the end of REPS : implications for organic farmers

Organic farmers are still reeling from the twin cuts in REPS and the Organic Grant Aid scheme.

According to Kate Carmody, Chairperson of IOFGA, �many farmers had been finishing up their current REPS plans and were waiting to join REPS 4 and convert to organic farming. We currently have many members who are finalising their applications for grant aid and IOFGA are very disappointed with the short notice given to announce that the scheme was closing�.

Some organic farmers I have spoken to have claimed that they were advised by their REPS planners not to try to transfer out from REPS 3 to REPS 4, as the waiting lists were said to be too long.

This, coupled with the fact that some farmers did manage to transfer successfully from REPS 3 to REPS 4 has especially angered farmers.

It is now the case that some farmers will have five years of funding, totaling tens of thousands of euros, while competing in the cattle mart with neighbours with no such cushion. Farmers have described this situation as anti competitive.

IOFGA also felt that it was very important to mention that REPS and the Organic Farming Scheme are separate, and that the Organic Farming Scheme is still very much open:

�We would like to point out that the Organic Farming Scheme is still open to people and overall we are hopeful that the stability within the organic sector given the current economic difficulties will still encourage people to convert to organic production and help the market realise its potential here in Ireland.

The Organic Trust has been especially vocal in its criticism: �The Organic Trust have expressed very serious concerns about the closure of REPS 4 as this will adversely affect the on-farm incomes of 33,000 farmers over the next 2-3 years. This will have a devastating affect on the rural economy and the horrific consequences of this decision across the Irish economy generally will become evident very soon.�

They point out that farmers in REPS 2 and 3 farmers �would have had a valid expectation that they could enter REPS 4 on the completion of their REPS 3� and that they are now at a �severe disadvantage� because of �this arbitrary decision� which, they suggest, was not as a result of any �fair or equitable selection process.�

Specifically in relation to organic farmers, according to Helen Scully of the Organic Trust: �900 organic producers in REPS 3/2 will have their incomes significantly reduced when their REPS 3/2 contracts end which will undoubtedly have an adverse affect on the modus operandi of those farms - farms which are producing top class organic food in a sustainable and responsible manner.�

While many have suggested that the ending of REPS will have negative consequences as regards government aims for increasing organic farming's land base from 1 to 5%, the situation is not entirely clear cut.

It may also be the case that the Organic Farming Scheme will now appear more attractive than it previously did. This may especially be the case for what will be an increasing yearly number of former REPS farmers.

The lack of REPS money may in fact lead to a rush towards the Organic Farming Scheme: less intensive sheep and beef farmers may see it as one of the few remaining funding options.

This could have implications as regards sustaining what there is of a price premium in beef and sheep.

This then could lead to relative over-subscriptions and corollary pressures on available funding.

However in a context of a government target of 5%, it would be incredible if funding was not available to cope with an influx of farmers: increased numbers are inevitable with a move towards 5%, and this will incur costs for the state.

Should such a rush occur, it is likely that, with the ending of the grant aid for organic, beef and sheep will continue to be the main area of new conversions to organic.