1. Outline of the Policy Framework

Chapter 1.1. consists of a list of significant legislation, policy developments and publications concerning agriculture schemes and payments, dates of introduction, and brief background information, since Ireland's accession to the EEC in 1973.

Chapter 1.2. is a commentary on the most significant policy developments concerning agriculture schemes and payments, and briefly refers to planned future schemes and payments.

Chapter 1.3. is a summary of the environmental legislation of relevance to agriculture schemes and payments. This has already been covered in some detail in the Heritage Council study Evaluation of Environmental Designations in Ireland (1997), and in other recent publications.

1.1. Summary of Policy Developments and Legislation Since 1973

The 1970s

The 1980s

I.	In 1980, the Ewe Premium Scheme, operating under the EEC Sheepmeat Regime, was introduced (EEC, 1980a).
II.	The Suckler Cow Premium (EEC, 1980b) was introduced in 1981.
III.	The ten year Programme for Western Development was introduced in 1981 (EEC, 1980c). Afforestation grants were also available from the EEC for the first time under the package.
IV.	An Foras Forbartha (AFF), the Irish Planning Agency, published its National Heritage Inventory: Areas of Scientific Interest in Ireland (AFF, 1981), which identified the most valuable areas for wild nature, and provided the basis for the current Natural Heritage Areas (NHAs) and Special Areas of Conservation (SACs).
V.	A two year EEC interest subsidy scheme was made available to farmers for on-farm development (EEC, 1981b) and a national interest subsidy scheme ran for the same period. By 1983, when both schemes ended, 14,500 farmers had been paid £9.287 million (DoA, 1984).
VI.	The milk super-levy and milk quotas were introduced in 1984 (EEC, 1984) - the first major changes to the CAP since Ireland's entry to the EEC. Sheep and sucker cow numbers increased as a result, both supported by EEC direct payment schemes.
VII.	In 1985, the EEC passed the Agricultural Structures Regulation (EEC, 1985). The Farm Improvement Programme was introduced under this Regulation in 1986, which subsidised land improvement and on-farm development generally. This Regulation also enabled Member States to fund farmers in Environmentally Sensitive Areas (ESAs) and subsidise afforestation.
VIII.	The first State of the Environment report was published in 1985, and included a section on agricultural impacts on the natural environment (Cabot, 1985).
IX.	The reform of the EC Structural Funds was completed in 1988, which included the CAP Guidance Fund. The reform resulted in Ireland being designated as an 'Objective 1' region (highest priority for structural aid), thereby qualifying for a larger share of EC co-funding for, inter alia, agricultural programmes.
X.	The European Commission published The Future of Rural Society in 1988 (European Commission, 1988). Much of the current debate about the problems of rural areas was initiated by this document.

The 1990s

I.	The National Development Plan 1989-1993 (Government of Ireland, 1990a) was approved by the EC. It included the Operational Programme for the Control of Farmyard Pollution Scheme (CFP), the Headage Payment Scheme, operating under the Operational Programme for Rural Development (1989-1993), and an Afforestation Grant Scheme operating under the Forestry Operational Programme (Government of Ireland, 1990b).
II.	In 1990, the Department of Agriculture published its policy review (Government of Ireland, 1990c). It anticipated further CAP reforms and a greater EC emphasis on direct payments and environmental sustainability. It also supported commonage division, but recommended an extensification scheme to address sheep overgrazing, which was not implemented.
III.	In July 1990, the EC published proposals to extend and revise environmental schemes within the CAP (Commmission of the European Commmunities (CEC), 1991).
IV.	The European Commission's Reflections Paper on the development and future of the CAP (COM (91) 100) was published in 1991 (CEC, 1991).
V.	INTERREG, a cross-border EC funding initiative, was launched by the EC in 1990 (EEC, 1990) and in Ireland in 1991. A joint operational programme for Ireland and Northern Ireland included measures for agriculture and forestry, and environmental measures such as improving water quality
VI.	In 1991, the EC introduced its first policy instrument for organic farming (EEC, 1991a). An Organic Farming Unit was set up in the Department of Agriculture in 1991 and the Irish Organic Farmers and Growers Association (IOFGA) was awarded grant aid for marketing and promotion of organic produce.
VII.	In July 1991, the Agricultural Structures Regulation and its amendments and the Less Favoured Areas Directive were consolidated by a new Regulation (EEC, 1991b). This was a precursor to the 1992 CAP reforms: it included extensification, agri-environmental, forestry and set-aside measures as well as headage payments.
VIII.	The second EC nature conservation law, the 'Habitats' Directive, was passed in 1992 (EEC, 1992a). This required, inter alia, the designation of Special Areas of Conservation to protect habitats and species of European importance. The directive was to have important implications for Irish agriculture policy from 1997 onwards.
IX.	The European Commission published Towards Sustainability in 1992 (CEC, 1992). Agriculture was one of the four priority areas for action, and the Commission policy aimed to link this to the impending CAP reforms.
X.	The MacSharry CAP reforms were completed in May 1992. Prices and market supports for cereals and beef were significantly reduced. Increased compensatory payments were made available to cereal farmers conditional on set aside, and increased direct payments to beef farmers were conditional on modest stocking rate limits. An Extensification Scheme was made available for less intensive farmers. Sheep and suckler cow quotas were introduced.
XI.	The 'Accompanying Measures' in the CAP reforms included an Agri-Environmental Scheme (EEC, 1992b), an Early Retirement Scheme for farmers (EEC, 1992c), and an Afforestation Scheme for agricultural land (EEC, 1992d).
XII.	The Report of the Green 2000 Advisory Group (Green 2000, 1993) recommended a basic code of good environmental practice in farming, and further funding for control of farmyard wastes, but made no specific recommendations on overgrazing.
XIII.	The Rural Environment Protection Scheme (REPS) was introduced in 1994, under EEC Regulation 2078/92 (EEC, 1992b). It was to run for 5 years initially. The REPS represented a major turning point in Irish agriculture policy.
XIV.	The Operational Programme for Agriculture, Rural Development and Forestry 1994-1999 was launched (Government of Ireland, 1994). It included the Control of Farmyard Pollution Scheme, the Farm Improvement Programme, the Compensatory Headage Scheme and the Agri-Tourism Scheme.
XV.	The LEADER II scheme was launched in 1995 (Government of Ireland, no date). It offers, inter alia, assistance for rural groups in rural tourism, exploitation and marketing of agricultural, forestry and fisheries products and promotion and improvement of the environment and living conditions.
XVI.	The Agri-Tourism Scheme was renewed in 1995 and is available to rural dwellers for providing leisure and tourism facilities, support and marketing, and restoration of old farm buildings for tourism.
XVII.	The Environmental Protection Agency (EPA) published its report State of the Environment in Ireland (Stapleton, 1996). The report emphasised the problems of overgrazing by sheep in certain mountain areas and the contribution of the agriculture sector to eutrophication of rivers and lakes.
XVIII.	The Cork Declaration: A Living Countryside was launched by the EU in 1996, in which sustainable rural development was to be put at the top of the EU's agenda.
XIX.	The EU Commission in July 1997 published Agenda 2000 (otherwise called the 'Santer package'), which inter alia proposed further reforms to the CAP (European Commission, 1997). The proposals include a more coherent rural policy and a further step towards world market prices partially compensated by direct payments.
XX.	The Department of the Environment published Sustainable Development: A Strategy for Ireland early in 1997 (DoE, 1997). It included an action programme towards sustainable agriculture.
XXI.	The Mid-Term Review of the Community Support Framework (Honahan, 1997) recommended that headage payments be replaced by transferring some of the funds to support environmentally desirable objectives. The review of the Control of Farmyard Pollution Scheme commented that the scheme was not sufficiently focused on achieving anti-pollution objectives (Fitzpatrick et al. 1997).
XXII.	The European Communities (Natural Habitats) Regulations, 1997 (S.I. No. 94 of 1997) were passed in March 1997, offering some protection for proposed candidate Special Areas of Conservation (SACs). After much negotiation with farming groups, a compensation package was introduced and the then Department of Arts, Culture and the Gaeltacht launched a payment scheme for farmers in SACs.
XXIII.	The Report of the Rural Development Policy Advisory Group was published in 1997 (Government of Ireland, 1997a). Among the recommendations were that the REPS needed evaluation and changes made where necessary; and various premium and headage payments should be made dependent on adherence to environmentally friendly farming practices (i.e. cross-compliance).
XXIV.	The Department of the Environment launched Sustainable Development: A Strategy for Ireland early in 1997 (Government of Ireland, 1997b). It includes an action programme towards sustainable agriculture.
XXV.	The Department of Agriculture, Food and Forestry published Towards a Sustainable Land Policy for Ireland in 1997 (DoA, 1997).
XXVI.	A National Biodiversity Plan is intended for publication in 1998, prepared by the Department of Arts, Heritage, Gaeltacht and the Islands, and will include measures to reconcile agriculture and conservation of biological diversity.
XXVII.	In March 1998, the European Commission published detailed proposals for further CAP reforms and rural development under the aegis of Agenda 2000 (European Commission, 1998). More support is proposed for integration of agriculture policy with environmental objectives. A new rural development regulation is also proposed, with some improved environmental provisions.

1.2. Commentary: Significant Policy Developments Concerning Agriculture Schemes and Payments

The origin of Ireland's current agriculture schemes and payments dates back to Ireland's accession to the then EEC in 1973. One of the key attractions of EEC membership was the economic benefits that would flow from the Common Agricultural Policy (CAP). Since the CAP was founded in 1962, it had been the cornerstone of the Community, and absorbed about two-thirds of its budget by the early 1970s. Currently, it absorbs about 50%.

In the early 1970s, about 95% of the CAP funds were absorbed in price and market support through the CAP Guarantee Fund (price and market support), and the balance was used for structural measures through the CAP Guidance Fund (structural support). However, since the mid-1970s, farm development schemes played an increasingly important role.

 National farm development schemes in the 1970s

Prior to EEC co-funded schemes, farm development such as drainage and land improvement were funded entirely from the Exchequer. The Land Project, which ran until 1976, subsidised the conversion of a massive 1,025 million ha or about 14% of the country. The Land Project Fertiliser Credit Scheme funded a total of 2,384 ha. Other schemes which had environmental impacts were the Mountain Fencing Scheme and the Mountain Grazing (Supplementary Keep) Scheme, which grant aided a total of 74,000 ha by 1976 (DoA, 1976). By the latter half of the 1970s, these national schemes were phased out and replaced by EEC funded schemes, such as the Farm Modernisation Scheme, the Western Drainage Scheme, and the Programme for Western Development.

 The Mansholt Plan

Socio-structural schemes in the CAP originate in 1968, when Sicco Mansholt, the Dutch Vice-President of the European Commission with responsibility for agriculture, proposed a series of measures based on the following principles:

There was thus a recognition in the EEC that a two-tier system of agriculture was being created. By the end of the 1960s, agricultural decline and rural depopulation in Europe's disadvantaged areas was already evident, and farmers in favourable areas were able to benefit from new technology and generous EEC price and market supports to expand and intensify their operations.

The 'Mansholt Plan' did not receive much support from Member States. It is mostly remembered without affection in Irish farming circles as a plan to retire 'inefficient' farmers. The Plan did include, as one of its measures, the first early retirement scheme (EEC, 1972b), as well as the Farm Modernisation Scheme (EEC, 1972a).

Agriculture schemes and payments in the 1970s and 1980s

Up until the CAP reforms of 1992, many Irish agriculture schemes and payments were supported through the CAP Guidance Fund. The Headage Payments Scheme was the first EEC direct grant aid to farmers in disadvantaged areas, and is still considered an important socio-economic support. The Western Drainage Scheme, the Programme for Western Development ('Western Package'), the Cross-Border Drainage Scheme and the Farm Modernisation Scheme were the most significant CAP funded development measures during the late 1970s and early 1980s, and an EEC and a national interest subsidy scheme ran from 1981 to 1983 to assist farmers in on-farm development. All of these schemes had a major environmental impact through widespread wetland drainage, land reclamation, and scrub and hedge clearance. An account of the impacts of these drainage schemes is given in Wetland Drainage in Europe (Baldock et al. 1984). The Farm Improvement Scheme, under the Agricultural Structures Regulation (EEC, 1985) replaced the Farm Modernisation Scheme in 1986. The afforestation grants measure under the 'Western Package' did not become significant until the latter half of the 1980s. By the beginning of the 1990s, land development schemes had declined in importance. However, the Western Package had subsidised land improvement during the 1980s on a large scale: by 1990, 835 commonages had been improved, 8,873 schemes were approved for mountain and hill pasture reclamation, and 34,564 lowland reclamation schemes were approved (DoA, 1990), and these projects alone cost £43.039 million. The entire Western Package grant aid amounted to £171 million in 1990, including an EEC contribution of £94 million (DoA, 1991).

From 1973 to 1989, state/EU EC grants invested in agriculture amounted to £941 million (11% of total investment). No environmental conditions were applied to agricultural schemes until the early 1980s, and this was only because a clause in the 'Western Package' stated that there must be ‘an assurance that the actions undertaken are compatible with the protection of the environment’.

Land improvement grants could be refused or proposals amended by the Department of Agriculture after consultation with the then Forest and Wildlife Service (currently called Dúchas). However, this screening process only applied to sites identified as Areas of Scientific Interest (some of which later became Natural Heritage Areas), and it was reported at the time that only a minority of grant applications were refused through this process (Hickie, 1996). Environmental conditions were not applied to other agriculture schemes and payments.

The bulk of agricultural spending in the 1970s and 1980s was through the CAP Guarantee Fund, which supported prices and markets. This was partly because price and market policy was 100% funded by the EEC and Ireland had to bear the larger share of the co-financing of structural measures (DoA, 1990). The Suckler Cow Premium (introduced in 1981) and the Ewe Premium (introduced in 1980) are examples of direct payment schemes paid by the Guarantee Fund. The Ewe Premium, in particular, has been heavily criticised by environmental and fisheries interests for providing incentives for over-stocking of commonages in western areas.

Change in the CAP in the mid-1980s: milk super-levy and quotas

The period 1970 to 1978 was by then the most prosperous period in the history of Irish farming. During the transition years after EEC entry, the proportion of national spending on agriculture decreased from 65% in 1973 to 30% in 1978 (DoA, 1990). The short-lived boom was followed by a period in 1979-80 which was less economically favourable. The first significant change to the CAP came in 1984 with the introduction of the milk super levy, which penalised milk production above certain levels. This was once of the ways in which the EEC attempted to curtail production, which, even then, was a cause for concern. The milk super-levy was followed by the imposition of milk quotas, which effectively limited further development and entry into dairy farming, then as now the most profitable farm sector in Ireland. Following this major policy change, farmers responded to EEC direct payments for suckler cows and the Ewe Premium scheme for sheep, which was introduced under the EEC's Sheepmeat Regime, established in 1980. As a result, suckler cow numbers increased and sheep numbers rose dramatically (Harte, 1992).

Signals of change in EC agricultural policy in the late 1980s

The reform of the EC Structural Funds in 1988, and the designation of Ireland as an Objective 1 region, allowed Ireland to obtain a greater share of EC funds for agricultural structural measures. By the end of the 1980s, an integrated approach to rural development and environmental management had begun to be incorporated into the language, if not the actions, of EC and national policy. At the same time, the effects of over-stocking of certain hill areas were becoming more evident, and there was more public consciousness of the negative effects of modern agriculture. In the late 1980s, a succession of wet summers and a rapid conversion by many farmers from hay to silage, without proper effluent storage facilities, resulted in a large number of fish kills. The Operational Programme for the Control of Farmyard Pollution was brought into effect in 1989. This was a programme of capital investment in animal housing and effluent storage to minimise pollution from farm wastes. At this time, farming groups demonstrated a lack of enthusiasm for environmental measures such as the proposed Environmentally Sensitive Areas Scheme (ESA), and the farming press tended to react with indifference or opposition to proposals for environmental measures generally. Part of the reason for this was the possibility that environmental measures might be used to restrict the further development of agriculture.

Policy Review in the Department of Agriculture (1990)

In 1990, the Department of Agriculture published its policy review (DoA, 1990), and acknowledged:

• That direct payments would not be a permanent solution for rural development and that structural improvement was essential
• That environmental damage was occurring through sheep overgrazing
• The principle of sustainability in agriculture and its dependence on a good quality environment

The Review recommended:

• Reduced market supports should be compensated by increased direct payments, e.g. the Suckler Cow premium
• The Sheepmeat Regime, under which the Ewe Premium is paid, should be retained, but it was also recommended to lower the maximum flock size on which premiums are paid
• The Farm Improvement Programme should be retained
• Priority in headage payments for low-income farmers
• Farmers should be compensated for environmental restrictions that go beyond good farming practice, but also acknowledged the 'polluter pays' principle
• A basic code of good environmental practice should be prepared
• An EC extensification scheme for sheep in areas affected by overgrazing
• Increased funds for expansion of the ESA scheme

The first Irish agri-environment scheme in 1991

During the early 1990s, environmental issues began to assume greater importance. EEC Regulation 2328/91 introduced extensification, set-aside, Environmentally Sensitive Area (ESA) and forestry schemes. The ESA pilot schemes, which were the first Irish schemes to offer direct payments to farmers for countryside conservation, were initiated in the Slieve Bloom Mountains and Slyne Head in 1991, but lack of promotion and lack of enthusiasm among farmers limited participation and eventually the schemes were phased out with the introduction of the REPS in 1994 (Hickie, 1997).

The MacSharry CAP Reforms of 1992

The CAP reforms of 1992 represented the most significant shock to the Irish agricultural sector since EEC entry in 1973. The reforms are highly significant in the context of this study. Since the reforms came into effect, there has been a much greater emphasis on agriculture schemes and payments as instruments to support farm incomes. On the other hand, price and market supports began to be reduced.

By the 1980s, the EEC had become the world's second largest exporter of food, and around 70% of the EEC's budget was spent on disposing of surplus food. In addition, there was a growing divide between 'commercial' farms which had exploited the CAP supports and taken advantage of new technologies to develop, and 'marginal' farms in physically difficult regions which were increasingly unviable. The developments signalled by the 'Mansholt Plan' in 1968 and the Department of Agriculture Policy Review in 1990 had become a reality. Also, the environmental impacts of intensive agriculture, favoured by the CAP, could no longer be ignored.

In essence, the main stimuli behind the reform of the CAP were:

• Pressure from countries outside the EC, through the General Agreement on Tariffs and Trade (GATT), to reduce barriers to food imports into the EC and to reduce subsidies on EC exports
• Pressure from within the EC to reduce the costs of supporting agriculture

Even though protection of the environment was listed as one of the reasons for the reforms, in reality trade and budgetary considerations dominated, and the main target was to cut production in the beef and arable sectors to restore a better market balance. Price supports were reduced and more generous compensatory payments introduced to make up the losses from lower prices.

Arable sector

As a condition of the new Arable Aid Scheme, paid on an area basis, large arable farmers (over 15.13 ha) were required to set aside a proportion of their land annually on a rotational basis in return for receiving compensatory payments on the basis of acreage, while small arable farmers (under 15.13 ha) remained exempt from set-aside.

Beef sector

In the beef sector, the increased Special Beef Premium and Suckler Cow Premium were to be paid on condition that farmers adhered to a stocking density limit (maximum of 2 livestock units or LUs), in order to curb intensification and thus limit increases in beef production. Quotas were introduced for suckler cows. Farmers with stocking densities of less than 1.4 LU were to be entitled to an Extensification Premium, which was also aimed at curbing increases in production. Although these measures might have seemed beneficial for the environment, the stocking limits were still generous and there were no specific environmental conditions linked to any of the revised payment schemes.

Sheep sector

In the sheep sector, a ewe quota was introduced, as an attempt to curb increases in sheep numbers throughout the EC. In addition, ewe premium rights inside the Disadvantaged Areas could not now be transferred outside these areas. The flock numbers on which premiums could be paid remained at 1,000 ewes in Disadvantaged Areas and 500 ewes elsewhere. By this stage, overgrazing in certain western areas, encouraged by the Ewe Premium, was beginning to be acknowledged officially.

Environment and forestry included in CAP reforms

The so-called 'Accompanying Measures' in the CAP reforms included an Early Retirement Scheme for farmers (Regulation 2079/92), an Afforestation Scheme for agricultural land (Regulation 2080/92) and an Agri-Environmental Scheme (Regulation 2078/92). The Accompanying Measures were, in effect, adjuncts to the main reforms, and amounted to just 1% of the CAP budget in 1992. Even so, they represented some significant changes to the CAP, viz:

Beef, cereal and sheep farmers could continue to produce more than the quotas imposed, but they could not avail of EC aid. Only in the case of milk was there a penalty for over-production (the milk super-levy). Although the MacSharry reforms were heavily criticised by the farm lobby groups prior to 1993 as a threat to the profitability of the agricultural sector, farm incomes in Ireland rose in the years immediately following the reforms, mainly as a result of the new compensatory payments.

Agriculture schemes and payments post CAP reforms, 1993-1997

Agriculture schemes and payments following the MacSharry CAP reforms of 1992 reflect the current EU policies of reducing production of products in surplus (e.g. beef, cereals and sheepmeat), stimulating rural enterprises other than mainstream agriculture (e.g. forestry, organic farming, tourism, and integrated rural development), and giving more support to agri-environmental matters (the REPS, environmental conditions in agriculture schemes and payments).

The Rural Environment Protection Scheme (REPS), introduced in July 1994, represented a sea change in Irish agricultural policy. For the first time, any farmer could apply to join a voluntary 5 year scheme which offered annual payments of £122 per ha per year in return for protection of the countryside. In order to conform with EU policy, the REPS was targeted at small and medium farmers who were already extensive, since the limits placed on fertiliser inputs and stocking rates effectively discouraged the more intensive commercial dairy and arable farmers from participating.

On the structural side, the Operational Programme for Agriculture, Rural Development and Forestry (OPARDF) 1994-1999 was launched. This included the Control of Farmyard Pollution Scheme, the Farm Improvement Scheme, the Agri-Tourism Scheme, the Development of Organic Farming Scheme and the Compensatory Headage Scheme.

Several Community Initiatives, LEADER and INTERREG, continued to operate to stimulate a more integrated approach to rural development, which was an acceptance by policy makers that support of mainstream agriculture alone could not deliver the objectives of halting rural decline and supporting the rural economy as a whole.

The importance of compensatory payment schemes to sections of the farming community was even more emphasised during the mid-1990s. In 1996, for a significant number of sheep farmers the Ewe Premium and Rural World Premium represented 110% of their income, which meant that subsidies had to cover their losses as well as being the only income they had. By the end of 1997, the sheep sector was coming under renewed economic pressure.

Proposals for rural development and further CAP reform into the 21st century

The Cork Declaration: A Living Countryside was launched by the EU in 1996 in Cork. Sustainable rural development was to be put at the top of the EU's agenda.

The EU Commission in July 1997 published Agenda 2000 (otherwise called the 'Santer package'), which inter alia proposed further reforms to the CAP, including a more coherent rural policy and a further step towards world market prices partially compensated by direct payments. Detailed proposals were published in March 1998. One of the major driving forces behind the reforms is the requirement to remain within the market disciplines agreed under the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The other is the need to prepare for eventual enlargement of the EU to include Eastern European countries. However, the focus of this work remains market management rather than a fundamental review of the directions in which EU agriculture policy should go in the 21st century (Matthews, 1997). These planned policy developments are discussed in more detail in Chapter 9.

Irish agri-environment policy post CAP reform

More attention is being given to the impacts of agriculture in designated natural areas. The REPS was the first scheme to offer incentives for management of land within Natural Heritage Areas, in 1994. This measure was followed by the SAC scheme and the announcement of a compensation package for farmers in designated Special Areas of Conservation, parallel with the belated enactment of the Habitats Directive into Irish law in March 1997.

More attention is also being given to the impacts of agriculture on freshwater, through legislative changes (e.g. the Waste Management Act, 1996), and advice to farmers. The EU co-funded cross-border Erne Catchment Nutrient Management Programme was launched in 1997 to advise farmers on nutrient management. Managing Ireland's Rivers and Lakes was launched by the Department of Environment in May 1997 (DoE, 1997). It is a catchment-based strategy, in line with proposed EU water policy (CEC, 1997). The strategy, inter alia, aims to reduce artificial phosphate fertiliser by 10% over the next five years, and promote nutrient management planning by farmers, greater uptake of the REPS, and the Code of Good Agricultural Practice (DoA, 1996).

Sustainability began to enter the language of policy makers at EU and national level. The Department of the Environment published Sustainable Development: A Strategy for Ireland early in 1997 (Government of Ireland, 1997b). It includes an action programme towards sustainable agriculture. The Department of Agriculture, Food and Forestry published Towards a Sustainable Land Policy for Ireland in 1997 (DoA, 1997). The Report of the Rural Development Policy Advisory Group was published in 1997 (Government of Ireland, 1997a). Among the recommendations were that the REPS needed evaluation and changes made where necessary; and various premium and headage payments should be made dependent on adherence to environmentally friendly farming practices (i.e. cross-compliance). All the above policy documents address current and future agri-environmental issues in a cautious and conservative manner, reflecting the general reluctance at national and EU level to make extensive or radical changes in policy in the immediate future.

Conclusions

In the 1970s and 1980s, agriculture schemes and payments concentrated on bringing more land into production and promoting intensification in order to stimulate output. They had a major impact, albeit mostly unquantified, on wildlife habitats, water quality, the landscape and the archaeological heritage.
The only environmental conditions for agricultural schemes and payments until the 1990 applied to the Programme for Western Development, and these were limited. By the end of the 1980s, land improvement schemes had declined in importance, as the Programme for Western Development drew to a close, and large scale arterial drainage schemes undertaken by the Office of Public Works were effectively phased out. Nature conservation legislation was either incapable of addressing agricultural development or was not used to minimise its environmental impact, and planning law did not cover many agricultural activities up until 1990. Water pollution legislation was beginning to be applied more effectively by the late 1980s following a rise in the number of agriculture-related fish kills.

In the early 1990s, environmental issues began to assume more significance in agriculture schemes, mainly because of the requirement to comply with EEC directives. Large land reclamation and drainage projects, and large pig and poultry installations were subject to Environmental Impact Assessment (EIA) from 1990. However, there was little enforcement of planning conditions and EISs for agricultural projects were often deficient. Policy reviews such as Green 2000 (1993) and the Department of Agriculture Policy Review (1990) made little effective difference to the way that agricultural schemes and payments affected the environment.

Agri-environmental issues received more attention since the REPS was introduced in 1994. There was an expectation that the REPS would be able to provide a counter-balance to the generally negative environmental effects of land improvement and drainage schemes and some livestock premium payments. However, the lack of baseline information and monitoring procedures presented great difficulties in assessing if the REPS is fulfilling its objectives. The passing into Irish law of the Habitats Directive early in 1997 heralded the beginning of protection of the most important wildlife sites, many of which are owned by farmers. This was accompanied by a special compensation scheme for farmers in Special Areas of Conservation (SACs).

As the century draws to a close, agricultural sustainability is entering into the language of policy makers, but this may not necessarily translate into effective action to harmonise agricultural and environmental policies at EU and national level. The EU’s Agenda 2000 is likely to be agreed by Spring 1999, and will come into force in 2000. However, it appears unlikely to proceed far enough to fully achieve stated environmental policy objectives at EU and national level. This issue is discussed more fully in Chapter 9.

1.3. Summary of Environmental Legislation Relevant to Agriculture

In this section, the environmental legislation as it applies to agriculture is summarised. Most of the legislation listed below has its origins in EU directives which Ireland is legally bound to implement. Attention is given to legislation applying to the wider countryside and to environmental designations that apply to privately owned land, i.e. land owned by farmers. The Heritage Council is referred to its publication Evaluation of Environmental Designations in Ireland for a detailed appraisal of nature conservation legislation as it applies to designated areas. It should be noted that legislation is only as good as its application and enforcement in practice. There has been a tendency in Ireland for legislation not to be applied as effectively as might be expected, due to shortage of staff and finances, or because of a lack of appropriate information, or because of lack of political will.

i) The Wildlife Act, 1976 (proposed for amendment in 1998)

Enforced by the Dúchas (formerly the National Parks and Wildlife Service), operating under the Department of Arts, Heritage, Gaeltacht and the Islands.

The provisions of the Wildlife Act concerning designated areas are contained in Evaluation of Environmental Designations in Ireland (Hickie, 1997). The Act is recognised to be out of date. It is due for amendment in the near future, and will provide for, inter alia, a limited period of protection of Natural Heritage Areas (NHAs). The provisions of the Act applying to the wider countryside include:

• Intentional interference with wild birds, wild mammals or wild plants which are protected under the Act, or their habitats is prohibited.
• The Flora Protection Order, made under the Act, currently protects 68 species of wild plants. Some of the sites of these species are within NHAs and SACs.
• All wild birds, their nests and eggs are protected under the Act, except for a number of 'pest' species (e.g. Wood Pigeon, Hooded Crow).
• Certain game birds (e.g. Red Grouse, Woodcock, Snipe) can be hunted during an open season, under licence.
• Protected terrestrial mammals include Badger, bat species, deer species, hare species, Otter, Hedgehog, Pine Marten, Red Squirrel; one amphibian, the Natterjack Toad, is protected.

ii) The 'Birds' Directive

Introduced in 1979 (EEC, 1979). Implemented in Ireland by the Conservation of Wild Birds Regulations (S.I. 291 of 1985).

Enforced in Ireland by Dúchas, operating under the Department of Arts, Heritage, Gaeltacht and the Islands.

The Directive obliges Ireland to take appropriate steps to avoid pollution or deterioration of habitats or any disturbances affecting certain rare or threatened birds species listed in the Annexes. Among the listed bird species relevant to agriculture are: Greenland White-Fronted Goose, Golden Plover, Merlin, Corncrake. Designation of sites which qualify as Special Protection Areas is mandatory and undesignated qualifying sites must be given the same protection as designated sites. The Birds Directive also requires the avoidance of pollution or deterioration of habitats of listed bird species outside SPAs.

SPAs will in future be incorporated into the network of Special Areas of Conservation From 1997, SPAs are protected by the same site safeguards as SACs (see 'Habitats' Directive, below).

iii) The 'Habitats' Directive

Introduced in 1992 (EEC, 1992). Implemented in Ireland by the European Communities (Natural Habitats) Regulations, 1997 (S.I. No. 94 of 1997).

Enforced in Ireland by Dúchas, operating under the Department of Arts, Heritage, Gaeltacht and the Islands.

The Directive, inter alia, requires sites qualifying as natural sites of European importance to be designated as Special Areas of Conservation (SACs) and properly conserved. Legal provisions for conservation in SACs include:

• Permission for damaging developments in non-priority habitats may only be given for imperative reasons of overriding public interest.
• Permission for damaging developments in 'priority' habitats (e.g. designated peatlands, sand dunes, limestone pavement, turloughs) may only be given for overriding health and safety reasons.
• There must be assessment of developments not connected with, or which take place outside an SAC, but which might have a significant impact on it.
• Sites damaged illegally must be restored.
• Local authorities must assess developments prior to making decisions on planning application.
• Landowners must be notified of designations.
• Landowners may be compensated for proven loss of income arising from designation.
• Management agreements may be made with landowners.
• Management plans should be prepared, either for specific sites or integrated into development plans.

iv) The 'Nitrates' Directive

Introduced in 1991 (EEC, 1991). Responsible department: Department of Agriculture and Food. No specific implementing legislation.

The Directive requires Member States to monitor ground and surface waters and to designate vulnerable zones if levels of nitrates in groundwater exceed 50mg/litre or are likely to be exceeded in action is not taken. Member States must also designate any freshwaters, estuaries, coastal and marine waters found to be eutrophic from nitrates, or which are likely to become eutrophic in the near future if action is not taken. Annex II sets out a Code of Good Agricultural Practice, which has been implemented in Ireland by means of a booklet (DoA, 1996). Annex III defines measures which need to be taken in action programmes by Member States.

v) The 'Freshwater Fish' Directive

Introduced in 1978 (EEC, 1978).

Implemented in Ireland by the European Communities (Quality of Salmonid Waters) Regulations, 1988 (S.I. No. 84 of 1988). Enforced by local authorities.

Ireland is legally required by the EU Freshwater Fish Directive to designate Salmonid Waters. Twenty two rivers have been designated to date. Limits are set in the Directive and the Irish Regulations for a number of water quality parameters. However, the limit of 0.2 mg/litre for phosphorus, the main cause of eutrophication of Irish rivers and lakes, is inadequate (Hickie, 1997).

vi) The 'Groundwater' Directive

Introduced in 1980 (EEC, 1980).

Implemented in Ireland by the Local Government (Water Pollution) Acts, 1977 and 1990, and the Waste Management Act, 1996. All three Acts are enforced by local authorities.

vii) The Planning Acts, 1963 onwards and Regulations made under the Acts

Enforced by local authorities.

The following rural developments require planning permission and an environmental impact assessment under the Acts:

• Drainage of wetlands over 50 ha
• Land reclamation projects over 100 ha
• Turf development projects over 50 ha
• Afforestation projects over 70 ha
• Piggeries with capacity for 3000 pigs or more on normally drained soils
• Piggeries with capacity for 1000 pigs or more on poorly drained, gley soils
• Felling of trees protected by Tree Preservation Orders
• Fencing of open land and farm roads are normally exempted development, but there are specific exceptions in scenic areas designated in County Development Plans and land open to the public for ten or more years
• Farm buildings over 400 sq ft

viii) Fisheries Acts, 1959-1991 and Water Pollution Acts, 1977 and 1990.

The Fisheries Acts are enforced by the Regional Fisheries Boards, operating under the Department of the Marine and Natural Resources. Local authorities are responsible for enforcing the Water Pollution Acts. The main provisions of the Acts relevant to agriculture are:

ix) Forestry Act, 1946

Enforced by the Forest Service, currently operating under the Department of the Marine and Natural Resources.

The felling of any tree in a rural area requires a felling licence, usually with re-planting conditions. There is no provision for granting or refusing a felling licence on environmental grounds.

x) Arterial Drainage Acts, 1945-1995

Enforced by the Commissioners of Public Works, who are responsible for arterial drainage. The Acts enable the Commissioners to prepare drainage schemes for entire catchments or parts of catchments. Wetland drainage schemes greater than 50 ha are subject to EIA under the Local Government (Planning and Development) Regulations S.I. No 25 of 1990 and the European Communities (Environmental Impact Assessment) Regulations S.I. No 349 of 1989.

xii) Waste Management Act, 1996

Local authorities have been given powers to require nutrient management planning by farmers. This is in order to control the inputs of nutrients into waters in areas where Environmental Protection Agency water quality data identify agriculture as a significant contributor to eutrophication of rivers and lakes under the Waste Management Act, 1996.

xiii) EPA Act, 1995

Integrated Pollution Control Licences (IPCL) are required for pig and poultry units above the thresholds specified in the European Communities (Environmental Impact Assessment) Regulations S.I. No 349 of 1989.

Summary

Environmental legislation controlling agricultural activities is relatively comprehensive. The various responsible authorities have been given powers to regulate the following:

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