Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697805724539.pdf (Ireland)
Opening Statement by Macra na Feirme President John Keane to the Joint Oireachtas Committee on Agriculture, Food and the Marine Wednesday, 1st December at 5.30 pm The Common Agricultural Policy and young farmers Chairman and Committee Members, Thank you for the invitation to address you here today.

My name is John Keane, President of Macra na Feirme.

I am joined virtually by Shane Fitzgerald, Ag Affairs Chair; Derrie Dillon, Head of Advocacy, Membership & Policy; and Gillian Richardson, Policy Officer.
Young farmers have a huge role to play in addressing the challenges we as an industry will face in the future.

However, to achieve this, the obstacles of access to land and access to credit must be addressed.

In Ireland, our agricultural system faces a demographic crisis similar to many other EU members states.

Based on 2016 figures, Ireland has only 5% of farmers aged less than 35 years of age, with 30% of farmers held by those over the age of 65.
Source: Eurostat In Ireland, the average agricultural entrepreneurial income is about 39% of the average income in the whole economy (2005 to 2019).

The gap widened during the economic crisis of 2008-2009.

Since 2010 it has recovered but remains lower than in the EU-27.

Against the backdrop of a significant increase in the total value added of the food chain between 2012 and 2016, the share of Irish farmers in the value chain fell from close to 20% in 2008 to just around 18% in 2016.
This is below the long-term EU average of roughly 25%.

The transition towards a more sustainable agricultural sector and rural areas require Ireland to address one of the most important social challenges for European agriculture: generational renewal.

The proportion of total farm managers accounted for by young farmers fell from 10.7% in 2005 (of which 9.8% men, 0.9% women) to 6.1% in 2016 (5.6% men, 0.5% women).
Although above the EU average, the decrease of the young farmer population is very significant (over 40%) and the trend remains negative, despite the implementation of a multifaceted set of EU and nationally financed measures.

Improving generational succession and entrance of young farmers depends on more favourable conditions for access to land and finance – the main challenges for young farmers.
The economic trend in terms of standard output per farm is, positive since 2007 where the young farmers have higher standard output than the older age categories.

The age tranche of the farmers younger than 25 years also shows a positive development in terms of increasing average hectares per farm and number of farms with animals.

Moreover, 44% of young farmers have full agricultural training and a further 20% have basic training.

This rate is twice the EU-28 average (2016).


The number of young farmers involved in farming by 2027 will be the litmus test for the success of this CAP.

The department must set targets for the numbers of young farmers in Ireland, because as the saying goes ‘we can’t manage what we don’t measure’.
Agriculture is a complete outlier when you compare it with the overall national workforce which is made up of a minimum of 30% of young people Page 2 of 7 under the age of 35 according to the ESRI (Economic and Social Research Institute) and CSO (Central Statistics Office) data.
The elevation of generational renewal to one of the nine key objectives to be delivered under this CAP period is a clear signal from the Commission to address the fundamental barriers that exist and have existed for some time now concerning young people pursuing farming as a career in Ireland.
In this opening statement, we in Macra Na Feirme wish to outline the key outstanding issues that remain unaddressed in the proposals most recently published by the Department of Agriculture relating to Irelands CAP Strategic Plan.

Succession pathways One of the main elements remaining unresolved in the current CSP proposals is the provision of an on-farm succession scheme.

Any scheme must be delivered for both the older farmer exiting farming and the younger farmer who is starting in their career.
Efforts to foster generational renewal in agriculture will have to support investments in basic infrastructure and services, as well as in economic diversification (e.g.

on farms or within the bio- economy), to facilitate access to finance as well as to specific knowledge/advice for agricultural business start-up, to target inheritance constraints and support cooperation between farmer generations, including farm succession.
Macra na Feirme are very much in favour of the provision of on on-farm succession scheme.

Director General of Agriculture at the European Commission, Wolfgang Burtscher shared that member states have the possibility to support forms of co-operation among farmers that could include farm partnerships between older and young generations.
The Department of Agriculture itself has identified the need for a mechanism to encourage generational renewal and to encourage land mobility through greater succession planning.

Land Mobility Service The Macra na Feirme Land Mobility Service was established following the findings of the study on ‘Land Mobility and Succession in Ireland’ carried out in 2012 by Broadmore Research.

This identified that 46% of those surveyed did not have a farming successor identified.
Following this, an independent service was established by Macra na Feirme who provides independent advice and facilitation of arrangements such as partnership, long term leasing and share farming.

Page 3 of 7 The Land Mobility Service has facilitated 700 arrangements since its inception covering 55,000 acres, 140 farms in 2020.

However to grow the service beyond its regional success it must be recognised in the CAP Strategic Plans and consistent funding put in place to allow expansion of the service.
Macra na Feirme and CEJA – The European Council of Young Farmers, have successfully lobbied for the inclusion of provisions within the new CAP to enable member states to fund land mobility services across Europe.

The process of advice provision, and facilitation of partnerships and shared farming agreements can be long and labour intensive.

Such a service needs CAP and Department of Agriculture support to ensure that the viability of such a valuable tool is retained and expanded.
Just last week at our annual conference Minister McConalogue announced a 100% increase to the funding for the Land Mobility Service.

Macra na Feirme welcome the additional increase in funding for the Land Mobility Service.

This funding recognises the continued role that a land mobility service can actively play in generational renewal.
We look forward to the proposed engagement with the Department and Teagasc on the future of the Land Mobility Service, and to continuing our engagement with the Department about the role that the Land Mobility Service can play in the context of supporting the achievement of objectives of Generational Renewal within the future Common Agricultural Policy.
Forgotten Farmers The ‘forgotten farmers’ are the cohort of farmers who had set up their agricultural holdings before 2008, and were still under 40 in 2015 — holding low-value payment entitlements — but were deemed ineligible as young farmers under the National Reserve.

Minister McConalogue committed back in February to resolve the matter of ‘forgotten farmers’ in the new CAP arrangements, ‘Under the new CAP, I fully intend on honouring the commitment I gave to these farmers.
This group of farmers are young and progressive and we must not stand in their way — we must harness and encourage their ambition and I fully intend on doing that” it was also outlined in the programme for government.

There are thought to be approximately 3,500 farmers in this category who have not been previously accommodated for.

These farmers missed out on installation grants, young farmer top-ups and other schemes in the last CAP.
The departments plan now seems to be looking outside of the CAP to resolve the issue of forgotten farmers.

Page 4 of 7 Macra na Feirme has consistently raised this issue over the past decade and longer.

The most important deliverable for this cohort of farmers is to provide support equitable to that which was missed by these farmers.

That must include the increase in provision for low-value basic entitlements and the gap in funding existing as a result of the exclusion from the Installation aid scheme.
Financial Instruments/Support There is a lot of uncertainty in the agricultural sector.

The vast majority of Irish agricultural products are exported, with 40% destined for the UK market.

Access to finance could hamper the sustainable development of the sector.

This means there is potential for new financial instruments directly highlighted in the Commission recommendations for Ireland’s CAP strategic plan SDW (2020) 377 final.
Also contained in the aforementioned document published by the EU Commission is a direct recommendation to ‘Support the ability of Irish farmers to invest in sustainable practices, by improving access to finance, including through supporting new or improved financial instruments.

Continue improving access to land and finance for young farmers and new entrants, including by targeting inheritance constraints and supporting cooperation between farmer generations’.
Uncertainty in the agriculture sector in Ireland is high.

There is a potential for new financial instruments, with an investment gap estimated to be between €822 million and €1 billion.

Around 68% of the gap value relates to medium-sized farms, increased efficiency and sustainability could be key for the overall competitiveness of the sector.

Concerning access to finance, lack of collateral and credit history are the main constraints.
Thus, young farmers face serious difficulties in securing the long-term lending they require for investing, mainly in livestock, machinery, equipment, infrastructure and land.

It is highlighted in correspondences and direction from the Commission that the issue of access to Finance for young farmers is a key need that must be addressed in this CAP.

The proposals outlined by the Department currently do not address the need for specific young farmer centred financial supports facilitated through the CAP.
Under the state, aid rules the only option currently available for the Government to facilitate this is through the use of financial instruments which are specifically called out by the Commission.

What is required is a specific young farmer financial instrument which over time is self-financing and offers young farmers with low-security levels and limited collateral to access finance.
Page 5 of 7 Start-up grant aid Macra na Feirme acknowledge current national tax reliefs and what has been contributed to support young farmers from the National envelope, unfortunately, as we have learned they are not enough to drive generational renewal forward at a rate to ensure long term success and growth in farming.

Unfortunately, the current suite of measures arising from the current CAP have not had the desired result in an increase in the number of young active farmers.
Neither the administrative burden nor the size of a scheme should get in the way of a good idea that will benefit young farmers.

As we have seen with the Young Farmer Top Up Scheme there was estimated to be approximately 1,000 fewer applicants successful in 2020 than in 2019.

Not just that but some 4,000 out of 8,700 applicants received their last Young Farmers Scheme payment in 2019 even though many still qualify as young farmers due to the five-year rule.
There are not enough young farmers to replace those who are moved out of schemes due to the five-year rule and therefore something must be done to change this.

Eco Schemes The European Commission highlights the advantages to the Irish climate as it “also supports a long, grass-growing season, 80% of the agricultural land is covered in grass.

This grass-based system is more efficient and environmentally sustainable than intensive indoor animal feeding systems”.

(European Commission, 2019).


There are seven key areas under which member states can align Eco-schemes to they are 1.

Climate change mitigation, 2.

Climate change adaptation, 3.

Protection or improvement of water quality, 4.

Prevention of soil degradation, 5.

Protection of biodiversity, 6.

Actions for a sustainable and reduced use of pesticides, 7.

Actions to enhance animal welfare or address antimicrobial resistance.
The proposed additions announced last week by the Department of Agriculture are welcome in providing further opportunity for farmers to enter the schemes.

Macra na Feirme have been advocating for the inclusion of a number of additional measures that align to the CAP Proposals and the EU Farm to Fork strategy, the first of these is the inclusion of a faecal egg dung sampling measure and the inclusion of a Milk Recording measure.
Both of which are provided under the seventh area Page 6 of 7 that eco schemes can address around addressing antimicrobial resistance.

It is also important to note Ireland's current performance in this area and the need to continue to progress, in 2018 the annual sales of antimicrobial agents for food-producing animals was at 46.0 mg/PCU, showing a slight decline over the last years, which is well below the 2018 EU average of 118.3 mg/PCU.
Macra Na Feimre also propose the following to be considered with respect to the Eco-scheme measure 1.

Integrated hedgerow management measure 2.

Reduced age at first calving 3.

Increased days at Pasture Page 7 of 7