Organic Farming Scheme and processing grant open

Organic Farming Scheme and processing grant open

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A €265m scheme to support conventional farmers to convert to organic and a €3.5m grant to encourage investments in organic processing have opened for applications this morning.

The Organic Farming Scheme (OFS) is an agri-environment measure offering yearly payments of up to €300/ha for drystock farmers during the conversion period, and up to €250/ha when they have achieved full organic status. 

The Department explained that for a 40ha drystock farmer, the total payment over the five years of the organic farming scheme will be 54% higher than under the previous CAP.

Higher payment rates are available for organic horticultural and tillage farmers. In addition, a participation payment of €2,000 in the first year of conversion and €1,400 a year after has been introduced to support organic farmers.

The second scheme, the Organic Processing Investment Grant (OPIG), will have a grant rate of up to 60% and will be implemented in tranches, with the current tranche running until November 29, 2024.

Agriculture Minister Charlie McConalogue explained both would contribute towards the new Organic Strategy for 2024-2030 that sets out ambitious targets for the sector. 

"My own ambition for the agricultural sector is to see farmers across Ireland supported to pursue the agricultural activity that best suits their farm and their family situation," he said.

"Earlier this year, my Department carried out a feed survey which showed that, due to the significant increase in organic livestock over the last three years, there is huge demand for organic livestock feed. This, allied with increased demand for food-grade organic oats, is a real opportunity for Irish tillage farmers.

"In addition, one of the key actions of the Organic Strategy is to reduce leakage from the organic sector, and the Government, therefore, wants to encourage investment in organic processing capacity. In support of this aim, I have secured a significantly increased allocation of €3.5m for the Organic Processing Investment Grant Scheme for 2025.” 

Minister of State Senator Pippa Hackett said current levels of interest in organic farming in Ireland were "unprecedented".

"The reopening of the Organic Farming Scheme will allow us to support even more farmers to produce food in a way that is good for climate, nature and water quality, while the Organic Processing Investment Grant Scheme will add value to that organic food further down the supply chain, ultimately helping to improve farm gate prices," she said.

“In the last two years alone, the number of organic farms has more than doubled, and there has been significant investment made in market development...

"I have recently returned from Germany, where I launched our first-ever co-funded European pasture-fed organic beef and lamb campaign. I know from the organic trade missions I have led that European retailers I met are confident about the future of the sector and that they are looking for a regular supply of quality organic Irish produce at scale.” 

Both schemes will be open to applications from all sectors until November 29, 2024. Applicants from the dairy, horticultural and tillage sectors will receive priority access to the Organic Farming Scheme.

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