Consider ‘cold hard economics’ of ACRES and Organic schemes

"If they go organic they are seen as a failure in farming - ‘What will the neighbours think?’

Farmers were urged to look dispassionately at their options when applying for schemes, which may see a hybrid of ACRES and organics emerge as their best choice.

Approximately 80 farmers filled the Shantully Inn, Crossdoney last Tuesday night to hear Agricultural Consultant Tom Canning outline key options emerging from the new ‘Agri-Climate Rural Environment Scheme’ (ACRES).

While a higher maximum payment was available to those under the ‘ACRES Cooperation’ (€10,500), it caters for those farmers in defined ‘high priority’ geographical areas, such as those in the hen harrier scheme. The vast majority of participating farmers however will access through ‘ACRES General’ which yields a lower maximum payment of €7,300, which is still signifcantly better than the soon to be defunct GLAS.

Tom was confident that virtually all those attending, who predominantly farmed in mid to west Cavan, would qualify for ‘ACRES General’ as tier two farmers, given the presences of ‘vulnerable water courses’ on their land. A total of 30,000 farmers will be permitted into the scheme and Tom predicted it would be under subscribed.

“There’s not an earthly chance 30,000 people are going to get into this scheme on Day One,” he assured.

He had attended an ACRES briefing from the Department earlier that same day, and reported, “there doesn’t seem to be any movement from the Department at all” regarding the November 15 closing date.

Given the environmental impetus behind ACRES, Tom suggested an option that might suit some farmers was to complement the scheme by registering as an organic farmer. Angela Clarke of the Irish Organic Association, based in Athlone, outlined the simple process of registering a farm, and the obligations faced by the environmentally friendly system - lower stocking rate, reduced dosings, no fertiliser nor herbicide sprays.

Angela explained the alternative management techniques, and how constraints should be viewed as positives in a climate where input costs are high and forecast to rise further. Also, medicines were permitted if deemed necessary by a vet.

A number of questions from the floor referenced the need to have at least 50% of shed floorspace slat-free, which prompted Tom to interject.

He insisted that meeting the 50% requirement will not pose a major issue in “very many” farms. He advised interested farmers to consider possible combined payments from the ACRES and organic schemes.

“I have two people here tonight who are getting the maximum €7,300 in ACRES. But their organic combined with ACRES is over €23,000,” Tom said as silence descended across the room. “You know €23,000 a year is a significant increase in payments for a five-year period. And your input costs are lower.”

He had earlier noted that a “hybrid” of ACRES and organics would yield an average annual payment of over €12,000.

“The biggest obstacle I see with it is here,” he said tapping his temples.

“In the head. If they go organic they are seen as a failure in farming - ‘What will the neighbours think?’

“I say it to you here: you have to look at the cold hard economics of this - if it brings you in a better return and it’s more sustainable long term, it needs to be considered as an option.”

He insisted he wasn’t telling anyone what schemes they should do, but he would present the options and let them decide.

Speaking after the meeting Angela said there were opportunities with increased organics budget to €56m.

“There should be no issue with over subscription this year,” she said of the new five year organic scheme. “In order to meet that you would need to take on another 10,000 people.

“We have had unprecedented levels of interest for the past couple of months. Whereas normally it would only be when the scheme opens we would get the calls, we’ve been taking calls for months, and applications are flying out the door.”

She expects that interest to be sustained.

“The Department have told us that they will be opening the scheme every year going forward,” Angela enthused, noting that should make it easier to enter organic farming.