Ireland-Farmers concerned over government money.

IRELAND-FARMERS CONCERNED OVER GOVERNMENT SPENDING.

Speculation is rife that REPS funding will be targeted for significant cuts when Finance Minister Brian Lenihan outlines his budget today.

Concern is growing that the rural environmental scheme could be suspended for a year from May 15.

The hugely popular scheme is 45pc state funded, with the remaining 55pc of money coming directly from Brussels.

Some 60,000 farmers have already joined REPS, with the potential for another 10,000 to join this year.

At an average payment of €6,000/farmer, the suspension of new entrants to the scheme for one year could yield savings of €60m for the Government.

When questioned at the Teagasc national organic conference about funding, Minister of State Trevor Sargent was positive about funding for the Organic Farming Scheme, but decidedly evasive about REPS funding.

Forestry payments, which are 100pc state-funded, are likely to be scaled back in today’s supplementary budget.

The Forest Service has issued a statement outlining a ’use it or lose it’ approach to funding for afforestation applications. Farmers will have to begin planting within four weeks of being approved for grants.

It also confirmed that only some elements of the Woodland Improvement Scheme would be continued and they would be assessed on a merit basis.

IFA forestry chairman Pat Hennessy said any cuts to the forestry budget would have serious implications for rural employment and be counterproductive to achieving both renewable energy and carbon reduction targets.

The Suckler Cow Welfare Scheme is another 100pc state-funded scheme that could be in danger, although the outcry from beef farmers at October’s cut may have been enough to keep it intact.

The 40:40:20 deferred payment of Farm Waste Management grants has set a precedent for agricultural payments that the Government may employ for other schemes.

Delaying payment would give the Government a chance to improve its bottom line this year -- while avoiding the political outcry that comes with cutting funding completely.

Animal health schemes, such as compensation for culled animals and income supplementation payments, are also in the firing line.

Significant job cuts are expected across the Department, Teagasc and other state agencies, on top of the ban on recruitment, promotion and allowances.

There has been no move to approve an early retirement scheme for Teagasc, leading to rumours that a tax on retirement lump sums is in the offing later this year.

- Caitriona Murphy