Coherence with first pillar

B. Investment in Sheep Enterprises

This scheme will be open to all eligible pig producers.

This scheme will be open to all eligible caged hen producers.

This scheme will be targeted, in the first instance, at dairy farmers.

The scheme will be primarily targeted towards tillage and dry stock farmers. Farmers must be landowners or have leasehold title to the land and be eligible to claim the Single Farm Payment.

The principal objective of the scheme is to assist new entrants to dairying in the establishment and/or upgrading of dairying facilities. The costs associated with establishing a dairy facility are very significant. Typically new entrants are successors who inherit already established dairying facilities including stock and quota. Brand new entrants on the other hand are those that have no established links in the sector and in order to establish a viable dairying enterprise must invest heavily in land, quota and facilities in order to reach the standards necessary to comply with food safety legislation. In an overall sense the objective of the investment aid will be to encourage new entrants by providing them with some level of support to establish their investment by meeting part of the considerable capital costs associated with establishment and ensuring that they have the most up to date technology available to compete in the modern dairy sector.

In the case of sheep enterprises the principal objective is to produce efficiencies to encourage more farmers to remain in the industry and stem the decline in sheep numbers. This will be achieved by assisting sheep farmers in reducing their labour input with support for sheep fencing and mobile handling facilities.

The scheme will aid existing pig farmers to build or to convert to loose sow housing to comply with the 2013 requirement laid down in Directive 2001/88/EC on standards for the protection of pigs.

This scheme is also designed to assist 90 poultry farms (comprising 126 houses) adapt to new enriched caged systems and is based on replacing existing buildings with buildings with the new enriched cages or conversion to free range / barn systems.

The scheme is designed to produce efficiencies in water usage to both conserve a valuable resource and reduce water costs, by maximising the use of rainfall run-off and reduce the on farm costs of water.

This scheme is designed to increase the area of Willow and Miscanthus planted, with a view to meeting Ireland’s renewable energy targets. The measure will increase crop production and encourage farmers to consider alternative land use options in the bioenergy area. It will also complement other Government measures in the renewables area and provide opportunities for rural development and employment.

(a) Dairy Equipment Scheme – Support for investment equipment

(b) Sheep Fencing / Mobile Handling Equipment - Support for investment in equipment

(c) Loose Housing for Sows - Support for investment in buildings

(d) Poultry Conversion Scheme - Support for investment in buildings/cages

(e) Water Harvesting and Conservation - Support for investment in equipment

(f) Willow / Miscanthus Scheme - Support for establishment costs
Designation of the newly introduced Community standards (and of existing standards in the case of young farmers receiving setting-up support) for which support may be granted, justification related to the specific problems involved in complying with these standards and duration and justification of the grace period per standard concerned

Commission Directives 2001/88/EC and 2001/93/EC amending Directive 91/630/EEC laying down minimum standards for the protection of pigs (farmers required to implement standards concerned by 1 January 2013). These requirements became law for all new built or brought into use facilities after 1 January 2003 and will apply to all current facilities after 2013.

The deadline for completion of works under the Investment in Sow Welfare Measure was initially set at 31^st December 2012, which coincides with the date for compliance with the new EU animal welfare rules for the pig sector. Following consultation with the pig industry on compliance with the new animal welfare standards, it was indicated that a grace period would be required in order to meet the new regulatory requirements; A grace period of 14 months from 1^st January 2013 until the 28^th February 2014 is considered necessary, as it is estimated that securing bank credit and planning permission could take several months.. The extension was sought due to the problems encountered by pig farmers in Ireland in obtaining the necessary bank finance and planning permission. As a result, applicants under the scheme will exceptionally be entitled to receive grant-aid where the investment works are completed to the required new animal welfare standards during the period from the 1^st January 2013 until 28^th February 2014. This extension does not affect the implementation in Ireland of the new EU animal welfare rules for the sector with effect from 1^st January 2013. It merely enables those farmers who were unable to complete the investment works concerned by the 31^st December 2012 to continue to receive the available grant-aid provided the works concerned are completed by 28^th February 2014. The extension of the period of grace, to the 28th of February 2014, pertains solely to the eligibility for receiving financial support and it does not modify the date of application of the partial ban on individual sow stalls, and that the legal requirements pertaining to animal welfare must be complied with.

An EU ban on unenriched (conventional battery) cages is due to enter into force from 1 January 2012, in line with Directive 1999/74/EC on minimum standards for laying hens.

The deadline for completion of works under the Investment in Poultry Welfare Measure was initially set at 31^st December 2011, which coincides with the date for compliance with the new EU animal welfare rules for the poultry sector. Following consultation with the poultry industry on compliance with the new animal welfare standards, it was indicated that a grace period would be required in order to meet the new regulatory requirements; A grace period of 9 months from 1^st January 2012 until the 28^th September 2012 is considered necessary. It is estimated that securing bank credit could take several months and this delay is combined with the delay of several months in securing the supply of enriched cages. A grace period of 6 months was initially proposed but following consultation with poultry experts, the period of 9 months was considered more appropriate given the likely delays. The extension was sought due to the problems encountered by poultry farmers in Ireland in obtaining the necessary bank finance and delays in securing supplies of the new enriched cages. As a result, applicants under the scheme will exceptionally be entitled to receive grant-aid where the investment works are completed to the required new animal welfare standards during the period from the 1^st January 2012 until 28^th September 2012. This extension does not affect the implementation in Ireland of the new EU animal welfare rules for the sector with effect from 1^st January 2012. It merely enables those farmers who were unable to complete the investment works concerned by the 31^st December 2011 to continue to receive the available grant-aid provided the works concerned are completed by 28^th September 2012.
Type of aid

Grant based on percentage of eligible expenditure by farmer, subject to maximum investment ceiling or a maximum level of grant.

A. Investment in Dairy Enterprises

The Sheep Fencing and Mobile Handling Equipment Scheme will have a grant rate of 40% up to a maximum grant level.

The Loose Housing for Sows Scheme will have a grant rate of 40% up to a maximum grant level per unit.

The Poultry Cage conversion Scheme will have a grant rate of 40% up to a maximum grant level per hen.

The Water Harvesting and Conservation Scheme will have a grant rate of 40% up to a maximum grant level.

The Willow and Miscanthus Scheme will have a grant rate of 50% up to a maximum grant level. The increase aid intensity under this scheme is in accordance with Article 16(a) Paragraph 2 of Regulation 1698/2005. This higher aid intensity is intended to promote uptake under this scheme to provide a critical mass of farmers engaged in the production of renewable energy

− Total Cost: €125,191,170

− Public Expenditure: €50,076,702


Transition arrangements (including estimated support)

This is a new scheme.

(1) Number of new entrants: 89 (Scheme A only)

(2) Number of Recent entrants: 1,784 (Scheme A only)

(3) Sheep numbers: maintained (Scheme B only)

(4) Number of Sheep farmers: maintained (Scheme B only)

(5) Number of handling units grant aided: 607 (Scheme B only)

(6) Length of fencing grant aided: 648,000 metres (Scheme B only)

(7) Number of holdings meeting new animal welfare standards: 182 Units

(Scheme C only)

(8) Number of converted pigs: 40,500 (Scheme C only)

(9) Number of holdings meeting new animal welfare standards 73 (Scheme D only)

(10) Level of investment carried out per sector: Dairying €9.72m Other sectors €6.48m

(Scheme E only)

(11) Number of beneficiaries per sector: Dairying 972 Other sectors 648

(Scheme E only)

(12) Number of hectares planted: 5,670ha (Scheme F only)

Articles 28 of Council Regulation (EC) 1698/2005

Article 19 of Commission Regulation (EC) No 1974/2006

Rationale for intervention:

The Agri-Food sector in Ireland has been identified as a sector with significant potential for growth and in this context this measure will provide support for both start up enterprises and established enterprises to develop and improve their food products. This support will have the direct effect of improving the quality and variety of product available and supporting the creation of employment opportunities. This measure will be delivered using the LEADER approach under Measure 411.

The objective of the measure is to support and encourage economic activity in rural areas through the development of food enterprises

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  improve the overall performance of the enterprise;
  
• 
  concerns the processing and/or marketing of products covered by Annex I to the Treaty,except fishery products, and of forestry products, and/or the development of new products, processes and technologies linked to products covered by Annex I to the Treaty, except fishery products, and to forestry products
  
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  respect the Community standards applicable to the investment concerned. Where investments are made in order to comply with Community standards, support may be granted only to those which are made by micro and small enterprises, in order to comply with a newly introduced Community standard. In that case a period of grace, not exceeding 36 months from the date on which the standard becomes mandatory for the enterprise, may be provided to meet the standard. The relevant standard shall be met at the end of the period of grace.
  

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  provide for a range of assistance types for start-up food enterprises and expansion of existing food enterprises including the adoption of new technologies
  
• 
  develop innovative products and activities
  
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  provide for a range of assistance for adding value to local food products and for improving quality and development of artisan processing facilities
  
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  foster support for small-scale research, analysis and development in the local food sector
  

Tangible/intangible investments related to food production in rural areas

Micro and Small Enterprises in the Agri-Food sector.

Improvements in the processing and marketing of food products will be encouraged by means of support for tangible/intangible investments aimed at improving efficiency in the processing and marketing sector, introducing new technologies and innovation, opening new market opportunities for food products, putting emphasis on quality, by targeting micro and small enterprises which are better placed to add value to local products.

The Scheme will have a grant rate of 40% up to a maximum grant level.

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  Total cost: €12.5m
  
• 
  Public expenditure €5.0m
  

Support for the development of Agri-Food enterprise in the micro/small sector is not funded under Pillar I of the Common Agricultural Policy.