Farmers see nitrates aid almost doubled

Seán MacConnell, Agriculture Correspondent

Agriculture: The allocation to help farmers comply with the controversial nitrates directive has been almost doubled in the Department of Agriculture and Food's 2007 estimate.

Almost €147 million has been set aside for the farm waste-management and dairy hygiene schemes, compared with €76 million last year.

The total estimate for the year was €1.638 billion and Minister for Agriculture Mary Coughlan signalled her intention to carry forward capital savings in excess of €20.2 million, bringing the total funding available next year to €1.658 billion.

"This is an increase of €227 million, or 16 per cent, over the projected out-turn in 2006 and indicates the Government's commitment to the agriculture sector," she said. "The estimate contains a sum of €257 million in income supports in disadvantaged areas which will benefit 102,000 farmers who will receive an average payment of €2,481, an 8 per cent increase."

As agreed in the partnership accord, she said, there was a 17 per cent increase in the allocation for the Rural Environment Protection Scheme (Reps) where €328 million had been set aside.

She said €42 million had been allocated for the development of the marketing and processing capability of the agri-food sector to accommodate the recently announced capital investment scheme in the dairy, beef and sheepmeat sectors.

The Estimates also contained an additional €4.1 million for An Bord Bia, the Irish Food Board, to assist it in delivering its strategic market intelligence and marketing activities.

The research and training allocation has been cut to €34 million, a 3 per cent drop; €4 million has been set aside for research in the forestry area.

The estimate provided for €290 million under administration costs and salaries, but there was a 98 per cent reduction signalled in consultancy services to €120,000 from €7.1 million budgeted for last year.

As might be expected following the conclusion of a €6.8 billion package agreed with the farming lobby for 2007-2013 under a rural development package, and with €1.6 billion in direct payments coming to farmers this year, reaction was muted.

IFA president Pádraig Walshe said the increase on the 2006 out-turn broadly reflected the recent partnership agreement on improvements to the main farm investment and environment schemes. "A number of the farm development and environment schemes are demand-led, particularly on-farm investment and Reps, and if additional funding is required before end 2007 because of higher than anticipated uptake, it will have to be provided," his statement said.