Full Decoupling Will Lead to Settled Policy, says Teagasc

20 October, 2003

The announcement by the Minister for Agriculture and Food, Joe Walsh, that all direct payments to beef, sheep and tillage farmers will be fully decoupled from production will lead to a settled policy environment from 1 January 2005, said Jim Flanagan Director of Teagasc.

Mr Flanagan said that the full resources of Teagasc will be committed to ensure that farmers can adapt their production systems to real market needs.

"The focus of Teagasc research programmes has been on developing blueprints for quality, cost-efficient, sustainable production systems. This focus will be intensified over the coming years," said Jim Flanagan.

"Many studies have shown that Ireland's top dairy, beef, sheep and tillage farmers are among the best in Europe. Teagasc is committed to ensuring that the best technology will continue to be developed to enable our producers to be as competitive as the best internationally," he added.

Teagasc farm income figures show that farmers who have adopted production blueprints through participation in the intensive Teagasc advisory programme are already reaping the rewards.

For example, beef farmers who are participating in the Teagasc beef advisory programme are currently making double the average national beef income. The top performing beef farmers are making almost three times the national average. This is a direct result of a clear focus on quality production combined with rigid cost control and financial management.

Similar variations in performance and profitability exist for the other major enterprises. These top performing farms are currently making a good income from the market place, excluding direct payments, and have the capacity to be competitive in a more open market environment.

A recent Teagasc survey showed that over 90% of the more progressive and commercial beef farmers intend to maintain or increase stock numbers following decoupling of payments.

This indicates that Ireland's better farmers see the new policy as providing opportunities to increase income and to get rewarded for quality production geared to the market place.

In order to ensure the most effective transfer of technology to farmers Teagasc will further increase the emphasis on discussion groups, of which there are now 400 nationally. Also, the use of monitor farms in setting performance benchmarks and adapting technology to local needs will continue to be a key component of the advisory programme..

Jim Flanagan stressed that the pace of technological development in food products will have a major bearing on the success of the Irish agriculture and food industry in the new policy environment.

"Teagasc has acknowledged international expertise in food research. Our two food research centres now have the capacity to assist industry in the development of new products and technologies which will be vital in building an internationally competitive food industry," he said.