Farmers and agri industry to get €227m extra

FARMERS and the agri industry are to get an extra €227 million next year, a 16% increase which brings the expenditure for the area to almost €1.7 billion.

The figure includes carry-forward capital savings of over €20.2m from 2006.

Provision is made for the first year’s funding of an enhanced package of rural development and farm waste management measures, following the recent social partnership talks. The measures finalised at partnership involve agriculture-related schemes worth €6.8bn from 2007-2013, including Exchequer funding of €4.7bn.

This is an increase of 135% on the €2bn Exchequer contribution to agriculture-related rural development measures compared to the previous programme.

Agriculture measures in the new rural development programme will attract €2.1bn from the EU and modulation.

Agriculture Minister Mary Coughlan said significant provisions under the main rural development schemes include:

*€257m for income supports in disadvantaged areas, the rates for which are being increased 8% following the partnership talks.

*€328m for the Rural Environment Protection Scheme, for which a 17% rise in rates has been agreed.

*€79m for early retirement and installation aid schemes which, under the new rural development programme, will involve a maximum payment of €15,000 under each scheme.

*€114m for the forestry programme, for which a 15% increase in premium rates has been agreed.

She said almost €147m is provided for schemes for the development of agriculture and food, and there is also a provision of €18m for an initiative aimed at improving welfare and quality in the suckler herd.

Noting that many rural development and investment schemes operated by her department were demand-led, she indicated she would use the additional €20.2m available to her from the carryover of capital savings to provide extra funding in 2007 for the areas where the need was greatest.

She said features in her department’s estimate for 2007 include an additional €4.1m to assist An Bord Bia, and an increased contribution of €8.5m to the World Food Programme.

Along with the €1.5bn in EU-funded direct payments and market supports administered by her department, she said it provided a sound platform for securing the future of the agri-food sector.

IFA president Padraig Walshe said the expenditure estimates broadly reflect the recent social partnership agreement on improvements to the main farm investment and environment schemes.

“A number of farm development and environment schemes are demand-led, and if additional funding is required before end-2007 because of higher than anticipated uptake, it will have to be provided,” he said.