The Straw Incorporation Measure (SIM) will now go ahead, after a week of farmer frustration.
An option for tillage farmers to be paid a rate of €175 per hectare for baling straw has also been proposed.
This is the latest development following Agriculture Minister Charlie McConalogue's announcement last week that he intended to suspend the SIM for 2024, in a bid to ensure that there were sufficient supplies of straw through the winter months.
The minister attended a meeting with the Farmers Charter today, Thursday, proposing the introduction of a payment for baling straw to run in tandem with the SIM.
Commenting after the meeting, Mr McConalogue said: “In March, I recalled the National Fodder and Food Security Committee to ensure that a fodder crisis would not emerge this year or over the coming winter and spring.
"Against a backdrop of depleted fodder reserves and poor growth rates this year, I have been clear that my aim is to see quality straw that is due to be chopped under the SIM baled for sale, while also ensuring that the SIM funding stays within the tillage sector as I committed.
“I met with farm organisations representing the majority of tillage farmers this week to discuss options for SIM that meet both of these objectives.
"To meet these aims, I have proposed that a baling option will be introduced to run concurrent with the SIM.
"I have proposed that those that withdraw from SIM and bale will receive a payment rate of €175 per hectare for baling straw in recognition of their efforts to prevent a fodder shortage."
The minister also met today with the Oireachtas Joint Committee on Agriculture, Food and the Marine to discuss this option, and said he welcomes the "broad support of all the farm organisations and elected representatives that attended these meetings".
"I believe that proactive action is necessary to prevent a potential fodder issue for many farmers this year. It has always been my intention to keep the funding for SIM within the sector," Mr McConalogue said.
"But of course, nothing I agree with farm bodies can make the sun shine or the grass grow; and so I am encouraging livestock farmers to be proactive too.
"Farmers should utilise their fertiliser allowance, engage with tillage farmers about their straw or whole crop needs, and talk to their advisor should they have any concerns in relation to fodder stocks for this coming winter.”
The Irish Farmers' Association and Irish Grain Growers Group said it was "vital" that the measure had now been reinstated.
In a joint statement, the two farm organisations said: "It is also important that a guarantee had been given by the minister that all applicants to the scheme will be paid regardless of the outcome of ranking and selection process.
"The announcement by the minister last week caused huge stress and uncertainty for tillage farmers.
"The reality is that the tillage sector is already in the middle of a very challenging year due to weather challenges and low projected grain prices."