
nature value farmland
areas
Water quality: Gross
nutrient balances
Climate change:
Production of
renewable energy from
agriculture and forestry
Afforestation: Area
determined under
forestry
Soil: Areas at risk of
soil erosion
Soil: Organic Farming
Trend of index of
population of farmland
birds
UAA of high nature value
farmland areas
93.5
95
Index 2000=100
1.1 million ha (i.e.
26% of UAA)
1.1 million ha
Surplus of nitrogen in
kg/ha
Production of renewable
energy from biomass
82kg/ha
75kg/ha
370kToe
Hectares of trees planted
3 kToe from
Agriculture
180 kToe from
Forestry
10.29 % of land area
Ton/ha/year
0.16
*0.16
UAA under organic
farming (thousand ha)
Emissions of methane
and nitrous oxide from
agriculture and measured
in 1000t of CO2
equivalent
38
220
18,435
Methane: 9,791
Nitrous Oxide:
6,625
Climate change: GHG
emissions from
agriculture
43
10.75% of land
area
3.0 Quality of Life in Rural Areas/ Diversification of Rural Economy
The economic, spatial and demographic national profile outlined in the opening
chapter provides a context for setting out priorities under axis 3. The ranking of
priorities and subsequent measures will differ markedly between peri-urban and more
remote rural areas. The Local Action Groups will decide on the scope and
combination of measures they select to address local priorities. The balance between
economic interventions and quality of life supports is strongly interlinked with
existing national rural support measures in the Rural Social Scheme and CLAR
programme aimed at supporting access to rural services, upgrading rural infrastructure
and providing income opportunities for farmers.
All measures contained in axis 3 will be delivered through the Leader approach.
These measures will meet the axis 3 objective of improving the quality of life in rural
areas and diversification of the rural economy through:











Increasing economic activity and employment rates in the wider rural economy
through encouraging on-farm diversification into non-agricultural activities
Supporting the creation and development of micro-enterprises in the broader rural
economy
Encouraging rural tourism built on the sustainable development of Ireland’s
natural resources, cultural and natural heritage
Improving the access to basic services by rural dwellers by, for example,
addressing inadequate recreational facilities.
Regenerating villages and their surrounding areas by improving their economic
prospects, and the quality of life
Maintaining, restoring and upgrading the natural and built heritage
A training and information measure for economic actors operating in the fields
covered by axis 3
A skills-acquisition and animation measure with a view to preparing and
implementing a local development strategy
Implementing local development strategies
Implementing co-operation projects
Running the local action group, acquiring skills and animating the territory
Broadband: Rural Broadband Reach (RBR) Scheme
The European Economic Recovery Package allocated funds to ensure the provision of
broadband services to rural areas. Ireland will target individual premises in rural
areas, which, for a variety of reasons, are unable to receive a broadband service from
any of the service providers already operating in the area. The intervention proposed
would compensate service providers that extended their networks to cover the
“unreachable” premises.
The Rural Broadband Reach Scheme (RBR) will identify and verify consumers, living
in rural areas, who are unable to obtain a broadband service at an affordable price
within a reasonable timeframe. The unserved premises in question are generally in
low population density rural locations and are dispersed in nature. There is a
continued and persistent market failure to provide a broadband service to these
premises, as the deployment of the necessary additional infrastructure or extension of
44
existing infrastructure to serve these isolated customers is not justifiable under normal
open market economic criteria.
A database of such consumers, who will be regarded as “qualified applicants” under
the scheme, will be constructed and in order to qualify, applicants must:




Be living in a rural location, as defined under the Rural Development
Programme,
Be located outside of the areas covered by the NBS, and
Make a declaration to state that they are not party to a contract with an
existing broadband service provider.
Be verified as “unserved” consumers by establishing that they are not capable
of being served by existing service providers who will be given the
opportunity to offer a service to the consumers in question.
The ‘wholesale access’ envisaged under the RBR scheme means that the winning
bidder will be required to make the infrastructure that is subsidised under the scheme
available to other operators at a wholesale rate, so that they can also use the
infrastructure to offer services. Wholesale access is a precondition for State Aid under
the State Aid Guidelines in relation to rapid deployment of broadband networks.
DCENR has made a Notification to DG Competition (N607/2009 Rural Broadband
Reach Scheme – Ireland) and DG Competition have agreed to consider the
Notification under the Simplified Procedure. The notice for public consultation has
been published on DG Competition’s Website.27
DCENR proposes to conduct an open tendering process under the EU Procurement
Rules to find a service provider who will create the necessary infrastructure and/or
extend the reach of existing infrastructure to enable access to broadband for the
consumers who qualify under the scheme. The Scheme will support activities under
options 1 and 2 of Annex III of Regulation (EC) No 1698/2005:
 “Creation of and enabling access to broadband infrastructure including
backhaul facilities and ground equipment (e.g. fixed, terrestrial wireless,
satellite-based or combination of technologies)”, and,
 “Upgrade of existing broadband infrastructure”
The type of infrastructures adopted will be a matter for the successful bidder,
depending on the technology or mix of technology chosen by the bidder. DCENR will
not require any particular technology. Bidders will identify the most appropriate
infrastructure to achieve the aims of the scheme. This will include the use of new and
existing infrastructure used for:
 Wired solutions,
 Wireless solutions,
 Solutions based on mobile technology, and,
 Solutions based on satellite technology
In compliance with the EERP Regulation, only those areas deemed to be “rural”
would be included in applications for EERP funding.
27
http://ec.europa.eu/competition/elojade/isef/dsp_simple_notif.cfm
45
The financial allocation for this measure is €18 million =, from the European
Economic Recovery Package (EERP). The available funding would provide a service
to approximately 25,000 premises (or approximately 1% of all premises in the
country) that continue to have no broadband coverage despite the existence of other
schemes such as the NBS.
The overall financial allocation for Axis 3 and 4 is €427m (€235m EAFRD and
€192m national exchequer).
3.1 Indicators and Targets
The following table summarises the baseline situation and the targets for Axis 3.
Indicator
Importance of rural
areas
Farmers with other
gainful activity
Employment
development of nonagricultural sector
Economic development
of non-agricultural
sector
Self-employment
development
Tourism infrastructure
in rural area
Internet take-up in rural
areas
Development of
services sector
Net migration
Life-long learning in
rural areas
Measurement
Baseline
% population in rural areas
72 %
72%
Sole holders-managers with other gainful
activity as percent of total number of farm
holders (sole holders-managers)
Employment in secondary and tertiary
sectors (000s)
44%
50 %
National 1,956.5
In Rural Areas 1,373
96 %
GVA in secondary and tertiary sectors
(Mio Euro)
National 153,955
In Rural Areas
92,296
National 322
In Rural Areas 262
National 206,831
In Rural Areas
166,859
National 13%
In Rural Areas 5%
National 65%
In Rural Areas 55%
National 16.9
In Rural Areas 17.8
National 8%
In Rural Areas 6%
98 %
Self-employed persons
Number of bed places
Persons having subscribed to DSL internet
as a percent of total population
GVA in services as a percent of total
GVA
Net migration into the state (per 1000
inhabitants)
% of adults (25-64 years) participating in
education and training
Target
20 %
sustain
20 %
60 %
Sustain
12 %
4.0 Leader
Local Action Groups provide full national coverage and will deliver axes 3 and 4 in
an integrated fashion that will provide maximum value for money. Notwithstanding
this, the territorial strategies implemented by the groups must also contribute to the
achievement of objectives under axes 1 and 2. While local governance and capacity
building are well developed nationally under the Leader umbrella, there is still need
for a clear focus on this priority in the ensuing national Rural Development
Programme.
The Leader methodology will be used to implement appropriate inter-territorial or
trans-national co-operation measures under that axis. Priority will be given to the
integration of local strategies at the regional level. Appropriate spheres of cooperation in this regard include developing the tourism potential of waterways,
walking tourism and other relevant initiatives that span a number of Local Action
Group (LAG) territories.
46
4.1 Indicators and Targets
The following table summarises the baseline situation and the target for Leader.
Indicator
Development of
Local Action
Groups
Measurement
Share of population covered by
Local Action Groups in the
framework of the Leader programme
47
Baseline
59% of national population
100% of rural population
Target
Maintain
Chapter 4
Rural Development Programme and its indicative allocation, including
convergence amount
Ireland will have a single national programme. This will include both EAFRD cofunded and state aid funded measures. As Ireland will no longer have any eligible
region, amounts will not be reserved for the convergence objective.
The indicative allocations for the programme are as follows:
€m
2,348
1,965
521
4,834
Funding Source
EAFRD
“Matching” Exchequer
Additional State Aid
Total
In addition to the above amount, further support was made available. Under the
Health Check agreement and the European Economic Recovery Plan (EERP)
additional EU funding of €146m has been made available for investment under the
Rural Development Programme in Ireland. Of the €146m allocation an amount of
€119m will be sourced under the Health Check fund with the balance of €27m from
the EERP. The total modulation fund and half of the EERP fund will be allocated to
AEOS. This investment amounts to €132.9m made up of €119.5m (Health Check)
plus €13.4m (EERP). The balance of the EERP fund of €13.4m is being allocated to a
broadband measure. The table below sets out the level of priority and allocation of
funding to meet these challenges.
New
Challenges
Biodiversity
Water
management
Climate
Change
Broadband
internet
infrastructure
in rural areas
Total
Amount of
Allocation
€89m
€25.6m
As % of Total
Funding of €146.3m
61 %
17.5 %
€18.3m
12.5 %
€13.4m
9%
€146.3m
100%
The indicative allocations under the Health Check and the EERP are as follows:
Funding Source
HC + EERP
“Matching Exchequer”
Total
48
€m
146
49
195
Chapter 5
Internal and external consistency of the NSP, complementarity with other
Community funding instruments
Consistency in Programming
Within Axes
In the case of Axis 1, the aim is to improve the competitiveness of the agri-food
sector. The proposed measures strike a reasonable balance between support for human
and physical capabilities. Within the overall competitiveness theme, the measures
complement each other.
Under Axis 2, support will be concentrated on three measures – agri-environment and
less favoured areas. Each can and has contributed environmental benefits. Through
their detailed rules and on-going monitoring, the necessary action will be taken to
ensure those benefits are maximised and any potential conflict avoided.
Delivery of Axes 3 and 4 in an integrated fashion will ensure maximum
complementarity between the two axes and will provide a stream lined, efficient
implementation model. The balance proposed for priorities in Axis 3 concerning
economic activity and quality of life reflect the changing needs of rural Ireland as
outlined in Chapter 1.
The provision of general/specialised training courses in fixed/mobile facilities and inhouse development of appropriate training facilities and the provision of flexible
learning opportunities in new technology with particular emphasis on women and
young people will continue. This will be focussed on maximising the benefits to rural
communities of developments in ICT. Feasibility studies, plans, resource audits and
the development of prototype products and services will be provided for. There will
be a focus on supporting companies involved in the provision of a service not
available in the rural area with an emphasis on the adoption of new technologies. The
increase in the de minimis threshold to €200,000 allows more scope for small-scale
infrastructure projects.
The priorities identified will be expressed through the indicative list of measures in
Chapter 3. These measures are selected to achieve both national objectives and those
contained in the EU Strategic Guidelines.
Between Axes
A common goal of the three thematic axes is to support environmentally and
economically sustainable rural communities. The Axis 2 measures have a particular
importance, while their central theme is environmental enhancement they will
underpin progress in the other two Axes. They ensure that the actions taken to boost
competitiveness will be grounded on sound sustainable principles. Similarly they will
enhance the quality of life in rural areas and provide the basis for diversification in
areas such as agri-tourism and leisure culture. Axes 1 and 3 exhibit a complementary
49
focus on a competitive farming structure through prioritisation of agricultural
competitiveness and also on-farm diversification. All three axes recognise and
promote the multifunctional nature of agriculture through its ability to provide a
diverse range of public goods.
There is also a significant degree of integration between the axes. The farm
improvement scheme can provide support for capital investment related to animal
welfare and the environment, thus contributing again to axis 2 goals.
The introduction of a broadband scheme for those in previously unreachable areas
supports the enhancement of performance across all three axes.
Consistency of Programming with EU Strategies
The twin objectives of competitiveness and sustainability embedded in this strategy
are fully in harmony with the goals of Lisbon and Gothenburg Strategies. For the
same reasons the strategy reflects the ethos of relevant EU strategies. The following
are illustrative of measures set out in Chapter 3 that address those strategies:
 Plan for Organic Farming – The organic sector will be targeted under the
“competitiveness and quality of agricultural products measure – both on-farm
and off farm.
 Use of Renewable Energy – It is open for relevant support under the on-farm
capital investment measure under Axis 1. It may also benefit under the nonproductive investment measure under Axis 2. Initiatives to address local
Community renewable energy needs may be supported under Axis 3
 EU Biodiversity Strategy 2010 – The rural environment protection scheme
under Axis 2 will incorporate support for Natura 2000 sites.
 6th Community Environment Action Programme – Community actions
targeting sustainable use of local resources and waste reduction initiatives
under Axis 3 will support the objectives of this programme
 EU i2010 ICT Strategy – training and access to ICT systems, e-public and ebusiness services supported under axis 3 are relevant to this strategy
 CAP Reform –In order to take full advantage of the freedom to farm
exclusively for the market arising from the decoupling of direct farm
payments, support will be provided for on-farm structural improvements and
human resources development. Support will also be provided for organic
farming and for downstream food and forestry sectors to help foster
competitiveness. The rules on cross-compliance will be applied by reference
to the implementing rules.
Complementarity between Community Instruments
National Development Plan
This rural development strategy will be taken into account with a view to ensuring
complementarity and avoiding possible duplication. The NDP will include measures
that are outside the scope of this strategy but that will address the wider rural agenda.
Through its monitoring arrangements and those for the rural development programme
(cross-representation etc.), continuing complementarity should be assured.
50
Demarcation
The actions/support proposed under Axes 1 and 2 fall within the remit of the
Department of Agriculture, Fisheries and Food on and do not raise a demarcation
issue. Axes 3 and 4 are primarily under the remit of the Department of Community,
Rural and Gaeltacht Affairs. From a strategy perspective, the scope of axis 3 as set out
under heading 3 of Chapter 3 is limited to fall under the EAFRD and would not
intervene in the areas set aside for the Operational Programmes 2007 – 2013 to be
supported by the ERDF and ESF structural funds. Breaking this down further, County
Development Boards have government responsibility for co-ordinating the delivery of
measures locally through local authorities and area development groups. Conscious of
the need to avoid duplication of interventions, Local Action Groups will be obliged to
have cross-representation arrangements with County Development Boards and have
business plans endorsed by them.
Specific complementarity with other key priority areas such as rural enterprise and
tourism will be achieved through consultation with Regional Tourism Authorities and
formal sectoral agreements with County Enterprise Boards. All relevant service
providers will be represented on the boards of Local Action Groups.
Broadband: Rural Broadband Reach Scheme
EU funding has been provided to previous broadband intervention initiatives
including the Group Broadband Scheme (GBS), the National Broadband Strategy
(NBS) and the Metropolitan Area Networks (MANs) Programme. These initiatives
are funded through the European Regional Development Fund (ERDF).
The Group Broadband Scheme (GBS) operated between 2004 and 2006. Its objective was
to promote the rollout of broadband access through the establishment of sustainable
broadband services in towns, villages, rural hinterlands and underserved areas of
larger towns on the basis of local/regional authority coordination and community
driven initiatives. The scehme was open to all smaller and rural communities of less
than 1,500 people. It enabled local communities to work with a broadband service
provider of their own choice, or to draw up and implement their own broadband plan,
with the aim of launching a broadband service for residents and small & medium
sized businesses in their area.
The National Broadband Strategy (NBS) will deliver broadband to certain target areas
in Ireland in which broadband services are not available. Any fixed residential or
business customer located within the NBS coverage area can apply for broadband
services under the scheme. There are approximately 223,000 buildings located within
the NBS coverage area.
The main goal of the MANS programme is to provide a communications
infrastructure (such as ducts and fibre) and wholesale services to operators in towns
outside Dublin to reduce the high fixed cost of building their own infrastructure for
telecommunications operators, which represents the most important barrier to entry in
this market. MANS tackles a major bottleneck, the so-called “middle mile” between
local loop and regional networks and serve as a backhaul network collecting and
51
transporting traffic in these towns to the regional networks between the cities
concerned.
Each of these initiatives has been successful in extending the reach of Service
Providers networks. 28 However, there are still some premises that remain unserved.
The aim of the proposed Rural Broadband Reach (RBR) scheme is to provide access
to broadband to rural consumers who fulfill the qualification criteria set out, and
where there is an established market failure. It will provide for support to develop the
capacity of rural dwellers to utilise ICT including Internet and broadband to access eservices and other public and commercial electronic applications. The absence of
access to broadband for these rural consumers persists, despite previous interventions
by the Irish Government. The remaining unserved premises have not been, and will
not be, addressed by any other EU funded scheme. The persisting lack of access to
broadband for some rural premises warrants this initiative and so the subsidization of the
necessary infrastructure to provide the consumers concerned with access to broadband is
warranted and justifiable.
The RBR scheme will only apply to applicants who are, living in an area outside the
areas covered by the NBS. This would mean that there would be no “cross over”
between the new EAFRD funding and existing ERDF funding for broadband.
Specific measures will be taken to ensure demarcation is maintained and to prevent
double subsidisation:


With regard to demarcation from the NBS, the potential applicants under this
scheme will not be eligible to be given a service under the NBS, because
applications will not be accepted from people who live in the geographical area
covered by the NBS. The NBS website contains an address checker 29 which will
allow potential applicants to confirm that they live outside the NBS area.
Any premise that applies for the new scheme, which is already receiving a
broadband service from a GBS Service Provider or any other service provider,
will not be eligible for consideration under the scheme. This approach will be
safeguarded by the notification of applicants to existing service providers
DCENR will be co-ordinating spending on the MANS, NBS and RBR schemes, and will
ensure that no overlap occurs with regard to the different funding methods employed.
28
Further details on the operation of these schemes is available at
http://www.dcenr.gov.ie/Communications/Communications+Development/
29
http://ve.bizmaps.ie/threeireland/Pages/Public/NBSPublicPage.aspx
52
Chapter 6
The National Rural Network30
The national rural network was established in 2008 within the single national rural
development programme.
The network comprises of those organisations representing beneficaries or potential
beneficiaries under the rural development programme. Its functions include:






Running seminars, conventions and workshops,
Development of a website
Publication of a newsletter
The provision of an information service to groups and organisations when
requested
Facilitating and promoting inter territorial and trans-national cooperation
Representing Ireland on the proposed European Network for Rural
Development
The activities of the rural network is overseen by a Steering Group which comprises
representatives from the Department of Agriculture, Fisheries and Food, the
Department of Community Rural and Gaeltacht Affairs, the consultants providing the
service and the representatives of farmers and LEADER companies.
The amount earmarked for establishing the national rural network as required under
Article 11 of Regulation 1698/2005, is within 4% of the total amount for the
programme.
30
See the National Rural Network website for details at www.nrn.ie
53
APPENDIX I
Table 1: Age Profile by System of Farming, 2007
< 35
35 - 44
45 - 54
55 - 64
10 %
18 %
24 %
27 %
Specialist
Tillage
8%
24 %
28 %
25 %
Specialist
Dairying
6%
16 %
23 %
26 %
Specialist
Beef
Production
8%
16 %
24 %
26 %
Specialist
Sheep
6%
17 %
25 %
26 %
Mixed
Grazing
Livestock
6%
16 %
26 %
26 %
Mixed Crops
and
Livestock
9%
18 %
27 %
27 %
Other
7%
18 %
24 %
26 %
Total
Source: CSO, Farm Structures Survey 2007
..
54
> 65
20 %
Total (‘000)
5.0
14 %
19.3
28 %
68.2
26 %
15.5
25 %
16
26 %
3.1
18 %
25 %
1.0
128.1
Table 2: Agri- Food Exports
% Share of Agri€m
2005
2006
% Change
Food Exports
Dairy Products and Ingredients
1,963
2,089
6.42%
25.0%
Other Food
1,535
1,713
11.60%
20.5%
Beef
1,340
1,600
19.40%
19.1%
Beverages
1,091
1,376
26.12%
16.5%
Pigmeat
238
223
-6.30%
2.7%
Poultry & Eggs
257
240
-6.61%
2.9%
Cereals and Cereal Preparations
354
356
0.56%
4.3%
Live Animals
226
219
-3.10%
2.6%
Potatoes, Fruit & Vegetables
244
277
13.57%
3.3%
Sheep
150
195
30.00%
2.3%
Sugar, Sugar Preps and Honey
90
74
-17.59%
0.9%
Tobacco
1,535
1,713
11.60%
20.5%
Total
7,488
8,362
11.68%
100.0%
Source: CSO & DAFF Annual Review & Outlook
Table 3: Regional Spread of the FDT Sector Local Units, 2003
Number of Local Units
Regional Authority Area
Border
Dublin
Mid-East Mid-West
Midland South-East South-West
West
Total
FDT
105
109
57
64
38
106
145
72
696
Total Manufacturing
637
4779
1,166
492
443
303
602
691
445
FDT as % of Regional Total 16.48%
9.35%
11.59%
14.45%
12.54%
17.61%
20.98%
16.18% 14.56%
% of Total FDT
15.09%
15.66%
8.19%
9.20%
5.46%
15.23%
20.83%
10.34% 100.00%
Meat
19
16
23
14
14
28
14
20
148
Dairy
11
3
34*
9
3
14
20
52*
60
Other Foods
70
78
36
13
53
105
355
Drink and Tobacco
5
12
5
8
11
6
47
No of Local Units
*Breakdowns unavailable due to confidentiality.
Source: CSO, Census of Industrial Production
Number of Local units
Table 4: Size Structure and Productivity of the FDT and Total Manufacturing
Sectors, 2003
Local Units
Persons Engaged
Net Output per unit
Net Output per Person
Engaged
000's
000's
€000's
€000's
Nos. Employed
FDT
All Industry *
FDT
All Industry *
FDT
All Industry *
FDT
All Industry
*
Under 10
194
1,882
969
9,971
303
298
60.7
56.3
10-19
137
1,050
1,983
14,481
776
788
53.6
57.1
20-49
147
968
4,636
30,077
2,085
1,973
66.1
63.5
50-99
90
416
6,382
28,627
8,671
7,309
122.3
106.2
100-199
72
253
10,443
35,614
14,393
24,262
99.2
172.4
200-249
14
46
3,184
10,437
8,659
31,451
38.1
138.6
250+
42
164
18,071
92,141
183,404
295,887
426.3
526.6
Total
696
4,779
45,668
221,348
14,529
13,068
221.4
282.1
Source: CSO, Census of Industrial Production
* Total Manufacturing Local Units
LOCAL UNITS
Table 5: Export earnings and break down of sectors in agri-food
Value of Exports of
Agricultural and Agri-food
Produce
*
Live Animals other than 03
Meat & meat preps
Dairy Products, Caseins,
Ingredients and Eggs
Cereals & Cereal Preps
Potatoes, Fruit & Vegetables
Sugar, Sugar Preps & Honey
Feeding stuffs for animals
Misc. edible products
Hides & skins
Oilseed & oleaginous fruits
Flax & wool
Crude animal & veg mats nes
Animal oil & fats
Vegetable oil & fats
Coffee, tea, etc
Beverages
Tobacco
Total Agri-Food
* provisional Source:
19992006
1999
2000
2001
2002
2003
2004
2005
2006
Exports Exports Exports Exports Exports Exports Exports Exports
€m
€m
€m
€m
€m
€m
€m
€m
298.26 420.03 184.72 209.77 238.29 229.69 226.63 310.409
1,770.56 1,752.13 1,594.13 1,744.25 1,857.61 2,052.70 2,181.78 2,403.16
1,608.97 1,941.04 1,978.23 1,744.72 1,707.00 1,848.68 2,003.90 2,202.02
263.93 291.53 314.6 258.24 214.91 200.48 231.22 242.557
171.78 172.31 229.88 234.24 242.66 217.9 243.13 277.822
100.3 101.77 113.07 135.47 118.92 142.39 135.07 144.874
113.83 121.45 135.08 142.46 152.91 169.64 176.66 144.582
785.34 801.66 809.98 832.75 802.69 803.2 812.91 910.709
75.05
96.45
99.64 104.29 85.64
84.63
75.26 94.014
1.65
0.78
1.19
1.23
1.71
6.29
5.19
6.576
9.74
10.47
8.36
12.81
10.89
7.93
7.03
4.846
93.42
96.34
98.39
86.52
82.81
89.76
91.18 71.496
21.43
21.98
17.7
21.51
23.55
18.9
15.02 14.222
7.45
5.36
5.89
4.15
7.78
6.38
3.29
4.496
209.09 209.62 207.97 226.17 228.25 224.83 230.23 229.498
743.58 854.42 870.96 893.98 1,012.66 949.01 1,019.69 1296.95
60.09 103.87 113.78 107.68 94.82
87.68
89.66
74.57
6,334.47 7,001.20 6,783.58 6,760.23 6,883.09 7,140.10 7,547.86 8,432.80
Central Statistics Office (Trade Data)
Table 6: Definition of Rural Areas
Criteria
% National Popn
defined as rural
Eurostat 2000
71%
Definition of Rural
Definition for
64%
Rural Development
Programme 2000 –
2006 programme
i.e. excluding 5
major urban centres
Definition for
72%
Rural Development
Programme 2007 2013 (excluding
original NSS towns
and cities)
OECD definition
i.e. less than 150
persons/km2
% Of National
Territory defined
as rural
99%
Popn density of
rural areas
40 persons/ km2
>97% *
98.7%
54%
73%
* Calculated from CSO 2002 Ortho map of population density based on Electoral
Divisions
Table 7: 2006 Population by Region and Age Structure (%)
Region
Leinster
including
GDA
Munster
Connacht
and part of
Ulster
Total
11.0
3.6
20 –
24
years
4.6
5.6
3.8
1.9
1.3
2.1
1.3
14.7
9.5
3.3
2.3
27.7
18.2
20.4
6.8
8.1
53.7
11.0
100.0
Under 15 - 19
15 years years
57
25 –
64
years
29.5
65 years
and
upwards
5.4
Region as % of
total
population
54.1
Table 8: Projected Population to 2026 by Regional Authority (‘000)31
Region
Popn
2006
Natural
Increase
Internal
Migration
External
Migration
Popn
2026
Border
Dublin
Mid-East
Midland
MidWest
SouthEast
SouthWest
West
State
470
1,183
479
252
359
81
258
147
50
65
-16
0
69
-15
-6
57
217
59
33
32
592
1,659
754
321
450
Average
annual
increase
(%)
1.2
1.7
2.3
1.2
1.1
461
79
-8
59
591
1.3
619
108
-21
70
776
1.1
411
4,233
74
863
-4
0
72
600
552
5,696
1.5
1.5
31
CSO Regional Population Projections 2011-2026
58
APPENDIX II: RURAL ENVIRONMENT PROTECTION SCHEME
Summary of Scheme
The scheme fosters environmentally sustainable systems of agricultural production. It
contains a general programme for all participants, a special programme for
environmentally sensitive areas (Natura) and optional supplementary measures. The
general programme provides, inter alia, for:





A Farm Nutrient Management Plan
A Grassland Management Plan
Protection of Wildlife Habitats
Protection of features of historical or archaeological interest
Curtailed use of herbicides and pesticides
The optional supplementary measures relate to and provide extra incentives for rare
breeds, long-term set-aside, and organic farming. The provision of training in farming
practices compatible with good environmental practice is an essential element of the
scheme with participants required to attend such courses.
Evaluations of the Scheme
The following summarises the main results of evaluations carried out in 1999, 2003
(mid-term evaluation of the 2000-2006 CAP Rural Development Plan) and 2008 (Ex
Post Evaluation of the CAP Rural Development Plan 2000-2006).
1999 Evaluation



The scheme is contributing strongly to the aim of reducing the threat of water
euthrophication from agriculture. Use of nitrogen and phosphorus fertiliser is
below levels on non-REPS farms. As well as improved use of nutrients,
greater awareness and management of nutrients has resulted for participating
farmers.
There is a higher awareness of on-farm habitats. An average of 1.6 habitats
per farm is being protected, which covers about 13% of the farm area.
The scheme is making a positive contribution in a variety of ways –
hedgerow management, maintenance of stonewalls, protections of rare breeds
etc.
The 1999 Evaluation Report found REPS to be a comprehensive scheme that included
in its basic package measures concerned with pollution, the protection of fauna, the
preservation of wildlife habitat, archaeology and training in farming under the
Scheme and, most importantly, raises farmers’ awareness of the link between farming
and the environment. The absence of baseline data was identified as a weakness in the
scheme.
Ireland took account of these evaluation findings in developing a successor scheme
for the current programming period. The whole-farm approach was retained,
provision was made for the collection of baseline data at farm level and the REPS
59
training course, which had been optional, was upgraded to a mandatory requirement
for all participants.
2003 Evaluation
The evaluators concluded that “most stakeholders (and the evaluators) consider that
REPS is a good scheme, generally well designed in conformity with broad
environmental objectives, while simultaneously performing a broader rural
development role in terms of contributing to farm household viability, particularly in
Less Favoured Areas and more extensive areas where farm incomes are generally
lower. While the scheme is considered to be bureaucratic by the beneficiaries, the
degree of standardisation in the REPS package has reduced the complexity of the
scheme and enhanced its operational viability”.
The evaluators included certain suggestions in relation to enhanced pro-active farmer
involvement, the inclusion of more intensive farms and some relaxation in conditions.
In response to the first of these, the scheme was amended in 2004 to incorporate
mandatory pro-active environmental actions into the scheme — the participant would
now not just conserve the existing environment, but would restore or enhance it. The
evaluation paved the way for the launch of REPS 3 in 2004 and it includes new proactive elements so that a farmer does not simply conserve the existing environment
but restores or enhances it.
Since 2004, each farmer must undertake 11 basic measures along with 2 from a choice
of 16 “biodiversity” options. The new “biodiversity” options are divided in two
categories and a REPS farmer must undertake at least one from each category.
This was further enhanced through REPS 4.
2008 Evaluation
The report found that the level of uptake must be approaching the critical mass needed
to have a significant impact on water catchments and local habitats. The spatial
concentration of the scheme in the West and South Western counties increased the
schemes cover of catchments and habitats associated with the marginal land in those
regions. The benefits of participation have had a more persuasive impact on drystock
farms, which are the dominant type in the West and South West. However, there is
evidence that the risk of agriculturally related water pollution is much greater in the
Eastern and South Eastern Regions.
Participation in the scheme produces positive changes in farming practice, particularly
in the areas of nutrient and grazing management but also in the creation of new
habitats under REPS 3. It can be assumed that reductions in nutrient application and
stocking levels will lead to reduction in water pollution and the degradation of
vegetation and soil. However, more could be done to measure the specific impact of
REPS.
Utilisable agricultural area in Ireland is mainly devoted to grassland farming systems
comprising of dairying and drystock production. Uptake of REPS 3 by the dairy
sector was limited and this was taken into consideration in the design of REPS 4 for
the current programme. The nutrient management requirements of the scheme have
been brought into line with the requirements of the Nitrates Directive allowing for
60
increased participation by the dairy sector. As dairy farms are located on the more
productive grasslands in the south and the east of the country, increased participation
in these areas is anticipated in REPS 4. A considerable number of performance
indicators have also been developed for the new programme and these are
supplemented by additional studies funded through DAFF’s Research Stimulus Fund.
61
APPENDIX III:
Historical and projected greenhouse gas emissions for Agriculture (Mtonnes CO2e per annum)32
&
Irish Livestock Supply Projections (million head) 33
Year
2009
2010
2011
2012
1990
1995
2000
2005
2006
2007
19.9
20.9
20.5
19.6
19.3
18.6
Total Cattle (‘million head)
6.1
6.5
6.3
6.2
6.19
6.00
5.90
5.89
5.89
5.87
5.84
5.66
Dairy Cows
1.3
1.2
1.1
1.1
1.10
1.09
1.09
1.09
1.08
1.07
1.06
1.03
All Other Cattle
4.8
5.3
5.2
5.1
5.09
4.91
4.81
4.80
4.81
4.80
4.78
4.63
Greenhouse gas emissions
2008
18.2
2015
2020
18
17.8
Source: EPA - Ireland’s Greenhouse Gas Emission Projections 2008-2020
Source: FAPRI-Ireland, Baseline 2008 Outlook for EU and Irish Agriculture, http://www.tnet.teagasc.ie/fapri/downloads/pubs2008/Paper1_Final.pdf 29th September 2008
and DAFF Compendium of Irish Agricultural Statistics 2008 http://www.agriculture.gov.ie/publications/2008/compendiumofirishagriculturalstatistics2008/#d.en.28885
32
33
62
Ammonia Recorded Emissions and Projections.
2007 ammonia emissions were 103.04 Kilotonnes and have progressivly fallen from a high of 125.537Kt, recorded in 1999. Accordingly, Ireland is currently
on course to meet its 2010 target for ammonia emissions.
National Ammonia Emissions (kilotonnes) 34
Recorded Emissions
34
Projected Emissions
1999
2000
2001
2002
2003
2004
2005
2006
2007
2010
2013
126
122
116
113
112
111
108
107
103
102
103
Source: EPA
63
Appendix IV: Natura 2000
650,000 hectares of the whole territory, and 15% of agricultural land, is designated
under Natura 2000. Of this 20,000 hectares relates to Forestry. These are the
designation of areas of importance for wildlife and natural habitats, and schemes of
payments for environmentally friendly farming/good environmental practice. The
main conservation designations are NHAs (Natural Heritage Areas), SACs (Special
Areas of Conservation) and SPAs (Special Protection Areas for birds). SACs and
SPAs are required under the EU habitats and Birds directives, respectively.
The Department of Environment, Heritage and Local Government (DEHLG)
undertakes the designation of sites. Following designation, DEHLG produces a
conservation plan for each site. These plans list the wildlife resources of the area, the
current human uses, any conflicts between the two and the strategies for retaining the
conservation value. Such plans are reviewed on a 5-year cycle and form the basis of
advice to farmers in these areas where a farmer may be required to take particular
action to protect the wildlife interest of the site. It is the responsibility of DEHLG to
see that the designated sites are protected from significant damage.
In SACs and SPAs, activities or operations that are not the subject of specific
statutory consent by another Minister and might be damaging may be carried out only
with the prior permission of the Minister for the Environment, Heritage and Local
Government. These are called Notifiable Actions, and they vary depending on the
type of habitat that is present on the site. Where a landowner is considering making
changes on his farm that might affect wildlife habitat in a designated area, s/he must
consult the local conservation ranger beforehand Farmers with land in designated
areas may either join the Rural Environment Protection Scheme (REPS) and receive a
special rate of payment on it, or apply for compensation to the National Parks and
Wildlife Service (NPWS) of the Department of the Environment, Heritage and Local
Government.
The main scheme allowing payments to farmers for environmental protection is
REPS, the Rural Environmental Protection Scheme, administered by the Department
of Agriculture and Food, but the Department of Environment, Heritage and Local
Government (DEHLG) has recently introduced the National Parks and Wildlife
Service (NPWS) farm plan scheme. The NPWS scheme runs parallel to REPS and is
aimed at farmers who do not wish to join REPS or find themselves unable to do so.
The NPWS scheme pays for costs and compensates for actual loss incurred if a farmer
enters an agreement or is required by under the Habitats regulations to farm in a
manner, which goes beyond the basic requirements of Good Agricultural and
Environmental Condition.
In addition, NPWS advises the Forest Service of the Department of Agriculture,
Fisheries and Food in relation to the wildlife environmental conditions attaching to its
afforestation programme. All applications meeting the grant conditions will be
eligible for the grant. Compensation will not be payable in respect of applications
failing to meet the conditions.
64
Appendix V: Renewable Energy
Bioenergy
Promoting the use of bioenergy and the production of biofuels is a cross-sectoral issue
impinging on several policy areas (including energy, transport, environment, industry,
as well as agri-food and forestry) and involving several Government Departments and
agencies. The Department of Communications, Marine and Natural Resources
(DCMNR) has overall responsibility for energy policy and is the lead Department for
the promotion and development of renewable energy, including biofuels.
The Government’s Bioenergy Action Plan provides a platform for the development of
alternative energy sources which can reduce environmental impacts, provide more
security of supply and benefit local economies.
There are several renewable energy technologies available to meet the demands of a
cleaner energy environment. Bio-energy however is unique: firstly, it can address
energy needs across the three energy sectors – transport, heat and electricity – all of
which are equal in terms of their energy demand and CO2 emissions. Secondly, it
can be sourced indigenously, thereby creating opportunities - particularly in rural
areas - and providing a more diverse and secure supply. Critically, bioenergy can
enhance competitiveness through the provision of cleaner, cheaper energy.
A range of policies and measures are being implemented by the Department of
Communications, Energy and Natural Resources to ensure the successful
development of a sustainable bio-energy industry in Ireland.
Bioenergy Working Group
Bioenergy is more complex than other renewable energy sources, as it relies on
integrated supply chains, as well as the technology to convert feedstocks into energy.
Because of these complexities bioenergy policy is relevant across several areas of
Government responsibility and has benefits across a variety of diverse areas.
Ireland has established ambitious targets for bioenergy for 2020. Delivering the
biomass supply to meet these targets will require the mobilisation of significant
additional resources compared to present level. A Bioenergy Working Group (BWG)
was established by the Department of Communications, Energy and Natural
Resources in April 2008. The aim of the BWG is to chart the sustainable path to
achieve the 2020 bioenergy targets and to develop interventions to help deliver on
these targets.
The Bioenergy Working Group will act as a gateway to relevant knowledge and
expertise within the member Departments and agencies, commission studies as
required and consult with interested parties during the development of a Sustainable
Bioenergy Supply Roadmap. In order to be effective, and recognising that bioenergy
impacts upon various sectors, including energy, agriculture and environment, it was
recognised that it is critical that the development of the roadmap is tackled by a cross
sectoral collaboration group. In this regard the group is representative of Government
65
Departments, Government Agencies and relevant stakeholders. It is anticipated that
the group will have a draft roadmap prepared shortly.
It is recognised that there is a need to develop the entire supply chain, from producer
to energy end-user, in order to develop the sector.
Biofuels Mineral Oil Tax Relief (MOTR) Schemes
Biofuels Mineral Oil Tax Relief Schemes were introduced by the Minister for
Communications, Energy and Natural Resources in 2005 and 2006 in order to
incentivise the use of biofuels. The schemes have resulted in 18 projects being
awarded excise relief between 2005 and 2010. Of these projects, four are in the
biodiesel category, five are in the pure plant oil category, four are in the bioethanol
category and 5 are in the captive fleets category.
Since the excise relief schemes were introduced there has been a steady increase in
biofuels used in Ireland. Prior to the introduction of the schemes, in common with
other Member States, market penetration of biofuels in Ireland was almost non
existent. In 2007, penetration had risen to 0.6% and on the basis of the Mineral Oil
Tax Relief (MOTR) figures alone, penetration had risen to at least 1.5% in 2008.
Increased indigenous biofuels production will have a positive impact on the Irish
economy and security of energy supply and sustainability by displacing imported
fossil fuels.
The schemes were designed as interim measures to accelerate the level of biofuels in
the fuel mix, and were put in place in anticipation of the planned introduction of a
Biofuels Obligation Scheme in 2010.
Biofuel Obligation
The Government is committed to the introduction of the Biofuel Obligation from
January 2010. The public consultation process on the proposed parameters of the
obligation has concluded. The introduction of the biofuels obligation will require fuel
suppliers to ensure that they bring a certain volume of biofuels to the Irish market,
calculated as a percent of their mineral oil sales. It is intended to set a 4% penetration
rate, with a possible increase to 6% in 2012 pending a review in 2011. In line with the
Government’s commitment, details of the scheme are being finalised as a priority to
ensure that the January 2010 timeline is met.
The biofuels obligation will enable Ireland to move progressively towards meeting
EU targets for biofuels penetration in a cost-effective way while taking full account of
sustainability in line with EU developments.
Grant Programmes
Ireland has set targets of 5% market penetration of renewables in the heat market by
2010 and 12% by 2020. The Department of Communications, Energy and Natural
Resources has made significant progress in increasing the deployment of renewable
technologies in the heat sector through the expanded Greener Homes and Bioheat
grants programmes and the development of further initiatives to encourage renewable
66
energy in the domestic, community and industrial environments. The grant
programmes have now stimulated new markets for technologies such as solar and
geothermal, as well as bio-energy. Details of these programmes are as follows:
o The Greener Homes Scheme, launched in March 2006, provides support to
homeowners to invest in a range of domestic renewable energy heating
technologies including solar panels, biomass boilers and stoves, and heat
pumps.
The scheme has proved very popular since its launch, with 25,000 grant offers
in place across the technologies. Already 15,000 of these offers have been paid
following the successful installation of the systems, resulting in the investment
of €48m to date. These completed systems have resulted in an annual
reduction of 35,000 tonnes of CO2 emissions.
The scheme has helped establish a very strong supply industry for the
products, services and fuels while the application of strict product standards
and installer training and quality schemes has ensured that consumers are both
informed and confident in their choices.
The scheme is constantly under review and the Minister for Communications,
Energy and Natural Resources announced Phase III of the scheme, which
removed new houses from the scheme This was timed to coincide with the
coming into force of the revised Building regulations 2008 which, for the first
time, see a compulsory requirement for some component of renewable energy
in all new homes.
o
The Renewable Heat Deployment Programme, called ‘Reheat’, which
provides capital support for commercial and non-commercial organisations
wishing to install renewable heating technologies in their premises or to
conduct analyses as to the suitability of the technology.
o
The Combined Heat and Power Deployment Programme, which has been
expanded to take into account Biomass CHP and Anaerobic Digestion CHP.
Renewable Electricity
The Government targets are to increase the contribution from renewable energy
sources to electricity consumed to 15% by 2010 and at least 40% by 2020. There are
currently in excess of 1,300 megawatts (MWs) of renewable electricity generating
capacity connected to the electricity grid. The majority of these projects are within
the wind-powered category. More that 1,000MW of that capacity is wind-powered
plant with hydropower contributing approximately 238MW. The remainder comprises
biomass and biogas powered projects. Based on current technology trends, the
dominance of the wind-powered category to date is expected to continue until 2020 at
least. Delivery of additional new projects to meet or surpass these targets is well
advanced. Alongside the increase in renewable generation capacity, the renewable
share of total electricity usage has increased year on year. The contribution from
renewable resources has increased from 4.4% in 2003 to over 12% in 2008.
67
Renewable Energy Development Group (REDG)
The national Renewable Energy Development Group was established by the Minister
for Communications, Energy and Natural Resources to contribute to the delivery of
Ireland’s renewable energy objectives and targets across the electricity, heat and
transport sectors for 2010 and 2020 as set out in the Energy Policy White Paper, the
Programme for Government and in the context of the European Union Energy and
Climate Change Package. The Renewable Energy Development Group (REDG)
convened in 2008 to discuss and formulate plans as to how EU renewable energy
targets would be met. The Renewable Energy Development Group serves as a high
level forum, bringing together the renewables industry, Departments, Agencies and
other stakeholders to inform and underpin understanding of the challenges and
opportunities, and the setting of future directions, for the Irish renewable energy
sector, in the context of the Governments Energy Policy Framework and the
Programme for Government as well as EU developments. The Group supports and
informs, in particular, the ongoing development of policy thinking, programmes and
support measures taking into account the associated economic, social and
environmental impacts of the development and deployment of renewable energy
technologies and having full regard for a ‘whole of Government’ approach to energy
policy delivery.
Department of Agriculture, Fisheries and Food
The Department of Agriculture, Fisheries and Food’s role is to link in with the
demand side measures and support the supply side of the market by assisting farmers
to grow energy crops. The cultivation of energy crops provides an alternative land use
option for farmers and is part of the solution to mitigating greenhouse gas emissions.
In accordance with the National Bioenergy Action Plan, DAFF is providing a number
of incentives to improve the profitability of growing energy crops.
Bioenergy Scheme (2007 – 2009)
Biomass crops such as willow and miscanthus could deliver meaningful reductions in
carbon emissions associated with fossil fuel use. The Bioenergy Scheme supports the
planting of miscanthus and willow for energy purposes. Both miscanthus and willow
can be used to generate heat and power, typically in the form of pellets and wood
chip, for domestic and commercial boilers. New opportunities and market outlets are
emerging for these crops, particularly in the heat and electricity markets where
heating oil can be easily displaced with biomass. The main markets for biomass are
domestic households and medium sized commercial users i.e. hotels, hospitals etc.
The Bioenergy Scheme (2007 -2009) provides establishment grants to farmers for up
to 50% of establishment costs, subject to a maximum grant of €1,450 per hectare, with
the balance being invested by the applicant. The Scheme will operate over the period
2007 – 2009. In the first two years of the Scheme, 220 applicants were grant aided to
plant 1,600 hectares of miscanthus and willow. A further 185 applicants have been
granted approval to plant in excess of 1300 hectares in 2009.
68
EU Energy Crops Scheme
The EU Energy Crops Scheme provides farmers with an EU premium of €45 per
hectare to grow energy crops intended primarily for use in the production of
bioenergy. The €45 Premium is payable on a maximum guaranteed area of 2 million
hectares per annum across EU Member States. When this threshold is breached, the
premium is reduced proportionately. 479 applicants availed of this grant aid in 2008.
National Energy Crop Premium
The National Energy Crop Premium worth €80 per hectare is available over the period
2007-2009 to stimulate production of energy crops. The premium is paid in addition
to the EU premium of €45 per hectare, which is available under the EU Energy Crops
Scheme. 479 applicants availed of this grant aid in 2008.
Research Stimulus Fund Programme
DAFF supports bioenergy research through its Research Stimulus Fund Programme.
The Programme facilitates research that supports sustainable and competitive
agricultural production practices and polices and contributes to a scientific research
capability in the agriculture sector. To date, some €7 million in funding has been
made available for 12 research projects. The research covers a broad range of
bioenergy topics including the suitability of Irish grassland for biofuel production,
anaerobic digestion, second-generation technologies and energy crop production.
On Farm Waste to Energy Projects
There is potential to supply energy through the use of animal manures as feedstock in
anaerobic digestors and DAFF is committed to supporting the development of onfarm anaerobic digestion facilities. Under the Scheme of Investment Aid for
Demonstration On-Farm Waste Processing Facilities, DAFF made grant aid of €4
million available to ten such projects in 2007.
Wood Biomass Harvesting Machinery
€500,000 in grant aid has already been approved under the Wood Biomass Harvesting
Machinery Grant Scheme to support developing enterprises in the wood chip supply
sector. This aid has stimulated associated investment of some €1.5 million. A further
€600,000 was made available under Phase II of the Scheme, which ran until the end of
2008. The drawdown of the grants will be concluded in 2009.
69
APPENDIX VI: Baseline Indicators related to Objectives
AXIS
*
1
Indicator
Economic development
Measurement
GDP per capita, expressed in PPS
(EU-27=100)
Baseline
147.4
Source
D/Finance,
(2003)
*
2
Employment rate
Employed persons aged 15-64 as a
percentage of the population of the
same age group
69.6% Average
60.1% Female
54.3% Young People
Table 12 in the Quarterly
National Household
Survey (QNHS)
*
3
Unemployment
Rate of unemployment i.e.
unemployed
persons
as
a
percentage of economically active
population
4.9% Average
4.7 Female
10.6 Young People
Table 14 in the QNHS
EU-25 = 9.2%
(2004)
*
4
Training and education in
agriculture
% of farmers with basic and full
education in agriculture
17% Basic
Table 37 of the 2005
Farm Structures Survey
5
Age structure in agriculture
Ratio:
<35/>=55years old
EU
14
SE)=17.5%
(2000)
EU 25=0.18
6
Labour
productivity
agriculture
Gross value added per annual work
unit (GVA/AWU)
7
Gross fixed capital formation
in agriculture
Eurostat
EU Average
EU 25 = 20,478pps
(3-year average:
2000-2002)
EU-25 = 63.1%
(2004)
Horizontal
*
AXIS 1, Improving
the competitiveness
of the agricultural
and forestry sector
in
Indicator
8
Employment development of
primary sector
farmers
Measurement
Thousands people employed
14% Full
0.17
Table 7 of the CSO Farm
Structures Survey 2005
(without
€14,057
CSO farm Structures
Survey (Table 36)
€17,145
(average 2002-2004)
€672 (incl. breeding)
Table L6 of the
Compendium of
Agriculture Statistics
EU-22 (excl. EE, IE,
MT)=€44,012.4m
Baseline
Source
EU Average
120.4
Table 2B of the CSO
NQHS
)
EU-25=9,757.1
70
*
*
AXIS 2, Improving
the environment and
the
countryside
through
land
management
9
Economic development of
primary sector
Gross value added in primary
sector (million euros)
€2,530m
Table 15 of the CSO
publication
County
Incomes & Regional GDP
2006
EU-24
(excl
184,681.4
10
Labour productivity in food
industry
Gross value added per person
employed in food, drink and
tobacco industry (000s/employes)
€137,043
Table 16 of the CSO’s
National Income and
Expenditure
EU-19 (excl EE, CY, LV,
LT, MT, PL)= €46,715
(2003)
11
Gross fixed capital formation
in food industry
Euros
€422m (incl. beverages)
CSO (2004)
n.a.
12
Employment development in
food industry
People employed (000s)
50,400
table F6 of the
Compendium of
Agricultural Statistics
EU-25=4,639,000
13
Economic development of
food industry
Gross value added in food industry
(million euro)
€6,907
Appendix 6 of the
Census of Industrial
Production 2006
EU-25=194,840
14
Labour
forestry
Gross value added per employee in
forestry (000s/employed
€39,200
EU 10 = €38,300 (2002)
15
Gross fixed capital formation
in forestry
Euros
€69m (estimate)
16
Importance
of
semisubsistence farming in NMS
Not applicable
Not applicable
CSO’s
National
Accounts, Output and
Value Added by activity
2002 & 2003
Table 16 of the CSO’s
National Income and
Expenditure
Not applicable
Baseline
Source
EU Average
productivity
in
Indicator
Measurement
MT)=
EU-11=€1,898.3
Not applicable
*
17
Biodiversity: Population of
farmland birds
Trend of index of population of
farmland birds (2000=100)
93.5 (awaiting clarification)
Eurostat
EU-15 = 96.2 (2003)
*
18
Biodiversity: High Nature
Value farmland areas
UAA of High Nature Value
farmland areas (% of UAA)
26%
CSO Farm Structures
Survey 2005
EU 25 (excl CY, MT) =
30.8 (1999/2000)
71
19
*
20
21
22
23
*
24
Biodiversity: Tree species
composition
Water
quality:
Nutrient Balances
Species
Coniferous
Broadleaved
Mixed
Nitrogen : 82
Phosporus : 6
Gross
Kg/ha
Water quality: Pollution by
nitrates and pesticides
Soil: Areas at risk of soil
erosion
Soil: Organic farming
Trends in the concentrations of
nitrate in surface waters
Ton/ha
not yet available
UAA under organic farming (ha)
38,000
Climate change: Production
of renewable energy from
agriculture and forestry
Production of renewable energy
from agriculture (kToe)
3
Production of renewable energy
from forestry (wood and wood
wastes) (kToe)
180
4,456
25
Climate
change:
UAA
devoted to renewable energy
UAA devoted to energy and
biomass crops (ha)
26
Climate
change:
GHG
emissions from agriculture
GHG Emissions from agriculture
(1000t of CO2 equivalent)
Indicator
AXIS 3, Improving
the quality of life in
rural areas and
encouraging
diversification
of
economic activity
% land predominately
*
27
Farmers with other gainful
activity
*
28
Employment development of
non-agricultural sector
Measurement
Sole holders-managers with other
gainful activity as percentage of
total number of farm holders (sole
holders-managers)
Employment in secondary and
tertiary sectors (000s)
%
68
17
MCPFE 2005 & National
Forest Inventory 2007
Species
Coniferous
Broadleaved
Mixed
DAFF/OECD
EU 15 = 55kg/ha
(2000)
EUROWATERNET,
IRENA 30
JRC (2004) & IRENA
EU-27=89.1mg/l
DAFF Annual Review
and Outlook 2006/2007
Energy in Ireland, SEI
2008
EU-25=5,863.6
15
0.16
EU-25%
51
34
15
EU-25=1.64
EU 25 = 2,084 kToe
EU 25 = 53,996 kToe
DAFF
EU-25=1,383
DAFF
EU-25=470,873 (1000t of
CO2
equivalent)
Eurostat, 2002)
Baseline
Source
EU Average
44% of farmers are part-time
Table 36 of the CSO
Farm Structures Survey
2005
EU 25 = 31.2% (2003)
1,956.50 National
1,373 Rural (Estimate)
Table 2a of the Quarterly
National Household
Survey
EU 25 = 188,153,600
persons
(2002)
18,435
72
*
29
Economic development of
non-agricultural sector
GVA in secondary and tertiary
sectors (mio euro)
*
30
Self-employment
development
Self-employed persons (000s)
Tourism infrastructure
rural area
*
32
Internet take-up in rural
areas
Persons having subscribed to DSL
internet as a percentage of total
population.
13% National
5% Rural
*
33
Development
sector
GVA in services as a percentage of
total GVA
65% National
55% Rural
34
Net migration
Net migration into the State (per
1000 inhabitants)
16.9 National
17.8 Rural
% of adults
participating in
training
8% (national figure)
6% Rural
35
Life-long learning in rural
areas
services
*
*
36
Development
Action Groups
of
Local
Number of bed places
322 National
262 Rural (estimate)
206,831 National
166,859 Rural
31
of
in
153,955 National
92,296 Rural
(25-64 years)
education and
Share of population covered by
Local Action Groups in the
framework of the Leader program
42% of national population
Leader
100% of rural population
73
Table
15
CSO
publication
“County
Incomes and Regional
GDP”
EU 25 = 8,601,115 €m
Table 6 of the Quarterly
National
Household
Survey
CSO
publication
“Domestic Tourism in
Ireland 2000-2005”
Table 5B of the CSO
publication “Information
Society
and
Telecommunications
2007”
Table 15 of the CSO
publication
County
Incomes & Regional GDP
2006
CSO Population and
Migration
Estimates
publication (2007)
Eurostat: General and
regional stats – regional
stats – regional labour
market stats – Life Long
Learning.
Irish Leader Support Unit
(2000), CSO Census of
Population (2002)
EU 25
persons
(2004)
Operational Programme
for Leader+ and Area
Based Rural Development
Programme (2001)
=
29,301,000
EU 15 = 7.9% (2004)
EU 25 = 70.9% (2002)
EU 25 = 7.7% (2004)
EU 15 = 14.3% (2004)