Straw Incorporation Measure to continue this year
The Straw Incorporation Measure (SIM) will not be deferred for 2024 and will proceed this year.
Last week, Minister for Agriculture, Food and the Marine Charlie McConalogue announced a proposal that the SIM would be deferred for 2024, citing concerns over fodder shortage.
The decision prompted a firm backlash from farm organisations and several politicians, including from within the minister's own department.
Now, it appears that the minister has made a u-turn on that move.
Minister McConalogue has proposed the introduction of a payment for a straw baling measure to "run in tandem" with the SIM.
The minister said: "Against a backdrop of depleted fodder reserves and poor growth rates this year, I have been clear that my aim is to see quality straw that is due to be chopped under the SIM baled for sale, while also ensuring that SIM funding stays within the tillage sector, as I committed.
“I met with farm organisations representing the majority of tillage farmers this week to discuss options for SIM that meet both of these objectives. To meet these aims, I have proposed that a baling option will be introduced to run concurrent with the SIM.
"Farmers can stay in the scheme and receive their payment for incorporation as normal or they can withdraw from the scheme and receive a payment for baling instead.
"I have proposed that those that withdraw from SIM and bale will receive a payment rate of €175/ha for baling straw in recognition of their efforts to prevent a fodder shortage," Minister McConalogue added.
Speaking to Agriland in the wake of the minister's announcement, Francie Gorman, president of the Irish Farmers' Association (IFA), said the decision to reinstate the SIM is "a good outcome to a debacle created by the minister” and will give certainty to tillage farmers.
However, both he and IFA Tillage Committee chairperson Kieran McEvoy said that, looking to the future, the tillage sector will need to be incentivised.
The farm organisation has called on the government to rollout a €60 million support package for the sector over the next five years.
The IFA and the Irish Grain Growers (IGG) held several joint meetings with Minister McConalogue to voice their opposition to the proposal to suspend the SIM this year.
After the minister confirmed that the Straw Incorporation Measure would continue this year, IGG chairperson Bobby Miller criticised him for the original announcement last week, telling Agriland: "Today’s announcement is after what has been a very stressful time for tillage farmers and the tillage sector.
“This ultimately lies at the minister’s desk and this particular type of situation cannot be repeated for any sector going forward," Miller added.
In a formal joint statement after the minister's announcement today, the IFA and the IGG said that it is "vital that the SIM has now been re-instated in full".
The two groups also said that it was important that the minister gave a guarantee that all applicants to the scheme will be paid regardless of the outcome of the ranking and selection process.
"The announcement by the minister last week was an error of judgement and caused huge stress and uncertainty for tillage farmers," the statement said.
"It was a model of how not to do things and it can never be repeated in relation to any scheme in any sector.
"The reality is that the tillage sector is already in the middle of a very challenging year due to weather challenges and low projected grain prices," the statement added.
It went on: "Earlier this year, the minister announced that he would pay each farmer who planted crops in 2024 a minimum of €100/ha. The minister doubled down on this commitment during our negotiations this week. However, we want to stress that a significantly higher payment will be required to assist farmers in 2024 and to keep them in the sector."
Macra, which had also expressed concern about the proposal to suspend the scheme this year, has welcomed the minister's announcement.
"It is important for farmers that policy tools provide certainty, and help to build resilience especially against the backdrop of a difficult winter and what may be a challenging winter to come if fodder stocks are not restored," Elaine Houlihan, Macra president, said.
The farm organisation welcomed the flexibility within the scheme to opt out or partially opt out so that farmers can manage conditions on the ground.
"This provides a critical management tool for tillage farmers given the current weather we are experiencing, while ensuring that the money ring fenced for tillage farmers remains in the sector.
"We must now look forward and continue work together with greater engagement to find innovative solutions to our pending fodder crises not just for this year but into the future," Houlihan added.
