Losing derogation will be catastrophic, IFA meeting told
Macra president Josephine O’Neill told the IFA meeting in Corrin Mart in Fermoy that failing to renew derogation for farmers will force land prices up. Picture: Finbarr O'Rourke
Losing the nitrates derogation would be “catastrophic” for Irish farmers, was the main point hammered home following the Irish Farmers’ Association (IFA) Nitrates Derogation meeting.
Industry leaders and farmers alike united in Cork on Monday night, emphasising the catastrophic effect the loss of the derogation could have on our indigenous industry at the national meeting.
Among the industry speakers who addressed the large crowds and the minister of agriculture, Martin Heydon, were president of the Irish Co-operative Organisation Society (ICOS) Edward Carr, Macra president Josephine O’Neill, and chairman of Meat Industry Ireland (MII) Philip Carr.
“The loss of derogation will be devastating, especially to the family farm model we have in this country,” the ICOS president said.
Mr Carr went on to emphasise the economic impacts if derogation is not renewed, explaining that 49% of dairy farmers who produce 65% of the national food production are on farms which have a stocking level above 170kg of nitrogen per hectare.
According to Teagasc figures, a loss of derogation would incur an average reduction of €43,500 to a family farm income if stocking rates are forced to drop, Mr Carr warned.
Mr Carr went on to say a loss of derogation would amount to a reduction of over 200,000 dairy cows, a drop of 14% to the national herd and a milk production drop of 15% (1.2bn litres) currently produced. Mr Carr told the crowd and minister that this could accrue to a €45bn impact on the Irish economy over 10 years.
Mr Carr rounded out his speech, emphasising that derogation could seriously hinder the attractiveness of farming as an occupation to future generations, hindering any progress made in generational renewal attempts.
Another strong voice on the topic of generational renewal is Macra na Feirme president Josephine O’Neill. She spoke to the crowds and directly to the minister regarding the threat of losing derogation for farmers.
She said: “Those who once dreamed of starting out may never get the chance… We are closing the gate before the next generation even gets a chance to walk in.”
Ms O’Neill emphasised the risks that came with failing to renew derogation for farmers, saying it will force land prices up, making it even harder for new entrants to secure land and begin careers in farming or place unsustainable financial pressures on existing young farmers, driving them out of the industry entirely.
Explaining the ripple effect caused by the possible loss of derogation, Ms O’Neill said: “The consequences will reach far beyond the farm gate. When farmers cut back or are forced to cut back due to policy changes forced on them by our government, local businesses suffer too: co-ops, contractors, feed suppliers, and marts.
"This isn't just about cows and slurry. Rural Ireland depends on a healthy, vibrant and economically viable farming sector. Undermine one, and you weaken them all.”
Concluding, Ms O’Neill left attendees with a parting warning saying: “If we lose our young farmers, we lose the heartbeat of rural Ireland, and once that is gone, no policy, no scheme, will bring it back.”
Speaking on behalf of the beef industry interests, Chairman of MII Philip Carr reminded the room that the combined beef and dairy sectors are mutually dependent as an integrated industry.
Mr Carr explained that despite beef cattle numbers dropping by 400,000 head in the past 10 years, the supplementation of beef from the dairy sector, supplying approximately 63% of total meat output, has been able to offset some losses for declining finishing cattle numbers.
Mr Carr warned that if derogation were lost to Irish farmers, it would result in a loss of 160,000 calves coming from dairy herds into beef rearing, equating to an estimated loss of €430m to the beef sector.
“Combined with a continuing fall in beef sector numbers [losing derogation] would leave the industry in a pretty perilous stage overall,” Mr Carr said.
