Minister for Agriculture, Food and the Marine, Charlie McConalogue has today (Tuesday, September 27) announced details of his department’s 2023 budget, which includes an increase in the Targeted Agricultural Modernisation Scheme (TAMS) budget to €90 million.
The 2023 Estimates provide an agreed gross funding package of €2.14 billion for the Department of Agriculture, Food and the Marine (DAFM).
The minister has said that this is the highest ever level of funding for the department, and represents an increase of €283 million on the 2022 provision, or a 13% increase overall, to support farmers, fishers, and rural and coastal communities.
Speaking this afternoon, Minister McConalogue said: “This budget supports farm families dealing with the immediate and ongoing fallout of the illegal invasion of Ukraine.
“It also lays the groundwork for strategic supports for the sector over the next five years, through the new €10 billion CAP [Common Agricultural Policy] Strategic Plan.
“The budget delivers large-scale funding to drive the sector’s environmental ambition, helping improve both on-farm sustainability as well as farmer incomes.
“I have secured up to €500 million in 2023 to support farmers in their efforts to tackle the challenges in climate, biodiversity and water quality. This is real money for real farm families,” the minister added.
TAMS, solar supports and anaerobic digestion
The measures in Budget 2023 include funding for 30,000 places in a new flagship Agri Climate Rural Environment Scheme (ACRES).
“This is largest ever agri-environment scheme ever run by my department. Using a habitats-based approach, delivered through both prescription and results-based actions, ACRES will contribute to improving biodiversity, climate, air and water quality outcomes,” Minister McConalogue added.
The agriculture minister also referred to a range of other measures to support environmental action at farm level.
The minister continued: “I am introducing an €8 million grant aid scheme to support the spreading of lime as well as an enhanced Multi-Species Sward / Red Clover scheme. These will help farmers deal with rising fertiliser prices and move towards the reduction of chemical fertiliser.
“I have also secured an increase in the TAMS budget to €90 million, to fund the proposed large-scale investment in on-farm renewables for farmers, subject to the approval of the European Commission.
“This will help fund the proposed increase to 60% grant rate and a standalone investment ceiling of €90,000 for solar installation. As an immediate step, farm dwellings are now eligible for inclusion for solar panel investments,” he added.
An amendment to the Rural Development Programme (RDP) is also expected to be submitted to the European Commission for approval in the coming weeks.
The minister also said that he would be allocating €3 million in Budget 2023 for each of the next four years, a total of €12 million, to kick-start a farm-based anaerobic digestion sector in Ireland.
Referring to this initiative McConalogue said: “The establishment of a renewable heat obligation will be critical to the success of this initiative, and I am working closely in partnership with the Minister for Environment, Climate Action and Communications to realise the potential of this sector.”
BEEP-S, organics and forestry
Separately, the minister said that he would be seeking EU Commission approval for a new scheme to continue the beef welfare measures which were previously funded under Beef Environmental Efficiency Programme (BEEP-S).
This new scheme will sit alongside the new €150/cow Suckler Carbon Efficiency Scheme, and a €20 million Sheep Welfare Scheme, to support farm incomes and encourage improved environmental and animal welfare outcomes.
Minister McConalogue continued: “I continue to stand by our beef and sheep farmers. I am pleased to maintain the budget for targeted beef and sheep supports of over €100 million.
“This funding will help to alleviate the impact of increased input costs, while also supporting animal health and welfare, and further improving the carbon efficiency of our grass-based and quality assured beef and lamb.
“Beef and sheep farmers will also be well placed to benefit from the enhanced supports for fodder aid, for environmental measures and the supports available for farmers transitioning to organic farming.
“I am also excited about seeing the continuation of the €10 million Tillage Incentive Scheme in 2023. The tillage sector is one that I believe in and I want to see it grow in the time ahead,” he added.
Commenting on the allocations to her areas of responsibility, Minister of State with responsibility for land use and biodiversity, Pippa Hackett said:
“In my own areas of responsibility, I am delighted to have secured the largest-ever budget for organic farming. Funding for this scheme has been increased to €37 million – an 80% increase on last year as we work towards our target of tripling the area of land under organic production by the end of 2027.
“I’ve also secured increased funding for forestry, so that we can build on the ongoing work to reform our forestry system since this government took office.
“This work is by no means finished, and we are currently finalising a new Forest Strategy and a new Forestry Programme for Ireland, which will see supports for a closer-to-nature model of forestry.
“We have also secured a substantial increase in funding for locally led environmental schemes, to just under €18 million. This will fund a large-scale water quality scheme on farms, as well as a new call for new EIPs [European Innovation Partnership] in Q1 2023 on biodiversity, climate, rural environment, and farm safety.”
€13.3 million has also been allocated for an extension to the Farm Environmental Scheme, as well as funding for the Soil Sampling Scheme for another year.
Minister of State with special responsibility for farm safety, Martin Heydon added: “I have prioritised extra resources for farm safety, increasing the dedicated budget to €2.5 million.
“In addition to a further rollout of our farmer health and wellbeing programme On Feirm Ground, I intend to focus on getting more physical safety investments onto farms,” he continued.
Agri-taxation in Budget 2023
Referring to the agri-taxation package that complemented his department’s spending, Minister McConalogue added:
“I am delighted that we could agree a new Accelerated Capital Allowance for Slurry Storage.
“This will help drive further improvements in slurry storage and management as water quality coupled with improved nutrient-use efficiency and reduce dependence on expensive artificial fertilisers.
“Ultimately, this will help reduce emissions. This measure is a strong signal of this government’s commitment to supporting farmers in improving environmental sustainability; and I urge farmers to make use of the three-year window agreed for this initiative, which will be available from 2023 to 2025.”
The government has also agreed on the renewal of tax reliefs including Stamp Duty Relief for Young Trained Farmers and Stock Relief.
“I want to continue to facilitate the transfer of land and holdings on to the next generation in a manner than works for all parties,” McConalogue continued.
“The renewal of Capital Gains Tax Relief for Farm Restructuring and Stamp Duty Relief for Farm Consolidation encourage the consolidation of farm holdings, reducing fragmentation and improving the operation and viability of farms.
“The government has provided welcome supports in response to the current cost-of-living crisis. The continuation of the reduction of excise duty on agricultural diesel to nil is merited and will alleviate costs for the sector.”
Budget 2023 energy and business support
The Temporary Business Energy Support Scheme (TBESS) is aimed at providing important support farmers and food businesses.
Qualifying businesses, whose average unit gas or electricity price has risen by over 50% compared to their average unit price in 2021, can apply to Revenue for a cash payment, which will be calculated as 40% of the excess of the 2022 bill over the 2021 bill, capped at €10,000/month/business.
Minister McConalogue added: “Access to finance is a crucial business need and, as well as liaising with the main banks on issues relating to the agri-food sector, I have worked closely with the Tánaiste and Minister for Enterprise, Trade and Employment and Minister [for Finance, Paschal] Donohoe on this issue.
“I am happy to announce with the Tánaiste and Minister for Enterprise, Trade and Employment (DETE) the development of a new long-term lending scheme.
“The agri-food sector has a demonstrated capacity to plan for the long-term even while grappling with more immediate challenges and the new proposed €500 million ‘Growth and Sustainability Loan Scheme’ (GSLS) will facilitate strategic investment by farmers, fishers and food businesses which will ensure their continued viability and sustainability into the future,” the agriculture minister added.
The minister added that the government is also working on a Ukraine Credit Guarantee Scheme to assist businesses, including farmers, fishers and food businesses in meeting their liquidity and investment needs.