Increased payment rates for organic farmers from next year

Increased payment rates under the Organic Farming Scheme (OFS) have been announced by the Department of Agriculture.

With effect from 1 January 2023 – subject to approval by the European Commission for the Irish CAP Strategic Plan – dry livestock farmers of 70ha or less will receive €300/ha for the first two years of conversion, with a payment of €250/ha during years three-five of the scheme when the transition is complete.

Dairy farmers converting to 70ha or less receive €350/ha conversion, with a payment of €300/ha for full organic status.

Arable farmers on 1-70 ha receive €320/ha for conversion and €270/ha for full conversion; while horticulturists of 70 ha or less will receive €800/ha on conversion and €600/ha once conversion is complete.

All the details of the improved payment rates are listed in the table below:


New payment rates under the Organic Farming Scheme

In addition to the payment increases – from €220/ha on conversion and €170/ha with full organic status for dry and dairy farms – the Department is aiming to introduce a new ‘share payment’ for farmers in the scheme of €2,000 in the first year and thereafter €1,400 per year.

Commenting on the announcement, Department of Agriculture Minister of State Pippa Hackett said: “The budget proposed for this program under the next CAP is a fivefold increase on the current programme.

“Through the CAP Advisory Committee, the newly convened Eco-Strategy Forum and feedback from stakeholders, it has become clear that higher payment rates are needed to support farmers in converting to and maintaining organic farming.

“In addition, a new participation payment is proposed to allow farmers additional advisory assistance and support to comply with organic farming standards.”

For the duration of the new CAP, OFS has been allocated a total budget of €256 million so under the new payment rates it is expected that the total payments of a 40 ha dry cattle farmer will increase by 54 per cent over the five years of the new regime compared to the previous CAP.

The Green Minister added that there was “wide recognition” from stakeholders and industry that both the environmental and socio-economic benefits of organic farming are “needed more than ever”.

“The new increased rates reflect my commitment to ensure our program for the government meets the goal of 7.5 percent of all organically farmed land by 2030,” she said.

The EU Green Deal has set itself the goal of cultivating 25% of the EU’s agricultural land organically by 2030 Increased payment rates for organic farmers from next year

Fry Electronics Team

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