I thank the Leas-Cheann Comhairle and the Ceann Comhairle for the opportunity to address the House today on the significant challenges facing our tillage sector. Before I outline the Government's response, I will begin by acknowledging the strain that many farming families in the sector face. Coming on the back of two horrendously difficult years weatherwise, thankfully conditions for harvest 2025 were much more favourable. It has allowed field work to be undertaken and completed in a timely fashion. This was much needed as many spring crops have not come in as well as winter crops. However, the sector has encountered additional pressures, not least the challenging market situation and downward price pressure internationally. This, along with the high costs of production, has significantly impacted on the margin for growers, with crops on rented land particularly challenged. I have been engaging directly with the farming organisations on these challenges.
The tillage sector really is an absolutely vital cog in the wheel of agriculture and agrifood produce. Like any gearbox that has cogs in it, all sectors and all cogs are dependent on each other. If one does not work correctly, the wheel does not turn. This is very much the case with all of the other parts of the agricultural sector. They depend on us having a strong and vibrant tillage sector. It is an integral part of Irish farming, producing high-quality animal feed and bedding for the livestock sector and ingredients for the food and drink industry. It also makes a significant contribution to the Irish economy, at an estimated €1.9 million per annum over the 2018 to 2022 period, and it supports the equivalent of over 11,000 full-time jobs.
As a Government, we have provided a range of significant supports to tillage farmers in recent years. Since assuming this role, I have taken every opportunity available to me to support the sector further. In addition to the commitments in budget 2026, on which I will speak further in due course, my Department has already delivered substantial supports to tillage farmers in recent years. Schemes specific to the tillage sector include the straw incorporation measure, the tillage incentive scheme, protein aid and the tillage capital investment scheme. They have all proved hugely popular among tillage growers.
This year, the budget for protein aid is €10 million, having increased from €7 million to €10 million annually from last year. This is a significant support for crops such as peas and beans, which are excellent protein feed sources and provide important environmental benefits. The straw incorporation measure is very popular among farmers and I am a huge fan of it. It demonstrates the sector's commitment to climate and the environment through increasing carbon sequestration. It is a scheme that tillage farmers have come to rely on from an income perspective and when it comes to making cropping decisions for the year. This year, over 66,000 ha of cereals and oilseed rape straw were submitted for chopping and incorporating. I gave a commitment to pay all farmers who applied under the scheme. I made this decision early to give certainty to those farmers while also providing an economic boost. There was flexibility for farmers to withdraw from the scheme in certain circumstances - for example, where straw is required for livestock - to safeguard supply across all sectors.
In February, I announced €32.4 million of payments under the tillage and horticulture support scheme, which was the Government's response to the difficult position tillage and horticulture farmers found themselves due to exceptionally poor weather and continued high input costs the previous spring. This exceeded the €30 million provided for in the 2025 budget but I was anxious we would be able to make the payment on every hectare of eligible ground. In addition, the Farming for Water European innovation partnership, EIP, has a budget of €60 million to support targeted on-farm additional measures to improve water quality, including the establishment of cover crops. This year, almost 1,400 tillage farmers have expressed an interest in establishing cover crops under the EIP. If this high level of interest translates to the area of cover crops sown, it will significantly increase our national area under cover crops, providing benefits for water quality and soil health.
The tillage capital investment scheme under targeted agriculture modernisation schemes, TAMS, provides important support for a broad range of investments to support farmers to achieve improved competitiveness, increased efficiency, growth and environmental benefits. These schemes made a significant contribution to the tillage sector in recent years as well as contributing to meeting Ireland's environmental objectives through positively altering practices at farm level. The Government recognises the importance of the tillage sector as an integral part of the Irish agricultural industry and is committed to growing the area under tillage crops in line with climate action plan targets.
At a challenging time for the sector, I will be supporting growers in 2026 with funding through a new tillage support scheme, in conjunction with the protein aid scheme and the straw incorporation measure, providing targeted supports of at least €50 million. This marks a significant and direct investment by the Government, evidencing its commitment to the sector. Having secured a funding allocation for a new tillage support scheme, I intend to consult further with stakeholders on its design and operation.
These measures will help support tillage farm incomes and will provide a strong base to protect the future of tillage farming in Ireland. I will continue to work with the tillage sector and provide targeted support where possible given the strategic importance of the sector within the wider agricultural industry.
As I have mentioned, this Government is committed to growing the area under tillage in the years ahead. This will require work in a range of areas in addition to immediate financial support. The current area under tillage is approximately 335,000 ha. The climate action plan sets a target to increase this to 400,000 ha by 2030. This ambition is well founded given that tillage is the most carbon efficient sector of Irish agriculture. In 2022, the agricultural emissions on specialist tillage farms expressed in tonnes of CO2 equivalent per hectare was just 1.9 tonnes. Of course, before the area can be grown, it needs to be stabilised. While the area under tillage has increased by 21,000 ha or 7% since 2020, it remained almost static last year. Where land leaves tillage for grass, it rarely comes back.
The Food Vision tillage group was established in 2023 to set out a roadmap for the sustainable growth and development of the sector. The final report of the group was published in May of last year. It is a comprehensive report that lists 28 action points under several themes and identifies opportunities to grow the sector and to further improve its environmental footprint. Engagement with the Food Vision tillage group continues through the sharing of updates on progress on actions to date from my Department, Teagasc and other industry stakeholders. I chaired the Food Vision high-level implementation committee at the Teagasc crops open day in June, when we were updated on progress across a number of areas. My Department continues to engage with stakeholders to progress the actions in the report. It will require collaboration and sustained effort from all stakeholders in the sector if it is to succeed.
I believe in the importance of developing new value-added opportunities for the sector to enhance its long-term sustainability, something that is highlighted in the Food Vision tillage report, despite current headwinds, including a challenging market outlook and the instability of export markets brought about by tariffs, which created an extra challenge for malting barley growers this year. I hope this is short-lived. I note positive developments such as the news that Diageo plans to double the brewing capacity of its new carbon-neutral facility in south Kildare and the launch of the National Centre for Brewing and Distilling at Oak Park in Carlow in June, both of which point to potential value-added opportunities for Irish grain.
The development of new technologies such as AgNav is also an important step forward. This new technology will allow farmers to demonstrate their carbon footprint and to identify further mitigation strategies tailored to their individual farms while at the same time allowing tillage farmers to demonstrate the sector's low-carbon credentials.
As outlined in the Food Vision tillage report, we must consider how best to develop the possibility of a sustainable quality assurance scheme for tillage. This will require thorough engagement between all stakeholders but, if done right, it has the potential to help open new value-added market opportunities, particularly in the area of premium food and drinks, where sustainability and providence are increasingly valued by both consumers and industry.
The Food Vision tillage report highlighted access to land as a key challenge for increasing the area under tillage crops. Facilitating and encouraging the exchange of nutrients between livestock and tillage farmers was identified as an important action to help alleviate pressure on land. In response, my Department provided additional support under TAMS through the nutrient importation scheme in August 2024 and enhanced grant aid for nutrient storage in January 2025. Accelerated capital allowances for manure storage investment have also been provided. These were renewed in budget 2026 for a period of four years rather than the normal three years to provide additional certainty for farmers in planning their investments. Verifying organic nutrient movements has also been made easier for importing and exporting farmers through the launch in January 2025 of my Department's organic nutrient movement mobile phone app. Additionally, a subgroup of the agriculture water quality working group is due to consider the issues and develop proposals to increase the exchange of nutrients between livestock farmers and tillage farmers.
I recently attended a meeting in the Killashee Hotel in County Kildare where well over 700 tillage farmers turned up. As a farmer in south Kildare and a resident in a strong tillage area, many of whose neighbours are tillage farmers, I know that does not normally happen in the sector. Tillage farmers do not normally do protests or turn out in such numbers but they did so because of the cumulative effects of three years of really difficult market conditions and the very difficult position of world market prices. At that meeting, which was held before the budget, those farmers talked about the need for financial support in this budget. On the night, I could not commit to getting that over the line in my budget negotiations but I did commit to doing everything I could. As the discussion went on over two and a half hours and as the questions and back and forth began, it was made very clear that, while the financial element is important as an indication to instil confidence in people who are considering whether to sow again next year or this autumn, it is only a short-term measure to provide confidence. The medium-term measure is to look at those areas encompassed in the Food Vision tillage group report. Those measures can really move us away from our dependence and reliance on world market prices, which are depressed in the tillage sector at the minute.
While I did secure €50 million in a budget that was very constrained and where there were a lot of competing demands, I commit to continuing to work with all stakeholders and with Members of this House to identify value-added opportunities. That might be new milling facilities or supporting businesses in taking up the opportunities they have. It might be looking at our whiskey file and the role Irish whiskey has to play. This is another sector that is experiencing very strong difficulties this year as a result of the tariffs. It might involve looking at the role quality assurance can play or looking at the use of native grains to ensure we can monetise the increased benefits and value of those grains as a feedstuff and feed source. That value-added piece is the bigger prize in the medium term. We should learn from the dairy sector, which was able to find the additionality and added value that allowed it not to be dependent only on the crude instrument of world market prices, which come with a great deal of volatility.
I get this industry. I have its back. I want to continue to support it. I would have liked to have had more money for the sector in this budget but it is a solid base as the first of five budgets I intend to bring in. It is a clear indication of my commitment to supporting this sector throughout my time in the Department of Agriculture, Food and the Marine. In many ways, the bigger prize will be beyond one-off payments. It will be about designing a scheme that is targeted to ensure the benefits get to the farmers who need them the most through a direct payment per hectare. That could really move the dial for those farmers who are struggling. Beyond that is the medium-term piece, where we can really instil confidence. Looking at all of the challenges we discussed here late last night in respect of agriculture, including generational renewal, that medium-term goal of giving confidence through adding value to the remarkable produce our tillage farmers produce is a very big prize. That is something I am determined to pursue in my time as Minister for Agriculture, Food and the Marine.
I thank the Leas-Cheann Comhairle for this opportunity. I look forward to hearing the contributions of Members of the House today.