ifa member newsletter - spring 2015

12
IFA is battling hard to improve farm incomes - Eddie Downey Dear Member, Our spring newsletter is an opportunity to take stock of the progress made across all sectors in the past year and the priorities on IFA's work agenda for the year ahead. Your valued support has helped our Association deliver on a wide range of issues including a positive outcome in the Agri Taxation review with income averaging increased from 3 to 5 years, enhanced income tax exemptions for long term leasing and the retention of 90% agricultural relief. Our 2014 year-long beef campaign maximised the pressure on processors and retailers to deliver viable prices and through the Beef Forum progress was made on over 20 issues critical to beef farmers including the reinstatement of the QPS. A major IFA campaign secured an average of €560m per year for the new Rural Development Programme up to 2020 which will provide critical funding for a wide range of farm schemes. We battled hard on product prices across all sectors, resisted milk price reductions, rolled out our pigmeat DNA testing, stopped retailers from repeating their 5c/kg giveaways of vegetables and promoted live exports, essential for competition. You can find full details on progress across all sectors and our current work priorities at www.ifa.ie. Right now, our focus is on the full roll-out of all new farm schemes. IFA is insisting that all farmers applying for GLAS are accepted into the scheme. We are pressing for the immediate opening of TAMs II for all sectors including farm safety works and we want to see farmers maximise their drawdown under the €100/€80 per cow Suckler Beef Genomics scheme. With Minister Coveney developing a new Agri Strategy 2025, IFA has emphasised that farm profitability must be top of the Government’s agenda and that farmers must be properly rewarded for producing top quality products to the highest standards in the world. IFA is pressing Minister Coveney to conclude negotiations on a new Charter of Farmers’ Rights that removes the stress of inspections and ensures that farmers are treated with respect. IFA has called for the introduction of the yellow card system for minor discrepancies and adequate notice of inspections. At EU level, IFA has made a detailed submission to Agriculture Commissioner Phil Hogan on CAP simplification and is calling on the Commissioner to break up the international cartel structure, which is keeping fertiliser prices at excessive levels. As Chairman of the COPA/COGECA Working Party on the Food Chain, I am putting pressure on the Commission to deliver progress to secure more equity for producers and curb the power of retailers. On climate change, Ireland is a world leader in food production and IFA is campaigning to ensure that our sustainable growth plans for Agriculture are not restricted by unworkable international targets. IFA continues to challenge any trade negotiations that would sacrifice Irish and European agriculture. It is essential that equivalence of standards is part of any EU/USA trade deal. On all issues, I give you my firm commitment that IFA will continue to do all in its power to deliver the best possible results for you and your family. Thank you again for your valued support. Eddie Downey Taoiseach Enda Kenny recognised the integral part the agri-food industry played in Ireland’s economic recovery at IFA’s AGM. IFA President Eddie Downey said farmers have delivered for the country and need to see the benefit in increased farm profitability and incomes. SPRING 2015 Member Newsletter 1 THE LATEST INFORMATION IS AVAILABLE AT WWW.IFA.IE, ON THE IFARM APP OR BY FOLLOWING @IFAMEDIA ON TWITTER

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IFA is battling hard to improve farm incomes - read about IFA action and campaigns in the Spring 2015 Member Newsletter

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Page 1: IFA Member Newsletter - Spring 2015

IFA is battling hard to improve farmincomes - Eddie DowneyDear Member,

Our spring newsletter is an opportunity totake stock of the progress made across allsectors in the past year and the priorities onIFA's work agenda for the year ahead.

Your valued support has helped ourAssociation deliver on a wide range ofissues including a positive outcome in theAgri Taxation review with income averagingincreased from 3 to 5 years, enhancedincome tax exemptions for long term leasingand the retention of 90% agricultural relief.

Our 2014 year-long beef campaignmaximised the pressure on processors andretailers to deliver viable prices and throughthe Beef Forum progress was made on over20 issues critical to beef farmers includingthe reinstatement of the QPS.

A major IFA campaign secured an averageof €560m per year for the new RuralDevelopment Programme up to 2020 whichwill provide critical funding for a wide rangeof farm schemes.

We battled hard on product prices across allsectors, resisted milk price reductions,rolled out our pigmeat DNA testing, stoppedretailers from repeating their 5c/kggiveaways of vegetables and promoted liveexports, essential for competition.

You can find full details on progress acrossall sectors and our current work priorities at www.ifa.ie.

Right now, our focus is on the full roll-out ofall new farm schemes. IFA is insisting thatall farmers applying for GLAS are acceptedinto the scheme. We are pressing for theimmediate opening of TAMs II for all sectorsincluding farm safety works and we want tosee farmers maximise their drawdownunder the €100/€80 per cow Suckler BeefGenomics scheme.

With Minister Coveney developing a newAgri Strategy 2025, IFA has emphasised thatfarm profitability must be top of theGovernment’s agenda and that farmers

must be properly rewarded for producingtop quality products to the higheststandards in the world.

IFA is pressing Minister Coveney toconclude negotiations on a new Charter ofFarmers’ Rights that removes the stress ofinspections and ensures that farmers aretreated with respect. IFA has called forthe introduction of the yellow card systemfor minor discrepancies and adequatenotice of inspections.

At EU level, IFA has made a detailedsubmission to Agriculture CommissionerPhil Hogan on CAP simplification and iscalling on the Commissioner to break upthe international cartel structure, which iskeeping fertiliser prices at excessivelevels.

As Chairman of the COPA/COGECAWorking Party on the Food Chain, I amputting pressure on the Commission todeliver progress to secure more equity forproducers and curb the power of retailers.

On climate change, Ireland is a worldleader in food production and IFA iscampaigning to ensure that oursustainable growth plans for Agricultureare not restricted by unworkableinternational targets.

IFA continues to challenge any tradenegotiations that would sacrifice Irish andEuropean agriculture. It is essential thatequivalence of standards is part of anyEU/USA trade deal.

On all issues, I give you my firmcommitment that IFA will continue to do allin its power to deliver the best possibleresults for you and your family.

Thank you again for your valuedsupport.

Eddie Downey

Taoiseach Enda Kenny recognised the integral part the agri-food industryplayed in Ireland’s economic recovery at IFA’s AGM. IFA President EddieDowney said farmers have delivered for the country and need to see the benefit inincreased farm profitability and incomes.

SPRING 2015Member Newsletter

1

THE LATEST INFORMATION IS AVAILABLE AT WWW.IFA.IE, ON THE IFARM APP OR BY FOLLOWING @IFAMEDIA ON TWITTER

Page 2: IFA Member Newsletter - Spring 2015

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In our comprehensive submission to theMinister’s Agri-Strategy 2025 Committee,IFA has made clear that a new strategymust deliver a viable margin at farm level.

Food Harvest 2020 delivered significantjobs and export growth, contributinggreatly to Ireland’s economic recovery.However, it has failed to deliver increasedfarm profitability, due to large increases ininput costs and a reduction in directpayments.

The IFA submission sets out the actionsrequired by all stakeholders to achieveprofitability at farm level.

• Delivery of an increased price premiumfor Irish food through the developmentof an Irish brand for exported agri-foodproducts;

• Rural Development expenditure on farmschemes of a minimum of €550m peryear, with additional funding where newpriorities are identified, and anincreased CAP budget in the nextreform;

• Government support for increasedprovision and resourcing of farmadvisory services;

• Further incentives to encourage farmrestructuring and investment, includingearlier lifetime transfers;

• Development of further options to tackleincome volatility, through industrymeasures and the taxation system;

• Government and EU action to improvecompetitiveness in the businessenvironment, and to rebalance the foodsupply chain.

IFA is pressing for the inclusion of ourproposals in the final agri-strategy.

Solid progress inAgri-Tax Review A year-long campaign by IFA securedmajor progress in the Agri-Taxation Reviewundertaken by the Departments of Financeand Agriculture. IFA argued strongly forproposals to address emerging challengesand for the retention of existing measures. The outcome of the agri-taxation review inBudget 2015 secured the delivery of:

• Enhanced income tax exemptions forlong term leasing;

• Retention of 90% Agricultural Relief foractive farmers and individuals who arenot active farmers but who lease outland long-term;

• Retention of Stamp Duty ConsanguinityRelief (1% rate between familymembers) until end 2017;

• CGT Relief for Farm Restructuringextended to end 2016 and nowincluding whole farm replacements;and,

• CGT Retirement Relief retained, withadditional incentives to encourage longterm leasing.

Important taxation measures were alsoretained• Stamp duty exemption for Young

Trained Farmers (YTF);• Capital Allowances for farm buildings

and machinery;

Agri-Strategy 2025 must deliverimproved profitability at farm level

• Stock Reliefs – general (25%) andYTF (100%); and,

• Tax exemption for profits fromforestry.

IFA is currently working on securingfurther taxation priorities in the nextbudget: • Income tax incentive for parents

and children to farm in partnershipbefore farm transfer

• Income tax credit, similar to thePAYE credit, for self-employedworkers and

• Further mechanisms to tackleincome volatility through thetaxation system.

IFA celebrates 60 years of delivery: IFA Deputy President Tim O’Leary, EUAgriculture Commissioner Phil Hogan and IFA President Eddie Downey at the IFA’s 60thanniversary celebration, which paid tribute to the founding members and thethousands of voluntary officers who worked to ensure IFA has remained a strong unitedvoice for Irish farmers over six decades. Celebration events continue around thecountry and a book tracing the IFA’s 60 year history will be published in April.

IFA lobbies Government on agri-taxation and RDP farm schemes (l-r): PatSmith, IFA General Secretary; Flor McCarthy, Rural Development Chairman; MinisterMichael Noonan; IFA President Eddie Downey; Minister Brendan Howlin; IFA ChiefEconomist Rowena Dwyer; and, Tom Doyle, Farm Business Chairman.

Page 3: IFA Member Newsletter - Spring 2015

A critical year for CAP implementation

IFA pushes for opening of RDP schemes and significant payment in 2015: (l-r): Gerry Gunning, Rural Development Executive; IFA President Eddie Downey;Minister Simon Coveney; Rural Development Chairman, Flor McCarthy; and, HillChairman, Pat Dunne.

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IFA has set out details of items that mustcovered by grant aid including slurrystorage and housing for all sectors, milkingequipment, milking facilities, all farm safetymeasures, sheep fencing, pigs and poultryinvestment. In the current Farm SafetyScheme, approvals are now being issuedand payment of grants must be made

before the end of August next.

On Knowledge Transfer, which replacesthe current discussion groups measures,IFA is insisting that all sectors areincluded. IFA negotiations with Teagaschave secured significant savings on feesfor clients on BTAP and STAP.

Following a major RDP campaign in whichIFA secured an average of €560m per yearfor farmers, 2015 is a critical year in theimplementation of the new CAP. The BasicPayment Scheme has now beenprovisionally outlined to each farmer andIFA has advised farmers to check theirstatements carefully and to follow up withthe Department on any concerns.

Rural Development Chairman, FlorMcCarthy has urged farmers who may beeligible, to apply for the Young Farmer andNational Reserve schemes. IFA has arguedthat ‘old young’ farmers must be cateredfor in the allocation of entitlements.

RDP must beimplemented Following on from the prolongeddiscussions on the RDP, Flor McCarthy hascalled for all schemes to be implementedwithout delay. Pressure from IFA ensuredthat the GLAS scheme opened on February23rd last.

GLAS Flor McCarthy said the priority for IFA is toensure that all farmers who apply for GLASare allowed into the scheme in 2015. Inaddition, IFA has pushed Minister Coveneyto make a significant payment this year.

IFA has pressed for maximum flexibility forfarmers to get the full €5,000 GLASpayment. IFA has raised the splitting ofparcels with the Department and isencouraging farmers interested in thescheme to consult with their planner todetermine the best options to secure themaximum payment. Farmers shouldnegotiate on GLAS fees; Teagasc hasagreed fees that work out at an average of€180/annum over the five-year plan.

IFA Hill Chairman, Pat Dunne hasconsistently insisted that commonagefarmers must have priority access to GLASand secured agreement from MinisterCoveney last year that a collectiveagreement will not be a pre-requisite forentry.

TAMS Flor McCarthy has called for the 40% TAMSgrant scheme to be implemented withoutdelay. The scheme must cover all sectors offarming and must cover all farmers fromthe start of the scheme. Young qualifiedfarmers who are establishing will qualify fora 20% top-up grant for the first five years.

Action is needed on the impact of land designations, IFA tells Minister for ArtsHeritage and the Gaeltacht, Heather Humphreys: (l-r): IFA President, Eddie Downey;Tom Turley, SACs Chairman; Gerry Gunning, IFA Rural Development Executive; FlorMcCarthy, IFA Rural Development Chairman; Charlie Killeen, Galway IFA; GeraldineO’Sullivan, IFA Farm Forestry Executive; Mike Fleming, IFA Farm Forestry Chairman;and, Minister Heather Humphreys.

Banking updates IFA has met with the remaining banks – AIB, Bank of Ireland and Ulster Bank – todiscuss their plans for agriculture; the products they are offering; their flexibility tohelp cope with volatility; and, the need for competitively priced products. IFA FarmBusiness Chairman Tom Doyle has advised farmers to review their cash flowsituations and contact banks if necessary. Discounted funding (~4.5%) for certain investments is now available via AIB andBank of Ireland through the Strategic Banking Corporation of Ireland (SBCI). IFA is putting pressure on ACC to allow flexibility on security for famers taking outloans with other financial institutions.

Page 4: IFA Member Newsletter - Spring 2015

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Cattle price prospects for 2015 are muchmore positive, based on tighter supplies of150,000 head, strong UK market returns,and a strong sterling exchange rate,according to National Livestock Chairman,Henry Burns.

Henry Burns said tighter supplies shouldtip the supply/demand balance firmly infavour of farmers and strengthen theirselling power. With sterling approaching70p to the Euro and strong UK prices, Irishfactories should be able to return viableprices to farmers throughout 2015.

Henry Burns said the live export trade iscrucial for price competition and keeping abalance in supplies.

IFA provides weekly price updates on theiFarm app and at www.ifa.ie.

Support for Suckler Herd Our suckler cow herd is the backbone ofour beef sector. The new €100/€80 percow beef genomics scheme is verypositive and needs to open without anyfurther delay. IFA is proposing that directpayments should be increased to €200 perhead in order to maintain the suckler herd.

Tackling livestockissues The IFA beef price campaign last yearheaped pressure and forced real deliveryon price and specifications from the BeefForum – see page 7. IFA continues totackle issues of importance on thelivestock agenda.

Beef ForumIFA is very determined that MinisterCoveney delivers on the fullimplementation of the Beef Forum.

30 month age limit There is no scientific basis for the 30-month age limit. The vast majority of thekey retail and food service customers ofIrish beef have no issue with 36 months.

Specifications In Ireland, we have to maximise grass-based production and our competitiveadvantage. All our marketing, includingOrigin Green, is based on grass. We can’task farmers to produce to specs that can’tbe achieved off grass. Henry Burns saidwe would be mad to go down a road ofone spec fits all.

IFA President Eddie Downey and Livestock Chairman Henry Burns withMinister Simon Coveney during a recent trade mission to promote Irish beeffollowing the re-opening of the US market.

Bulls On bulls, Henry Burns said what happenedlast year was very wrong. Farmers thinkingof buying calves this spring should notforget this. He said IFA has worked hard onan active live trade for dairy calves thisspring to avoid a repeat of the 2014problems in 2016/17: “Farmers need to dotheir figures, taking account of the price ofcalves, beef prices and production costs.”

Weight limitsThe Beef Forum outomes mean weightlimits and price cuts are parked up at leastuntil January 2016. Weight limits are amajor issue for the suckler herd.

Movements Farm movements and residency arecritically important for the mart trade. TheDepartment has agreed to change the waythe AIMS system records the number offarm residencies for the in-spec bonus.Henry Burns said an animal that spends itslife on a Quality Assured farm should notlose its QA status just because it is soldthrough a mart.

IFA’s beef priceprotests last autumn

forced price rises,spec changes and

positive Beef Forumoutcomes. Livestock

Chairman Henry Burnsand IFA President EddieDowney lead a protestin Clonee, Co. Meath.

Tighter cattle supplies to dominate in 2015

Quality Assurance In the Beef Forum, IFA made a genuinemove to ensure every animal from aQuality Assured farm receives a QA pricepayment. The response from the factoriesof €3 per head is totally inadequate.

Carcase trimIFA is very determined to make progresson carcase trim from the Beef Forum. TheDepartment’s Agricultural Officers in themeat plants must be responsible for thedaily monitoring of the trim. In addition,the grading needs to be more transparentand it is unacceptable that farmers haveno recourse to an appeal undermechanical classification.

Price Transparency In the US, factories are obliged to publishtheir wholesale selling prices for all beefcuts on the USDA website twice a day.This information is essential for pricetransparency and to have an opencompetitive market. The Beef Forum mustaddress this void of information inIreland.

Page 5: IFA Member Newsletter - Spring 2015

Dairy price outlook still better thananticipated

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of stakeholders to plot the sector’sprogress into the post quota era.

Dairy Chairman Sean O’Leary said: “TheMinister’s Forum must address the veryissues we are reviewing in our seminars,

adding to the agenda the need forimproved tax measures to help farmersmanage volatile incomes through good andbad years. IFA is looking forward toparticipating fully when the Forum isestablished”.

A drought spell at the end of the NZ seasonhelped rebalance supply and demand onglobal markets, and was followed by priceincreases at six consecutive GDT auctions.EU supplies have also eased as recordsuperlevy fines are anticipated, so that EUas well as global dairy prices started risingsooner than expected.

While some argue that the end of quotaswill give rise to a strong output increase inthe EU, the Commission, in its short-termoutlook report, expects only a moderate 1%increase in EU milk production for 2015(down from 4.5% in 2014).

With returns from EU average prices up 4c/lin the last two months to just under 36c/lbefore processing costs, IFA Dairy ChairmanSean O’Leary said farmers were justified inexpecting that co-ops would at least holdmilk prices for the spring. Regular dairymarket updates can be found on the iFarmapp and at www.ifa.ie.

Support followingthe end of quotasThree-year superlevy paymentFollowing intensive lobbying by IFA at homeand in Brussels, the EU Commission hasagreed a three-year extended paymentscheme to help farmers pay their superlevyfine without the additional cost of interest.

The scheme will allow farmers to pay one-third of their bill in 2015, with the remainingtwo-thirds payable in 2016 and 2017, freeof financing costs. Sean O’Leary said “Weneed co-ops to take early stock of their andtheir suppliers’ superlevy situation, so thatno more than one-third of the liability iscollected from any farmer in 2015. This willinvolve a variety of approaches, however,the result in all cases must be a fair andequitable redesign of their superlevycollection plans to ensure all farmers canbenefit optimally from this new, cost-free,three-year payment term option.

Supportive framework neededfor dairy growth In a series of regional dairy seminars inMarch and April, IFA has challenged co-ops,as milk purchasers and input providers,banks and Teagasc to outline their plans tosupport dairy farmers through the ‘newnormal’ of volatile incomes.

Minister for Agriculture Simon Coveney hasannounced the setting up of a Dairy Forum

Liquid milk producers face uniquechallenge Specialist liquid milk producers will beuniquely challenged by the end ofquotas, according to IFA Liquid MilkChairman Teddy Cashman.

This is because some will have to makehard decisions as they grow the non-liquid portion of their production as towhether it makes economic sense tocontinue producing liquid milk at

significantly higher costs. Others, who donot have the required land base toexpand, may not even have that choice.

This could create real shortages of fresh,locally produced milk on supermarketshelves over the winter months, unlessdairies, retailers and consumers allrecognise the necessity for adequateremuneration for specialist producers.

IFA meets EU Agriculture Commissioner Phil Hogan on superlevy relief andmarket supports. (l-r) Sean O’Leary, Dairy Chairman; Commissioner Phil Hogan;IFA President Eddie Downey; General Secretary, Pat Smith; and, Director ofEuropean Affairs, Liam MacHale.

Dairy Forum must focus on farm profitability and managing income volatility.IFA President Eddie Downey, National Dairy Committee Chairman Sean O’Leary andDairy Committee members attending a debate on dairy in the Dáil at which theMinister announced the establishment of a Dairy Forum.

Page 6: IFA Member Newsletter - Spring 2015

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Agri-Strategy must deliverfor farmers; IFA recently met

the Fine Gael InternalAgriculture Committee on IFA’s

Submission to Agri-Strategy2025 - pictured IFA President

Eddie Downey with CommitteeChair Martin Heydon, TD

IFA - Working Hard

IFA has lobbied politicians from all parties to highlight theneed for support for the agriculture sector. Pictured (l-r): IFAPresident Eddie Downey; Fianna Fáil TDs Micheál Martin and Dara

Calleary; and, Padraig Joyce, Mayo IFA Chairman.

Agri-tax review• CAT Agricultural Relief retained at 90% with

workable definition of ‘farmer’ secured;• Enhanced income tax exemptions for long-term land

leasing;• Income averaging increased from 3 to 5 years;• CGT relief for farm restructuring extended to include whole farm

disposal• CGT retirement relief retained with amendments to incentivise long-

term leasing;• Stamp Duty exemptions, stock relief and capital allowances retained;• Stamp Duty consanguinity relief retained to 2017

KeyDelivery

IFA pressure secured prompt delivery of directpayments: €195m in DAs payments, €1.2bn inSFP

€1.214bn/year secured for new Basic PaymentScheme (BPS) to replace SFP. Flat paymentsand regionalisation prevented. Irishconvergence model minimised cuts toproductive farmers

€560m/year secured in national and EUfunding – 46% national funding is highest inEU after Germany.

IFA secured independent appeals mechanism

Scheme worth €5,000 per year for up to 50,000farmers, €7,000 under GLAS+ open forapplications – IFA pressing for significantpayment in 2015

€395m allocated for on-farm investmentgrants under RDP 2014-2020, €34m allocatedin Budget 2015 for TAMS I, including FarmSafety Scheme, and TAMS II

€1.37bn in funding over 7 years for Areas ofNatural Constraint (ANCs), €195m in Budgetfunding for 2015. Increased payments forisland farmers

New BTAP, STAP & dairy groups’ funding from2015. Also extended to tillage and othersectors. Reduced fees agreed by Teagasc

Sheep Grassland funding retained as part ofBPS and increased to €15m

Required on all fresh pork, poultry and lambsold in supermarkets/butchers from April 2015– beef already covered

‘Old Young’ farmers to be facilitated throughNational Reserve

IFA supported Phil Hogan for Agriculture andRural Development portfolio

National Deer Management Forum established

Direct paymentsin 2014

New BasicPayment

New RDP 2014-2020

Eligible Land

GLAS opens

TAMs

Disadvantagedareas - ANCs

Discussiongroups /KnowledgeTransfer

Sheep payment

Country ofOrigin

‘Old Young’farmers

NewCommissioner

TB

BVD

Brucellosis

Pork DNA

Horticulture

Retailerregulation

Commonages -RDP

Commonages –SFP/BasicPayment

CGT exemption

Forestry

Forest Assessor

Property tax

Food exports

Farm Assist

Secured extension to BVD supports for 2015and increase in payments to €140 for calvesremoved from suckler herds and €100 fordairy bred heifer calves.

Removal of all Brucellosis testing during2015 worth over €6m annually in savings

IFA’s DNA Certified programme has boostedvolumes of pigmeat purchased andsupported pig meat prices – estimated to beworth 10c/kg

€4.2m allocated for horticulture investmentin 2015

Competition and Consumer Protection Actmarks first step in regulating retailers,although tougher regulation is requiredincluding at EU level

Increase in RDP payment for commonageareas from €75 to €120 per ha; collectiveplan rejected, reduced to 50% target – activefarmers only – with flexibility throughCommonage Implementation Committee

SFP redistribution means extra €38m forcommonage farmers

Exemption from Capital Gains Tax for forceddisposal of SFP entitlements, worth €25m

€482m over 7 years for new ForestryProgramme. Forestry Bill amended to includecompensation mechanism for farmers deniedfelling licences

New service for forestry farmers to maximisethe value of their timber

Applied to residential properties only –farmland exempted

Up 45% since 2009 to €10.5bn – farmersneed to see the benefit in their incomes

Secured disregard for GLAS payments inmeans assessment

Page 7: IFA Member Newsletter - Spring 2015

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IFA President Eddie Downey set out a 10-point plan of actionto deliver farm profitability at the IFA AGM. Also included DeputyPresident Tim O’Leary and National Treasurer, Jer Bergin.

IFA works closelywith MEPs on farm

issues: Mairead McGuinnessMEP with IFA Director

of European Affairs,Liam MacHale

d for Farmers

Strong IFA campaign to assist live trade to North.Increased exports to GB resulting from IFA work withStena. Increased trade to North Africa. Strong livetrade vital in maintaining weanling and store prices

IFA year-long campaign of action and pressure onthe Minister, processors, retailers and food serviceoutlets led to increased beef prices and securedspecification changes

Delivered 30c/kg price increase in November –December 2014 despite higher kills

Published over 100 price surveys to keep farmersinformed of best available deals

IFA secured €100 per cow for the first 10 cows and€80 for remainder under 2015 Beef Data andGenomics Scheme

€3m coupled payment for protein crops

Priority access to GLAS secured for tillage farmers

Load heights and trailer weights amended to bemore workable for farmers

Undergrounding under consideration in Governmentreview

€148m secured in EU funding for seafood sector,€6.3m funding in Budget 2015

PRSI extended to assisting spouses of farmers from2014, making it easier to establish entitlement to acontributory pension

Improved farm returns through voluntary initiativefocussed on better resource management

Live exports riseto 237,000 headin 2014

Beef Crisis

Factory priceprotests

Input costs

Suckler Genomicspayment

Protein crops

Greening

TransportRegulationconcessions

Pylons

Seafood sector

Contributorypensions

Smart Farming

Milk prices

Milk supplyagreements

Liquid Milk Forum

Vegetables

Water charges

Climate change

Soils Directive

Poultry

Turf cutting compensation

Farm Safety

iFarm

Minimised milk price reduction throughsecond half of 2014 despite weakeningmarkets. Resisted talking down ofprices in Spring 2015.

Important improvements secured onprice commitments and conditions

Secures decision by NMA Board to seekbig retailer representation, proves needto review pricing arrangements toreflect specialist costs

IFA protests stop 5c/kg giveaways,embarrassed retailers into dropping thisdamaging practice

Secured Government commitment of nocharges on domestic wells

Government recognition that Ireland’slow carbon agriculture must be treateddifferently on emissions cuts carriedthrough in Climate Bill

Plans for Soils Directive dropped by EUCommission

Poultry included under TAMs in the RDP

€2,000 upfront and €1,500 thereafter for15 years, or supply of turf for 15 yearsor relocation

€12m allocated in Budget 2015 for farmsafety scheme under TAMS I – furtherscheme planned

With increasing price volatility, IFAmarket updates on iFarm keepproducers up to date on both productprices and input costs

IFA Beef CampaignIFA beef price campaign, including retail and factory protests delivered 30c/kg price increase and putpressure on Minister to force real delivery from the Beef Forum.• QPS reinstated – no dual pricing on weight, breed or age –

worth €200-300 per animal• Weights – no price penalties on any animals on weight to

December 31 2015• QA payment from 1 January 2015 for steers and heifers from

QA farms• Review of 30-month age limit and movement/residencies,

beef transparency index• Stronger Department controls on carcase trim and support for

live exports• Minister for Agriculture underwrites all Beef Forum outcomes

KeyDelivery

IFA members can avail of an extra €2discount on Bloom tickets (Thurs 28May to Mon 1 June). Book on line

only www.bloominthepark.combefore the event and use the promo

code IFA15. Kids go free.

Page 8: IFA Member Newsletter - Spring 2015

IFA protests outside IAPP: IFA President Eddie Downey and Pig Chairman PatO’Flaherty lead farmers in a protest on pig price cuts outside the Irish Association ofPig Meat Processors (IAPP) in January.

Farmers must be supported on animalhealth TB IFA Animal Health Chairman Bert Stewartsaid the continued reduction in the incidenceof TB nationally is welcome however, somecounties are still experiencing unacceptablelevels of the disease. He said IFA is seekinga targeting of resources by the Departmentof Agriculture into these counties.

IFA has put a detailed submission to theMinister for Agriculture outlining changesthat are necessary in the TB eradicationprogramme in order to reduce the costburden of the disease controls for farmers.

Issues such as the prohibition on purchasingin animals to restricted holdings and theDepartment’s handling of medicated reactoranimals are adding unnecessary cost andstress for farm families and must beaddressed.

In relation to compensation payments, IFA isseeking full consequential loss for allanimals removed from the farm. BertStewart said the Minister and hisDepartment have accrued enormous savingsin the TB eradication scheme and must usethese monies to offset the financial burdenimposed on farmers in the programme.

BVD Bert Stewart said the BVD eradicationprogramme must deliver on its objectives,within the costs and timeframes outlined tofarmers at the start. Farmers who havecompleted three years of intensivemonitoring must be provided with a lowercost option for the monitoring phase and theprogramme must have an end date. He saidfarmers signed up in good faith to a short-term programme and this commitment mustbe delivered on.

IFA is seeking additional financial supportsfor farmers disproportionately affected bythe disease. Bert Stewart said the earlydisposal of PI animals is central to theprogramme achieving its objectives.

IFA President Eddie Downey said “it iscritical that the new Competition andConsumer Protection Commission takes aproactive role in initiating investigationsand ensuring compliance with andpenalising breaches of the regulations.”

While recognising that the legislation is afirst attempt by Government to improve thefunctioning of the food supply chain, IFAbelieves that the legislation does not go farenough. It does not address issues suchbelow cost selling, limits on own-brands,Retention of Title or disclosure of profits bylarge retailers.

IFA has identified these areas as necessaryto restore equity in the food supply chainand curb the dominance of the retailmultiples. The Government needs to tacklethese issues through further legislation andregulation.

8

Calling for equity inthe supply chain forproducers. PresidentEddie Downeychairing the WorkingGroup on the FoodChain in Brussels,pictued with Carl-Christian Buhr fromCommissionerHogan’s Cabinet.

Pigs DNA programme supports QA and price

Retail legislation welcome butstronger regulation necessary

IFA believes that the Competition andConsumer Protection Act which came intoforce in October 2014 will be judged onits effectiveness in rebalancing power inthe food supply chain. Enterprise MinisterRichard Bruton must use the powersgiven to him under the act and introducerobust retailer regulations to eliminatecertain practices in the grocery goodssector.

IFA continues to expose misleadinglabelling practices through its DNACertified testing programme. Thecontinued exposure has led to retailoutlets being more attentive to the originof the products they stock. More outletsare moving to Quality Assured productsas a result which has increased theuptake of Irish pig meat and, ultimately,helped maintain pig producer prices atover 100% of the EU average in 2014.

IFA was active in securing an APSscheme for pig meat and April 2015finally sees Country of Origin labellingfor pre-packed pig meat and poultryproducts become law.

This has been a longstanding aim of IFAand is very welcome. The legislationhowever is far from perfect, whichmakes the DNA programme asimportant as ever.

Page 9: IFA Member Newsletter - Spring 2015

SimplificationIFA has made a detailed submission to EUAgriculture Commissioner Phil Hogan inBrussels on simplification of the CAP and areduction in red tape for farmers.

Basic Payment May 15th applicationdate has been extended – see www.ifa.ie

Minister must deliver progress in newCharter of Rights Minister Simon Coveney must take a hands-on approach and resolve the keyoutstanding issues in the negotiations on anew Charter of Rights, according to IFADeputy President Tim O’Leary. Proper andfair notice for inspections; the elimination ofduplication; and, a reduction in overallinspections, as well as tolerances and theyellow card system are the priority issues forthe IFA.

Tim O’Leary said IFA has made goodprogress on a broad range of issues and hassecured agreement on improved paymentdeadlines. The new Basic Payment advancewill be paid out on October 15th each yearwith 90% of all applicants paid in the firstweek and the full payment paid onDecember 1st.

Similar payment deadlines have beendiscussed for the Young Farmers Scheme andthe National Reserve and IFA is demandingthe same arrangements for GreeningPayments. Deadlines have also been workedon for ANC and GLAS payments.

InspectionsOn inspections, IFA is insisting that the issueof no notice inspections must be resolved.The Minister must separate the no-noticeinspections from inspections where notice of48 hours to 14 days can be provided.

Combined with a proposal to removeduplicate inspections around nitrates, theMinister can move to provide proper noticefor the vast majority of inspections andreduce the overall number. This is a keyissue for the IFA.

IFA is also demanding the introduction of anew yellow card system of tolerances forunintentional errors, a lowering of penaltiesand an effective appeals system.

IFA and Bord Bia launch Easter lamb promotion campaign. Hylda Adams, BordBia; chef Rory O'Connell; John Lynskey, IFA National Sheep Chairman; and DeclanFennell, Meat Division, Bord Bia.

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Positive lamb price prospects for 2015

Irish and EU farmers’ interests must beprotected in trade dealsIFA has launched a position paper on theTTIP negotiations. While recognising thepotential opportunities arising fromincreased market access, IFA is insistingthat the interests of Irish and Europeanfarmers must not be sacrificed in pursuitof an overall trade deal. EU negotiators

must insist on equivalence of standardsfor all US imports; beef must bedesignated a sensitive product with theretention of reduced tariffs on all importsunder any agreed tariff rate quota; andvulnerable beef, pigmeat and poultrysectors must be safeguarded.

IFA will continue to work hard on our Responsible Dog Ownership Campaign totackle the severe problem of dog attacks on sheep flocks

Poultry Poultry Chairman, Nigel Renaghan hasbeen instrumental in organising a piloteducation programme for poultryproducers that will be harmonised acrossEU member states, starting in September2015. The inclusion of poultry under TAMSwill also be rolled out this year. IFAcontinues to assist in negotiations withprocessors to improve returns to farmers.

religious festivals in 2015 are Easter onApril 5th, Ramadam on June 18th, Id-ul-Fitr on July 18th and Id-ul-Adha onSeptember 24th.

New policy: €20 per ewe John Lynskey said IFA is very clear on theneed for increased direct support forsheep production. To maintain the nationalewe flock, IFA is proposing a targetedsheep specific direct payment equivalentto €20 per ewe.

PaymentsIn addition IFA is demanding priorityaccess to the new GLAS payment of up to€5,000 per year, as well as flexibleimplementation for commonage and hillsheep farmers and a restoration of ANCpayments to their pre-2008 levels. IFA isalso calling for access for up to 10,000sheep farmers into a new STAP, includingmixed cattle and sheep farms, and a well-funded TAMS II grant aid programme forthe sheep sector.

Lamb price prospects for 2015 are verypositive according to IFA National SheepChairman John Lynskey. The hogget traderemains very strong, having hit €6.00/kg.2015 supplies should be similar to 2014levels. With sterling remaining strong, NewZealand focused on the growing market inChina and a vibrant live trade from Spain toNorth Africa, the opportunities andprospects for Irish lamb are positive.

Price pressure and info IFA will keep strong pressure on theprocessors to return maximum prices fromthe market. In addition our twice weeklytext and app service on lamb pricesthrough iFarm will help producers get thebest returns.

Promotions and live exports John Lynskey said IFA will work closelywith Bord Bia on strong lamb promotionsfor both the domestic and export markets.In addition, IFA will push hard to maximiselive export opportunities. He said the big

Page 10: IFA Member Newsletter - Spring 2015

Climate policy must recognise Ireland’ssustainable model of food production IFA recently participated in an internationalclimate conference in France and called for anew approach to address the climatechallenge - one which puts food security andsustainable intensification at the centre offuture climate policy.

France will also host the UN internationalclimate talks in Paris this December. Thesetalks will seek to identify a global plan toaddress the climate change challenge overthe next decade. IFA is advocating thatagriculture’s response must evolve towardssustainable production and bettermanagement of resources.

Ireland is a world leader in sustainableproduction. No other country in Europeindependently monitors greenhouse gasemissions at farm level through initiativessuch as Origin Green, the quality beefassurance scheme, Smart Farming or thesustainable dairy assurance scheme.Theseinitiatives are valuable for maintainingexisting markets and securing new ones.However, sustainability must also deliver anincreased economic return to the farmer.

IFA is lobbying in Ireland, Europe andinternationally to ensure that the internationaltalks in Paris deliver a fair and balancedagreement for agriculture.

Greenways package required IFA has called on Transport Minister PaschalDonohoe to work with IFA to develop avoluntary package of measures whichfacilitates the advancement of proposedGreenway projects while protecting farmers’rights. IFA Environment and Rural AffairsChairman, Harold Kingston said, “Greenwayshave the potential to attract tourists andeconomic development to many rural areas.However, they will also significantly impacton farmers and may in some instances dividefarm holdings. It is essential that a robustpackage of measures is put in place thatrecognises the inconvenience caused andgoodwill required. The way forward is byagreement with farmers”

Services for rural communitiesTim O’Leary, IFA Deputy President andCountryside spokesman has called on RuralAffairs Minister, Ann Phelan, to intervene andensure Bus Éireann plans to reduce busroutes in rural areas will not impactnegatively on affected communities.

RenewablesIFA Alternative Land Use Project TeamChairman, James Murphy has said the

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IFA participates in international climate conference; IFA representatives meet withJo Tyndall, Climate Change Ambassador from the New Zealand Ministry of ForeignAffairs and Trade at the International Forum on Agriculture and Climate Change inParis. Pictured Harold Kingston, IFA Environment Chairman; Jo Tyndall; Thomas Ryan,IFA Environment Executive; and, Liam McHale, IFA Director of European Affairs.

New Forestry Programme approved

Meeting MinisterTom Hayes on

forestry issues:Geraldine O’Sullivan,

IFA ForestryExecutive; Mike

Flemming, ForestryChairman; Minister

Tom Hayes; and,Paul Dillon, Assistant

Secretary,Department of

Agriculture.

The new Forestry Programme commits toinvest €482 million in the private forestsector from 2014 – 2020. This will fundthe establishment of 44,000ha of newforests and the construction of 700km ofnew forest roads. In the negotiations IFAsecured: - 5% increase in afforestation grants;- Higher annual forest premiums, but

now paid over 15 year period; - 14% increase in Forest Road Grant to

€40/m and Special Construction Worksgrant of €5,000; and

- Funding to set up Producer Groups andfor existing groups through KnowledgeTransfer measure.

Smart Farming cost saving studies to begin in May Smart Farming - the voluntary initiative which focuses on ways to improve farmreturns through better resource management - is starting this year in May. Membersof over 30 discussion groups across the country will have a free on–farm cost savingstudy completed to identify savings of at least €5,000 on each farm. More details areavailable at www.smartfarming.ie, IFA.ie and iFarm.ie.

Forest Assessor In 2014, over 1,400 farmers wereissued with felling licences to harvestnearly 20,000 ha of private forests. Itis very important that farmers knowthe value of their timber before theysell, that is why IFA is offering a newmembers’ service, Forest Assessor.

The tree measurement and valuationservice accurately predicts thevolumes and product breakdown inyour forest. For more information call1890 989398.

Government has to date has failed torecognise the critical role that agriculturecan play in the development of a sustainablebiomass sector to help Ireland to meet its EUrenewable energy targets. He said,

“Financial incentives must be put in place tostimulate demand, while funding must bemade available to producers for thedevelopment of critical infrastructure for thedevelopment of the supply chain.”

Page 11: IFA Member Newsletter - Spring 2015

Strong support for new Boortmaltcontract

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National Grain Committee Liam Dunnehas said, “High level and protractednegotiations between IFA and Boortmalthave delivered significant improvementsto the 2015 malting barley contract.Strong support for the deal wasevidenced by a very high uptake of thefixed price offer of €175/t, at over 80%.Allowing growers to double up on theoffer from 5% last season to 10% provedpopular.”

Among other issues addressed was themajor focus on cushioning growers fromsignificant adverse grain pricemovements at harvest. Growers will beafforded several opportunities over thecoming months to participate in furtherfixed price offers and/or hedging.Boortmalt and IFA will facilitate hedgingworkshops for growers to improve theirunderstanding of price risk management.

EFA Sustained engagement with Departmentofficials ensured that most Irish growershave the required EFA without the needto adopt further measures. Theextremely complex greening regulationsare unnecessary and simplification mustbe prioritised. The remote sensingsystem should be sufficiently robust toaccurately interpret the EFA area andfarmers should not have to reinterpretthis data.

Farmers, given the vagaries of Irishweather, should not be obliged to plantmore than 25% of their arable area to acatch crop under equivalence for cropdiversification.

IFA tackles input costs

€4.6m Potato Promotion BidApproval from the European Commissionfor a ROI/UK €4.6m potato promotioncampaign is expected in April. Thecampaign aims to halt the long-termdecline in fresh potato consumption byincreasing demand through strengtheningthe health/nutritional image of potatoesand also by enhancing consumerknowledge of their versatility. This is a jointbid being undertaken by ROI growers,Merchants, Bord Bia and the Departmentof Agriculture with the UK Potato Council.

Potato Chairman Eddie Doyle has againhit out at retailers’ and merchants’behaviour towards potato growers, whoare now experiencing two consecutiveyears at the current unviable farm prices.

“Good margins are being made byretailers and merchants from potatoesand it is critical that growers receive ahigher price to help cover theirproduction and storage costs and to helpensure that they can plant a crop for thecoming season”

Potato prices are unaceptable

CER agrees to increasemonitoring of energy companiesIFA recently met with the Commission forEnergy Regulation and secured acommitment that they would increasemonitoring of energy companies to ensurethat they pass back the full extent ofreductions in international energy prices tofarm businesses and families.

James McCarthy, IFA Inputs Project TeamChairman, has also welcomed the CER’scomments that electricity and gas pricescan fall further based on declininginternational fuel prices.

22% Fuel price gap Meanwhile James McCarthy hasencouraged farmers to shop around andchallenge their fuel suppliers to ensurethat they are getting the mostcompetitively priced fuels.

This follows the publication of IFA’s fuelprice survey which identified that farmersin Sligo and Leitrim are paying 22% morefor agricultural diesel when compared tofuel prices paid in Laois, Longford andKilkenny.

IFA continues to progress malting barley growers’ issues, following 80%uptake of the recent contract offer negotiated with Boortmalt. Pictured at arecent meeting with Boortmalt are (l-r): IFA Grain Chairman Liam Dunne, YvanSchaepman, Boortmalt CEO; IFA President Eddie Downey, David Wilkes, Boortmalt,Mark Browne, IFA Malting Barley Chairman; Peter Nallen, Boortmalt; and Pat Smith,IFA General Secretary.

Horticulture Chairman Gerry Reilly hashighlighted that the main priority forthe sector is for the Government tosupport mechanisms that willimprove the coordination andcooperation of primary producers.

IFA’s participation on the newHorticulture Forum will ensure thatthe sector’s challenges and issues areidentified and in turn must be takenon board in Agri-Strategy 2025.

Horticulture Forumfocuses on primaryproducers

:: i :: ID2013 New requested font inplace

iFarm and inputsIFA’s smartphone app, iFarm nowincludes a section dedicated to inputprices. You can use the app to get priceinformation on feed, fertiliser, fuel andanimal health products. You can alsoshare your price information on the appto help us achieve maximum pricetransparency see - www.ifarm.ie.

Page 12: IFA Member Newsletter - Spring 2015

Farm Family focuses on safety

In brief

12

Nobody works harder for farmers

Edited by: Bryan BarryAssistant General Secretary

IFA, The Irish Farm CentreBluebell, Dublin 12Telephone: 01 450 0266Email: [email protected]

@IFAmedia

IFA Member ServicesWeb

App

IFA meets Simon Harris, Minister of State for the OPW to discuss flooding onthe Shannon Estuary and west coast of Clare, and to seek support for therepair of embankments. Pictured (l-r): Seamus Murphy, Clare IFA Rural Developmentrep; Willie Hanrahan, Kilkee; IFA President Eddie Downey; Minister Simon Harris; IFAFlood Project Team Chairman Tom Turley; and Andrew Dundas, Clare IFA Chairman.

There has been broad support for the IFASAVE LIVES campaign, which aims toencourage farmers to be more safetyconscious in their working practices byidentifying the dangers and takingpreventative action to reduce the risks onthe farm. The latest research from Teagascshows that behaviour and age are the maincontributing factors to farm accidents.

IFA’s submission to the Seanad PublicConsultation Committee clearly outlines theAssociation’s opposition to any suggestionof linking farm safety inspections to crosscompliance under the Single Farm PaymentScheme. Enhanced awareness andeducation have been shown internationallyas the most effective way to change safetybehaviour. Increased regulation has hadlimited impact in reducing farm accidents,according to Farm Family Chair MauraCanning.

Fair Deal Scheme The review of the Fair Deal scheme isexpected to be concluded in early April2015. IFA has written to Kathleen Lynch TD,Minister of State with the Department ofHealth and Children to once again requesta cap on the maximum percentage chargethat can be applied on farm assets in thereview. This would allow farm families tomake the most appropriate decisions inmeeting the costs of care and wouldreduce the uncertainty on the viability ofthe farm business caused by the uncappedliability.

Designated landSACs Chairman Tom Turley has welcomedthe decision to allow hen harrier farmersand other farmers with endangered birdson their farms to qualify for the GLAS +payment of an additional €2,000. This willmean that a farmer with 19ha ofdesignated land will qualify for €7,000. IFAis calling for additional payments to bemade to farmers with greater acreagesrestricted.

Key to the implementation of the HabitatsDirective must be the Government’scommitment to pay compensation forrestrictions imposed. The onus is on Arts,Heritage and the Gaeltacht’s Min HeatherHumphreys to make up losses.

In relation to eligible land, IFA is insistingthat hill farmers’ role in maintaining theenvironment must be recognised in thearea qualifying for payment. Pat Dunne iscalling for gorse burning to be allowed upto mid April.

Farm AssistIFA has criticised Social ProtectionMinister Joan Burton for going hard onfarmers whose means are beingreassessed. With 10,000 farmers on FarmAssist, it is important that this scheme isapplied fairly in determining qualification.The Rural Social Scheme which has 2,600places is a key support for farmers onFarm Assist. IFA has got a commitmentthat GLAS payments will be disregarded inthe assessment in a similar way to REPSpayments.

FloodsFloods chairman Tom Turley has urged OPWMinister Simon Harris to move ahead withthe CFRAMS study and put in place amanagement plan to alleviate and preventflooding throughout the country. Recentdiscussions with the Minister resulted inworks being carried out in the Shannonestuary.

Hill farming Hill Chairman Pat Dunne has urged MinisterCoveney to come forward with proposals onthe Areas of Natural Constraint (ANCs)which are up for review over the nextcouple of years. Hill areas must get anincrease in payments and in the areaqualifying for payment.

Compiled by: Brigid FitzgeraldPress & Digital Media Officer

IFA.ie

iFarm.ie

Launching the IFA SAVE LIVES 2015 Farm Safety campaign: (l-r): Kevin Cooney,Cooney Furlong merchants; Maura Canning, IFA Farm Family Chairperson; IFAPresident Eddie Downey; and, Pat Murphy, Chief Executive Acorn Group.