Setting out his stall: priorities of the new minister

Minister Heydon had already attended a council meeting of EU agriculture ministers in Brussels, and was just back from a visit to storm-damaged areas around the country. A full assessment of the impact on farms and businesses is awaited, he said (at the time of interview) in order to provide assistance where possible in restoring operations.
The former Minister of State at the Department of Agriculture, Food and the Marine (DAFM) – appointed to that office in July 2020 – has very much hit the ground running since taking over from predecessor, Charlie McConalogue. His previous role has him well versed in the agricultural sector, its issues, and challenges. 

The priority list

And he has three key priorities, he said, that he is sharpening his focus on. Top of the list is the retention of the Nitrates Derogation, followed by the need to address the complexities of the Common Agricultural Policy (CAP) and other regulations imposed on farmers, and the third strand is generational renewal. 
“Nitrates must be number one in my first year,” he said. “It’s critically important, not only for farmers directly impacted – it involves more than the 7,000 derogation farmers – but for the entire farming community. It impacts every farmer in terms of land availability. If you’re a tillage farmer, you’re concerned especially regarding leasing land. A derogation farmer with 80 cows might have to drop to 60 or 65. That’s the difference between being viable and not viable.
"The impact on rural Ireland would be catastrophic if we were to lose the Nitrates Derogation. We are making progress in terms of investing in water quality, and I am confident we can turn the trend in the same way farmers have reduced greenhouse gas (GHG) emissions. There are indications that the measures the farmers are taking are having a positive impact. We do need to look at it over the longer term. I made that point in Brussels,” he pointed out. 

Reinvigorating our farmer-age profile

Ireland assumes the EU presidency in 17 months’ time and the Irish agriculture minister intends to use the lead up and six-month duration to good effect: “That gives me a short window to lay down the building blocks and let my colleagues across Europe know what Ireland wants to achieve from the next CAP reform. One of the things we want to achieve is simplification. Our schemes get more complex instead of less, and we must look at how we can deliver real simplification.”
Succession, he said, is another area he is keen to deliver on: “That’s the third leg of my priorities tool. The average age of farmers is 58 in Ireland. It is not an outlier by international standards. This is a trend worldwide of an ageing farming population and a struggle to get the next generation involved. I’m very open to seeing what we can come up with. My predecessor, Charlie McConalogue, established a Commission on Generational Renewal in Farming. It is due to report back in the second quarter of this year. I will see what the report says. I’m very keen to look at some existing grants that have a very low take-up. I think they need tweaking to ensure that they get a greater level of participation and that we support farmers more in the succession space.
“Ultimately, at the back of all the challenges around succession, is income and viability. Potential young farmers will vote with their feet if they’re asked to take a lesser quality of life than their peers; if they’re asked to survive on less income than they could get in other jobs. I will actively look to support greater income opportunities for farmers, young and older. That means ensuring we get the best return for our produce, broadening market access and encouraging alternative farm-based opportunities. On the tax side and on the support side, there’s definitely more we can do to encourage that transition from the older generation to the next, while recognising that an older generation has a huge corporate knowledge and an awful lot to give.” 

The Mercosur question

Irish and European farm organisations are very concerned about the potential impact of a trade deal with South American countries, specifically on beef prices. What is this minister’s take on Mercosur? “There are various assessments on the impact of Mercosur. Right now, 200,000 tonnes of beef comes into Europe from Mercosur countries at a very high tariff (or tariff-rate quota [TRQ] as it’s called). If Mercosur goes through, much of that high tariff beef will flip into the proposed lower tariff tonnage, at least initially. You would presume then that the high tariff beef allowance would be replaced. It may or may not be. Then there would be an economic impact on the beef sector. The point that I made in the council meeting is that economics is one side of it. How can Europe continue to ask farmers to deliver higher environmental standards, while on the other hand, potentially importing product that doesn’t meet the same transparency and production standards? I’m working very closely with Simon Harris as Minister Foreign Affairs and Trade, as we continue to make this point about a lack of reciprocal standards. We must work with like-minded countries as we would require a 35 per cent blocking minority in terms of population to prevent Mercosur being implemented.”
On the general threat of US-imposed tariffs on European products, Minister Heydon had this to say: “We need good interpersonal relations with international trading partners and I’m confident we can engage with the Americans and remind them that while we sell a lot of Irish produce into the US, there are Irish companies who employ up on 100,000 people over there. Good trade relations are mutually beneficial. Trade disruption doesn’t suit anybody.”

TB upsurge

The upsurge in TB incidences around the country is not news to the minister. “It’s likely I’m going to have proposals before me, some of them quite stringent, in department briefings in the coming weeks,” he said.
“And I will take my time and consider them. Firstly, I recognise the devastation that TB causes on farms. It’s clear to me the eradication scheme is not fit for purpose, and we need a reset of how we approach the problem. I do want to give farmers confidence that this is something we can turn around. It is costing farmers and the State a huge amount of money. From a trade perspective, beyond the end of the decade, this could really come back to pinch us. Our approach to TB eradication must be changed.”

Calf exports

On the issue of calf exports, he commented that the export trade is a ‘crucial release valve’. “It needs to continue while we pivot away from our reliance on live exports. We are investing heavily in better genetics and sexed semen and supporting the calf-to-beef scheme. We all accept calf exports are not going to last forever. There are headwinds coming. That’s why I met with my Dutch counterpart on the fringe of the Council meeting. I made it clear that Ireland can’t be disadvantaged because of its island location. We must have access to the Single Market. But I am aware there are many politicians in the Dutch Parliament who openly criticise Irish calf imports. It’s not necessarily a discussion based on science or the good animal welfare standards of our exporters. Buyers are very happy with the quality and health of our animals. We continue to work on alternatives because it is a big vulnerability for us to be so dependent on something we don’t fully control.”