cap post-2020 consultative committee meeting thursday 11th … · 2019-07-19 · 2 eq 40-56 mt co 2...

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 pillarsPillar 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 EIPsAn Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine

Rural Development Programme (RDP) 2014 – 2020

• European Innovation Partnerships (EIPs)

• Hen harrier and fresh water pearl mussel (€35 million)

Total

funding

€4 bn

GLAS€1.3bn

EIP

funding

€59 mnAn Roinn Talmhaíochta, Bia agus Mara │ Department of Agriculture, Food and the Marine

Other beneficial measuresTAMS

• Farm buildings

• Equipment

Knowledge Transfer

BDGP


The challenge

• Animal numbers

• Fertiliser sales and trends

• Greenhouse gas emissions

• Ammonia emissions

• Biodiversity

• Water quality

• Soil fertility

• Collaboration




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

2030: 30% reduction on 2005 levels

Overall Gap to

Target

ETS & LULUCF

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 eq

Total Emissions = 60.75 Mt

Ag Emissions = 20.2 Mt

Compliance = -5% to -6%

Compared to -20%

Governance of the Plan

Monitoring and Reporting

▪Monitored quarterly and updated

annually

▪Climate Action Board within

D/Taoiseach▪ Reporting to CC and Cabinet

▪ Published quarterly reports

▪ Just Transition Monitoring and

Review Group ▪ Reporting to Climate Action Board and

publishing a rolling 3 –year Just

Transition Strategy

Oversight of Government

▪New Climate Action Council – extended

functions to include advice on 5-year

Carbon budgets

▪Oireachtas Climate Action Committee

▪Carbon Proofing of Government Policy

▪Climate Action (Amendment) Bill

▪ a legal requirement

▪ Decarbonisation target range for each

sector

▪ Establish the Climate Action Council

▪ Adoption of Carbon Budgets

Overview 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

use

▪Reform Public Spending Code to increase

the shadow price of carbon

▪Mobilisation of finance

▪Capacity & Capability building in

research and development

Transport 45-50%

Built

Environment

40-45%

Enterprise 10-15%

Agriculture 10-15%

Marginal Abatement Economy-wide

Cost Curve

Targets for Agriculture

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 2030

2017 Provisional Emissions 2030 Projected Emissions based on NDP

2030 Required Emissions Based on MACC

20 Mt 21 Mt 17.5 – 19 Mt

What 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 Marine

Resource 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



Agriculture House

CAP Reform Proposals

Ted Massey, EU Division

CAP Consultative Committee

11th July 2019

Body Level One

Body Level Two

Body Level Three

Body Level Four

Body Level Five

19 An Roinn Talmhaíochta, Bia agus Mara | Department of Agriculture, Food and the Marine

INCREASE COMPETITIVENESS

ENSURE VIABLE INCOME

RESPOND TO CITIZENS' CONCERNS in terms of

FOOD & HEALTH QUALITY

VIBRANTRURAL AREAS

SUPPORTGENERATIONAL RENEWAL

PRESERVELANDSCAPES& BIODIVERSITY

ENVIRONMENTALCARE

CLIMATE CHANGEACTION

REBALANCEPOWER IN FOOD CHAIN

THE 9

CAPOBJECTIVES

9 Specific Objectives for CAP post-2020


Enhanced 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


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


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??


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



Agriculture House

CAP 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



Agriculture House

Basic Payment SchemePayment Entitlements Overview

Francis Morrin

11th July 2019


Basic 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


• Allocated in EU Reg 1307 of 2013

• BPS (including National Reserve)

• Greening

• Young Farmer’s Scheme

• Voluntary Coupled Support

National Ceiling

Year Direct Payment Funding

2005 €1,260,142,000.00

2015 €1,215,003,000.00

2019 €1,211,066,000.00


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


Age range of 2005 farmers receiving support in 2015


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


Convergence


Increasing Convergence Example


Decreasing Convergence Example


Convergence – County breakdown average entitlement

value


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


Transfers 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



• 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


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


Conclusion

• €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



Agriculture House

cap post-2020 consultative committee meeting thursday 11th … · 2019-07-19 · 2 eq 40-56 mt co 2...

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