Grant Aid Suspended for Organic Sector

(Note: the organic farming scheme itself is still open to applicants: only the grant aid for equipment, buildings etc is suspended)

The recent announcement of the suspension of grant aid for the organic sector has been greeted with dismay across the organic sector.

The Department of Agriculture, Fisheries and Food (DAFF) put a brave face on it:

�Minister Sargent noted that the number of applications for the Schemes had increased substantially in the last two years, and that applications now on hand would fully use up the allocation in his Department's vote for 2009.�

"The increased level of demand for these schemes is evidence of an increased level of confidence in the sector", Minister Sargent said. "It also clearly demonstrates the belief that organics is now a viable commercial operation with a strong potential for growth".

The two main certification bodies have had no such 'glass half full' attitude to this suspension. Both feel that the suspension will hinder the development of organic farming in Ireland, and will work against the government plans of a 5% land base in organic by 2012.

According to Grace Maher, development officer with IOFGA farmers who were in conversion will be most affected �as many of them had converted with plans to develop their businesses with grant assistance�.

She also points out that horticulture will be especially hard hit: �horticultural producers have been dependent on it for horticultural machinery and tunnels�. Maher, a horticulture producer herself in Carlow, also pointed out that �if we get another wet summer like the past 2 it will ensure that horticultural production without polytunnels is not viable in Ireland�.

She also suggests that the suspension �will impact negatively on the reduction of

organic imports� and �processors who in the current climate were dependent on the money to secure loans for developing their enterprises�.

� In the current economic situation organic farmers were investing in their businesses with the help of the grant system which is not happening in other ag sectors. This investment was necessary to drive the sector forward.�

According to the Organic Trust, �The suspension of the capital grants scheme is another blow to the development of the organic sector.

�The affect of the suspension of the scheme will affect all organic producers. This includes livestock farmers who would have been applying for grant-aid to adjust animal housing to comply with the organic regulations plus applications for toppers and other organic-specific machinery�

It will also negatively impact on �horticultural producers who would have been applying for

grant-aid for a myriad of items such as specialised weeding equipment and polytunnels�

When queried directly about the suspension of grant aid, a DAFF representative did claim that �Depending on the outcome of discussions on the Estimates later in the year, it may be possible to reopen those Schemes in 2010.�

While this may be seen as light at the end of the tunnel, it may also be the case that these discussions produce exactly the opposite result: yet more cuts.

Thus far, the organic sector had escaped the worst of the cutbacks and restructuring in agriculture. However it is now the case that organic farming has received a double hit: the ending of REPS and of grant aid.

Most organic farmers are in REPS, and will see their incomes reduce either very soon or at some point over the next five years.

As is clear for the above, it is also now the case that operators interested in farming with any production or processing inputs will find the situation all the more challenging.

All of which will make the Noel Groome's role, as head of the newly established organic development body For�s Org�nach, all the more interesting.