CAP Post-2020 Consultative Committee Meeting - Agriculture House Thursday 11th July 2019 - Department of Agriculture
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CAP Post-2020 Consultative Committee Meeting
Thursday 11th July 2019
Agriculture House
Overview of current Irish Agriculture, Actions
and Challenges
Jack Nolan, Specialist Farm Services, Environment & Evaluation
CAP Consultative Committee
11th July 2019
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Current CAP – 2 pillars
Pillar 1
Annual direct payments
Basic payment
Greening
Pillar II
Rural Development Programme (RDP)
Green Low-carbon Agri-environment
Scheme (GLAS, €1.3 bn)
Areas of Natural Constraint
Locally led and EIPs
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Rural Development Programme (RDP)
2014 – 2020 Total
funding
• European Innovation Partnerships (EIPs) €4 bn
• Hen harrier and fresh water pearl mussel (€35 million)
GLAS
€1.3bn
EIP
funding
€59 mn
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Other beneficial measures
TAMS
• Farm buildings
• Equipment
Knowledge Transfer
BDGP
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
The challenge
• Animal numbers
• Fertiliser sales and trends
• Greenhouse gas emissions
• Ammonia emissions
• Biodiversity
• Water quality
• Soil fertility
• Collaboration
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
CAP Post-2020 Consultative Committee Meeting
Thursday 11th July 2019
Agriculture House
High Level Overview
All of Government Action Plan to
Tackle Climate Disruption
July 2019
John Muldowney
Climate Change and Bioenergy Policy Division
Ireland’s Greenhouse Gas Emissions
Projections 2018-2040
Total Emissions = 60.75 Mt
Ag Emissions = 20.2 Mt
Compliance = -5% to -6%
Compared to -20%
2030: 30% reduction on 2005 levels
Overall Gap to ETS & LULUCF
Target Flexibilities
Low Oil prices 86-101 Mt CO2 eq 40-56 Mt CO2 eq
High Oil Prices 52-67 Mt CO2 eq 7 -22 Mt CO2 eq
Emissions in 2030= 33 Mt CO2 eqGovernance of the Plan
Oversight of Government Monitoring and Reporting
▪ New Climate Action Council – extended ▪ Monitored quarterly and updated
functions to include advice on 5-year annually
Carbon budgets
▪ Climate Action Board within
D/Taoiseach
▪ Oireachtas Climate Action Committee ▪ Reporting to CC and Cabinet
▪ Published quarterly reports
▪ Carbon Proofing of Government Policy
▪ Just Transition Monitoring and
Review Group
▪ Climate Action (Amendment) Bill ▪ Reporting to Climate Action Board and
▪ a legal requirement publishing a rolling 3 –year Just
▪ Decarbonisation target range for each Transition Strategy
sector
▪ Establish the Climate Action Council
▪ Adoption of Carbon BudgetsOverview of the Climate Action Plan
Citizen’s Assembly & Joint Oireachtas Report providing a solid foundation
for development of this plan.
Gap to target = 58.4 Mt CO2 eq (after LULUCF & NDP measures)
A total of 183 Actions and associated sub-actions
Key Sectoral Targets Carbon Pricing & Cross-cutting Policies
Electricity 50-55% ▪ Carbon tax of €80 per tonne
▪ Mobilise 26.8mt CO2 credits from land
Transport 45-50% use
▪ Reform Public Spending Code to increase
the shadow price of carbon
Built 40-45%
Environment ▪ Mobilisation of finance
▪ Capacity & Capability building in
research and development
Enterprise 10-15%
Agriculture 10-15%Marginal Abatement Economy-wide Cost Curve
Targets for Agriculture
2017 Provisional Emissions 2030 Projected Emissions 2030 Required Emissions
based on NDP Based on MACC
20 Mt 21 Mt 17.5 – 19 Mt
Equivalent to 16.5-18.5 MtCO2eq. cumulative abatement
Achieve 26.8 Mt CO2eq. abatement through LULUCF actions over the period
2021 to 2030, comprised of:
an average of 8,000 ha per annum of newly planted forest, and sustainable forest
management of existing forests (21 MtCO2eq. cumulative abatement)
at least 40,000 ha per annum of reduced management intensity of grasslands on
drained organic soils (4.4 MtCO2eq. cumulative abatement)
better management of grasslands, tillage land and non-agricultural wetlands (1.4
MtCO2eq. cumulative abatement)
Set a target for the level of energy to be supplied by indigenous biomethane
injection in 2030What does this mean for Agriculture - Teagasc MACC
1. Improved Beef Maternal Traits
2. Beef Genetics: Optimised live-weight gain
3. Dairy EBI
4. Extended grazing
5. Nitrogen-use efficiency
6. Improved animal health
7. Sexed Semen
8. Inclusion of Clover in pasture swards
9. Fertiliser Type (Reducing N emissions)
10. Reduced crude protein in pigs
11. Draining wet mineral soils
12. Slurry amendments
13. Adding Fatty Acids to dairy diets
14. Low-emission slurry spreading*
* Double dividend as it also reduces ammonia emissions
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineResource Intensive Measures Bring forward proposals for the introduction of measures to implement the full suite of options as set out in the Teagasc MACC Develop advisory strategy on GHG reduction with core targets Review effectiveness of Teagasc options program which covers promotion of organics and farm income diversification options Commission a review of Teagasc MACC including updating JOC Recommendations NESC diversification forum June 2019 AD strategy by end 2019 CAC to review land use policy Q1 2020
CAP Post-2020 Consultative Committee Meeting
Thursday 11th July 2019
Agriculture HouseCAP Reform Proposals
Ted Massey, EU Division
CAP Consultative Committee
11th July 20199 Specific Objectives for CAP post-2020
INCREASE REBALANCE
COMPETITIVENESS POWER IN FOOD CHAIN
ENSURE CLIMATE CHANGE
VIABLE INCOME ACTION
THE 9
CAP ENVIRONMENTAL
CARE
OBJECTIVES
PRESERVE
RESPOND TO CITIZENS'
Body Level
CONCERNS One of
in terms
LANDSCAPES
& BIODIVERSITY
FOOD Body& HEALTH LevelQUALITY
Two
Body Level Three
Body Level Four SUPPORT
GENERATIONAL
Body Level Five VIBRANT RENEWAL
RURAL AREAS
19 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the MarineEnhanced focus on environment ➢ Higher environmental ambition ➢ No backsliding ➢ Increased conditionality for all direct payments ➢ Pillar 1 eco-scheme ➢ Pillar 2 AECM ➢ Target 40% overall CAP on climate ➢ At Member State level target 30% of EAFRD on specific envi objectives ➢ Performance bonus if achieve 2025 envi targets 20 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine
Conditionality ➢ Increased SMR and GAEC’s ➢ Main proposed changes: ➢ GAEC 2: Protection of wetland and peatland ➢ GAEC 5: Nutrient management planning ➢ GAEC 8: Crop rotation ➢ GAEC 10: Protection of permanent grassland in Natura 2000 sites 21 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine
Eco-scheme ➢ Mandatory for Member State – voluntary for farmers ➢ List of agricultural practices beneficial for climate and the environment – animal welfare? ➢ Payment only for interventions going beyond SMR, GAEC and legislative requirements ➢ Must be consistent with Pillar 2 AECM ➢ Annual payment per Ha – annual scheme ➢ Funded within Pillar 1 – budget?? 22 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine
Pillar 2 AECM ➢ Mandatory for Member State – voluntary for farmers ➢ Payment only for interventions going beyond SMR, GAEC and legislative requirements ➢ Interventions must differ from but be consistent with those supported by eco-scheme ➢ 5 - 7 year commitment - possibly longer ➢ Payment based on cost incurred and income foregone ➢ Participant must have access to knowledge and information required 23 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine
CAP Post-2020 Consultative Committee Meeting
Thursday 11th July 2019
Agriculture HouseCAP Reform Proposals
Key Direct Payment Changes ➢ No more greening payment but increased environmental conditionality and eco-scheme ➢ Further Capping and Convergence ➢ Basic Income Support for Sustainability ➢ Redistributive scheme ➢ Young farmer scheme ➢ Coupled support reduced 26 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine
CAP Post-2020 Consultative Committee Meeting
Thursday 11th July 2019
Agriculture HouseBasic Payment
Scheme
Payment Entitlements Overview
Francis Morrin
11th July 2019Basic Payment Scheme
• Key support for farmers – basic income support
• Decoupled payment
• Successor to Single Farm Payment under the previous CAP
• Funding ceiling available divided among different payment
schemes
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineNational Ceiling
• Allocated in EU Reg 1307 of 2013
• BPS (including National Reserve)
• Greening
• Young Farmer’s Scheme
• Voluntary Coupled Support
Year Direct Payment Funding
2005 €1,260,142,000.00
2015 €1,215,003,000.00
2019 €1,211,066,000.00
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineAn Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Farming Population
• 131,312 farmers who established payment entitlements in 2005
• Same population tracked through 2015 and 2019
• 86% (113,316) still held entitlements in 2015
• 11,235 new farmers holding entitlements in 2015
• Farming population is always changing
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineAge range of 2005 farmers receiving support in 2015 An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Convergence
• Internal vs External Convergence
• Redistribution of funds between farmers
• Initial retention of the link to SPS entitlements
• Incremental movement away from historic production links
and towards a narrower band closer to the national average
• 3 convergence paths – increasing, static, decreasing
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineConvergence An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Increasing Convergence Example An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Decreasing Convergence Example An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Convergence – County breakdown average entitlement value An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Additional Mechanisms
• Maximum unit value in 2019
• Maximum payment per ha of €700 (€486 excl greening)
• 721 farmers affected across all counties
• Reduction of payments
• 1307/2013 minimum of 5% above €150,000 – Ireland
capped at 100% above €150,000
• Used to fund convergence/transfer to rural development
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineTransfers of Entitlements
• Not linked to land, but must be supported by land
• Sale, Lease, Gift, Inheritance, Scission, Merger, Change
of Legal Entity, Change of Denomination
• 60% are leases
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineTransfers of Entitlements An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
Transfers of Entitlements
• 100% Leased Out
• Small number of farmers who leased all Entitlements
out
• 57% were individuals, 13% joint ventures, 30%
companies
• Even spread across age groups
Lease End Date No. of Leases of All Entitlements Held Value of Leased Entitlements
2019 541 €2,491,539
2020 824 €3,916,758
2021 571 €2,595,134
> 2021 1,026 €7,603,837
Total 2,962 €16,607,268
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineTransfers of Entitlements An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
National Reserve and Young Farmers Scheme
• Funds Young Farmers and New Entrants to Farming
• Permanent allocation of payment entitlements, or top-up to
the value of entitlements
• Approximately €212m distributed to these two groups in the
years 2015-2018
An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the MarineConclusion • €6bn in funding dispersed to farmers 2015-2019 in direct payments • Incremental movement away from historic production base • Narrowing of payment band around the National Average • Transfers of Entitlements are popular among a cohort of farmers • Support for new/young farmers • Stability among farming population An Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine
CAP Post-2020 Consultative Committee Meeting
Thursday 11th July 2019
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