Farming focused on economic and environmental sustainability

The Irish Farmers’ Association is the representative organisation for almost 90,000 farm families and is the recognised voice of Irish farmers in Europe and internationally. The objective of IFA is to provide focused leadership to deliver improved income and living standards for all farm families. The Association promotes the ongoing development and competitiveness of Irish agriculture and the food industry.

Role of agriculture in the economic recovery
Throughout the downturn, the primary agriculture and agri-food sector has delivered increased employment and export earnings, contributing significantly to our economic recovery. Growth in the value of primary food production underpinned a major increase in the value of Irish agri-food exports, with exports in 2014 exceeding €10.5 billion, an increase of over 40 per cent from 2009. Today the farming and food sector supports over 300,000 jobs.

Farmers have continued to improve the efficiency and sustainability of their farming operations in the past five years. Following the major investment of over €3 billion undertaken on farms in 2007-2009, through the Farm Waste Management Scheme, on-farm investment has been maintained, with annual expenditure of €600-€700 million over the past five years.

However, the cuts to farm schemes in successive budgets have had a damaging effect on farm incomes. Actions to improve farm profitability, both within and outside the farm gate, must be prioritised by all stakeholders in the agri-food sector.

Two major policy issues over the coming months will impact on the ability of the primary agriculture sector to deliver on the ambitious targets for export and employment growth outlined in the new 10 year strategy, Food Wise 2025. These are the international climate talks in Paris at the end of this year and Budget 2016.

Addressing the global climate challenge is not just about cutting emissions
The development of climate policy has sometimes been fraught and divisive. IFA believes that this can be avoided in the forthcoming international climate talks in Paris this December, as global leaders endeavour to agree carbon emission reduction targets up to the year 2030.

A new approach to addressing the climate challenge is required, one which puts food security and sustainable intensification at the centre of future climate policy. This is particularly true as feeding the world while addressing climate change is one of the biggest challenges of the 21st century. The world’s population is expected to exceed 9 billion by 2050. Agricultural production must therefore increase by an estimated 70 per cent according to the UN Food and Agriculture Organisation. This fact cannot be ignored at a time when the international community is also seeking to halve global emissions over the same period. A demand for the agriculture sector to achieve such emission reductions at the same time as growing output is unfeasible. Agriculture’s response must evolve towards sustainable production and better management of resources.

Ireland is a world leader in sustainable production, measuring and reducing greenhouse gas emissions throughout the supply chain, whether inside the farm gate or at processor level. No other country can look at its agri-food sector and refer to initiatives such as Origin Green, the quality beef assurance scheme, Smart Farming or the sustainable dairy assurance scheme and say “we are environmentally sustainable at what we produce and it is independently verified”. These initiatives are valuable for maintaining existing markets and securing new ones. However, sustainability must also deliver an increased economic return to the farmer. This continues to be a key message from IFA to Government and the EU Commission.

In delivering a credible climate change policy that addresses the food security challenge, sustainability must also consider the impact of limited availability of resources, such as water, in many food producing countries. The United Nations predicts a 40 per cent worldwide water shortfall and a 55 per cent increase in demand for water within the next 15 years.

IFA continues to work hard to get a sensible outcome for farming from the Paris climate talks; a range of specific issues must be addressed. There is a need to differentiate agriculture from other sectors when it comes to greenhouse gas emission reductions. This is a point which was broadly ignored in previous international talks and past mistakes must not be repeated. The majority of emissions from agriculture differ to those from other sectors such as industry and transport; the gases are naturally occurring and result from the primary aim of addressing the global food security challenge.

Agriculture will play its part in contributing to further reductions in greenhouse gas emissions. The carbon sequestration potential of agricultural soils, forestry and bioenergy needs to be recognised when looking at greenhouse gas emissions from the sector. Internationally the mitigation potential of agricultural soils is between 1 and 4 billion tonnes of CO2/year.

Unachievable sector-specific targets are unworkable at an international or national level. This is a point well recognised by the Irish Government in the draft climate legislation being debated in Dáil Éireann. It was also successfully advocated at EU level by Ireland last October, when the EU Council agreed a climate text, concluding that agriculture has many roles including food, energy and fuel production, as well as environmental protection.

Agriculture, climate change and food security are all interlinked. The overall approach to the agriculture sector must recognise these multiple challenges.

Priorities for Budget 2016
As highlighted at the recent National Economic Dialogue, it is clear that achieving a balanced economic recovery across the country must be a key Government objective in October’s budget.

Choices must be made on funding priorities, and a focus placed on the sectors that can deliver a significant economic return, especially across rural Ireland. October’s budget must recognise the importance of funding for farm schemes as a vital stimulus to the rural economy, underpinning the viability of family farms and providing direct and indirect employment across the entire country.

IFA is clear that in Budget 2016 the Government must deliver on its funding commitment to the Rural Development Programme (RDP). Funding of €580 million, which has already been committed as part of the RDP, must be provided for farm schemes in this October’s Budget. This funding will underpin economic recovery of rural Ireland and will deliver programmes of support for low-income farmers, support the provision of environmental services, encourage young farmers, promote on-farm investment and maintain farming in marginal areas.

The outcome of the comprehensive review of agri-taxation in 2014, undertaken jointly by the Departments of Finance and Agriculture, represented real progress with the retention, enhancement and targeting of key measures to improve land mobility, farm restructuring and promote on-farm investment. Budget 2016 provides an opportunity for the Government to further build upon the measures arising from the agri-taxation review through incentivising family partnerships and earlier lifetime transfers. In addition, the Government must take serious steps to restore equity in the income tax system through the introduction of an Earned Income Tax Credit for the self-employed. The difference in income tax treatment between the self-employed and employees is particularly severe at lower income levels, and must be removed.

The Irish Farmers Association, Irish Farm Centre, Bluebell, Dublin 12
Email: info@ifa.ie
Tel: 01450 0266
Twitter: @ifamedia
Web: www.ifa.ie