mawaskow/irish_forestry_incentives huggingface dataset:
 To examine the extent to which the Scheme’s objectives have been achieved, and comment on th e effectiveness with which they have been achieved.
 To specify potential fut ure performance indicators that might be used to better monitor the performance of the Scheme.
The EU define o rganic production as “an overall system of farm management and food production that combines best environmental practices, a high level of biodiversity, the preservation of natural resources, the application of high animal welfare standards and a production method in line with the preference of certain consumers for products produced using natural substances and processes”.
A n objective of achieving 5% of farmland under organic production is included in the Food Harvest 2020 Report; a key recommendation of which is that support to the sector should continue through the Organic Farmin g Scheme.
Under the Rural Development Programme (RDP) 2007 -2013, the OFS became a stand -alone scheme and ceased to be a supplementary measure in REPS, under which support had previously been provided.
The table Executive Summary Value for Money Review of the Organic Farming Scheme Page | ix below outlines the total number of farmers who participated in the OFS each yea r from 2007 to 2013.
 National policy, in the form of Food Harvest 2020, and EU policy, in the form of the Common Ag riculture Policy, support organic farming.
However there was a decline in participation by new entrants in the OFS in recent years due to weaknesses in the current scheme 2.
The current scheme has not succeeded in attracting sufficient numbers to meet the demand that exists for organically produced food 3.
The cessation of the scheme would reverse any progress made and be hugely detrimental to the development of the Organic Sector 4.
The cost of administration of the schemes is disproportio nate when the level of participation is considered.
The Steering Group believes that neither the continuation of the scheme in its current form nor its complete cessation is desirable and made the following recommendations: Executive Summary Value for Money Review of the Organic Farming Scheme Page | x  Recommendation 1 – Preferred Po licy Option: The adoption of Policy Option 3, a new OFS refocused in the context of the new RDP, with the aim of addressing issues identified in the Review.
 Recommendation 2 – Efficiency: The Department should carry out a business process improvement examination of the administration of the scheme.
The TAMS Scheme ensures t hat all farmers have access to the most up -to-date technology to bring the highest quality product to market.
The Scheme is supporting generational renewal on Irish farms by allowing young farmers to avail of a higher grant rate of 60% (with a standard gra nt rate of 40% available to all other applicants).
Organic farming goes well beyond the farming practice s required to meet the agri -environmental baseline of Good Farming Practice and Cross Compliance requirements of the Single Farm Payment Scheme and this is the central principle under which additional payments are provided.
The basic payment under the Scheme is €212 per hectare for those ‘in conversion’ and €106 for those with ‘full organic status’.
Slightly higher payments are available to horticulture only producers but only up to 6 hectares.
Table 82 in Chapter 8 outlines the perfo rmance indicators required to facilitate the effective measurement of all aspects of scheme performance and recommends the following for any new OFS: Recommended PIs for the next OFS within the new RDP Objective Performance Indicator Enhanced Environmental Benefits Area under organic production , with target to achieve a 50% increase in UAA under organic production over the lifetime of the next RDP .
Value for Money Review of the Organic Farming Scheme Page | xi BALANCED SCORE CARD The Comprehensive Expenditure Report 2012 – 2014 (Department of Public Expenditure and Reform, 2011) , stated that in order to bring greater uni formity and standardisation to the evaluation process, each Value f or Money Review must include a ‘Balanced Scorecard’ which will be used to assess the programme under examination against a range of criteria of use to decision makers.
Cross -cutting aspects of OFS  While there are elements common to a number of agriculture schemes, these are not in the nature of duplication.
Any future scheme should be considered in the context of any new agri -environmental schemes targeted at conv entional farmers.
The Review recommended a business process improvement review to optimis e delivery structure and a new IT structure for processing OFS applications and payment.
 Part of the Scheme is provided by external service providers, Org anic Control Bodies (OCBs), who carry out inspection, certification of organic operators on behalf of the DAFM.
Value for Money Review of the Organic Farming Scheme Page | 1 CHAPTER 1 – INTRODUCTION 11 Background to Value for Money and Policy Review Initiative This review forms part of the Value for Money and Policy Review Initiative which was introduced by Government in 2006 as the successor to the 1997 Expenditure Review Initiative .
The members of the Steering Committee were:  Chairman – Brendan Ingoldsby  Gordon Conroy, Agricultural Structures (AS) Division , DAFM (February 2013 to June 2013) , and replaced by  Bernie Brennan, AS Division , DAFM ( July 2013 to February 2014) , and replaced by  Ronan O’Flaherty, AS Division , DAFM ( March 2014 to completion )  Joan Furlong, AS Division , DAFM  Kevin McGeever, AS Division , DAFM  Frank Macken, Agricultural Environment and Structures Division , DAFM  Fintan O’Brien, Economics and Planning Division , DAFM (February 2013 to July 2013) , and replaced by  Sean Bell , Economics and Planning Division, DAFM (October 2013 to completion )  Noel Collins, Economics and Planning Division , DAFM  Eoin Dormer , Central Expenditure Evaluation Unit (CEEU), Dep artmen t of Public Expenditure and Reform (DPER)  Niamh Callaghan , CEEU, DPER (February 2013 to October 2014), and replaced by Chapter 1 - Introduction Value for Money Review of the Organic Farming Scheme Page | 2  Laura Watts, CEEU, DPER (November 2014 to completion )  Terry Jennings, Vote Section, DPER  Dan Clavin, Teagasc 13 Terms of Reference The Steering Group drafted Terms of Reference for the review using the template provided in the Value for Money and Policy Review Initiative Guidance Manual.
The Terms of Reference were approved by the Secretary General of the DAFM as follows:  To identify the Scheme’s objectives.
 To specify potential future performance indicators that might be used to better monitor the performance of the Scheme 14 Acknowledgements The Steering Group would like to acknowledge the valu able a ssistance and inputs of all persons who contributed to the completion of this review.
A list of these contributors is included in Annex 1 1 15 Format of this Report The outline of the remaining Chapters in th is report is as follows: Chapter 1 - Introduction Value for Money Review of the Organic Farming Scheme Page | 3 Chapt er 2 – Sets out the background to the Organic Farming Scheme and its current configuration.
Chapter 3 – Identifies the objectives of the Organic Farming Scheme and examines their continued validity by reference to the wider policy context.
Chapter 5 – Examines the question of the efficiency of the Scheme.
Chapter 6 – Examines the effectiveness of the Scheme.
Chapter 7 – Examines possible alternative approaches aimed at increasing the efficiency and effectiveness of the Scheme.
Chapter 8 – Proposes some possible performance indicators for the Scheme.
Value for Money Review of the Organic Farming Scheme Page | 4 CHAPTER 2 – THE ORGANIC FARMING SCHEME 21 Organic Farming Scheme in Ireland The Organic Farming Sch eme is a measure included in Ireland’s Common Agricultural Policy (C AP) Rural Development Plan, co-funded under the National Development Plan 2007 -2013 and the European Agricultural Fund for Rural Development of the European Union.
One of the recommendations of th e Food Harvest report wa s for the D AFM to continue to support the sector directly through the Organic Farming Scheme  22 Definition of Organic Farming Under the governing Council Regulation (EC) No 834/2007 , Organic production is defined as “an overall system of farm management and food production that combines best environmental practices, a high level of biodiversity, the preservation of natural resources, the application of high animal welfare standards and a production method in line with the preference of certain consumers for products produced using natural substances and processes”.
Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 5 23 Internatio nal Overview of Organic Farming The International Federation of Organic Agriculture Movements defines organic agriculture as follows (IFOAM, 2009 ): "Organic agriculture is a production system that sustains the health of soils, ecosystems and people.
Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 6  Consumer food demand grows at a fast pace in the largest EU markets, yet the organic sector represent ed less than 2% of total food expenses in the EU - 15 in 2007.
Source: IFOAM3 24 Organic Farming Status in World Trade Agreements The World Trade Organisation (WTO) reform of the global agriculture trading system initiated during the Uruguay Round (1986 – 1994) and cu lminating in an Agreement in Agriculture attempted to correct trade distortions by requiring heavily subsidising countries to decrease their level of support over time.
While payments in the amber box had to be reduced, those in the green box were exempt from reduction commitments .
Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 7 Organic farming involves farming in an environmentally friendly and sustainable fashion with very restrictive lists of permitted inputs which include the non -use of soluble fertilizers (synthetic fertilizers), certific ation costs and detailed record keeping.
However notwithstanding the important need to support organic food production the primary rationale for the market intervention by the State to support the OFS is that organic farming delivers environmental benefits which are an important public good.
On 29th April 1994 the European Commission (EC) approved an agri -environmental scheme, called the Rural Environment Protec tion Scheme (REPS), for Ireland in accordance with Council Regulation (EEC) No 2078/92.
Year No of Farmers (Cumulative) Total Farmed Area (ha) Total Annual Payment 2007 6 311 * 2008 179 6,252 * 2009 527 18,956 452,923 2010 907 34,445 1,958,958 2011 1,188 46,018 4,293,412 2012 1,383 53,789 3,318,415 2013 1,146 57,724 4,554,459 Total 2009 -13: 14,578,167 *OFS expenditure was not separately identified within the REPS budget in 2007 and 2008 Conclusions and Recommendations In summary, regarding organic farming, the Review found:  There is significant market demand for the produce of organic farming.
For the programming period 2000 to 2006, regulatory provision was made for a continuation of agri -environmental schemes across all member states.
Payments for organic c ommitments are annual and per hectare and are designed to cover the additional costs incurred and the income forgone (eg due to lower yields) as a result of organic production methods.
However the round also established a special category of subsidies called green box payment s that are exempt from these commitments.
Therefore to remedy this market failure the OFS provides financial support at a higher level initially to encourage farmers to switch from c onventional to organic farming, and then at a lower financial level of support to incentivise farmers to remain farming organically.
Area -based payment s to OFS participants are based on the following regulatory principles which underpin the rationale for the payment level s: - Income forgone and cost incurred with regard to usual good agricultural practice - Agronomic assumptions use d as reference point - Level of incentive and justification for incentive based on objective criteria
Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 8 As a consequence, a farmer who undertook SM6 in conjunction with his/her REPS contract was entitled to an additional payment per hectare for 3 hectares or more during the two -year conversi on period to organic farming.
A lower additional payment per hectare was made following the two -year conversion period for the remaining three years of the REPS contract.
For farmers who had already attained full organic status prior to joining REPS and SM6, the SM6 payment for the five year REPS contract was at the lower rate per hectare.
These payments were subject to a 40 hectare limit.
For small scale organic horticultural producers farming a total area of less than 3 hectares, subject to a minimum of 1 hectare, a higher SM6 payment was made during and after the initial con version period was completed.
This is the central principle under which additional agri-environmental area -based payments are provided
Payment ceilings are similar to those in the period 2000 -2006 .
Additionally, where necessary , transaction costs (costs associated wi th the administration of the measures) can be eligible for funding  262 Organic Farming Supports in the 2007 – 2013 RDP Under the Rural De velopment Programme (RDP) 2007 -2013, Organic Farming supports became a stand -alone scheme referred to as the OFS, and ceased to be a supplementary measure u nder the REPS 4 programme.
Organic f arming was established as a stand -alone scheme in an effort to make it more attractive to intensive farmers.
Its inclusion as a supplementary measure i n previous schemes had meant in effect that a farmer had to take on all eleven basic measures of REPS as a condition of converting to organic production methods.
The introduction of a stand -alone scheme meant that this was no longer a requirement.
The in troduction of the Good Agricultural and Environmental Condition ( GAE C) requirements and Statutory Management Requirements ( SMR ) in the Single Farm Payment Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 9 Scheme during the 2000 to 2007 programming period facilitated the establishmen t of Organic Farming as a stand -alone scheme , as the new requirem ents of the Single Farm Payment Scheme established an environmental baseline to be respected by all farmers.
This created a level of assurance that baseline environmental standards had to be respected by all farmer s, including those farming to the Organic Farming Regulations and removed the risk, real or perceived, of environmental degradation occurring on farms receiving support for Organic Farming on a stand -alone basis.
The Ex Ante Evaluation Report of the Rural Development Programme 2007 – 2013 set out the rationale for a stand-alone scheme by recognising: “Threats to various aspects of the rural environment exist as a result of agricultural practices as well as pressures fr om economic development.
Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 10 27 Background In formation on other financial supports to the Organic Sector While t he O FS is the main financial support available to organic farmers , other supports are also available .
 Payments for initiatives to develop the organic s ector in Ireland include National Organic Week, Nati onal Organic Awards , an Organic D emonstration Farm Programme, a marketing c onference , and at international level, Biofach (world's largest trade fair for organic products , held annually in Germany).
Once accepted into the OFS participants must remain in the Scheme for at least a five -year period, otherwise clawback of aid applies.
Table 22 – Payme nts to All other Farmers in OFS 2007 – 2013 Organic Status Farmed Area of ≥ 3ha up to 55ha Farmed Area > 55ha In C onversion €212/ha €30/ha Full Organic €106/ha €15/ha Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 12 Table 23 outlines the total number of farmers who participated in the OFS each year from 2007 to 2013 .
Table 23 – Total Farmers, Area and Payments in OFS 2007 – 2013 Year No of Farmer s (Cumulative) Total Farmed Area (ha) Total Annual Payment 2007 6 311 * 2008 179 6,252 * 2009 527 18,956 452,923 2010 907 34,445 1,958,958 2011 1,188 46,018 4,293,412 2012 1,383 53,789 3,318,415 2013 1,146 57,724 4,554,459 Total 2009 -13: 14,578,167 *OFS expenditure was not separately identified with in the REPS budget in 2007 and 2008 Table 23 illustrates that the number of participants in the OFS increased from 6 in 2007 to 1,383 in 2012 but the number of OFS participants as of 2013 had fallen to 1,146 .
A number of factors m ight be attributed to the recent fall off in participation rate, eg the end of five -year cont racts in 2012 (OFS participants must sign up to the Scheme for a minimum period of five years) , persons withdrawing from the scheme, losing their organic status and consequent eligibility to participate, deceased pe rsons etc.
The decrease in participatio n rate between 2012 and 2013 (Table 23) and the notable decline in new applications since 2010 (outlined in Table 24) might also be attributed to the less attractive nature of OFS compared to other schemes such as the Agricultural Environment Options Sch eme4 (AEOS), where payment rates are higher.
Using the information outlined in Table 23 the average payment per participant in the 2013 OFS was €3,974 and the average OFS farm size was 504 ha in that year .
The average farm 4 AEOS was the national agri -environmental scheme that replaced REPS from 2010 onwards.
Unlike REPS the whole f arm is not subject to the scheme conditions.
Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 13 size in OFS is in line with th e average farm size estimated by Teagasc’s 2013 National Farm Survey of 496 ha 5 Table 24 outlines the total number of additional farmers who joined the OFS each year from 2007 to 2013.
In addition the Department provides money to facilitate the development and promotion of the Organic Sector through  certification of organic operators on behalf of the DAFM .
OFS participants are also free to avail of other grant aid measures by the DAFM that are available to conventional farmer s 28 CAP Rural Development Programme 2007 – 2013 The current OFS is inc luded in Ireland’s CAP Rural Development Programme.
Payments applicable under the OFS Under the OFS in the 2007 – 2013 period horticulture only produc ers, with one hectare or more, we re eligible for the payments listed in Table 21 provided that at least 50% of the area eligible for organic payment was cro pped each year.
Table 21 – Payments to Horticulture Only Producers in OFS 2007 – 2013 Area ≤ 6 hectares (ha) Area > 6ha and up to 55ha Area > 55 ha In conversion €283/ha €212/ha €30/ha Full organic status €142/ha €106/ha €15/ha Stockless non-REPS farmers applying green cover during the conversion period may qualify for an additional payment of €240/ha per year up to a maximum of 40 ha.
Payment is computed on the b asis of a minimum stocking level of 0 5 LU per hectare of the forage area qualifying for payment .
Farmers not reaching this stocking rate level receive payment on a pro rata basis in line with their actual level of production.
In the case of stockless organic crop producers, at least 50% of the eligible area for organic payment must be cropped each year.
For farmers engaged in both arable crop and livestock production, payment for arable crop production is based on the actual area cropped by the farmer.
Applicants with 3 hectares or more o f utilisable agricultural area we re eligible for payments as outlined in Table 22.
Due primarily to budgetary constraints the payments may not fully represent the full costs of converting to organic farming 5 The National Farm Survey represents a farm population of 79,000 farmers but excludes smaller farms, which is defined in the survey as those with a standard output of less than €8,000 (equivalent of 14 suckler cows or 6 ha.
of wheat) 6 Teagasc National Farm Survey Results 1996 Chapter 2 – The Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 14 Losses sustained on converting to organic production by specialised fruit and vegetable producers on small hold ing ( 10 years participation 20 7.
Deer etc 10 Value for Money Review of the Organic Farming Scheme Page | 76 Annex 4 – Penalties Applic able Under the 2010 Organic Farming Scheme 1.
Interest will be calculated for the period elapsing between the notification of the repayment obligation to the farmer and either repayment or deduction.
Withdrawal of the licence by the OCB within the term of the five -year commitment shall mean termination from the Scheme and full recoupment of all aid paid, including interest payable under SI No 13 of 2006 4.
Non-renewal of an organic licence by the partic ipant within the five -year commitment period shall mean termination from the Scheme and full recoupment of all aid paid, including interest payable under SI No 13 of 2006, except where a participant has ceased farming and has already completed three years in the Scheme.
Where a fourth or fifth year payment has issued and the participant does not complete the full year for which payment was received, a proportionate re -imbursement will apply to that payment 5.
Reductions/penalties as per SPS rules will be ap plied to all over -declaration for payments 6.
Annex 4 – Penalties applicable to the 2010 Organic Farming Scheme Value for Money Review of the Organic Farming Scheme Page | 77 9.
Where overpayment occurs in any year, due to an incorrect declaration by the participant of the eligible livestock units/area under this Scheme, the Department will recoup the amount of the overpayment, including interest payable under SI No 13 of 2006 10.
Where an irregularity occurs as determined by the OCB, the Department may impose a 10% penalty on the amount due in that year under this Scheme, including interest payable under SI No 13 of 2006 11.
Where an application for the Single Payment Scheme is not submitted within the specified period under that Schem e, a penalty of 1% per working day will apply to the Organic Farming Scheme payments.
Similarly where a par ticipant continues to farm organically, ie licensed by an OCB, but does not retain the land parcel(s) under organic production methods for the duration of the commitment, the Department will recoup the amount paid in respect of the land parcel(s) not ret ained under organic production, including interest payable under SI No 13 of 2006 and future payments will be calculated on the reduced area 12.
If the delay in submission of the single farm payment applications amounts to more than 25 working days, the application shall be deemed inadmissible and no aid shall be granted for the year to which the application relates 13.
Where, in the course of an inspection under S PS, a breach of cross -compliance is detected, the level of penalty determined under the S PS will also be applied to the payment under the O FS.
Value for Money Review of the Organic Farming Scheme Page | 78 Annex 5 – Administrative Penalties under the 2012 O rganic Farming Scheme  Late submission of the annual application for the Single Payment Scheme will result in the application of penalties for the OFS as outlined in paragraph 1012 of these Terms and Conditions.
 Late submission of the Annual Declaration of Farming Activity (OFS 2) will result in the application of penalties as outlined in Paragraph 81 of these Terms and Conditi ons.
 The revoking of the organic licence will result in the termination of the contract and the full recoupment of all aid paid under the scheme including, where applicable, interest payable under SI No 13 of 2006.
 The non -renewal of an organic licence by the scheme participant during the contract period shall result in termination and recoupment of all aid paid under the scheme including, where applicable, interest payable under SI No 13 of 2006.