The European Commission has told the Government that in order for Ireland to retain a nitrates derogation for farmers from next year it must demonstrate efforts to conserve designated sites or species under the EU's Habitats Directive.
Previously the Commission has traditionally just sought evidence of progress in relation to water quality, however, with Ireland now the only country left in the EU seeking a nitrates derogation the criteria have been expanded.
It is understood the Commission contacted the Government in recent weeks about the change, with Irish officials now working on an updated plan, which is expected to be submitted to the EU in the middle of July.
Under the Nitrates Directive, farmers have to ensure that the total amount of nitrogen from organic manure applied to their land does not exceed 170kg per hectare per year.
The directive aims to reduce water pollution caused by nitrates used in agriculture, and EU member states are required to monitor water quality and identify areas that drain into polluted waters or are at risk of pollution.
Due to the country's unique grass-fed farming model, Ireland has a derogation allowing use of up to 250kg for some farmers but it expires at the end of the year, with the EU set to vote on new limits for 2026-2029.
The EU is reportedly putting pressure on Ireland to get its plan in as quickly as possible so that it can be considered ahead of negotiations and a vote later in the year.
Under the Habitats Directive any project likely to have a significant effect on a designated site or species must be subject to assessment.
For Irish farmers seeking a derogation, this would mean that if they are grazing cattle near a Natura 2000 site the area would need to assessed before it was granted.
Natura 2000 is an EU network of 27,000 core breeding and resting sites for rare and threatened species, as well as some rare natural habitat types, which are protected in their own right.
Based on correspondence from the European Commission - and legal advice to the Government - to secure the next nitrates derogation Ireland will have to demonstrate compliance with the Habitats Directive when granting individual farmers a derogation.
Plans for this assessment process include monitoring and studying 46 catchment areas (with an average catchment size of 150,000 hectares) across the country.
These sites would be assessed by experts, including ecologists, before a derogation is granted.
Minister for Agriculture Martin Heydon said that "in developing such a plan, I am committed to engagement and have held a series of stakeholder meetings with that in mind".
"My officials have also engaged with the Agriculture Water Quality Working Group where the matter was discussed this morning," he said.
"It is important stakeholders are aware of the issues emerging from the discussions and how Ireland is working to fulfil its legal requirements and provide the Commission with the assurances it needs to justify granting our next derogation."
If Ireland's nitrates derogation is lowered, farmers would have to take measures such as culling cows, exporting slurry, or acquiring more land to abide by lower limits.
The new requirement from the European Commission follows legal proceedings launched by An Taisce against the government in 2022 which - if successful - would see Ireland's nitrates derogation removed.
In its case, in which both the IFA and ICMSA are both notice parties, An Taisce says that an independent environmental assessment of the Nitrates Action Programme acknowledged an uncertainty whether projects could impact protected European sites under the Habitats Directive.
That case has been referred by the High Court to the European Court of Justice.
An Taisce welcomed the EU Commission requirement that more stringent environmental conditions be applied to farmers applying for a nitrates derogation in order to bring them into compliance with the EU Habitats Directive.
In a statement, the environmental charity said that when a farmer applies for a nitrates derogation from the Department of Agriculture, no environmental assessment is carried out to determine if the land can absorb the extra nitrogen loading.
It added that nitrogen water pollution has been increasing for over a decade, and despite the recent slight decreases, nitrogen pollution continues to be far too high in the South and Southeast.
Head of Advocacy with An Taisce Dr Elaine McGoff said: "Despite the clear pattern of elevated nitrogen pollution in the south and southeast, driven primarily by intensive agriculture, the impact on our waterways of allowing additional organic nitrogen loading onto these farms has never been assessed as part of the licencing process. This was a major oversight by the Government, and it's high time it was addressed.
"This new requirement from the EU will ensure that the local environment is taken into consideration before allowing for additional potential pollutants onto the land. An Taisce has long called for an evidence-based approach to the granting of derogations, and we welcome the extra rigour for this process."
Government needs a 'plan B'
Social Democrats Agriculture Spokesperson Jennifer Whitmore said the Government needs to have a 'plan B' for farmers if their attempts to secure an extension of the nitrates derogation fail.
"As part of the application process, the Government will have to demonstrate compliance with the Habitats Directive," Ms Whitmore said.
"In effect, this means any farmer grazing cattle near a designated special area of conservation – which includes 46 catchment areas with an average size of 150,000 hectares – will have to seek an assessment of the area before the application is granted.
"This is a new criterion that is hugely welcome, given it is designed to protect the environment and that other plans, put in place for previous extensions, failed to protect water quality and our biodiversity.
"However, it means compliance, for the Government will be extremely difficult, given it will be onerous to both assess these area and secure the necessary approvals."
She added that "other EU countries, which have or had the derogation, have conceded it is incompatible with efforts to improve water quality and protect biodiversity".
"For those reasons, the Social Democrats are clear that the Government should not be seeking this extension," Ms Whitmore added.
Meanwhile, farming groups have expressed concerns over the new criteria.
Irish Farmers' Association President Francie Gorman said that "based on the minister’s comments, we would be looking at doing hundreds of Appropriate Assessments around the country, even with the State paying for them, and this will cause huge uncertainty for individual farmers.
"IFA is a notice party in the case taken by An Taisce and we understand the issues raised. However, the retention of the derogation may now only be the first step for individual derogation farmers as they will have to wait the outcome of these Appropriate Assessments to determine if they can qualify for the derogation on an ongoing basis.
"IFA made it clear to the minister when we met him last week that we need far more clarity on the need for this process and how it will work and as regards who will be making the decisions on the outcome for individual farmers."
President of ICMSA Denis Drennan said his organisation would "always trust in the technical excellence and aptitude of its family dairy farm membership but there is no point in pretending that this latest hoop to be jumped through does not represent a serious threat to the family farms that backbone rural areas in economic, social and demographic terms".
"It is ICMSA's view that that the Minister should meet with the EU Commissioner immediately to clarify exactly what is required so that farmers can have a level of confidence about the future – confidence that is being severely challenged because of this development," he said.
