The measures relating to farming didn’t receive much coverage in the wake of the budget. But from the farmer’s perspective, the contents of the speeches could be described as more positive than negative.
It was refreshing to see a Budget in which there were no cuts to any agriculture schemes, the first in several years. The standout announ-cement was the creation of a new beef genomics scheme for 2014.
Worth €23m, the payments will deliver €40 per calf and will require farmers to DNA test 15% of them with an overall aim to improve the genetics of the suckler herd.
This is in addition to the €20/calf being received under the Beef Data Programme (BDP), and farmers wishing to avail of the new scheme will also have to participate in the BDP.
We in ICSA are pleased that Simon Coveney, the agriculture minister, listened to us in ICSA at a pre-budget meeting where we emphasised that support for sucklers must be targeted at those who are committed to improving the genetics in their herd. This is a better approach to securing the future of suckling in Ireland rather than throwing money at every animal regardless of quality.
On its own of course, this won’t save the suckler herd. The reality is that we will only have a suckler herd in this country provided that beef price is high enough to leave a margin for the quality suckler stock and provided that we have sufficient live export options available as well.
Clearly, we can’t get away from the importance of improved efficiency and better genetics. Some suckler calves fetch €1,300 and some suckler calves fetch €500. This demonstrates the importance of better breeding and better feeding in the suckler herd. The reality too is that costs have to be kept under control and better use has to be made of quality grass.
However, the scheme is only a step in the right direction — it will have to be built on and expanded going forward. At the moment, many suckler farmers are taking a hard look at the bottom line and questioning the sustainability of their businesses. There is no doubt that an additional €40/calf next year will ease the pressure in the short term, as well as bringing long-term benefits to the herd as a whole.
However, it is crucial that supporting this sector remains a key priority in the coming years, particularly under the new CAP regime in 2015. ICSA favours using Pillar 2 to build on this scheme under the Rural Development Programme.
Farmers will be relieved that the disadvantaged area scheme escaped untouched and there is provision again for BTAP, STAP and the grassland sheep scheme. Obviously it is a disappointment that there will be no additional AEOS in 2014 for people leaving REPS 4 this year. It will be critical that there is a decent agri-environment scheme in 2015 under CAP reform.
Finally, we note that the budget announced an independent review of tax reliefs conducted over the next year. Hopefully this will focus on the need for improved land mobility and greater incentives to long-term leasing, rather than short-term conacre. However, there will be some trepidation that important tax reliefs, particularly relating to family farm transfer could get caught up in the crossfire and for that reason it will be essential that any review involves close consultation with ICSA and the other farm organisations.
* Dermot Kelleher, ICSA suckler committee chair and West Cork chair