Introduction

Reducing the common costs of beef production is the key to maintaining and increasing the competitiveness of beef and cattle production in Ireland

Rationale

The 2001 National Farm Survey (NFS) showed that cattle rearing farms only retained 56% of direct payments as farm profit while the top third of Teagasc monitor farms in 2001 retained 104% of direct payments as farm profit. The main reason for the clients’ low level of retention of direct payment is the higher common costs on these farms. Experience within recorded monitor farms shows that a common cost of less than €1.30 per kilogram liveweight is achievable - 42% of monitor farms in 2001 had common costs below €1.30 per kg liveweight.

Performance Indicators

The major indicators used to gauge the scale and participation in the Teagasc cattle programme are:

• number of cattle clients
• number of cattle discussion groups and number of farms participating
• number of cattle monitor farms
• number and participation in farm walks, demonstrations and seminars
• number of profit monitors completed per year
• percentage of farmers in the different cattle systems and size categories that are Teagasc clients as indicated in the NFS.

Effectiveness Indicators

The extent to which the programme is contributing to the achievement of this objective by farmers will be assessed by monitoring:

• trends in the level of common costs on monitor farms with stable finishing systems
• trends in common costs in NFS compared with trends on monitor farms
• trends in gross margin and profitability levels for Teagasc client farms and non-clients in the NFS.

Introduction

Despite the continuing concerns about BSE on mainland Europe and its impact on markets in the short term, the best prospect for Irish beef production is to establish a stronger foothold in EU markets where price levels are about 20% above Irish prices.

Rationale

Suckler beef breeding policy must increasingly reflect European market requirements. In addition, the greater requirement for quality assurance will necessitate closer linkages between breeders, finishers and processors. These links will help ensure that the price being achieved in specific markets is reflecting the price being paid to producers for cattle that meet the quality standards of these markets.

Performance Indicators

Indications of participation in the programme and the level of programme activity in relation to the breeding of the suckler herd are:

• number of suckler clients
• number of suckler monitor farms implementing best practice on breeding policy
• number of discussion group sessions focussed on breeding policy
• number of specific events – farm walks, demonstrations and seminars on this particular topic.

Effectiveness Indicators

The extent to which the programme is contributing to the achievement of this objective by farmers will be assessed through monitoring the:

• number of weanlings exported to EU markets for finishing
• percentage of home finished progeny grading E and U and R at fat score 3 and 4L.
• measurement of the breed composition of the suckler herd through CMMS and calf registrations.
• trends in AI use on suckler herds and the number of inseminations by top AI terminal sires and by AI beef bulls with good maternal traits.

Activities

*Foot and Mouth restrictions impacted on activities involving groups in 2001

**Includes over 170 meetings/seminars on Agenda 2000 changes in 2000

Deployment of Resources

The major resources for implementing the cattle programme are the 36 drystock advisers in the Technology and Business Service and the 90 general advisers in the Rural Viability Service.

Services are delivered through 28 county advisory teams, each managed by a Chief Agricultural Officer. Advisers are located at some 85 major Teagasc offices with a further 15 smaller offices servicing the more remote areas. Clerical back-up is provided at all major offices and a major investment has been made in computer facilities. Cattle Specialists based at Regional centres provide leadership and support for the programme and limited technician support is available to carry out recording on the Monitor Farms.

Service Delivery

Service delivery is normally on the foot of an advisory contract between the farmer and the adviser, agreed and paid for in advance. The contract details the level of advisory contact – farm visits, office consultations, discussion group membership. Other services such as REPS and participation in schemes may be delivered or supported during the year as part of the contract either by the drystock adviser or another advisory staff member such as a REPS Planner.

Pricing Strategy

Teagasc has adopted a pricing strategy that will maximise access to the service by farmers regardless of the size of their enterprise while at the same time ensuring that it recovers an increasing proportion of the cost of the service from larger more commercial farmers. All advisory charges are approved by the Minister for Agriculture and Food. Advisory charges are based on the size of the farm business as indicated by Income Units (IU’s) and the level of service provided.

Promotion

Teagasc advisory services are strongly promoted at national level through all the farming and general media (newspaper and radio), through Today’s Farm, the Teagasc magazine for clients and at national events. At local level the services are promoted in local press and radio, at seminars, farm walks, shows and newsletters. The Teagasc website, www.teagasc.ie, is an excellent shop window for the full range of services and programmes provided by Teagasc.

Contracts

Each county manager, with the assistance of the support staff and advisers, controls the billing for contract renewals, payment for services and can monitor the delivery of services to individual paid up clients through the computerised Client Management System (CMS). Each adviser completes a weekly diary, which is inputted with the system and is the basis for the monitoring of all services and programmes.

Client consultation and market surveys are carried out periodically to generate information to inform decision-making.

Planning post Fischler

Following the decision of the Irish Government to fully decouple direct payments from production, farmers will need to closely analyse their current situation with a view to repositioning their farm business post decoupling. Teagasc will assist farm families to make the key decisions which will determine their futures and that of their families.

As entitlements arising from the CAP Reform will be activated by farmers in 2005 it is planned to offer the programme to all our farmer clients during 2004 and 2005. The proposed target is that each adviser will put 30 farm families through the programme each year for the coming two years.

Participants will:

• Calculate their own entitlements
• Discuss case studies for monitor farms/sample farms
• Estimate their current income/living expenses
• Consider their priorities for the future particularly in the context of future family requirements
• Calculate the impact of various on-farm and off-farm options on future income.

Lamb Performance and Market Suitability

Activities

Planning post Fischler

Following the decision of the Irish Government to fully decouple direct payments from production, farmers will need to closely analyse their current situation with a view to repositioning their farm business post decoupling. Teagasc will assist farm families to make the key decisions which will determine their futures and that of their families.

As entitlements arising from the CAP Reform will be activated by farmers in 2005 it is planned to offer the programme to all our farmer clients during 2004 and 2005. The proposed target is that each adviser will put 30 farm families through the programme each year for the coming two years.

Participants will:

• Calculate their own entitlements
• Discuss case studies for monitor farms/sample farms
• Estimate their current income/living expenses
• Consider their priorities for the future particularly in the context of future family requirements
• Calculate the impact of various on-farm and off-farm options on future income.

Achieve satisfactory margins by reducing common costs per tonne.

Tillage farmers must target a margin, which will allow them to grow the business. Cereal growers have very little influence on the price paid for grain but can influence the level of inputs and the yield. Thus cost per tonne is a useful parameter to compare the level of efficiency inter-farm. Here we are using common costs, which are total costs excluding interest, hired labour and lease of land. The objective is to reduce common costs by €6/tonne to €96/tonne by 2006 i.e. €1/tonne/year. The Teagasc Farm Management Survey (FMS) indicates that the common cost/tonne for all cereals in the years 1997-1999 was €102/tonne.

Yield has been and will continue to be the main driver of profit on tillage farms. The objective of achieving common cost of €98/tonne (for 2004) will best be achieved by optimising yields through top class management and by pairing costs wherever possible without sacrificing yield and quality. Achieving common costs of €96/tonne has the potential to improve income by €10.5m per year on Teagasc client farms by 2006. However, optimising area aid will be essential to maintaining satisfactory margins. The contribution of direct payments to average FFI in Tillage Systems increased from 79% in 2000 to 111% in 2002.Tillage advisers play a major role in ensuring that growers optimise their area aid valued at €122m in 2003.

Achieve Best Husbandry Practice on all Tillage Farms

Teagasc will promote environmentally sustainable farming by soil analysis and judicious use of nutrients. Imbalance of major, secondary and trace elements is causing serious problems on many farms. Concern with the excessive use of N and P will have to be addressed. REPS is addressing these concerns on the less intensive farms. A campaign on the value and necessity for soil analysis will be aimed at intensive growers.

The objective is to increase the number of S4 soil tests by 25% in the period 2001-2006.

Evaluate by tracking numbers at Johnstown Castle.

Critical use of plant protection products

Research and decision support systems will be used to guide good practices.

The Cereal Grain Quality Assurance Scheme

This scheme will be promoted and growers will be supported to fulfil the details of the scheme.

The objective is to have at least 50% of growers in the scheme by 2006, rising from 16% in 1999.

Evaluate by tracking numbers in the scheme.

Rationale

Farming post the Fischler agreement and decoupling of direct payments from production will present new challenges and opportunities for farm families. Teagasc advisers and specialists will help clients assess their current technical and financial situation and outline future options in a special programme “Planning Post Fischler” over the next two years.

Maximising income from grain production can be achieved both by increasing yields and by cutting costs. Higher value crops e.g. sugar beet, potatoes, wheat and malting barley will be included in the crop mix where suitable land and markets are available. Grain output per hectare is not limited by quota restraints, as is the case of milk production.

Tillage advisers have received substantial training on farm business/financial analysis and planning in recent years. They are increasingly delivering this service on farm and via short courses. Tillage advisers now cover the whole range of farm activities from finance to technology for a range of crops including cereals, wholecrop forages, maize, roots (beet, potatoes), oilseeds, linseed, pulses (beans, lupins, peas) and setaside.

Effectiveness Indicators

The extent to which the tillage advisory programme is contributing to achieving the overall objectives will be estimated by:

• using the National Farm Survey to monitor developments on client farms and non-client farms
• monitoring crop mix and yields from CSO data
• monitoring data on nutrient use and trends in soil analysis results
• using tillage profit monitor to analyse the performance on a selection of client farms
• using the Monitor Farms to develop benchmarks against which ongoing performance can be measured.

Activities

A comprehensive range of activities, as set out in Table 1, will be carried out in order to implement the programme.

Deployment of Resources

The tillage crops advisory service consists of 21 advisers from the Technology and Business Service who will service 1,800 intensive tillage farmers and some 960 other farms with tillage crop enterprises. Specialist support is provided through 3 tillage Specialists. These will keep staff abreast of technical and business development, organise in-service training and provide an essential link with the research programme at Oak Park and outside agencies such as UCD and commercial operations.

The principal vehicle for human resource management and staff development will be the PMDS. This process results in a clearer understanding of their role by the adviser and identifies the training needs necessary to achieve the programme objectives and to fulfil their personal and career goals.

Service Delivery

Service delivery will be primarily through the Technology and Business tillage adviser in each county who will be working within a defined geographical area. Client contracts will vary from a basic club service to a customised technology and business service including farm visits, Discussion Group participation and modular short courses.

Pricing Strategy

Teagasc will continue to adopt a moderate pricing policy as a means of maximising total client numbers and overall fee income.

Contract prices will be reviewed on an annual basis. Client consultation, adviser consultation and market surveys are carried out periodically to generate information for informed decision making. Advisory charges are set out in Appendix 1.

Promotion

Teagasc services will be strongly promoted in all media channels. Indirect promotion takes place through Teagasc's contribution in the agricultural media and strategic direct promotion of Teagasc events and services take place throughout the year. Teagasc publications, e.g. Today's Farm and Teagasc Crop Reports, are circulated to Teagasc clients and the agri-business world.

Controls

Numbers of contracts, fee collection and other activity targets will be controlled by each County Manager through a computerised Client Management System. Advisers input details of activity through a weekly diary.

Discussion Groups

Discussion Groups have been shown to be the most effective method of new practice adoption at farm level. Currently there are 27 tillage groups with a total membership of 400. It is aimed to increase this to 30 groups by 2006.

Monitor Farms

Monitor Farms demonstrate the value of proven research at farm level. These will be the focal point for the advisory service in the county. The Monitor Farm will facilitate collection of key business and technical details as well as demonstration of Teagasc advisory messages.

Soil analysis and laboratory services for disease/pest identification are essential supports for the service. These are provided through Johnstown Castle and Oak Park and charged for separately. New advisory and communications methods are being developed using the latest Information and Communications Technology (ICT).

The Teagasc client web site, www.client.teagasc.ie is being increasingly used to promote and deliver services to clients.

Background

There are about 37,000 farmers in REPS at present (1^st Nov). Almost 6,000 of these are in REPS 1 and the remaining 31,000 are REPS 2 participants. Of the 39,500 farmers who completed REPS 1 contracts an estimated 21,500 have joined REPS 2. This indicates a high drop out rate between REPS 1 and REPS 2. The National REPS target of 70,000 participants by the end of 2006 has been revised downwards to 50,000. Teagasc currently has about 16,300 REPS clients. The aim is to contribute 23,000 towards the National target. The number of clients still in REPS 1 is estimated at 2,800 and these are due to finish their REPS 1 contracts over the next year. Teagasc has managed to retain its market share which stands at 42%.

Challenges

REPS is a complex scheme requiring accurate planning and careful checking. It is labour intensive and therefore requires constant attention to improve the efficiency of delivery. This is being tackled through simplification of the scheme, improvement in planning efficiency and by employing new technology.

Simplification

The Department made some progress towards simplification by replacing ownership documentation with the farmer declaration on the area aid application form. While the simplified plan format for extensive farmers failed, for logistical reasons, to get off the ground earlier this year it will provide the basis for the revised format arising from Mid-term Review.

Mid-Term Review

This comprehensive review of REPS was undertaken during 2003. Submissions were sought from all interested parties and significant changes in both content and payment levels are proposed subject to Commission approval. A greater emphasis on environmental enhancement and increasing biodiversity than here-to-fore is anticipated. The new scheme will be known as REPS 3 and is expected in the first quarter of 2004.

REPS 3

Discussions on REPS 3 are taking place between the Department and the farming organisations, prior to submission to the Commission for approval. The changes in the REPS format proposed will impact on the programme in 2004. The main changes include:

• Extension of the scheme to include a greater number of farmers through changes in eligibility criteria
• Increase in payment rates to farmers
• Annual compliance checking by planners (Form 1 C) will be required in year 3 only
• New simplified planning documentation
• Greater environmental expertise required in the planning process
• Introduction of new mapping technology

The removal of annual compliance checking by planners will pose a major challenge to maintain contact with REPS clients and maintain the client base. An integrated, competitively priced advisory package comprising REPS support (eg record keeping), relevant farm advice including options analysis and schemes will have to be devised to retain the present substantial revenue from servicing REPS clients.

New Mapping Technology

The introduction of electronic mapping has considerable potential to improve planning efficiency. The delivery of on-line maps and electronic map processing is the basis of a joint project between Teagasc and the Agricultural Consultants Association. Teagasc has also been working on the integration of the mapping process with the planning software. The existing planning programme will require significant changes to accommodate the new planning format. Teagasc will have to have the new system in place to avoid delay in the delivery of REPS 3 by the anticipated launch date sometime in the first quarter of 2004.

A CD-ROM containing the complete REPS 20 hour course syllabus has been launched and is available for the delivery of all such courses this autumn. Training on the delivery of the course and the use of this medium will continue to be made available.

Programme Objectives

• Promote public awareness of and assist farmers to comply with the proposed Nitrates Action Programme and other EU and National water quality regulations

Background

The Nitrate Directive is expected to come into effect in the middle of 2004 and is likely to determine the priority activities of the water quality/NMP programme in the second half of the year. As expected, the Nitrate Directive will apply to the whole country. The formal designation order singed by the Minister earlier this year provides no operational details. This will follow in the Action Programme, which will address details such as stocking rate limits, slurry storage, spreading periods and best practice requirements. The Action Programme will become the basis of a statutory instrument and become legally binding. Ireland has already been before the European Court for non-implementation of the Nitrate Directive. An unfavorable judgement is expected in December which could mean the imposition of a substantial daily fine. The urgent preparation and submission of the Action Programme as a defence to the imposition of any fine is receiving top priority.

Nitrate Directive Implications

While the broad framework of the Action Programme is set out in the Directive, the implementation details will be important and could greatly impact on the intensive farming sectors. Take the stocking rate issue – the Directive specifies a maximum of 210 kg/ha organic N (2.5 dairy cows or equivalent /ha) falling to 170kg/ha (2.0 cows/ha) after four fears. The Government has agreed to a derogation system whereby intensive farmers will be able to avail of a derogation up to 250 kg/ ha (3.0 cows/ha) on an individual basis provide there is no conflict with the objectives of the Directive. The derogation process will involve risk assessment and the preparation of a specific nutrient management plan. The competent authority to adjudicate on the granting of derogations has not yet been decided.

A coherent strategy is required to retain the national limit of 210kg/ha organic N after the first four years. The EU Commission will have to be convinced that the practices set out in the Action Programme have been implemented. As a first step in this process Teagasc has just completed a nationwide survey of farm facilities and practices. A repeat survey will be undertaken after the four-year period to assess the impact of the Action Programme. Advice and education will have a big role in changing attitudes and practices and Teagasc has the major responsibility in this regard. The Action Programme will set out the advisory activities to enable farmers to comply with the new requirements and Teagasc is expected to deliver it. The requirements are reflected in this programme.

Additional Local Authority Powers

The sanctions available to Local Authorities under the Water Pollution Act (1990) have been strengthened to include agricultural bye-laws and compulsory nutrient management planning (NMP). Bye-laws, introduced under Section 21 of the Act, are now in force in parts of five local authority areas (Cavan, Cork, Offaly, Tipperary NR and Westmeath). They have been adopted in all cases to deal with specific problems in specific catchments listed by townland. Six more local authorities have made proposals to bring in bye-laws and a further five are assessing the need for them. So far, bye-law slurry storage requirements vary from 14 weeks in Offaly to 24 weeks in Cavan. In general, where a farmer submits a full nutrient management plan the bye-laws permit a 4 week reduction in the storage requirement. REPS farmers are generally exempt from bye-laws provisions on the basis they are already in compliance. Up to 2,000 farmers are currently affected by this measure.

There is significant overlap between these measures and the requirements of the Nitrates Action Programme. There is speculation that the latter may remove or reduce the need to introduce bye-law and the mandatory NMP provisions of the Water Pollution Act. This would make sense. Farmers would then have to cope with the record keeping etc. associated with just one set of regulations rather than several separate sets.

Public Good Service

• Activate nation-wide public awareness campaign to ensure farmers generally are informed about the implications of the Nitrate Action Programme through c. 60 public meetings
• Provide guidance to farmers generally on the compliance requirements of the Action Programme (advisory leaflet, media articles, local radio and Teagasc public web site).

Client Service

Provide guidance on the Nitrates Action Programme to farmer clients through Teagasc client web site, farm walks, discussion groups, open days, demonstrations, one-to-one advice etc.

Promote nutrient management planning (NMP) through Teagasc Monitor Farm network – a NMP to be prepared for each farm unless already in REPS.

Provide clients with nutrient advice to comply with the Action Programme including specific NMPs requirements of commercial clients seeking derogations to exceed 210 kg/ha organic N.

Deliver c. 300 NMP/farmyard assessments to comply with bye-laws and pollution control tax incentive scheme.

Process Farm Waste Management and Dairy Hygiene schemes for c. 850 clients and provide advice on farmyard/farm building design, including ‘low cost systems’.

Develop working relationships with new River Basin District (RBD) projects being established in compliance with the Water Framework Directive and deliver agreed programmes.

Participate in Inter-departmental Expert Committees on Nitrates Action Programme and ‘Low Cost’ Wintering Systems

Background

Biodiversity is under an ever-increasing threat. Concern over extinction rates led to the signing of the Convention on Biological Diversity in Rio de Janeiro in 1992. This imposed many obligations for the conservation and sustainable use of biological diversity. The National Biodiversity Plan, published recently, is designed to ensure Ireland fulfils its obligations under the Convention.

The Natural Heritage Programme will promote the objectives of the National Biodiversity Plan, relevant to agriculture, across all Teagasc programmes. Though the designated areas command special attention, most flora and fauna live in habitats outside these areas. To maintain biological diversity in Irish flora and fauna, all identified significant habitats need to be protected and maintained, A key issue is the role of protected areas. These comprise approximately ten per cent of the country and include Natural Heritage Areas, Special Areas of Conservation and Special Protection Areas

NPWS Scheme

The introduction of cross compliance in SACs and SPAs will require farmers to follow a REPS plan or an alternative plan drawn up under the proposed National Parks and Wildlife Compensation Scheme. The latter scheme has recently received clearance from the EU Commission and preparations are being made to implement it. The scheme is expected to operate with the assistance of approved planners.

Programme Priorities

The main priority of the programme is to underpin the continuation of sustainable farming by promoting complimentary income generating activities including participation in environmental schemes. Other associated priorities include:

• Promotion of awareness of biodiversity
• Preparation of environmental plans for non-commonage target areas and common habitats
• Integration of Commonage Framework Plan recommendations into REPS plans
• Promotion of REPS or alternative Dúchas scheme as appropriate
• Participation in working parties on the development and promotion of improved management practices for habitats and hedgerows, including courses for hedgecutting contractors.
• Participation in joint projects on biodiversity enhancement with other stakeholders
• Complete pilot loss assessment studies for DEHLG in selected SACs/SPAs (eg Callows)
• Participate in Departmental working parties on the development of management prescriptions for the Priority Habitats